OBTAINING AN API, PI, PSP LICENSE

OBTAINING AN API, PI, OR PSP LICENSE

API, PI, and PSP licenses allow you to engage in activities related to payment systems. Let’s take a look at these three licenses separately and talk about the requirements for obtaining them.

PSP License (Belize)

Recently, payment systems that have registered in the US and the Eurozone are facing serious supervision. The requirements are getting too stringent. That is why getting a PSP license in Belize has become popular.

Obtaining a PSP license is not difficult, companies do not check as carefully, and the number of encumbrances is much lower than in the EU and the US.

PSP license is cost-effective and is issued in a short time. Belize’s national regime is quite lenient on business. Having received the document, the company can engage in various activities related to payment systems, buying and selling assets, and making money transfers. Unfortunately, you cannot accept customer deposits, and money received from customers can only be used for payment services.

How to apply for a PSP?

1. Register a company in Belize.
2. Prepare an application for registration.
3. Prepare the necessary package of documents with the personal data of the management team, shareholders, and directors. Also, collect papers confirming the availability of reserve money and documents confirming the solvency of the financial company.
4. Engage local registered officials.
5. Rent an office or create a virtual version of it, which is also allowed.
6. Enter collateral. Its amount can vary from 5,000 USD to 100,000 USD.
7. Pay the license fee after the approval of the application by the regulator.

The document for doing business is issued by the IFSC (International Financial Services Commission). The term for which the appeal is considered is from 3 to 5 months. In the end, a license is issued.

Activities

PSP license agreement, you are allowed to select an activity from the list below:

• Financial services with the placement of client funds, and payment processing.
• Account withdrawal services, and account management processes.
• Accrual of funds and one-time replenishment.
• Processing of electronic payments related to payment cards.
• Lending and transfers of borrowed funds.
• Carrying out payment transactions on credit money.
• Issuance and purchase of means of payment.
• Money transfers.
• Services of financial intermediation.

For each item, IFSC has the right to require additional documents.

License Features

• The tax rate is 1.75%.
• The minimum authorized capital is 5–100 thousand USD.
• Key requirements: the presence of a physical office in Belize, from 2 directors, compliance officer, and MLRO, experienced employees, insurance, and regular filing of reports.

API License (Ireland)

The API document allowing business in the field of payment services is issued by the Central Bank of Ireland (CBI).

Obtaining an API license

They consist of 5 stages:

1. Contacting the CBI to obtain an API license.
2. Checking documentation. The auditor examines the information and, in case of a shortage of papers, may suspend consideration of the application.
3. Evaluation of the application by the supervisory authority CBI. If there is a shortage of documents, the answer comes within 3 months with a request to attach additional papers.
4. Application status notification. If the CBI is satisfied with the provided data, the applicant is contacted and informed that they are ready to issue an API license.
5. Decision message. With the permission of the applicant, the regulator draws up and issues an API license.

Applying to the CBI

A package of documents is required:

• Application for a license.
• Constituent papers and articles of association of the company.
• Detailed business plan with financial projections.
• Markup of monetary transactions.
• Methods of management and internal control.
• Ways to monitor and guarantee security.
• Forms filled out by management and key employees of the company. Their personal details are required.
• Markup of the internal structure of the organization.

Financial requirements

It is important that there is a certain starting capital. The amount is set by law.

20 000 EUR – for money transfers.

50,000 EUR – financial transactions that will need to be confirmed in order to complete them.

125 000 EUR – a business related to many financial services.

Maintaining a certain amount of capital is critical to maintaining an API license. The specific amount is calculated according to special formulas and depends on the volume of transactions.

PI financial license

Necessary for Internet projects in the field of finance. Can be obtained and used in various jurisdictions.

Document Features

1. Allows you to replenish customer accounts.
2. Provide withdrawal services to individuals and legal entities.
3. Provide payment transactions, and delegate financial transactions.
4. Enable auto payments.
5. Allowing payment transactions when the credit limit is activated.
6. Adding your own and third-party financial services.
7. Fund transfers.
8. Carrying out transactions with the consent of the payer with confirmation, for example, using SMS.

Financial Requirements

In order for a license to be issued, it is necessary to prove to the regulator that the authorized capital is more than:

20 000 EUR – for work with money transfers.

50 000 EUR – for transactions with additional confirmation.

125 000 EUR – for more services.

The amount required as authorized capital depends on the business plan, the number of planned cash transactions, experience in financial management, and other characteristics of the business.

Package of documents

• A detailed plan for the development of the payment system.
• Developed business plan for 3 years ahead.
• Proof of share capital.
• Measures aimed at ensuring the security of funds.
• List of company leaders and their personal details.
• A detailed description of the implementation of AML and KYC (“anti-money laundering” and “know your customer”).
• A document that confirms open accounts in the countries in which the PI – license operates.
• Banking information about the management of the company.
• Information about directors and key personnel.
• Information about auditors.
• Memorandum and charter of the company for which you get a PI – license.
• Address of the head office of the company.

In some jurisdictions, financial intermediation does not require a license. But, if PI permission is not available, commissions increase by 2-3%, which undermines the pace of business development. Also, some functions, such as auto payments or debiting without an agreement, become impossible.