ELECTRONIC MONEY license IN UK – EMI LICENSE IN UNITED KINGDOM
EMI LICENSE IN THE UNITED KINGDOM
This article provides information on the execution of Electronic Money Institution (EMI) – a license for electronic money on a company registered in the UK.
TERMS OF REGISTRATION
3 months (in case the regulator has FCA, there were no questions to the submitted application);
Up to 12 months (in case FCA requests additional documents).
In general, it should be noted that the electronic money application is being introduced everywhere in the sphere of international regulation. Companies with electronic money are able to effectively offer a range of banking and custody services to customers, as a rule, all these services are provided online (which implies a lot of risks). So this high-quality application is just one step below the bank (if you look at this application as a financial instrument).
There are less requirements for the activities of fund managers, stock brokers, depositories. Thus, there should be an understanding of the specifics of the application (electronic money), all key issues of professional management and the associated risks of problems, and an understanding of ways to solve them promptly.
First, in order to run an EMI business, it is necessary to have sufficient education and knowledge in order to manage and obtain an EMI license. This implies the following:
– Top Management, should have experience in launching such companies. For FCA, this correspondence is important; people who do not have any experience in this field usually do not get permission.
– Company management must be carried out from the UK.
FCA highlights the following key points:
1. A company must have more resident directors in the UK (or an equal number) than foreign directors (their nationality does not matter).
2. FCA implies that the decisions of the resident Director are dominant, he can say no to the policies, strategies and decisions that usually come from abroad, if they contradict the laws or regulations of the UK.
3. Board meetings should be held in the UK.
4. Operational day-to-day decisions must be made in the UK and the office itself must be based in the same state.
5. A company may have a director of a non-resident on the board of directors of a British company if everything else on the company is based in the UK.
6. The CEO must be resident and reside in the UK, and, as a rule, in practice, the Compliance Manager too.
7. The anti-money laundering officer, who can also be a CEO, if he has the appropriate qualifications, must be a UK resident.
8. If someone moves to the UK to be the CEO, they should familiarize themselves with the management rules, depending on the business model, and therefore it may be necessary to hire a local manager who has the competence to keep them in check.
9. Services provided by any third party – including IT support services – should be provided on the basis of the concluded agreement.
Secondly, you will need to open bank accounts that will allow your company to be the provider of the desired services. Such bank accounts must be in the name of your UK registered company. They will be required to receive funds from customers, until they are sent to the final recipient.
Accounts can be opened at any bank. In addition to the above, the account must be a savings account.This is an important FCA requirement.
KEY POINTS TO BE CONSIDERED WHEN SUBMITTING THE APPLICATION:
Business plan, which reflects in detail the activities of the company, the intended range of services and related management tools
Provide information reflecting the possibility of internal control in place. This means that everything will be done to prevent financial crimes, as well as the complaints procedure will be followed and they will be documented in detail. There should be the Supreme Management Authority, which will consider these complaints.
Maintain accounting records, including reconciliation of payments on bank accounts
Have business continuity and disaster recovery procedures in place.
CALCULATION OF COST OF OBTAINING EMI TYPE LICENSE
Cost of services for carrying out work on obtaining a license (includes registration UK LTD)
35 000 EUR
Authorized capital of the company
350 000 EUR
Resident Director (year)
From 70,000 GPB
Real office (year)
Opening an account
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Please contact us to learn more about licensing options, to receive an individual offer based on your requirements and a detailed calculation for obtaining a license for your future or existing business.