• Cyprus Electronic Money Institution (EMI) License

    Cyprus electronic money institution (emi) license

A Cyprus Electronic Money Institution License is issued by the Central Bank of Cyprus for operating an Electronic Money Institution in Cyprus.  Electronic Money has been defined by the European Central Bank as: an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer. The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions. Electronic Money includes magnetic cards, chargeable internet accounts and similar services. Such services may be operated in Cyprus only by a business licensed in the country or in another European Union member state.

During the application process, information needs to be provided about the service provided, the manner of functioning, details of agents to be appointed, internal governance arrangements and control mechanisms and safeguard measures for fund holders. The applicant must also hold a minimum initial capital of at least EUR 350.000. In addition to the applicant company itself, the shareholders who hold more than 10% of the Cyprus EMI License applicant and Natural Persons who are members of the Management Body of the Cyprus Electronic Money Institution License applicant or a Key Function holder must also submit questionnaires. The identity of directors and persons responsible for the management of the Cyprus electronic money institution and the Ultimate Beneficial Owners are also required. It is essential that every applicant shows a clear organizational structure, effective procedures to identify and manage risks and establish adequate internal control mechanisms. Considering, the extremely specialized nature of the application process, it is essential that the services of a specialized Cyprus Electronic Money Institution Consultant are obtained for the entire process.

A successful applicant should normally receive the license within 3 (three) months of submission of a completed application. Empire Global has a team of experienced professionals who will assist you through the entire process of application for a Cyprus Electronic Money Institution. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Cyprus Electronic Money Institution License.

Cyprus Electronic Money Institution (EMI) License

A Cyprus Electronic Money Institution License is issued by the Central Bank of Cyprus for operating an Electronic Money Institution in Cyprus. Electronic Money has been defined by the European Central Bank as: an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer. The device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in transactions. Electronic Money includes magnetic cards, chargeable internet accounts and similar services. Such services may be operated in Cyprus only by a business licensed in the country or in another European Union member state.

A Cyprus Electronic Money Institution License is only awarded to a legal person, which has been incorporated under the laws of Cyprus and has its registered office and head office within the country.

The process of application starts with the collection of documents for the application process. Important documents for this process include:

    • Program of operations stating in detail the service offered and the manner of functioning
    • A business plan with a budget and forecast for three years .
    • Evidence that the legal person holds the minimum initial capital of at least EUR 350.000
    • Safeguard measures for fund holders of Cyprus EMI Institution
    • Governance arrangements and internal control mechanisms, including administrative, risk management and accounting procedures which show the adequacy of the systems of the Cyprus EMI License applicant
    • Description of internal control mechanisms established by the Cyprus EMI
    • Description of participation in national and international payment systems and the arrangements for use of branches and agents
    • The identity of the persons that have, directly or indirectly, control of the applicant, including the identity of the natural persons that hold, directly or indirectly, shares or voting rights in one or more legal persons that have control of the applicant, as well as details on the size of the actual participation of these persons and their suitability
    • The identity of directors and persons responsible for the management of the Cyprus electronic money institution and, where relevant, persons responsible for the management of the issue of electronic money and the provision of payment services activities, as well as evidence that they are of good repute and possess appropriate knowledge and experience to issue electronic money and perform payment services, and in particular copy of clean criminal record report, no bankruptcy report, description of professional and academic qualifications, managerial or board positions held in other legal persons, previous employments and experience in the issue of electronic money and the provision of payment services
    • Information about the statutory auditors
    • Information about the legal status and articles of association of the applicant
    • Address of the applicant’s head office
    • Copy of a draft contract between the Cyprus electronic money institution License holder and the electronic money holder and the draft framework contract
    • Information about the process for filing, monitoring, tracking and restricting access to sensitive payment data
    • Details about process established for monitoring, handling and following up on security incidents and security-related customer complaints and
    • A security policy document containing including a description of the IT systems and a detailed risk assessment of the Cyprus EMI.

The shareholders who hold more than 10% of the Cyprus Electronic Money Institution License applicant whether directly or indirectly must submit a Questionnaire, which is different depending on whether they are a natural person or a legal person (Questionnaire QHL/ Questionnaire QHN). This Questionnaire (Questionnaire QHN) must also be submitted by natural persons who are partners in a Cyprus Electronic Money Institution License applicant partnership or who are directors/proposed directors of the applicant as well as persons who will be responsible for the management of the applicant. Natural Persons who are members of the Management Body of the Cyprus Electronic Money Institution License applicant or a Key Function holder must also submit a Questionnaire MMB-KFH as well as a Time Commitment Table. Lastly, every Ultimate Beneficial Owner of the Cyprus Electronic Money Institution License applicant must submit a Net Wealth Statement. It is essential that every applicant shows a clear organisational structure, effective procedures to identify and manage risks and establish adequate internal control mechanisms.

Considering the extremely specialised nature of the application process, it is essential that the services of a specialised Cyprus Electronic Money Institution Consultant is obtained for the entire process. A successful applicant should normally receive the license within 3 (three) months of submission of a completed application.

Empire Global has a team of experienced professionals who will assist you through the entire process of application for a Cyprus Electronic Money Institution including assistance in preparation of documents, submission of application and responding to any queries from the Central Bank. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Cyprus Electronic Money Institution License.

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Cyprus Electronic Money Institution (EMI) License

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