Payment Institution (PI) License in Cyprus

The regulatory framework governing Payment Institutions in Cyprus is primarily based on the European Union’s Payment Services Directive (PSD2), transposed into national law through the Provision and Use of Payment Services and Access to Payment Systems Law of 2018. This legislation sets out the requirements, obligations, and procedures for obtaining and maintaining a PI license in Cyprus, with the Central Bank of Cyprus (CBC) serving as the competent authority responsible for licensing and supervising PIs.

To obtain a Payment Institution license in Cyprus, applicants must fulfill several key requirements:

1. Company Formation: The applicant must establish a legal entity in Cyprus, with a minimum initial capital requirement depending on the type of payment services to be provided.

2. Management and Governance: PIs must have a robust management structure, including a Board of Directors with appropriate expertise and experience in payment services, as well as a clear organisational structure that ensures adequate oversight and risk management.

3. Internal Policies and Procedures: Applicants must develop comprehensive internal policies and procedures, including risk management, anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, IT security, and data protection, in line with the relevant legal and regulatory requirements.

4. Safeguarding Client Funds: PIs are required to implement appropriate measures for safeguarding client funds, such as segregating client accounts or obtaining adequate insurance coverage.

5. Business Plan: A detailed business plan outlining the proposed payment services, target market, marketing strategy, and financial projections must be submitted as part of the application.

At Chambers & Co, we offer a comprehensive range of legal services to support clients in obtaining and maintaining PI licenses in Cyprus, including:

1. Regulatory Advisory: Our team provides expert guidance on the legal and regulatory requirements applicable to Payment Institutions in Cyprus, helping you to navigate the complex landscape of PI licensing and ensure full compliance with local and international standards.

2. License Application Preparation: We assist with the preparation of your PI license application, including the development of the required business plan, internal policies and procedures, and other documentation required by the CBC.

3. Submission and Liaising with Authorities: Our expert team will submit your application to the CBC and liaise with the regulatory authority on your behalf, addressing any queries, concerns, or requests for additional information that may arise during the review process.

4. Ongoing Compliance Support: Once your PI license has been granted, Chambers & Co will provide ongoing support to ensure that your business remains compliant with all relevant laws and regulations, as well as assisting with any operational or contractual issues that may arise.

With our extensive experience and in-depth knowledge of the Payment Institution licensing process in Cyprus, Chambers & Co is well-equipped to support your payment services business from inception to operation. Contact us today to learn more about how we can help you achieve your goals in the rapidly evolving world of payment services.