Payment Institution License in Cyprus

Payment Institution License in Cyprus – Types of Licenses

Services delivered by PI (Payment Institution)

Operate direct debits. It also applies to one-off direct debits;

Enables you to deposit cash in a payment account, as well as all other types of operations associated with such an account;

Cash withdrawals from payment accounts and all the other associated operations;

Allows you to transfer funds in a payment account for the user payment service provider and also with another payment service provider;

Transactions that consist of payments via payment cards and other equivalent financial tools;

Credit transfers, which includes standing orders;

Transactions of funds that are under the provisions of credit lines for the user payment service;

Operations including direct debits and one-off direct debits;

All the operations associated with the transfer of credits and standing orders;

It issues and acquires all types of payment instruments;

All electronic money transfers;

All services are connected to account information.

Allows payment initiation.

Services delivered by EMI (Electronic Money Institution)

If you want to operate as electronic money issuing business you must apply to the Central Bank of Cyprus to acquire an EMI license. This type of certification will allow you to issue electronic money and to deliver your clients all the services of licensed PI.

Payment Institution License in Cyprus

Specificity of Payment Institution License in Cyprus

As we already mentioned above, applying for a PI or EMI license includes compliance with several conditions. The company shall be incorporated in Cyprus, the company’s headquarters shall be in Cyprus and the company shall have two executive directors, both with residence in Cyprus. These executives shall have appropriate business studies, doubled by expertise. This is a requirement imposed by the Cyprus Central Bank, known as the four-eyes principle.

For licenses valid for payment service No. 6, the initial capital requirement amounts to 20.000 Euros. For payment service No. 7, the license requires a capital starting with 50.000 Euros. If you want to acquire the certification for payment services 1 – 5, the initial capital requirement is 125.000 Euros. The company applying for electronic money services needs initial capital of 35.000 Euros.

Currently, there are no fees when you apply for such a license. Nevertheless, The Cyprus Central Bank can still impose this fee retrospectively. You need to wait for three months before getting an answer from the Central Bank of Cyprus regarding the approval of your license.

After receiving the license from the Cyprus Central Bank, you can do passporting. It means that you can offer e-money services at an international level for all EU members. All it takes is a simple notification with the Central Bank.

Payment Institution License in Cyprus

Documentation package

The first step in our collaboration is to receive an initial call from our expert team, which will determine with precision all your specific goals, and requirements.

After this initial consultation, we will inform you regarding the fees implied by our legal service for your specific needs.

After you decide to work with us and accept the respective fee, we will start the actual collaboration. Our assigned expert team starts drafting a detailed plan for action and legal services required.

Our services

We will provide corporate and accounting services

Search and apply for the company name;

Assistance with the preliminary submission – Memorandum and Articles of Association;

Incorporation for your company that complies with the Central Bank’s requirements;

Fulfillment of all requirements for the nominee executive directors;

Nominee shareholders;

Covering all documents and procedures for the registered office and the headquarters, as per licensing requirements;

Creation of all the official documentation and Fiduciary Services;

Assistance for all administrative and governance activities of your company;

We acquire all the certificates required for a license application.

We will Assist You with the Application for a PI/ EMI License

Find the most appropriate corporate type for your intended electronic financial services;

We deliver you a summary of everything essential for your application with the Central Bank of Cyprus;

Draft the schedule for each stage of the PI/EMI license process;

We create the organizational structure chart, the business plan, and the operations continuity arrangements;

Design all governance arrangements, internal control procedures;

Draft and revise the security policy, and all the procedures for funds safeguarding, payment, and personal data, for users;

Draft contracts between your company and users;

We design the AML/CTF internal control procedures;

Covering all aspects implied by Indemnity Insurance and Comparable Guarantee, with credits institutions;

You will receive advice concerning the most appropriate outsourcing services. We also revise your outsourcing contracts;

We draft and submit your license application to the Cyprus Central Bank, including all the other documents and questionnaires required by them;

We undertake all the communication with the Cyprus Central Bank, involved in the entire application process.

The lawyers at PFSER are ready at any time to assist you through the entire process of obtaining your e-money license. Our team is always up to date with the latest Fintech data and with the entire legal frame in this area. Our lawyers have great expertise in international networks. We have all the specialized e-payments know-how. Therefore we will assist you from the very first stages up to the finalization of your certification process. PFSER will clarify for you all the terms imposed on you by the Cyprus Central Bank.

Get a personal offer!