Bank of Lithuania

Payment services. Will it be possible to open an account for executing customer payments, i.e. not a safeguarding account, in the UK after Brexit?

11-11-2020

Neither the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions nor the Law on Payment Institutions restricts the list of financial institutions to hold customer funds with, if payments are made within the legally established timeframe and customer funds do not remain with the electronic money or payment institution longer than by the end of the next business day. In the opinion of the Bank of Lithuania, payment accounts can be opened not only with a credit institution established in the Republic of Lithuania (including a branch of a foreign credit institution established in the country), a credit institution established in another Member State, the Bank of Lithuania or the central bank of another Member State, as it is indicated in Article 25(1)(1) of the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions as well as Article 17(1)(1) of the Republic of Lithuania Law on Payment Institutions, but also with a credit institution established in a foreign state*, including the United Kingdom, and another electronic money or payment institution.

 

*Article 2(62) of the Republic of Lithuania Law on Payments lays down that a foreign state is a non-Member State of the European Union and the European Economic Area.

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