9 May 2019
Europe Arab Bank plc (EAB) – Brexit Update
As a result of Brexit, currently it remains possible that EAB’s branches in Paris, Frankfurt and Milan, could face loss of passported rights to provide financial services in the European Economic Area (EEA). The priority of EAB has been to ensure that we can continue to provide our clients with reliable banking services without disruption in such a scenario.
In April the EU Council agreed to defer the date of Brexit to 31 October 2019 (assuming the UK participates in the European Parliament elections) The deferral agreement allows for an earlier departure date if the Withdrawal Agreement is ratified by the EU and the UK before 31 October. If that happens, the UK will continue to benefit from full financial services passporting rights into the EU during a transition period lasting until the end of 2020. The delay in Brexit has enabled EAB to defer implementation of its contingency plans to a later date.
EAB's Brexit contingency planning
In the event of a ‘no deal Brexit’, EAB’s contingency planning includes the transfer of EAB’s business in its branches in Paris, Frankfurt and Milan to a newly established banking subsidiary which in principle will be able to provide the same services as those by EAB currently.
The establishment of the new banking subsidiary is well progressed and it has recently received authorisation as a credit institution. Our current plans enable us to be ready to implement the transfer of business quickly once we agree a date of transfer to the new subsidiary. We will continue to closely monitor political developments and regularly review our plans to ensure readiness.
We will update this message once the position regarding the UK’s departure from the EU is clearer and will also contact our clients as required. In the meantime, we would like to thank you for your continued support. For any immediate enquiries, please contact your Relationship Manager or use the ‘Contact Us’ link in the top right corner to access the message form.
This message is for information purposes only. It is not intended to be relied on for legal purposes and does not constitute a recommendation, advice, offer or solicitation to buy or sell a product or service nor an official confirmation of any transaction.