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Electronic Money Institution (EMI), Lithuania
E-money License Lithuania - Electronic Money Institution/ EMI License Lithuania License
If you wish to obtain an E-money / Electronic Money Institution license in Lithuania, you will need to apply to the Bank of Lithuania for authorisation as an E-money / Electronic Money Institution in Lithuania.
Below you will find the key information about obtaining an E-money / Electronic Money Institution license in Lithuania. If you wish to become an E-money / Electronic Money Institution in Lithuania, you must meet the Lithuanian regulator's conditions and procedure.
Buckingham Capital Consulting can help you to become an E-money / Electronic Money Institution in Lithuania by offering a full end-to-end service, from company formation to complete E-money / Electronic Money Institution license preparation and management.
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Licencing process of E-money / Electronic Money Institution license applications in Lithuania
Services provided by an E-money / Electronic Money Institution in Lithuania
An Electronic Money Institution / E-money license holder in Lithuania enables the license holder to offer a number of services:
- Issuing of electronic money e.g. prepaid cards and electronic wallets.
- services enabling cash to be placed on a payment account and all the operations required for operating a payment account;
- services enabling cash withdrawals from a payment account and all of the operations required for operating a payment account;
- the execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider, including, execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; execution of credit transfers, including standing orders;
- the execution of payment transactions where the funds are covered by a credit line for a payment service user, including, execution of direct debits, including one-off direct debits; execution of payment transactions through a payment card or a similar device; (iii)execution of credit transfers, including standing orders;
- issuing payment instruments or acquiring payment transactions;
- money remittance;
- payment initiation services;
- account information services.
Lithuania E-money / Electronic Money Institution license Application Fee
The application fee for the E-money / Electronic Money Institution license in Lithuania is EUR 1,463. The fee is paid when you submit your license application online.
Legal framework and legislation of E-money / Electronic Money Institutions in Lithuania
- Republic of Lithuania Law on Financial Institutions
- Republic of Lithuania Law on Companies
- Republic of Lithuania Law on Electronic Money Institutions
- Law of the Republic of Lithuania on the Prevention of Money Laundering and Terrorist Financing
- Law of the Republic of Lithuania on Payments
- Resolution No 246 of the Board of the Bank of Lithuania of 30 December 2009 on the Regulations on Keeping the Public Register of Payment Institutions
- Resolution No 03-181 of the Board of the Bank of Lithuania of 14 November 2013 on approval of the Guidelines on the Assessment of Members of the Management Body and Key Function Holders of the Financial Market Participants Supervised by the Bank of Lithuania
Key requirements to become an E-money / Electronic Money Institution in Lithuania
a minimum capital requirement of €350,000 is to establish an E-money / Electronic Money Institution business in Lithuania.
the requirement to safeguard client funds either with a segregated client bank account or with an insurance policy.
the management body of the E-money / Electronic Money Institution license must be of good repute and possess the relevant qualifications and experience to perform their duties.
Definition of e-money / electronic money in Lithuania
Electronic money or E-money is the digital equivalent of cash and can be software or hardware-based. Card-based E-money is commonly stored on a prepaid card, an electronic purse or wallet. Similarly, it may also be stored in a payment account. The legal framework for electronic money was established by Directive 2000/46/EC. More recently, Electronic Money Directive 2 or EMD2 was adopted to modernise the framework for the issuance of electronic money and enable innovation in doing so.
The Lithuanian regulator for E-money / Electronic Money Institutions
The Bank of Lithuania is the Lithuanian financial services regulator. It supervises firms ranging from payment service providers, credit institutions, electronic money institutions, consumer credit firms, insurance providers and investment firms.
List of key advantages of obtaining an Electronic Money Institution / E-money license in Lithuania
The Lithuanian financial regulator, namely, the Bank of Lithuania, is a friendly and supportive regulator. Some key advantages include:
- A newcomer programme for firms looking to set up their fintech in Lithuania.
- A smooth licensing process – 3 months for electronic money or payment institution licenses.
- Remote KYC for customer onboarding whilst relaxing on financial penalties for start-ups – for example, no regulatory fines or penalties in the first year of operation.
- Access SEPA and CENTROlink – a payment system developed and operated by the Bank of Lithuania.
List of key features of the Electronic Money Institution / E-money license in Lithuania
- A license issued in Lithuania is recognised in all other EEA (European Economic Area) member states. Through ‘passporting’, this enables the electronic money institution to operate across all EEA countries with a single license.
- Issue e-money, such as prepaid cards, electronic wallets and payment account with IBAN codes, across Europe.
- Obtain the electronic money institution ((e-money) license in as little as 3 months.
- The option to make use of a regulatory sandbox to test your business idea.
- Join payment schemes such as SEPA.
- Remote account opening for individual and business customers.
- Issue Visa or Mastercard payment cards for both individual and business users.
The regulations for E-money / EMI Electronic Money Institutions in Lithuania
The Payment Service Directive 2 or PSD2 for short, is an EU Directive (Directive 2015/2366) that sets requirements for businesses wishing to provide payment services. It applies to banks, building societies, payment institutions, e-money institutions and their customers.
The PSD2 directive aims to promote innovation within the payments sector and improve protection for consumers, whilst making payments both safer and more secure. The PSD2 directive came into force on 13 January 2018.
Key requirements to become an E-money / Electronic Money Institution in Lithuania
- A minimum capital requirement of €350,000 is required to establish an E-money / Electronic Money Institution license.
- The requirement to safeguard client funds either with a segregated client bank account or with an insurance policy.
- The management body of the electronic money institution must be of good repute and possess the relevant qualifications and experience to perform their duties.
Document required as part of an E-money / Electronic Money Institution license application in Lithuania
As part of an Electronic Money Institution / E-money license application in Lithuania, you will be required to provide the following information as part of your application:
- company identification details
- programme of operations
- business plan and financial forecasts
- a description of your business’s organisation structure
- evidence of your initial capital
- measures to safeguard funds of your users
- compliance & governance arrangements and internal controls
- procedure for monitoring, handling, and following up on security incidents and security-related customer complaints
- processes for filing, monitoring, tracking and restricting access to sensitive payment data
- business continuity measures
- the principles and definitions applicable to the collection of statistical data on performance, transaction and fraud
- security policy
- internal control mechanisms to comply with obligations in relation to money laundering and terrorist financing (AML/CTF obligations)
- details of your qualifying holdings (shareholders)
- details of any outsourcing arrangements
Ongoing capital requirement for the E-money / Electronic Money Institution license in Lithuania
The ongoing capital required for an E-money / Electronic Money Institution license in Lithuania is calculated at 2% of the outstanding electronic money issued.
Timeframe to obtain the E-money / Electronic Money Institution license in Lithuania
The Bank of Lithuania is required by the European Banking Authority to assess and make a decision on an E-money / Electronic Money Institution license application within three months of receiving a complete application. In reality, it takes, on average, around 6 months for an application to be assessed and a decision to be made.
Difference between the E-money Electronic Money Institution and the Payment Institution
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What our clients say
"Buckingham Capital Consulting has been a reliable and trusted partner. They spent time understanding our business, people and processes and worked closely with us throughout the process. They completed our licensing application to a high standard and in a timely and efficient manner. We were delighted with how smooth the entire process was from the application preparation and submission but also with the case officer at the FCA. Buckingham Capital Consulting ensured that our licence was obtained in an efficient and smooth manner. The value and expertise they provide became obvious early on in the process. We highly recommend Buckingham Capital Consulting."