How to Issue SEPA IBANs with a Non-EU Regulated Firm
Introduction
With the rise of global fintech, firms based outside the European Union are increasingly interested in offering euro-denominated accounts and SEPA IBANs to customers. But is it possible for a non-EU regulated entity to issue SEPA-compliant IBANs? The answer is yes—with the right partnerships and structure. In this article, we explore how it works.
Can Non-EU Companies Issue SEPA IBANs?
While SEPA participation is managed by European institutions, there are legitimate pathways for non-EU regulated firms to offer SEPA IBANs by partnering with licensed EU financial institutions or Banking-as-a-Service (BaaS) platforms.
Understanding SEPA
SEPA (Single Euro Payments Area) allows seamless euro transfers across 36 countries. Issuing an IBAN that works within SEPA requires access to a payment account managed by a SEPA participant.
Legal Routes to Offer SEPA IBANs as a Non-EU Firm
1. Partnering with an EU-Based EMI or PI
Many Electronic Money Institutions (EMIs) and Payment Institutions (PIs) in Europe offer white-label IBAN issuing solutions. These allow non-EU firms to operate under the EMI’s regulatory umbrella.
2. Using Banking-as-a-Service (BaaS) Providers
BaaS platforms such as Solaris, Treezor, or Swan provide turnkey infrastructure, including SEPA connectivity and IBAN issuing. As a non-EU firm, you’ll be the “program manager” operating under the BaaS entity’s license.
3. Registering a Local Entity in the EU
In some cases, firms choose to establish a legal entity in an EU jurisdiction (e.g., Lithuania, Ireland), which then becomes the regulated front for issuing IBANs.
Compliance Considerations
Even if you're not directly regulated in the EU, you must still comply with:
- Know Your Customer (KYC) and Anti-Money Laundering (AML) checks
- Transaction monitoring requirements
- Data protection under GDPR
Advantages of Issuing SEPA IBANs
- Access to low-cost euro transfers
- Improved customer trust through EU-style banking
- Revenue opportunities via embedded finance and FX
Challenges to Consider
- Dependence on the risk appetite of your EU partner
- Limitation on business types (gambling, crypto, adult may be blocked)
- Currency settlement and safeguarding may require extra structuring
Related Searches
- How to get SEPA access as a fintech
- SEPA IBAN issuing without EU license
- Best BaaS providers in Europe 2024
- EMI partnerships for non-EU firms
FAQ: SEPA IBANs for Non-EU Firms
- Can a company outside the EU issue SEPA IBANs?
- Yes, but only through a partnership with a regulated EU institution (e.g., EMI, PI, or BaaS provider).
- Do I need an EU license to issue IBANs?
- No, not directly. Your EU partner holds the license—you operate as a program manager or distributor.
- Can I use my own BIC and brand?
- Yes, in most white-label setups, you can issue IBANs under your own BIC and branding.
Citations
“SEPA access is not limited to EU-licensed entities—BaaS partnerships
