An authorised electronic money institution license in Latvia enables organizations to set up regulated business in one of the EU’s most financially secure jurisdictions. The country has an encouraging business climate and its regulators are in alignment with EU laws. Thus, authorised organizations will be able to provide payment offerings within the EEA.
Latvijas Banka, the central bank and financial supervisory authority, evaluates requests. To obtain AEMI license in Latvia, an applicant must show adequate and appropriate structure, knowledgeable and efficient members on the board, clear and straightforward chain of ownership, and sound policies along with the procedures to be carried out internally.
Overview of AEMI license in Latvia
| Supervisory Authority | Latvijas Banka |
| Authorization Type | AEMI |
| Initial Capital | EUR 350,000 |
| Permitted Activities | Issuance of e-money, provision of payment offerings, operation of payment accounts, execution of payment transactions, money remittance, and other payment-related activities permitted under applicable legislation. |
| Governance Framework | Appropriate internal governance, risk management procedures, safeguarding arrangements, compliance controls, record-keeping, operational resilience, and AML/CFT measures. |
| Typical Review Period | Varies depending on the completeness and complexity of the application and the supervisory review process. |
| Key Personnel | At least two directors with appropriate knowledge, experience, and good reputation. Other key functions should be assigned to suitably qualified individuals depending on the business model and organisational structure. |
Requirements for AEMI license in Latvia
Preparation before filing an application is an important part of the licensing process. Founders should clearly define the activities they intend to carry out, establish an appropriate operating structure, and ensure that all supporting documentation accurately reflects the proposed business.
A future licence holder is generally expected to have:
- a legal entity incorporated locally;
- the minimum initial capital;
- experienced directors and senior management;
- a transparent ownership structure with clearly identified beneficial owners;
- documented governance arrangements;
- policies for identifying and managing operational risks;
- procedures for safeguarding customer funds;
- AML / CTF policies;
- accounting and reporting systems;
- business continuity arrangements;
- information security measures;
- a detailed business plan supported by realistic financial forecasts.
Each application is examined individually. The regulator pays attention to sufficient organisational capacity, whether the management can demonstrate appropriate knowledge and experience, and whether the operating model can be implemented in a safe and sustainable manner.
Benefits of an AEMI Licence in Latvia
The country has long been a magnet for new payment players due to its good combination of legal framework and business environment that encourages innovation.
Prominent features are:
- the possibility of expanding activities throughout the EEA;
- legislation aligned with EU law;
- a stable legal environment;
- availability of experienced legal, audit, taxation, technology, and banking specialists;
- enhanced credibility associated with authorisation;
- a strategic location for businesses serving clients across Europe.
All of these benefits are favorable to both new and already established companies who aim at entering or expanding their businesses in the EU market.
Procedure for getting the official permission
Although every project has its own characteristics, the overall licensing process generally follows several stages.
The first stage involves analysing the proposed business model, ownership structure, planned activities, and organisational framework. Once the preferred approach has been determined, the legal entity is incorporated and the management team is appointed.
The documentation package commonly includes:
- constitutional documents;
- a business plan;
- financial projections;
- governance policies;
- risk management documentation;
- AML/CFT policies;
- safeguarding procedures;
- information regarding directors and beneficial owners;
- descriptions of payment activities;
- IT and operational security documentation.
After submission, the regulator reviews the file and may request additional explanations or supporting documents before reaching a final decision.
Once authorisation has been granted, the institution may commence the activities covered by its permit while continuing to satisfy its ongoing reporting, governance, and supervisory obligations.
As an alternative to applying for a new authorisation, investors may consider acquiring an existing authorised electronic money institution, subject to regulatory approval of the change in qualifying holdings and compliance with all applicable legal requirements.
Taxation of an AEMI in Latvia for sale
The country applies a corporate income tax system under which tax generally becomes payable when profits are distributed rather than when they are earned. Certain transactions treated as deemed profit distributions may also trigger tax.
Depending on the operating model, consideration should also be given to:
- VAT;
- employment-related taxes;
- personal income tax;
- withholding tax where applicable;
- country’s network of double taxation treaties.
The final tax outcome depends on the ownership structure, commercial activities, and broader business arrangements. Professional tax advice should therefore be obtained before commencing operations.
How much does the permit cost?
There is no single figure applicable to every project. The total budget depends on the proposed structure, the complexity of the planned activities, and the level of professional assistance required throughout the process.
Typical costs may include:
- incorporation of the legal entity;
- state fees;
- preparation of legal documentation;
- drafting internal policies;
- accounting support;
- external audit where applicable;
- technology infrastructure;
- ongoing corporate administration;
- satisfaction of minimum capital obligations;
- continuing reporting and supervisory costs following authorisation.
An initial assessment carried out before the project begins usually provides a realistic estimate of the expected budget.
Our assistance
Eternity Law International assists clients seeking to establish or acquire an AEMI. Our support covers the entire process, including company formation, preparation of documentation, creation of internal governance structures, development of AML procedures, and communication with the competent authorities. We also provide ongoing guidance after authorisation to help ensure that the organization remains properly organised and prepared for future development. Each project is approached individually, with solutions adapted to the client’s business model and objectives to create an efficient path towards operating successfully within the European market.
FAQ
What activities can be conducted with an authorised e-money license in Latvia?
The organization can be engaged in issuing e-money and providing various payment offerings, which also include payment accounts, transactions, remittance of money and other activities within the scope of local or EU legislation.
How much time does it take on average to get AEMI license in Latvia?
There is no standard time. It depends on the content of documentation, business model and whether the regulator requires additional details.
What responsibilities continue after authorisation?
Following authorisation, the institution must maintain appropriate governance arrangements, safeguard customer funds, meet capital obligations, submit periodic reports, keep internal policies up to date, and conduct its business within the scope of the granted authorization.
Is it possible to buy AEMI license in Latvia for sale?
The ready-made AEMI license in Latvia cannot be purchased separately. However, it is possible to buy a company with AEMI license in Latvia.