SEMI license in Lithuania

A SEMI permission is a profitable tool that increases the prospects of growth and development of your biz in Lithuania.

Every business-company involved in the issue of e-money in country must to obtain SEMI license in Lithuania in order to legally operate in this jurisdiction. Having a license will allow you to make offline or online payments, open sub-accounts within a bank account, create electronic wallets, provide individual IBAN numbers and transfer money to foreign accounts.

What is a Small electronic money institution license in Lithuania 

Both small EMIs and regular EMIs are permitted to provide payment services and issue e-money. The authorization and activities of a business-company with a SEMI permission are regulated by Law of Republic of Lithuania on Electronic Money and Electronic Money Institutions. In addition, the Law of the country on Payments applies when EMIs provide services to their customers. Companies with an unrestricted SEMI license can only be public or private LLC, which means that an individual can obtain an small e-money license in Lithuania.

Services provided by SEMI in Lithuania for sale

• As a rule, a firm with a Small EMI permission in Lithuania can provide the same payment services as payment institutions, with the exception of payment initiation services and account info services;
• issue and redeem e-money and allow customers to hold funds (converted to e-money) in an e-money account (e-wallet) until customers redeem e-money/use the funds for payments.

Advantages of SEMI license in Lithuania

1. Quick and easy procedure for achieving a SEMI license;
2. Customers can get a personal IBAN;
3. Remote opening of payment accounts for individuals and legal entities;
4. The company can issue Visa or MasterCard payment cards;
5. The company can make its own payment decisions and open accounts;
6. Providing services for depositing or withdrawing cash and operations necessary for the operation of a payment account;
7. The validity of the license is not limited by time;
8. All documents can be submitted in English.
9. The ability to conduct customer checks remotely as part of KYC procedures using video communication, digital signature or electronic copies of documentation.

SEMI vs EMI: Where is different

However, the permission of a small e-money institution in Lithuania is valid for the provision of services only in Lithuania, which means that small EMIs are not allowed to issue electronic money and provide payment services in other EU member states. That is why the number of business-companies willing to apply for a small e-money license in Lithuania is so small-scale.

In addition, there are restrictions imposed on a firm holding a small EMI license  in Lithuania. First, the average amount of electronic money in circulation of SEMI should not exceed the limit of 900,000 euros. Second, when a firm with a SEMI license in Lithuania provides payment services not connected to the issuance of electronic money, the average total amount of payment transactions for the previous twelve months performed by small EMIs is limited to EUR 3,000,000 per month.

The application for a Small EMI permission in Lithuania must be accompanied by documents that establish politics and processes that confirm that the institution will comply with the above restrictions.

There are more features of EMI’s limited activity licenses that need to be recognized. Please note that unlike small EMIs in the UK, there are no initial fund demands or current equity demands for institutions with a small e-money permission in country. In addition, unlike fully licensed EMIs, companies with a small electronic money institution license in Lithuania are not subject to Articles 24 and 25 of the Law of the Republic of Lithuania on Banks.

Requirements for SEMI license in Lithuania

• Confirmation of origin and receipt of finances;
• Opening of a local office;
• Opening an account in a Lithuanian bank;
• Presence of a AML officer;
• Impeccable reputation of the company’s beneficiaries;
• The director or head must have a higher education in law or economics, management or biz administration, an impeccable reputation, competence and practical experience as a head of institution;
• There need to be at least one natural person among the sharers, residence in Lithuania isn’t needed. Main demand is to be over 18 years old and have an impeccable biz reputation.

Documents for SEMI in Lithuania license for sale

• Basic details of the firm;
• Work program;
• A business plan;
• Structural organization;
• Details of your measures to protect customer funds;
• Management and internal control mechanisms;
• Procedure for monitoring, processing and following up on security incidents and customer complaints related to security;
• The process of submitting, monitoring, tracking and restricting access to confidential payment data
• Organization of business continuity;
• Principles and definitions applicable to the collection of performance, transaction and fraud statistics;
• security policy document;
• Innet control mechanisms for the fulfillment of money laundering and terrorist financing obligations (AML/CFT obligations);
• Information about auditors (if available).
• Details and identities of directors and shareholders.

Step-by-step instruction to get SEMI license in Lithuania

1. Preliminary evaluation of the project.

Which includes: 

• Analysis of documents in the hands of the client;
• Preparation of materials for the meeting with the Bank of Lithuania;
• Preparation for the first meeting with representatives of the Bank of Lithuania;
• Presentation of the client at the first meeting with the Lithuanian bank.

2. Pre-licensing procedure.

• Preparation of a business plan, activity program, preliminary monetary forecasts;
• Due diligence of shareholders and group companies;
• Setting up a local company and opening a bank account;
• Human resources (at least 4 employees must be in Lithuania).

3. Licensing.

Preparation of legal, financial and IT documents:

• Description of the management structure;
• Compliance documentation (AML/KYC/KYT, etc.);
• Financial documentation and forecasts;
• Operational risk procedures;
• IT procedures.