How to apply for the E-money / EMI License in Lithuania

E-money license Lithuania | EMI license Lithuania | Electronic Money Institution license Lithuania


Introduction


This article looks at how to obtain an E-money EMI / Electronic Money Institution license in Lithuania. In Lithuania, The Bank of Lithuania is the financial regulator for regulating E-money EMI / Electronic Money Institutions. If you wish to become an E-money EMI / Electronic Money Institution in Lithuania, then you must prepare and submit an E-money EMI / Electronic Money Institution license application in Lithuania to the Lithuanian financial regulator, namely, the Bank of Lithuania, according to Lithuanian law, as set out in the law on financial institutions.



Key features and benefits of the EMI Electronic Money Institution in Lithuania


- By becoming an E-money EMI / Electronic Money Institution in Lithuania, your license will be recognised in all other EEA (European Economic Area) member states. Through ‘passporting’, this allows you to operate your electronic money institution across all EEA countries with a single license.

- Minimum initial capital requirement of EUR 350,000.

- 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.

- You can access SEPA and CENTROlink – a payment system developed and operated by the Bank of Lithuania.

- Remote account opening for individual and business customers.

- Issue Visa or Mastercard payment cards for both individual and business users.

- The regulator offers 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.



The License process for applying and obtaining the E-money EMI / Electronic Money Institution in Lithuania





Legal framework and legislation of E-money EMI / 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



4 License requirements for E-money EMI / Electronic Money Institutions in Lithuania


- A minimum capital requirement of €350,000 to establish an electronic money institution (e-money) license 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 electronic money institution in Lithuania must be of good repute and possess the relevant qualifications and experience to perform their duties.

- Whilst Lithuanian legislation does not require for the management body to reside in Lithuania, it is advised that the Lithuanian electronic money institution has one director or representative in Lithuania who can make decisions and is available to the Lithuanian regulator.



List of services you can offer with the E-money EMI / Electronic Money Institution license in Lithuania


1. issue e-money e.g. prepaid cards and electronic wallets.

2. services enabling cash to be placed on a payment account and all of the operations required for operating a payment account;

3. services enabling cash withdrawals from a payment account and all of the operations required for operating a payment account;

4. 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—

(i) execution of direct debits, including one-off direct debits;

(ii) execution of payment transactions through a payment card or a similar device;

(iii) execution of credit transfers, including standing orders;

5. the execution of payment transactions where the funds are covered by a credit line for a payment service user—

(i) execution of direct debits, including one-off direct debits;

(ii) execution of payment transactions through a payment card or a similar device;

(iii) execution of credit transfers, including standing orders;

6. issuing payment instruments or acquiring payment transactions;

7. money remittance;

8. payment initiation services;

9. account information services.



7 steps to apply and obtain the E-money EMI / Electronic Money Institution license in Lithuania