E-money is a digital form of cash which within the European Union is deemed the value in currency, recorded and maintained on an e-medium. E-money is provided by an EMI upon receipt of funds from clients in the amount not less than the provided monetary value and is deemed as a form of payments by other institutions. Receiving a European EMI license allows not only for the issuance of e-funds in any European jurisdiction, but enables offering many services related to finances in the EU.
What are the authorizations given by an EMI license?
The license for an EMI enables a service provider to connect to the SEPA, which makes it possible to conduct and accept payments in EU currency at lowered prices and on the same conditions practically in any EU member state.
After the EMI license is acquired, an entity will be approved to perform the below-mentioned services:
- Emission of e-funds;
- Issuing cards or related financial tools;
- Cash withdrawing by clients;
- Cash depositing by clients;
- Conducting different types of payment operations;
- Executing funds transferrings;
Provision of details on the state of the client’s accounts, etc.
By initiating the process of licensing aiming to conduct activities as a compliant company, a service provider has the opportunity to launch the authorization procedure at the initial stages of forming a legal entity. The necessary steps for acquiring a license are the following:
- Meeting operational obligations for the EMI license: company formation, establishment of the office, shaping the legal structure of the business;
- Meeting the capital conditions: minimum contributed capital of a company is 350,000 EUR;
- The employees and senior management should be knowledgeable and possess appropriate expertise to operate the business;
- Details about IT systems applied in the EMI operation should be disclosed;
- Stay fully compliant with EU Directive (2015/2366) that stipulates obligations for businesses delivering financial (in particular, payment) offerings.
Generally, the authorization procedure takes approximately three months.
If you intend to conduct activities as an EMI business in the EU and are looking to acquire an EMI license, please contact us and get an expert consultation from our lawyers.
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