EMI Licensing: How to obtain in LITHUANIA?

Huynh NguyenOctober 29, 2022

EMI Licensing: How to obtain in LITHUANIA?

An E-money institution (or EMI) is a regulated financial institution that may provide e-money-related services and payment services.

The whole license for e-money is neither time- or activity-restricted. Thus, a holder of an EMI license Lithuania may offer any services inside the European Economic Area (EEA) without undergoing a separate licensing process in any other member state. After obtaining a license in Lithuania, an e-money institution may provide services in other EEA member states by opening branches or pass-porting (with the use of the freedom to provide services).

It is also possible to apply for a restricted license for an e-money institution. This limited license holder (owner) would be authorized to perform services within the area of the Republic of Lithuania; nevertheless, there would be constraints regarding the company’s turnover.

ADVANTAGES OF EMI LICENSE IN LITHUANIA

This financial framework enables major multinational businesses to address the most complicated aspect of the present global economic climate: banking services and international transfers (especially in USD currency). In addition to being one of the defining characteristics of this form of financial structure, the potential of:

The reception of SWIFT.
IBAN account issuance for the institution’s clientele.
Internet-based account opening for both people and legal companies.
Visa or MasterCard payment cards issued to the consumer and connected to their account.
Possibility to transact with international banks in USD/EUR/GBP and other currencies.
The capability to receive payments from any worldwide SWIFT account.
Independent decision-making about account opening and payment processing.
Possibility of establishing international correspondent accounts.
Own AML department.

Permitted Activities. The EMI license permits the operation of several services and proposals. Here is a listing of permitted activities:

Services allowing funds to be deposited into a payment account, as well as all procedures necessary to maintain a payment account.
Services that enable cash withdrawals from a payment account in addition to all activities necessary to operate a payment account.
Execution of payment transactions, including money transfers on a payment account with the user’s payment service provider or with another payment service provider:
Credit transfers, including standing orders, direct debits, and payment card transactions.

Execution of payment transactions covered by a credit limit for a user of a payment service:

Execution of direct debits, including one-time direct debits; Execution of payment transactions using a payment card or other device; Execution of credit transfers, including standing orders.
Payment instrument issuance and/or payment transaction acquisition.
Money remittance.
Payment processing services.
Providers of account information services
The claim describes the issuing of electronic money and the provision of operational and closely linked auxiliary services.
The management of payment systems.

Activities other than the issuing of electronic currency, taking into account relevant Community and national legislation, etc.

Electronic currency licensing in Lithuania

The licensing procedure involves several steps. In spite of this, EMI operations are required to get a license in Lithuania. Initially, the potential EMI license holder must comply with the Requirements.

At least 18 years of age;
To have an initial share capital of at least EUR 350,000 for the AEMI license type;
To receive an EMI license, no minimum initial cash is necessary;
Having a bank account for personal or business reasons;
To have accessible papers verifying income (tax declaration or tax control authority certificate);
Have no limitations or bans from the EU and Lithuanian regulatory agencies;
Acquisition (or long-term lease) of (building or office) real estate for the business.

Remember that you can get the help of a fintech lawyer with EMI licensing issues and company formation in ukraine and other countries at Fintech Harbor Consulting.

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