All you need to know about a European EMI license: a brief overview

If you consider operating as a PSP, offering issuance of debit cards, delivery of money sending and receiving services, and digital wallets, you require a license for these operations. To acquire a European EMI license, you need to get in touch with EU authorities regulating the sector of finances such as the UK FCA. The following is a brief overview of how to acquire an EMI license in EU states.

The Revised Payment Services Law

PSD 2 is Directive 2015/2366 of the EU Parliament that establishes a legal and operational basis for entities offering financial services. Adherence with this law must be ensured by banking institutions, payment processing platforms, EMIs, and their clients as well. PSD 2 provides a set of obligations for businesses looking to acquire an EMI license and operate within the EU.

The primary purposes of Revised PSD 2 include the safeguarding of clients and ensuring payments are carried out in a secure manner.

The scope of operations allowed by an EMI license

Businesses can deliver a broad variety of services, but the majority of them necessitate separate licensing. The EMI license is considered general as it provides the authorization to carry out five main financial services. These are as follows:

1. Provision of data about the customer account;
2. Payment accounts opening;
3. Money transfers. (crossborder payments are also allowed);
4. Services for business;
5. Initiating payments; (initiating payments from the clients’ accounts and transfer funds to the business accounts).

The geographical scope of financial service delivery in the EU

Suppose you are an authorized business registered within an EEA country. In that case, you are permitted to offer your services in other countries of the EEA without the condition for separate licensing in those jurisdictions. To do this, you will be required to only apply for a passport. This procedure is easy and quick.

Core aspects of acquiring a license

The directors of each enterprise that applies for permission to operations are rigorously supervised by regulative authorities in all EU countries, with no differences in which country an applicant applied to. In this respect, in a case when the management is not presented by two licensed persons residing in the EU, the company`s application for getting licensed will be rejected. Nevertheless, this condition varies in each country. There are countries the law of which allows one authorized person that is a citizen of one of the EU countries to obtain an EMI license, however another member of the management may reside in the CIS territory.

It is mandatory to ensure that the company’s directors and employees have appropriate education, knowledge, and experience in the financial or economic sectors confirmed by certificates and documents. In case the education of previously mentioned individuals is other than in the sector of finances, the company`s application for getting licensed will be denied.

For those who are looking for simplified licensing for financial operators – there is a separate option – small EMI licenses, or SEMI. Lawmakers impose fewer rules for receiving it, however, the main disadvantage of SEMI is that it is not valid in all EU states. Thus, if you consider the delivery of your services throughout Europe, we advise that you apply for a standard license.

If you are interested in obtaining a license, please contact our experts for consultation.

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