Luxembourg is a global financial center and a member of the European Union allotting the opportunity to obtain a Luxembourg Electronic Money Institution License. A Luxembourg Electronic Money Institution License enables the License holder to perform payment services and issue electronic money.

Electronic Money License in Luxembourg

 

One of the financial hubs of the world and a member of the European Union (EU), Luxembourg provides the opportunity to obtain a Luxembourg Electronic Money Institution (EMI) License. A Luxembourg Electronic Money Institution (EMI) License enables the       Luxembourg EMI License holder to perform payment services and issue electronic money. The definition of payment services is wide which enables the license holder to provide most online and electronic payment services.

The application for a Luxembourg Electronic Money Institution (EMI) License has to be made to the Commission de Surveillance du Secteur Financier (CSSF) which will initially process the application before transmitting its decision to the Ministry of Finance which will issue the license. The first step in the application process is the establishment of a local company incorporated under Luxembourg law, in the form of a public limited company. It is essential that the Luxembourg EMI Institution has its head office and central administration in Luxembourg and must also have offices and employees in Luxembourg. There is also a minimum capital requirement of EUR 350,000.

The second step is an initial meeting with the regulator to explain the business plan and obtain initial guidance. The next step is the preparation of documents such as the Application Form, Operating Manuals, Anti Money Laundering (AML) and Anti Terrorist Financing (ATF) guidelines, Business plans and any other documents sought by the CSSF. This will be followed by the submission of the application to the CSSF with an application fee of EUR 15,000.

The entire process of obtaining a Luxembourg EMI License takes about 4-12 months after the submission of the completed application. Empire Global has a team of experienced professionals who will assist you through the entire process of Luxembourg EMI License application including assistance in the preparation of documents, submission of application and responding to any queries from the CSSF. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for an EMI License Luxembourg.

Luxembourg Electronic Money Institute (EMI) License

One of the financial hubs of the world and a member of the European Union (EU), Luxembourg provides the opportunity to obtain a Luxembourg Electronic Money Institution (EMI) License. A Luxembourg Electronic Money Institution (EMI) License enables the EMI License holder to perform payment services and issue electronic money. The Luxembourg EMI License is issued under the provisions of the Luxembourg law of 10th November 2009 (“the PSL”).

Under the provisions of the law, a license holder may provide:

  • Services that ensure the debiting of funds from the payer’s account and related transactions;
  • Services related to the crediting of funds to the payee’s account and related transactions;
  • Making payments through direct debits (including one-off orders), payment cards, or any other electronic means, or credit transfers (including standing orders) within the funds or credit resources of a payment service user;
  • Issuing and/or acquiring payment instruments, including electronic money instruments;
  • Remittances;
  • Issuing electronic money, executing payment transactions by means of electronic money through a mobile phone, internet, or any other electronic device;
  • Executing payment transactions based on the consent of the payer given by means of telecommunication, digital, or IT devices, to or in favor of the telecommunication, IT system, or network operator that acts as an intermediary between the payer and the payee, as well as between the user and the supplier of goods or services
  • Issuance of electronic money

The term electronic money has been defined under the Act as a value equivalent to funds received by an electronic money provider from users for carrying out payment service transactions, which is stored on payment instruments and which is recognized as a means of payment by its issuer and other persons.

How can I get a Luxembourg Electronic Money Institute (EMI) License?

The application for a Luxembourg Electronic Money Institution (EMI) License has to be made to the Commission de Surveillance du Secteur Financier (CSSF) which will initially process the application before transmitting its decision to the Ministry of Finance which will issue the license.

What are Luxembourg EMI License Requirements?

The first step in the application process is the establishment of a local company incorporated under Luxembourg law, in the form of a public limited company (société Anonyme – SA). It is essential that the Luxembourg EMI Institution has its head office and central administration in Luxembourg and must also have offices and employees in Luxembourg. There is also a minimum capital requirement of EUR 350,000.

The second step is an initial meeting with the regulator to explain the business plan and obtain initial guidance. The next step is the preparation of documents such as the Application Form, Operating Manuals, Anti Money Laundering (AML) and Anti Terrorist Financing (ATF) guidelines, Business plans and any other documents sought by the CSSF.

Luxembourg EMI License Costs

This submission of the application and documents to the CSSF must be combined with an application fee of EUR 15,000.

The CSSF may request additional documents and seek clarifications from the Luxembourg EMI License applicant before issuance of the license. The entire process of obtaining a Luxembourg EMI License takes about 4-12 months after the submission of the completed application.

After obtaining the Luxembourg EMI License, the Licensee will need to make regular submissions of accounts and records to the CSSF. These submissions need to be made on time to ensure the validity of the Luxembourg EMI License. An annual fee of EUR 25000 must also be paid to CSSF.

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

What is the process of obtaining an Electronic Money License in Luxembourg