How to become an Electronic Money Institution in Lithuania

Electronic money institution license in Lithuania | EMI license in Lithuania | E-money license in Lithuania



Introduction


This article looks at how to become an electronic money institution in Lithuania. In Lithuania, The Bank of Lithuania is the financial regulator for regulating electronic money institutions. If you wish to become an electronic money institution in Lithuania then you must prepare and submit an electronic money institution application in Lithuania to the Bank of Lithuania.



Key features of becoming an Electronic Money Institution in Lithuania


- By becoming an 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 accounts 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 key requirements of the Electronic Money Institution license 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 is able to make decisions and is available to the Lithuania regulator.



List of services you can offer with the 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.



Step by step process and procedure to obtain the Electronic Money Institution ((e-money) license in Lithuania


1. We will assess your business idea and compare this with the suitability of the EMI license. Depending on your business model, we may suggest an alternative and more suitable license option, such as a payment or banking license.

2. When we have agreed on the license type, we will confirm the conditions and requirements of the license, such as initial capital and operational requirements.

3. We will set up and form your legal entity in Lithuania.

4. We will then begin to prepare your application, working closely with you. If you prefer, we can also help you with your company in Lithuania and arrange any banking facilities that you may require.

5. We will finally submit your application to the Bank of Lithuania.

6. The regulator may come back with some further questions. In this case, working closely with you, we will prepare the responses and communicate with the regulator.

7. Once the regulator is satisfied with your application, and you have provided all the required documents, such as evidence to satisfy the initial capital and safeguarding measures, the regulator will then issue you your license.



List of documents to be prepared for an application to obtain the Electronic Money Institution ((e-money) license in Lithuania


1. Basic company details;

2. Programme of operations;

3. Business plan;

4. Structural organisation;

5. Evidence of initial capital;

6. Details of your measures to safeguard client funds;

7. Governance arrangements and internal controls mechanism;

8. Procedure for monitoring, handling and following up on security incidents and security-related customer complaints;

9. Process for filing, monitoring, tracking and restricting access to sensitive payment data

10. Business continuity arrangements;

11. The principles and definitions applicable to the collection of statistical data on performance, transactions and fraud;

12. Security policy document;

13. Internal control mechanisms to comply with obligations in relation to money laundering and terrorist financing (AML/CFT obligations);

14. Details of auditors (if applicable).

15. Details and identity of the directors and shareholders.


Next Steps


Buckingham Capital Consulting is an international consulting firm, specialising in payment services, electronic 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


Call us today on 020 7866 2512. Alternatively, please send an email to info@buckinghamcapitalconsulting.co.uk to arrange a telephone call. We are also able to arrange calls using Skype. Our Skype ID is BCC54321.


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