Electronic Money Institution license in the UK and Europe| EMI license in the UK and Europe| E-money EMI UK / Electronic Money Institution in the UK and Europe
This blog article looks at the E-money EMI / Electronic Money Institution license and reveals the 5 ways to obtain the license in the quickest and cheapest way.
1. Prepare strong policy and procedural documents for your E-money EMI / Electronic Money Institution license application
This is quite obvious, but you should ensure that in your Electronic Money Institution license, the EMI license / E-money license application, you demonstrate that you have well-defined and thought-through policy and procedural documents. The business plan, for example, must provide a breakdown of your business, including your marketing plan and your financial forecasts for 3 years.
2. Establish a local operational presence in the country of the E-money EMI / Electronic Money Institution license
The financial regulator of the country you are applying for the Electronic Money Institution license, the EMI license / E-money license will expect that you have some local presence. For countries such as Ireland and the UK, your CEO and money laundering reporting officer (MLRO) must be based in the country. Other countries, such as Lithuania, offer greater flexibility, in the sense that your CEO and MLRO do not need to be based physically in Lithuania. Secondly, you will also be required to have a physical office in place. A serviced office is sufficient for these purposes
3. Meet initial capital requirements for the E-money EMI / Electronic Money Institution license
Depending on your license type and the underlying permissions you are applying for, you will be required to meet initial capital requirements. For the Electronic Money Institution license, the EMI license / E-money license the initial capital requirement is EUR 350,000. For the Payment Institution license, the initial capital ranges from EUR 20,000 to 125,000 depending on the payment service you wish to provide.
4. Protect your customer's funds for your E-money EMI / Electronic Money Institution
Under both the Payment Institution and the Electronic Money Institution license, the EMI license / E-money license, you are required to protect client funds. You can do this by either placing the client funds into a separate ring-fenced client account or by obtaining an insurance policy. Insurance policy products are very rare and so you will most likely have to ring-fence the client funds into a segregated client account.
5. Choose the right banking partners
For your Electronic Money Institution, EMI / E-money business, you are likely to issue cards by working with a principal member of Visa or Mastercard. Similarly, it may well be the case that you are white-labelling your software. You need to ensure that you choose the right banking partners, especially by understanding their pricing structure, as this could mean the difference between making a profit or a loss.
How we can help
Buckingham Capital Consulting is an international consulting firm, specialising in payment services, electronic money/e-money, banking, and investment services. We are able to advise you on the best course of action and strategy based upon your business plan and financial product or service. We can you with licensing, compliance, operational setup and related services, including, obtaining banking facilities. For more information, visit our website on www.buckinghamcapitalconsulting.com