Sunday 24 September 2017

Irish firms struggling with SEPA change

John Mulligan

John Mulligan

NEARLY a third of Irish businesses are struggling with requirements for the new Single Euro Payments Area (SEPA) directive that comes into force next February.

Newly published research from PriceWaterhouseCoopers (PWC) shows that while 51pc of chief financial officers here have SEPA strategies in place, 34pc say they haven't yet developed a strategy or are unsure of their level of readiness.

SEPA aims to simplify financial transactions across the European Union. It will apply to 33 countries, both in and outside the union, and intends to make it easier to transfer or receive funds within participating states.

From February next year, all national direct debits and transfers must be SEPA-compliant. National sort codes and account numbers will be replaced by an International Bank Account Number (IBAN) and a Bank Identifier Code (BIC).

The PWC survey shows that 70pc of chief financial officers expect to meet the February deadline, but one in six said they're either not confident of meeting the deadline or didn't even know if SEPA applied to their organisation.

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