OBTAINING AN EMI LICENSE , AEMI

OBTAINING AN EMI LICENSE, AEMI

Electronic Money Institute EMI / AEMI is an organization that issues permits for activities with payment systems. The persons who received it have the right to issue electronic money, transfer, and exchange them.

The EMI permit is issued indefinitely. It allows you to conduct business related to electronic money within the European Economic Area (EEA). One license is enough to work in all countries that are members of the CES.

Benefits of an e-money license in Lithuania

One of the main advantages is the ability to conduct transactions in USD, as well as:

• Working with SWIFT.
• Providing IBAN to customers of the payment system.
• Remote account opening for individuals and legal entities.
• VISA and MasterCard cards to customers.
• Bank payments to any country in many currencies, such as USD, GBP, AUD.
• Independent processing of transactions and opening of client accounts.
• Permission to open correspondent accounts.

Legal types of business

The EMI / AEMI document provides ample opportunities for doing business:

• Confirmation of financial transactions, including transfers from one payment system to another.
• Direct Debit function – money is credited immediately to the cards of individuals from corporate accounts.
• Transfers from payment cards and similar devices.
• Ability to open credit lines and issue loans.
• Payment for goods and services, as well as money transfers with debiting money from a credit account.
• Creation of additional financial instruments.
• Acquiring transactions.
• Issuance of digital money, and support for the circulation of electronic funds.
• Any non-prohibited activities offered outside of electronic transactions are permitted.

Requirements and receipt

Obtaining an EMI/AEMI license is difficult. But in Lithuania, there is a strict procedure for its registration.

Step 1. Licensing of the electronic system issuer

• Shareholders must be over 18 years old.
• Availability of authorized capital from 350,000 euros.
• Confirmation of the source of origin of funds.
• No restrictions or prohibitions by the European Union and Lithuania.
• A document confirming the lease of an office in Lithuania.

Step 2. Documents for obtaining an EMI license, AEMI

• Structured company charter.
• Action plan.
• Detailed business plan with budget forecast for 3 years. This will show the regulator that the company is stable.
• Evidence of authorized capital.
• List of measures that are taken to protect clients’ money.
• A list of applied control levers, and papers demonstrating methods of accounting, management, and management of the company’s processes.
• List of measures to prevent money laundering and terrorist financing.
• Description of the structure of the company, proposed branches, agents, individuals, and legal entities involved, as well as the founders and actual owners of the business.
• Data on shareholders, the bulk of whose money will be the authorized capital.
• Personal data of the directors who are responsible for managing the payment system. They must have a good reputation and comply with the requirements of current legislation.
• Information about the partner firm that conducts the audit, or a licensed auditor who will perform the audits.
• Address of registration of the company’s office.
• Other documents, such as a tenancy agreement. Sometimes the regulator asks to supplement the package of documents with the papers indicated during the first application.

Step 3. Waiting for a license to be issued

After signing the documents, the Central Bank of Lithuania considers the application within 3 months from the date of submission of papers for obtaining EMI.

If deficiencies are found in the documents, the regulator may ask for additional papers. In this case, the period for obtaining a license is considered from the moment of the last application to the regulator.

How much does an EMI, AEMI license cost?

EMI license costs about 23,000 euros. Depending on the type of activity, the price may be higher. Since the process of obtaining a license is laborious, expensive, and has many legal nuances, it is better to seek the help of experienced lawyers.