Cash Management article

Do you have customers in several European countries?
Then what is happening in Europe will affect you. DNB closely follows the developments in Europe and through our Euro Concept, we can advise you when you wish to pay and collect payments to and from your euro accounts.

What is really the EU’s intention with respect to the European market?
The intention behind the EU is to create a common home market in Europe where all companies are subject to the same rules and regulations. To reach this target, the EU member countries have agreed on four principles regarding the free movement of:
» Goods
» Services
» Labour
» Capital

All national measures which entail the obstruction of the above are prohibited. As a party to the agreement on European Economic Cooperation (EEA), Norway undertakes, to the same extent as EU/EEA member countries, to facilitate conditions for business activity in accordance with the four freedom principles. With respect to the free movement of capital, the Single Euro Payments Area (SEPA) is a key element.

Which requirements are made to SEPA member countries?
SEPA consists of 27 EU countries, and Norway, Liechtenstein, Switzerland, Iceland and Monaco. The EU’s intention with SEPA is to harmonise national markets for euro payments for a common European market with equal terms and conditions. Customers should not need to operate with euro accounts in each of the member countries.

• EU has decided that by 1 February 2014, a common infrastructure in the eurozone will be in place both for ordinary payments and for direct debiting.
• The same will apply from 31 October 2016 for EEA countries outside the eurozone.
  
  More information about SEPA requirements and file formates

What can we do for you while we await the new euro payment area?
There is still some uncertainty as to how swift SEPA’s vision of a single integrated payment area will be realised. Harmonisation is a complex process and there are many national products and rules which must be coordinated. The main aim is that companies and private individuals experience SEPA as a single ”payment country”, but many pieces must fall into place before we are there. It is important to know what applies at any given time to be able to capitalise on the opportunities which exist.

In DNB, we have gathered all information related to euro accounts in our Euro Concept.

Quo vadis Europa – Where is Europe going?
The answer to this question is influenced by many factors. DNB is closely following developments. Through our Euro Concept and our first-hand knowledge about what is happening, we can give you the advice you and your company need to be able to adapt to changing conditions in the best possible way.

For more information, please contact your cash management advisor.