On 31 January 2020, the United Kingdom (UK) left the European Union (EU) under the withdrawal agreement that was reached. This means a no-deal Brexit was avoided on that date, and a transitional period has commenced that will last until the end of 2020. During this period, the UK will remain subject to EU law in almost all areas, including financial and other passporting rights that apply in the internal market. The EU and the UK will conduct negotiations on their future relationship, which should come into effect on 1 January 2021. The details of that relationship are as yet unknown.
The Q&As below deal with possible questions from consumers and financial institutions and also discuss how we prepare for Brexit.
Consumers - Most frequently asked questions
Can I still use my debit card in the UK after Brexit?
- Yes, this will remain unchanged. Measures have been taken to ensure that you can still use your debit card to pay for your purchases, even if the transitional period should end without clear agreement on the future relationship between the EU and the UK.
- Similarly, you can still withdraw pounds sterling from ATMs in the UK.
- If you are a retailer in the Netherlands, UK customers with UK debit or credit cards can still pay for their purchases using your POS terminal and withdraw money from ATMs in the Netherlands.
Will I pay a higher charge when I withdraw cash from an ATM in the UK?
That depends on your bank. Please contact your bank to find out more.
Can I still transfer money to and receive money from the UK?
Yes, this will remain unchanged, even if the transitional period should end without clear agreement on the future relationship between the EU and the UK. The banks have taken measures to ensure that payments in euro will not be interrupted. This applies to funds transfers, direct debits, and debit and credit card payments. Payments in pound sterling will also continue uninterrupted.
Can I still travel to the UK with unlimited cash amounts?
Please consult the Dutch-language website page on this subject provided by the Dutch Tax and Customs Administration.
I live in the Netherlands and have an account at a UK bank operating in the Netherlands. Following Brexit, will my money still be protected by a deposit guarantee scheme (DGS)?
Yes, your money at a UK bank will still be protected. The UK deposit guarantee scheme protects deposits up to GDP 85,000. Banks and administrators of deposit guarantee schemes ensure that your money will be protected even if the transitional period should end without clear agreement on the future relationship between the EU and the UK. You do not have to take any further action. The DGS that will protect your deposits after the transitional period depends on your situation. For further information please contact your bank. If you would like more information about the DGS, please contact De Nederlandsche Bank.
I live in the United Kingdom and I have an account at a Dutch bank operating in the UK. Following Brexit, will my money still be protected by a deposit guarantee scheme (DGS)? Yes your money will still be protected. The Dutch deposit guarantee scheme currently protects your deposits up to EUR 100,000. Banks and administrators of deposit guarantee schemes ensure that your money will be protected even if the transitional period should end without clear agreement on the future relationship between the EU and the UK. You do not have to take any further action. The DGS that will protect your deposits after the transitional period depends on your situation. For further information please contact your bank. If you would like more information about the DGS, please contact De Nederlandsche Bank.
What would be the consequences for UK-based financial institutions that operate in the Netherlands if the transitional period should end without clear agreement on the future relationship between the EU and the UK?
If the transitional period should end without clear agreement on the future relationship between the EU and the UK, UK-based financial institutions would lose their rights to provide cross-border financial services in the Netherlands, except under potential equivalence decisions in areas where these can be made under EU legislation. If UK institutions wish to continue to serve Dutch customers after the transitional period it is therefore important they take timely preparatory measures, if they have not done so already. This could for example include submitting an application for a licence to operate in the Netherlands or another EU Member State. For further information about licence applications see our website.
General - Most frequently asked questions
How does DNB prepare for the UK's departure from the EU?
We are making various preparations for the consequences of the UK's departure from the EU. Firstly, we are discussing licence applications with UK financial institutions wishing to continue operating in the Netherlands and the EU following the Brexit and the transitional period. We have already issued many licences (see the Q&A below). At European level we are also working with other supervisory authorities – through for example the SSM – to set out minimum requirements and expectations for UK-based financial institutions that wish to open branches in the EU post-Brexit.
We are also responsible for financial stability and a reliable and efficient payment system. In this capacity we analyse the risks related to Brexit and advise parties such as the Ministry of Finance about legislative amendments. The risks Brexit poses to financial stability have also been discussed several times in the Financial Stability Committee (see information in Dutch here and here). In addition, we monitor that institutions under our supervision and oversight prepare for the consequences of Brexit (see for example here). Lastly, we are making our own preparations related to contracts we entered into with UK counterparties in the context of our own trading operations.
How many licence applications has DNB received as a result of Brexit?
Due to Brexit, financial institutions are looking to open branches in the Netherlands to retain access to the European markets. We have already issued well over 30 Brexit-related licenses, both autonomously and in tandem with the Dutch Authority for the Financial Markets (AFM). The applicants are a varied group of institutions. Beside several banks and insurance firms, these are mostly payment institutions and investment firms, such as trading platforms. Some other licence processes are still underway.
How will DNB and the UK supervisory authorities cooperate post-Brexit?
In May 2019 DNB and the AFM signed a Memorandum of Understanding (MoU) with the Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA). This MoU, based on a previously agreed EBA framework, will lay the basis for continued cooperation and exchange of information between the four supervisory authorities. It will take effect when EU legislation no longer applies in the UK, following the transitional period.
The MoU includes agreements about what types of information can be exchanged about institutions engaged in cross-border activities between the Netherlands and the UK. It also sets out practical agreements about conducting joint supervisory activities. The MoU covers all institutions supervised by the four aforementioned supervisory authorities, with the exception of insurance and reinsurance firms, and pension funds. For these categories of institutions, multilateral EIOPA-based MoUshave since been signed between the EU27 supervisory authorities and the PRA, FCA and the pensions regulator (TPR) in the UK. DNB and the AFM are also co-signatories to these EIOPA MMoUs. Lastly, we will also sign other MoUs where relevant.
DNB about the financial sector's preparations for Brexit
Brexit-related information from the Dutch government and other organisations