SEMI license in Estonia

The SEMI permit allows you to create a payment system and is issued on the basis of a written application given to the Estonian Financial Inspectorate.

General information about Small e-money license in Estonia 

Fintech is a rapidly growing industry that attracts more and more entrepreneurs every day. At a time when traditional banking services are fading into the background, online banking is gaining popularity and has promising potential. To date, companies such as TransferWise, Paysera, Payoneer, Monese and Revolut are flourishing.

An e-money permission allows you to supply payment services and act as a financial institution. The SEMI permission can be used throughout the EU.

The Estonian regulatory body is Monetary Supervisory Authority. To employ for an SEMI in Estonia license for sale, a request must be submitted to the FSA as set out in the PI and EMI Act (MERAS).

E-money is the digital equivalent of cash and can be based on software or hardware. The e-money on the card is usually stored on a prepaid card, e-wallet or wallet. It can also be stored on a payment account. The legal framework for e-money was created by Directive 2000/46/EC. The Electronic Money Directive 2 or EMD2 was recently adopted in an attempt to modernize and innovate the digital money issuance system.

Requirements for SEMI license in Estonia

General requirements vary slightly from country to country. In any case, they can be summarized as follows:

• Shares should have unimpeachable business history
• Board members need to have unimpeachable business reputation, as well as the teaching, knowledge and professional qualifications necessary to manage an small e-money institution
• Permanent agency in the country in which the business-company applies for a permit
• Audit is mandatory
• Adequate organizational structure
• Adequate technical organization
• Compliance with anti-money laundering and anti-terrorist financing laws and regulations
• GDPR compliance

Minimal capital demand

The minimum authorized capital in Europe is 20,000 euros. The business plan should also include the company’s three-year budget. Initial capital cannot be formed from property. In addition, in order to get a SEMI license in Estonia , it is needed to confirm the source of funding.

Company activities with Small electronic money institution license in Estonia 

The main areas of activity of the e-money institution:

• Money transfers;
• Depositing and withdrawing cash;
• Issue of e-money;
• Issuance of remittance instruments;
• Payment initiation service (PSD2);
• Account Information Service (PSD2);
• Implementation of payment operations in which funds are covered by a credit line for the user of remittance services: implementation of direct debits, including one-time direct debits, execution of payment operations using a payment card or similar device or implementation of credit transfers, including standing orders;
• Implementation of payment operations, when the payer’s consent to the implementation of the payment operation is given using any telecommunications terminal equipment, digital or IT device, and the payment is made to the operator of the telecommunications network or IT system, who acts only as an intermediary between the supplier of goods and the user payment services.

Documents you need to obtain SEMI license in Estonia

• A copy of the charter of the management firm.
• A notarized copy of the memorandum of association or decision to establish a firm.
• Documents confirming the presence of paid or payable authorized fund.
• Operations plan. First of all, describing the implementation of payments and transfers of electronic money.
• MERAS business plan
• Applicant’s opening balance sheet and review of income and expenses (or income statement at the end of the month) prior to application.
• A description of how the general MERAS demands for custody of client assets and protection of clients will be applied.
• Internal rules and accounting rules in accordance with MERAS or proposals for them.
• Data on information technology, security systems, mechanisms and control systems that will be required for the provision of favors.
• Description of internal controls and measures to combat money laundering and terrorist financing, as well as measures to protect the information about the payer that will be sent when transferring money.