SEMI license in Cyprus

The Fintech industry in Cyprus has been developing quite rapidly over the past few years. The country has already formed a market for financial services, which is closely related to technology. This fintech sector is expected to show a rapid pace of development following the publication of the National Strategy for Distributed Ledger Technologies (DLT).

Small EMI is controlled by the CBC under the Payment Services Directive and the E-Money Directive, which have been included in the laws of the island. They can supply their clients with the following services: IBAN accounts, bank transfers via SWIFT and SEPA systems, Internet banking, Prepaid cards and currency exchange. And if you want to create your own payment or company that works with e-money, you will need just such a license.

General information

At the moment, the Cyprian Central Bank does not charge fees for applying for a license, however, it has the right to set fees retrospectively or issue directives determining fees for applying for a future permission. The Central Bank must respond to a request for a small e-money license in Cyprus within three months from the date of application.

The term passportization describes the ability of an entity licensed by the Central Bank of Cyprus to supply cross-border remittance favors to clients in EU member states with a simple notification procedure.

A firm applying for an Small electronic money institution license in Cyprus to provide e-money favors must be enrolled in the Republic of Cyprus and its head office must also be located in the Republic of Cyprus. According to the policy of the Central Bank, the two administrative managers of a company with a SEMI in Cyprus license for sale must be residents of the island and have relevant education and work experience.

Legal entities that have the right to supply remittance services:

• Banks;
• cooperative credit establishments;
• Postal service providers acting on the basis of relevant legislation;
• E-Money Institutions;
• The European Central Bank and national central banks, unless they act as a currency control authority or other state authority; and
• Government departments and local authorities when they act as public regulators

• Banks;
• cooperative credit establishments;
• Postal service providers acting on the basis of relevant legislation;
• E-Money Institutions;
• The European Central Bank and national central banks, unless they act as a currency control authority or other state authority; and
• Government departments and local authorities when they act as public regulators

Advantages of SEMI license in Cyprus 

Time

Your application package can take less than a month to prepare if you provide us with all the legal papers in time, but it usually takes one to two months as we help you improve your package.

Operating expenses

All SEMIs established in an EU Member State must have local offices staffed by key staff to deliver the services, which means that the staff must reside in the jurisdiction. If they are not nationals of the jurisdiction, they must have the appropriate work permit. All of this leads to operating costs that must be taken into account. We can help you find suitable office space and staff to manage your SEMI.

In terms of operating costs, a reasonable annual budget for SEMI’s operating costs, including wages, IT, telephone, rent, electricity, audit, compliance, professional fees, etc., would be no less than approximately 150,000 euros. The actual amount largely depends on the size of the company, its operations and executive compensation.

Minimum capital requirements for SEMI license in Cyprus 

The Act provides that the initial minimum capital demand for SEMI is 20,000 euros and there are ongoing capital demands calculated in conformity with the provisions of the Act, inter alia, to maintain a balance of at least the initial minimum fund demand.

The organizational structure

As with all financial licenses in Cyprus, SEMI’s in Cyprus for sale board must consist of leastwise two administrative and two non-administrative managers, the majority of whom must be residents of the island. In addition, the company also needs a responsible officer, an anti-money laundering officer, a chief information officer and a risk manager.

Documents for request that you need to obtain SEMI license in Cyprus 

• Choosing the appropriate license and the organizational structure of the firm;
• Providing a legal opinion that summarizes the main legal points of the application;
• Preparation of the company’s operating program with SEMI;
• Devising of a explanation of the management and domestic control mechanisms in a company with SEMI;
• Devising of a explanation and review of measures to protect funds, payment data and personal information of favors users and security policies;
• Devising of agreements between the remittance favors provider with SEMI and service users;
• Devising of a explanation of the domestic control mechanisms for combating money washing;
• Organization of indemnity insurance or provision of a comparable guarantee by a credit institution;
• Liaison with CBC for all questions related to the request that may arise after the submission of documents.