The European Payments Council (EPC) confirmed yesterday (4th February) that from 1 May 2016 the Isle of Man, Jersey and Guernsey will become part of the geographical scope of the direct debit and credit transfer schemes of the Single Euro Payments Area (SEPA).

This is a significant development that will enable banks in the three islands to apply to join the SEPA schemes, which facilitate fast and secure cross-border transfers in euros.

The Isle of Man, Jersey and Guernsey have worked in partnership to progress this matter and have each put in place the relevant legislation to meet SEPA requirements.

Economic Development Minister Laurence Skelly MHK said: ‘Today’s announcement by the European Payments Council is extremely positive news. It gives banks in the Isle of Man the opportunity to join the SEPA direct debit and credit transfer schemes and offer customers the benefits that these secure and efficient schemes provide for payments in euros.’

He added: ‘As many of our largest banks have operations in more than one of the three islands, it is important that the Isle of Man, Jersey and Guernsey are joining SEPA together. Our inclusion in the geographical scope of SEPA reflects many years of well-coordinated work by industry, government and regulators in the three jurisdictions, in conjunction with our respective Brussels offices. I would also like to express our appreciation for the excellent working relations we have established with the European Payments Council and also for the support we have received from Payments UK.’

Paul Smith of the Isle of Man Bankers Association commented: ‘The Isle of Man Bankers Association has worked with Government, and on behalf of Isle of Man businesses, to gain access to SEPA which brings with it lower and more certain payment costs. Over the coming months the banks themselves will individually complete their own formalities with the EPC and in making the necessary system changes to open up the service for their customers.'

Javier Santamaria, Chair of the European Payments Council, said: ‘I welcome the fact that from 1 May Guernsey, Jersey and the Isle of Man will be included in the geographic scope of the SEPA schemes. The three jurisdictions are active European banking centres and their inclusion in SEPA will represent a natural extension of the scope of these schemes. I am pleased at the good cooperation that has developed between the EPC and the three jurisdictions over the course of the application process and we look forward to building on this.’