Malta Electronic Money Institutions License_Guideline
Malta Electronic Money Institutions License
The Third Schedule of Financial Institutions Act, provides the legal framework for the provision of the Payment Service Services in Malta.
As per the Act, a Electronic Money Institution (“EMI”) is a financial institution that has been licensed in accordance with the Financial Act and authorised to issue electronic money or that holds an equivalent authorisation in another country in terms of the Electronic Money Directive to issue electronic money.
Electronic money is defined by the Act as: electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions and which is accepted by a natural or legal person other than the financial institutions that issued the electronic money.
In addition to issuing electronic money, EMIs are entitled, subject to the prior authorisation of the Malta Financial Services Authority (MSFA), to engage in any of the following activities:
- The provision of certain payment services.
- The granting of credit related to certain payment services. Provided that any such credit shall not be granted from the funds received in exchange of electronic money and held in accordance with the prescribed safeguarding requirements.
- The provision of operational services and closely related ancillary services in respect of the issuing of electronic money or to the provision of payment services referred to in point (1) above.
- The operation of payment systems.
- Business activities other than the issuance of electronic money, having regard to the applicable law regulating such activities.
The entity making the application is a Malta company under the Companies Act (CAP. 386)
|Director’s Requirements||The licensee will need at least three (3) directors with at least one (1) Maltese resident director.|
|Compliance Officer||The Licensee must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.|
|Money Laundering Reporting Officer||The Licensee must establish and maintain an appropriate and effective Money Laundering Reporting function within the firm which operates independently of all operational and business line functions and senior or supervisory management.|
|Risk Officer||The Licensee must establish and maintain an appropriate and effective Risk management function within the firm which operates independently of all operational and business line functions and senior or supervisory management.|
|Local Office||The applicant must have premises acceptable to the MFSA. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.|
|Passport rights||An electronic money institution authorized by the MFSA may exercise its European right to issue electronic money in another Member State or EEA State either through the establishment of a branch or under the freedom to provide services if it satisfies the applicable provisions|
|Auditor||The Licensee shall establish an internal audit / audit committee in order to undertake the internal audit function of the company and which shall be independent for the management of the company or outsource|
|Insurance||The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the MFSA.|
|Minimum Capital Requirements||
The Applicant must have the prescribed minimum paid-up capital and is able to meet the prescribed minimum net liquid capital requirement in cash or readily marketable securities.
The prescribed minimum paid-up capital is
€ 350,000 (Approximately USD 385,000)
- An Electronic Money Institutions License is issued for a period of 5 years. On expiration of such term, the Malta Financial Services Authority may renew such licence for further 5 year periods, subject to continued compliance by the Licensee and upon payment of the renewal fee.
- Filing of Audited Accounts: The financial statements must be approved within 10 months from the accounting year end and must be filed with the Registrar of Companies within 10 months plus 42 days from the accounting year end. However if the 1st accounting period is longer than 12 months, then the approval and submission date need to be decreased by the number of days that the accounting period is longer than 12 months .If these deadlines are not adhered to, penalties of €25 plus €0.50c per day will apply accordingly
- The Licensee must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.
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