PRAGUE

Key requirements for Electronic Money Institution (EMI) to be established

2021-04-23

Considering the fact, that at the time of authorization, the Electronic Money Institution being established or authorized must be prepared to comply with all the requirements which are set, the Bank of Lithuania requests that detailed data is submitted already at the time of application. To assess if the applicant is suitable for the license, firstly Bank of Lithuania check for the following:

– Suitability of submitted documents: Submitted documents must comply with the requirements of the legal acts regulating EMI activities and their supervision; all additional documents related to legal acts which prove provided data should be submitted as well.

– Applicant should conform with the minimum capital requirements: according to the provisions of the Lithuanian Law, EMI must possess a minimum initial capital requirement of 350,000 eur. (applicant of EMI for restricted activities does not have to meet this criteria).

– Suitability of EMI’s shareholders or holders of voting rights: shareholders must be able to ensure reliable EMI management, relatable persons must be sufficiently high repute and financially sound (applicant for EMI restricted activities does not have to meet this criteria).

– Fitness and propriety of heads of an EMI: the heads of EMI must be of good repute and posses necessary experience and qualifications to properly perform their duties.

– The provided operating plan must correspond to possibilities of EMI’s founders to implement it.

It should be noted, that according to the demand of reliable and risk limiting principles based EMI, entity has to have a detailed and adequate procedure for the management of EMI activities, including an organization structure allowing to ensure the differentiation of functions and vertical/horizontal responsibilities with clearly defined responsibilities and their limits, monitoring of potential risks which may arise in the process, a system for the identification and reliable administrative measure and an accounting system.

Source: Bank of Lithuania

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