Electronic money institution license in Lithuania | EMI license in Lithuania | E-money license in Lithuania
This article looks at obtaining an Electronic Money Institution (e-money) license in Lithuania. If you are planning upon offering payment services such as issuing debit cards, money transfer service, merchant services or electronic wallets and prepaid cards, you will need to apply with the Lithuanian regulator, the Bank of Lithuania, and obtain the electronic money institution license.
The Lithuanian regulator for electronic money institutions
The Bank of Lithuania regulates and issues the licence for electronic money institutions in Lithuania.
If you wish to issue electronic money services in Lithuania, such as prepaid cards or electronic wallets, you will require an Electronic Money Institution license from the Bank of Lithuania.
When seeking the electronic money institution license in Lithuania, planning is key. It is important that you match the financial service you intend to provide with the Bank of Lithuania’s list of regulated activities.
Another important thing you must do before making an application is to ensure you meet the regulator's conditions. For example, you will need to ensure that your management and people such as directors, must be located in Lithuania. You will need to demonstrate through your application that you have appropriate resources to operate your business. This includes having sufficient financial, management, staff, and systems to manage your business.
The Bank of Lithuania expects firms to meet a range of requirements before it allows them to provide regulated financial services. When an applicant firm submits an application seeking authorisation, the Bank of Lithuania reviews their business plans, risks, budget, resources, systems, controls and its people.
Definition of electronic money
As per Article 2(2) of Directive 2009/110/EC, “electronic money” means “electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transaction, and which is accepted by a natural or legal person other than the electronic money issuer”. Prepaid cards and electronic wallets are examples of electronic money.