Electronic Money Institution (EMI) License

Electronic Money Institutions (EMIs) are entities that issue electronic money, or e-money, which is a digital equivalent of cash stored on electronic devices or remotely on servers. EMIs provide a variety of services, such as payment services, electronic wallets, and prepaid cards, allowing customers to make transactions and store funds electronically.

EMIs in Cyprus are regulated under the Electronic Money Law (2012), which implements the EU’s Second Electronic Money Directive (2009/110/EC) and the Payment Services Law (2018), which transposes the EU’s Second Payment Services Directive (2015/2366/EU). The Central Bank of Cyprus (CBC) is responsible for licensing and supervising EMIs operating in the country.

1. Company Formation: The applicant must be incorporated as a limited liability company in Cyprus, with a minimum share capital of €350,000.

2. Local Presence: The company must maintain a physical office in Cyprus, staffed with qualified employees to perform key functions.

3. Fit and Proper Test: Directors and key function holders of the EMI must pass a fit and proper test, demonstrating the necessary knowledge, experience, and integrity.

4. Governance and Internal Controls: EMIs must have robust governance arrangements, including a well-defined organisational structure, risk management policies, and internal control mechanisms.

5. Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Compliance: EMIs must implement AML and CTF policies and procedures, including customer due diligence, transaction monitoring, and reporting suspicious activities to the relevant authorities.

The process of obtaining an EMI license in Cyprus involves submitting an application to the Central Bank of Cyprus (CBC), along with the required documentation, such as a business plan, internal policies and procedures, AML/CTF policies, and evidence of the company’s financial resources. The CBC will then review the application and, if it meets all requirements, grant the EMI license.

At Chambers & Co, we provide a complete range of services to assist clients in setting up and operating an Electronic Money Institution in Cyprus, including:

1. Company Formation: We handle the incorporation of your company in Cyprus, ensuring compliance with all legal requirements.
2. Advisory Services: Our team of experts will advise on the optimal structure for your EMI, taking into account your business objectives and ensuring compliance with regulatory requirements.
3. EMI License Application: We will guide you through the EMI license application process, preparing the necessary documentation, and assisting you until your license is granted.
4. Ongoing Compliance Support: We provide ongoing support to ensure your EMI remains compliant with changing regulations, and offer assistance with any required updates to your policies and procedures.
5. AML/CTF Compliance: Our team of experts will help you develop and implement robust AML/CTF policies and procedures, ensuring compliance with relevant laws and regulations.

At Chambers & Co, our extensive experience and expertise in the field of electronic money institutions make us the ideal partner for establishing and maintaining a successful EMI in Cyprus.