PI license in Cyprus

Cyprus is a profitable territory for conducting business in the field of monetary services.

A favor provider may give payment favors provided that they have obtained a PI permission from the bank of Cyprus. That is, the enrollment of such a company in Cyprus clearly requires a permission for this type of activity.

The CBC is the liable body for the supervision and appeal of the appropriate law and the European Union Directive to all payment institutions licensed in Cyprus. In addition, the CBC is the observational authority for the enforcement of this law in relationship to the position of payment favors in the island through a branch or representative office, a bank or payment establishment, and an electronic money institution that has been authorized to ensure such favors from other EU members.

What is PI in Cyprus for sale

Applying for a PI or EMI license involves meeting several conditions. The company must be registered in Cyprus, the company headquarters must be in Cyprus and the company must have two executive directors, both of whom reside in Cyprus. These managers should have appropriate business training, doubled by experience. For licenses valid for monetary service, the primary fund requirement is EUR 20,000. If you want to get a certificate for monetary services 1 – 5, a primary capital of 125,000 euros is needed. After obtaining a license at the Central Bank of Cyprus, you can get a passport. This means that you can offer e-money services internationally to all EU members. For this, you only need to notify the Central Bank.

The provision of electronic money services in Cyprus is regulated by the Electronic Money Laws 2012 and 2018.

The Cyprus Securities and Exchange Commission regulates the compliance of financial rules and transactions with the European harmonized financial legislation MiFID.

What documents you need to obtain PI license

• Business plan;
• Evidence that the applicant has the required initial capital;
• Description of internal controls to combat money laundering;
• The identity of all directors, as well as persons responsible for managing the activities of the payment service provider;
• Evidence that they are of good standing and have the relevant knowledge and experience to provide payment services, in particular a copy of a police clearance certificate, a CV describing professional and academic qualifications;
• Memorandum and articles of association of the applicant;
• Applicant’s head office address.

Requirements

1. Office. The company must register its office on the island and conduct leastwise part of its e-money and/or payment services biz in the country.
2. Personnel demands. There should be a minimum of two executive and two non-executive directors.These Executive Directors must reside in Cyprus and demonstrate their ability and extensive knowledge in the banking and fintech sectors.
3. Shareholders. It is necessary to have at least two sharers of the corporation. They must provide evidence to the CBC and confirm that they have sufficient funds to support the EMI or PI.

Other requirements

• A company, in order to operate as a PI in Cyprus, must have a certain minimum primary capital required on the license (from 20,000 EUR to 125,000 EUR).
• The company must have reliable and effective operating procedures, as well as appropriate safety requirements procedures, which must be documented.Regarding protection requirements, prior approval from the Central Bank of Cyprus is needed.
• The enterprise is obliged to prepare financial statements.