AEMI License in Latvia

Today’s jurisdiction that 2 years ago regulated the processes of acquiring AEMI license. Entrepreneurs who have decided to operate in this area and want to obtain a license for a payment system in Latvia will now be able to distantly enroll accounts for their clients.

A license for digital money in Latvia can be issued within a few months (maximum six months), which is one of the advantages of the jurisdiction. To deal with the details of establishing a business in this area, use the services of competent specialists.

If you already have, for example, an AEMI license in the UK, then the Latvian state authorities will issue you a license in an expedited manner. This advantage is also given to businessmen who have yet enrolled a company in Latvia and have a corporate account in Latvia. Non-residents of the state must go through all the stages of achieving a license for a remittance system in Latvia in accordance with the EU Directive.

Latvian AEMI license

Registration as an e-currency institution will permit your business-company to provide electronic currency services in Latvia. If you wish to provide e-money favors, such as cash deposits and withdrawal favors outside of Latvia and within the EEA, you will need to obtain an AEMI license in Latvia.

Features and benefits of a Latvian Authorised e-money license in Latvia

• By registering a AEMI in Latvia, you can work with a license in the territory of the Economic Area of Europe. Thanks to “passportization”, it is possible to manage e-money business in Latvia and in all EEA states with a single permission.
• It is allowed to provide the following payment favors: transmissions, payments, card issuance.
• The terms for obtaining a license for e-money business in Latvia are 3 months.
• Access to SEPA and CENTROlink payment systems (developed by the Bank of Latvia).
• Remote account opening for individuals and legal persons.
• Issuance of Visa or Mastercard cards for both individual and business users.
• The regulator is offering remote KYC to connect customers while easing financial penalties for startups — for example, no regulatory penalties in the first year of operation.

Requirements for AEMI license in Latvia

The Financial Market Commission, on the basis of current legislation, decides who should be allowed to carry out financial activities on the territory of Latvia, and who should take measures to maintain a stable situation. Business requirements:

• A business plan is submitted together with the request, which confirms the financial status of the documentation and other accompanying documents.
• If the business plans to have a large cash flow, the business-company must have a charter capital of EUR 350,000 or more, among the board members at least 1 must be a resident or have legal grounds to work in Latvia. . The entire administration team must have previous experience in financial administration, including electronic services.
• The founder must have an economic education, as well as 3 years of work experience.
• Board members cannot be sued or engage in other forms of business.
• Particular attention should be paid to all the above demands when preparing to apply for a license in order to successfully obtain a company license.

The term for which an Authorised electronic money institution license in Latvia is issued in the country usually does not exceed 5 months, of which about a month is spent on the preparation of documentation.

How to get an AEMI license in Latvia

Businessmen wishing to obtain a license allowing to operate with electronic money in Latvia can seek advice from the employees of our company, as well as get support at all stages of establishing a business:

• First of all, you will need to register a company in Latvia (similar to an LLC, authorized capital: at least 350,000 euros).
• The next step is to open an account for a Latvian company. Regardless of whether the company has accounts in other countries, businessmen who want to obtain an AEMI license in Latvia must open an account in Latvia.
• Among the leaders there should be a citizen of the state who will have experience in this area and be competent.
• The manager of the company (during the entire period of existence of the company) must live in the country.
• There must be at least 1 individual among the founders.

Documents and legal papers

• Business-company charter
• Working program
• Business plan (must be for at least three financial years)
• Confirmation of initial fund
• Representation of measures taken to protect funds of users of payment favors and owners of digital money
• A evidence of your business’s risk administration and domestic control systems
• Business protocol to support the proper administration of the domestic control system to avoid money washing and financing of terrorism
• Proof of measures and methods of registration, accounting and restriction of access to payment data
• Confirmation of the procedure for collecting relevant data on the institution’s activities
• Description of info system security policy and security control measures
• Information about persons who directly or indirectly hold a qualifying position in the institution
• Info about members of the board and council, important shareholders and direct personnel is responsible for administering the work of the institution.

Regulatory structure for licensing payment institutions in Latvia

• Legal framework and legislation on remittance institutions in Latvia
• Law of the Republic of Latvia on financial institutions.
• Legal entities Law.
• Law on institutions of e-money.
• Law on the Prevention of Money Washing and Terrorist Financing.
• Payment Law.
• Resolution of the Board of the Bank of Latvia No. 246 of December 30, 2009 on the rules for maintaining the state register of payment institutions.
• Resolution of the Board of the Bank of Latvia dated November 14, 2013 No 03-181 on approving the Guidelines for the assessment of members of the management body and holders of the main functions of financial market participants supervised by the Bank of Latvia.

The Law of the Republic of Latvia on Electronic Money Institutions establishes that virtual money means the monetary value presented in a claim against an issuer and issued after the e-money issuer receives funds from a natural or legal person. They have the following characteristics:

• stored in electronic form;
• issued for remittance transactions;
• received by persons who are not e-money issuers.

In order to accept money from clients and keep it in remittance accounts for a relatively long time, issuing electronic money and then redeeming it, it is necessary to become an electronic money issuer. They can only be credit establishments , e-money institutions (EMI) and some other institutions.It is worth noting that the Law provides that AEMIs have the right not only to issue e-money in Latvia and other EEA member states, but also to provide services specified in Article 5 of the Law of the Republic of Latvia on payments (remittance favors, issuance and receipt of payment instruments, monetary translations). For this reason, an AEMI license in Latvia for sale differs from a payment establishment in that AEMIs can hold customer funds, while payment institutions cannot.