Revolut decided to move its Irish user’s accounts to Revolut’s business in Lithuania as its e-money license will no longer be valid post Brexit.
This December, the company will begin transferring Irish accounts to its Lithuanian e-money business, where they will be regulated by Lithuania’s central bank.
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However, this move is only temporary while the digital bank awaits the outcome of a licensing process with the Central Bank of Ireland.
“While that process is ongoing, to ensure that Brexit does not impact our Irish customers we will temporarily migrate their accounts to Revolut’s e-money licensed business in the EU, based in Lithuania,” a spokesperson for Revolut said.
“Our plan is that once the business in Ireland is authorized by the CBI, we will migrate our Irish Revolut customers to the Irish entity and, in due course, many of our other Western European customers,” the spokesperson added.
Daragh Cassidy, Head of Communications and PR at comparison and switching site bonkers.ie said to RTE that Brexit will have a detrimental impact on consumers and businesses and this move by Revolut is the first sign perhaps of the chaos to come.
“The biggest impact for customers to be aware of is that their IBAN and BIC numbers are going to change. For most Revolut customers who top-up through the app by using their main bank’s debit card, this won’t be an issue. However, for those who get paid directly into their account by their employer or have direct debits or standing orders on the account, there will be a change,” said Cassidy
“This is because all Revolut IBANs currently start with a ‘GB’ as this is what is used for all UK-based accounts. This will now change to LT. This means if you are getting paid into your account by your employer you must let them know that your account details have changed. You must also update any direct debits or standing orders you have, otherwise, they could bounce and you could be hit with referral fees, which will also place your credit rating at risk,” he concluded.