EU CRD VI Article 21c: What Changes for Cross-Border Banking in 2027
Starting 11 January 2027, banks located outside the European Union will no longer be permitted to provide certain “core banking services” – deposit-taking, lending, and issuing guarantees – directly to clients residing in the EU, unless the bank operates an authorised branch inside the relevant member state. This obligation comes from Article 21c of the Capital Requirements Directive VI (Directive (EU) 2024/1619), adopted by the European Parliament and the Council on 31 May 2024 and published in the Official Journal on 19 June 2024. Member states had until 10 January 2026 to transpose the directive into national law, though implementation has been uneven – as of early 2026, only a handful of member states had done so on time, and the European Commission opened infringement proceedings against the remaining states in March 2026.
What EU CRD VI Restrictions Do Not Change for Foreign Bank Accounts
Despite widespread mischaracterization online, CRD VI does not prohibit EU residents from holding a foreign bank account, and it does not ban foreign banks from accepting EU clients. The obligation falls on the bank, not the client: a non-EU bank without a licensed EU branch may no longer solicit or actively provide core banking services to EU residents on a cross-border basis. This is a licensing and market-access rule, not a personal prohibition.
Two exemptions matter most for individuals and businesses:
- Reverse solicitation. If an EU resident approaches a non-EU bank entirely on their own initiative – without having been advertised to or solicited – the bank may still open and service that account. The European Banking Authority has signalled that this exemption will be construed narrowly: a bank that has marketed itself in the EU cannot later claim the client came unprompted.
- Grandfathering. Accounts and lending contracts entered into before 11 July 2026 remain valid and are not affected by the new restriction, even after it takes effect in January 2027.
Intragroup transactions and services between banks are also excluded from scope.
Impact of EU Banking Restrictions on Georgian Banks and EU Residents
Georgia is a third country for these purposes, and this directive is directly relevant to how Georgian banks – and non-EU banks more broadly, including those an EU resident might use in Georgia – may lawfully engage EU-resident clients going forward. A Georgian bank without an EU branch will not be able to advertise deposit or lending products to residents of EU member states after January 2027. It will still be able to serve an EU resident who approaches it independently, and it will remain unaffected in how it serves Georgian residents, non-EU nationals, or EU nationals who are themselves residents outside the EU.
For businesses and individuals with existing cross-border banking relationships between the EU and third countries such as Georgia, the practical planning point is the 11 July 2026 grandfathering deadline – after which new account relationships will need to fit within the reverse-solicitation exemption or be established through a licensed EU branch.
Next Steps for Cross-Border Banking Compliance and Existing Accounts
Because CRD VI is a directive rather than a directly applicable regulation, its precise effect depends on how each of the 27 member states transposes it – some may apply stricter standards on scope, on how reverse solicitation is evidenced, or on how existing arrangements are treated. Businesses and individuals with cross-border banking arrangements touching the EU should review those arrangements against the relevant national transposing legislation well before January 2027, rather than relying on general summaries of the EU-wide directive.
