If you plan to bring your Fintech project to Europe or proffer payment services, you will need info about e-money industry. EMI license in Europe is most fully-determined authorization for e-money transactions. Under this permission, e-wallets and payment services operate. Main services types of companies with EMI are opening a current account, currency transfers and conversion.
Getting EMI license for sale in EU: basic points
EMI is authorization to issue e-money. This type of permission gives you opportunity to issue your own currency. Further, e-money can be converted and withdrawn into any currency. Electronic Money Institution (EMI) is an organization similar to a bank. The only difference from a bank is that such organizations cannot issue loans. Obtaining a European EMI agent license makes it possible to open sub-accounts for consumers and create an electronic wallet.
European permit for e-money makes it possible to link existing payment bank cards to customer sub-accounts. It is also possible to use the cards of the largest credit card issuers (VISA, MasterCard). Getting EMI in EU is a prerequisite if you plan to open e-wallets for your clients, who can then withdraw funds. The minimum investment for institutions that wish to obtain EMI lisences in EU are 350,000 EUR. One of the basic points for EMI establishments is creation of a firm in and an office in the state where the permit is being sought.
To apply for an e-money license on behalf of your own company, you must submit following data to EFSA – EMI licensing department:
- a copy of Statute of the operating company. If the charter has been amended, then the decision of the general meeting on making amendments and the amended text of the charter;
- a notarized copy of the memorandum of association or decision to establish a company;
- documentation evidencing the existence of paid or payable share capital;
- operations plan. First of all, describing the implementation of payments and e-money transfers;
- applicant’s opening balance sheet and a review of income and expenses (or income statement at the end of the month) prior to application. Annual reports for the last three years, if available;
- description of how the general requirements for custody of client assets and protection of clients will be applied;
- internal norms and accounting measures;
- data on technologies implemented, security systems, mechanisms and monitor systems that will be demanded for provision of services;
- description of inner controls and measures to combat money laundering and terrorist financing, as well as measures to protect the data about the payer’ll sent transferring money;
- description of the company’s organizational structure, including its agents, branches, transfer procedures within the company, and participation in domestic and international payment systems;
- list of shareholders of applicant, indicating the name and surname of each shareholder, their registration or state ID. Also detailed info about shares of each shareholder and weight assigned during voting;
- data specified for major shareholders of applicant;
- information for company’s top. It is necessary to provide the name, surname, place of residence, education, a list of previous places of work and positions held, as well as a state ID. For Board members, a list of their areas of responsibility, along with any documentation that the applicant considers important in demonstrating its reliability and compliance;
- data on any business in which the applicant or its management owns more than 20% of the shares (including the size of the capital itself), as well as a list of related activities and the number of shares owned by the applicant/management.
When collecting documents and preparing for this procedure, following requirements are important:
- separate client account;
- mandatory confirmation of the professional qualifications of the management team;
- regulation of operational risks;
- the company must have at least 2 founders (residents of the EU countries);
- financial accounting/external audit duties.
Thus, procedure is quite capacious and filled with tricky moments. If you are wary of your strengths and knowledge, take advantage of the opportunity to buy a ready-made EMI license in Europe – an option without effort and significant costs. At the same time, you will receive full support from experienced lawyers.