The authorization process of Electronic Money Institution (EMI) license is conducted by the Bank of Lithuania. There is a specific procedure and a list of documents required to be submitted with an application for authorization to the Bank of Lithuania.
Bulota Legal is in partnership with the Baltic Banking Service assisting newly establishing financial institutions in IT solutions. Therefore, an applicant for EMI license receives full package of IT and legal service.
Meaning of electronic money and difference from the payment institution
Under the Lithuania Law on Electronic Money Institutions, “electronic money” means a monetary value as represented by a claim on the issuer which is issued on receipt of monetary funds by the electronic money issuer from a natural or legal person and has the characteristics of stored electronically (incl. magnetically), issued for the purpose of making transactions and received be persons other than electronic money issuers.
In order to accept money from clients in the electronic domain and to hold it in payment accounts for a relatively long time, issuing electronic money and the redeeming it, prior to that it is necessary to become an electronic money issuer.
EMI differs from a payment institution in that an EMI may withhold client funds, whereas payment institutions cannot do so.
The following basic stages in the authorisation process:
- submission of an application for an EMI licence to the Supervision Service of the Bank of Lithuania;
- assessment of an application for a licence of an EMI and attached documents: where the documents submitted have no deficiencies, the licence is issued within the shortest possible 3 month term;
- issuance of a licence or refusal to issue a licence.
EMI license fee
Prior to applying for an EMI it is necessary to pay into the account of the State Tax Inspectorate a state fee for the granting of the EMI licence, which currently about 1,500 EUR.
Key requirements for an EMI being established or authorised
An EMI being established or authorised must be prepared to comply with all requirements set for it, as an EMI in operation, the Bank of Lithuania requests that detailed data is submitted already at the time of application. There are the following basic elements:
- fitness of submitted documents;
- compliance with the minimum capital requirement for EMI: according to the law an EMI must possess a minimum equity capital of no less than 350,000 EUR;
- fitness and propriety of the EMI and its shareholders or holders of voting right;
- fitness and propriety of heads of an EMI: the heads of an electronic money institution must be of good repute and possess the qualification and experience necessary to properly perform their duties;
- the operating plan must correspond to the possibilities of an EMI’s founders.
Video made by Invest Lithuania
Contact at firstname.lastname@example.org for more information about requirements and how to obtain an Electronic Money Institution licence in Lithuania.