The outcome of Brexit is still as uncertain as ever, with no sign of agreement between Boris Johnson’s UK government and the European Union. As it stands, there is a real chance the UK could leave the EU without a deal on October 31st.
We want you to know that whatever the outcome, we’re taking proactive steps to protect your account and minimise disruption. There are, however, some important changes which may need your attention.
We are prepared for no deal
Last year, we set up a new European entity (called Revolut Payments UAB) in preparation for a no deal outcome back in March. Because this entity is based in Europe, it will have the ability to passport permissions around the EEA, whatever the outcome of Brexit.
We will switch most of our EEA-based customers over to this new European entity in the event of a no deal. This means you’ll remain able to use all the great Revolut features you know and love. That said…
You may need to verify your identity again
All financial service providers are required by law to verify their customers’ identities. This is why we ask you to submit a selfie and a form of ID when you open your Revolut account.
The rules governing how this is done can vary slightly between different countries. For example, our European entity is not allowed to accept driver's licenses as valid identity documentation.
For this reason, some customers may be asked to submit a new ID document, such as a passport or national ID card.
If you happen to be one of these customers, we will have contacted you recently and we will continue to prompt you to do this over the next few weeks.
Important: If you are one of these customers, it’s vital that you submit your new ID as soon as possible. If you don’t, then by law we may not be able to continue offering you our services after a No Deal Brexit, until you do so.
How could no deal affect companies?
Currently, Revolut ‘passports’ its UK authorised permissions across the EEA, because the EU allows countries to recognise each other’s financial services regulations as part of the single market.
If the UK were to leave the EU without a deal, then this ability to passport permissions might be at risk, as the UK would no longer be a member of the single market. If this happens, it may no longer be possible for UK companies to provide financial services to European customers immediately after Brexit.
This is why we’re taking steps now to make sure this doesn’t affect our customers. After all, we were founded on the basis of money without borders.
Your money is safe
Our European entity is an authorised e-money institution, just like our UK entity. This means your financial and other regulatory protections will remain unaltered, and protected by European law. All of our customers’ funds will be securely held in safeguarded accounts at leading financial institutions.
What happens next?
We are engaging with both the UK and European regulators, industry representatives and our fellow e-money and payment services providers to explore all alternatives, including potential periods of transitional relief for firms like us to continue to service our customers from our UK entity (in the event of any unforeseen delays or restrictions).
No matter the outcome of Brexit, we will put your interests first, keeping you informed every step of the way.
Keep an eye on the blog, and your inbox, for updates.
Brexit — Shorthand for the event of Britain leaving the European Union (Britain + exit = Brexit)
No Deal — This describes the situation when the UK exits the EU without agreeing on the terms of leaving
EEA — The European Economic Area is a group of member states (countries) bound by an agreement surrounding the free movement of labour, goods, services and capital
European entity - Revolut Payments UAB, a subsidiary of Revolut Ltd
Passporting — The ability for licensed companies to serve customers in other countries, under the license of their home country
KYC — Know Your Customer. This is the process of verifying your identity through valid documents and photographs UK entity - Revolut Ltd
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