Today, all firms dealing with payments are regulated through the Financial Services Legislation established in 1989 and Regulations 2010. A PI license in Gibraltar provides opportunities to conduct officially permitted deals in financial sector, demonstrating to clients and potential partners reliability and extensive business-project prospects.
Permitted deals covered by a Payment Institution License in Gibraltar
Local PIs are allowed to offer the next-mentioned services:
- cash withdrawal;
- payment accounts replenishment;
- issuance of monetary or acquiring tools;
- monetary means transferring operations.
Types of PIs in Gibraltar
There are 2 types of PI:
- authorized;
- registered.
The first type of company has the right to offer its clients one or several services meeting legal normative points.
Officially-registered PIs may offer certain services, and regulative authority exempts them from legal normative points if they show they follow these rules in full. Monthly transactions’ turnover related to payments shouldn’t be more than 3 million euros. In addition, those being in charge of business-projects must not be condemned for crimes related to finance.
Such firms don’t possess rights to initiate or freely offer services, and they may also indirectly implement these rights by getting payment systems membership abroad.
A PI, regardless of its type, is eligible to apply for licensing in one of next-mentioned areas:
- monetary means transferring operations (class A);
- carrying out transactions with consent of client using telecommunications, IT-mechanisms or networks that act as intermediary for payer and firm providing such services (class B);
- placing monetary means in accounts and operations that are necessary to maintain an account, withdrawals, transfers of money to account and payments in which the monetary means is covered by a credit line for users (class C).
PI licenses in Gibraltar: legal norms
To run operations related to payment services, establishments need to meet next-mentioned criteria:
- have a minimum of 2 suitable and reliable directors, there are no citizenship requirements, but they must be individuals;
- include a minimum of 2 shareholders (can be individuals and companies, local and foreign);
- it is also necessary to hire at least 1 person who has a license for a leadership position;
- the principal must have experience, qualifications or appropriate education, as well as authority within institution. Person must also be suitable to supervise and control business-project being licensed;
- also, firm wanting to be licensed as a PI must hire at least one licensed representative;
- it is important to possess real local office, which is approved by the regulative authority;
- the applicant must have insurance;
- after licensing, you must hire a qualified auditor within 30 days.
The size of the minimum initial capital differs based on category of permit received, and ranges from 20 to 125 thousand euros.
Current responsibilities
Permit renewal occurs every year. Local Commission gives you opportunity to renew a permit if the firm has not been found to be in violation, and only after paying annually-required fees for this procedure.
Each financial year, a firm holding a PI-license must submit all reports for regulative review.
Licensee must have insurance to protect against liability that may occur due to any actions or inactions of firm when dealing with securities.
Our team
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Our specialists are able to select the optimal solutions for each client. We have a wealth of knowledge about all permits needed to obtain PI license in Gibraltar and other countries. Our employees will help with filling out all required forms, collecting documentation and communicating with regulatory authorities. We offer full legal support at all stages of registration and licensing of an enterprise. We also offer an extensive list of ready-made companies and licenses for sale. Contact us right now.