LONDON, April 5 /PRNewswire-FirstCall/ -- The Single Euro Payment Area (SEPA) will affect companies making and receiving euro payments in Eurozone countries from 2008, including those headquartered outside the Eurozone. But to reap the full benefits, companies must understand and prepare for operational changes, says ABN AMRO.
The aim of SEPA is to eliminate national differences in payment instruments and processing infrastructures in Europe and ensure uniform quality, timeliness and costs for cross border transactions in euros within SEPA. To achieve this, new payment instruments will be introduced: The SEPA Credit Transfer (SCT), the SEPA Direct Debit (SDD) and the cards framework, for transactions in euros across the Eurozone.
"SEPA will go a long way to fulfilling the expectation of a 'one country market' in Europe, reducing complexity, improving efficiency and lowering transaction costs," said Ann Cairns, Chief Executive Officer, Transaction Banking at ABN AMRO, speaking at the EuroFinance International Treasury Management conference in Miami on 5 April.
The opportunity is extensive. By 2008, SEPA is likely to comprise up to 18 countries as new EU entrants, such as Estonia, Lithuania, Slovenia, Cyprus, Latvia and Malta, join the 12 existing Eurozone members.
What should corporate treasurers be doing now to prepare their companies for SEPA? ABN AMRO's SEPA checklist for corporates offers a roadmap:
-- Identify a champion in the organization to quantify the impact of SEPA
and guide strategy implementation
-- Start a programme to include International Bank Account Numbers
(IBANs) and Bank Identifier Codes (BICs) on all invoices
-- Obtain the IBAN and BIC from all counterparties in the Eurozone
-- Discuss the impact of SEPA with trading partners and identify early
adopters to work with during the transition
-- Review financial trading terms with counterparties -- especially when
trading in multiple markets
-- Talk to technology providers about the SEPA scheme and systems changes
needed
-- Talk to banking partners and identify banks that can support the
organization through the transition
-- Identify banks that can also provide broader European coverage, which
will be important as more countries join the euro.
ABN AMRO has co-published with Euromoney the 2006 Guide to Single Euro Payments Area*, offering information and insights into aspects of SEPA relevant to companies.
"Many companies are currently unaware of SEPA and how it will change their relationships with customers and suppliers. ABN AMRO is committed to SEPA and to raising awareness of these important changes through discussions with clients and wider audiences," said Ms Cairns.
* Copies available on request ABN AMRO
Netherlands-based ABN AMRO (NYSE:ABN) is a leading international bank with total assets of EUR 880.8 bln (as at 31 December 2005). It has over 3,000 branches in more than 60 countries and territories, and has a staff of over 96,000 full-time equivalents worldwide. ABN AMRO is listed on Euronext and the New York Stock Exchange.
ABN AMRO Transaction Banking delivers cash, trade and card products and services to corporations and businesses, financial institutions, retail customers and private clients globally. These services are available in some 3,000 locations in over 60 countries, including LaSalle Bank in the US and Banco Real in Brazil. Underpinning this extensive global network is integrated technology supporting billions of payment, trade and card transactions every year. Global scale, a commitment to continuing product and service innovation and an in-depth understanding of local and global markets are key components of our offer.
http://www.abnamro.com/ DATASOURCE: ABN AMRO CONTACT: Media enquiries, Anne Queree of ABN AMRO, +44 20 7678 1675 Web site: http://www.abnamro.com/
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