BANK, EMI & PI licensing

 

We assist in obtaining licences either new issue or institutions for sale.

We cover BANK , EMI and PI licences to date with a main focus in EU and USA,

please note we do manage and assist in other jurisdictions also.

We have BANK EMI and PI licences for sale in 3-4 EU countries consistently, we constantly 

poll and screen the market for genuine buyers and sellers.

If you are an institution interested in a sale of an asset please contact us using the contact form.

Guideline pricing depending on book value and Governance for

  • BANKS is between 10 and 30 million EUR
  • EMI is between 1 and typically 3.5 million EUR 
  • PI is between 0.3 and typically 2 million EUR

BROKER FEES BANK LICENCE (sale of existing licences)

The open account fee for an executed non bypass agreement for a bank licence is 10,000 EUR payable in advance to cover due diligence costs on our side.

If there is no reciprocal NBA signed by the seller we return your deposit.

This fee is fully refunded if a sale in agreed , we ask 1.5% commission on the final agreed sale value.

BROKER FEES EMI/PI LICENCE (sale of existing licences)

The open account fee for an executed non bypass agreed for a bank licence is 5,000 EUR payable in advance to cover due diligence costs on our side.

If there is no reciprocal NBA signed by the seller we return your deposit.

This fee is fully refunded if a sale in agreed , we ask 1.8% commission on the final agreed sale value.

EU FAQ

  • All End User KYC needs to be shared with the grantor of the licence usually a straight forward procedure
  • Compliance reporting to the central bank is procedurally verified by the licensee and audit undertaken by the Grantor 
  • The licence includes use of bank accounts and existing payments channels at competitive rates.
  • A monthly fee is charged for the licence 
  • Can be offered in UK and EU
  • The CXX responsible which are fit and proper, and the local company formation can be offered in a tax beneficial jurisdiction.
  • All operations can be offered for the service including on-boarding and full reporting and management.
  • The grantor can normally offer additional services such as banking and payments and acquiring with arrangements and fees already in place.

 

NEW LICENCES 

Full licensing options we support are Electronic Money Licences or Payment Institution licences. 

We currently support and assist in full licence applications 

in the following Countries 

UK, Luxembourg, Lithuania, Malta , Cyprus and Czech Republic and are also investigating Ireland.

Pros and Cons

Theres a list of pros and cons for each country these are usually :

1. Cost of legal work and services.

2. Cost of local presence and associated rules of local employment or directors residence where central banks dictate the additional conditions.

3. AML Reputation of the Licensing country in terms of where the licence can be banked.

False Assumptions

  1. The 350K PSD2 deposit is different in each state - plus 2% of user funds
  2. 350K is the amount needed in total capital - not true it is required to based on the business plan show sufficient funds or capital security  to break even in the business plan and to demonstrate a stress test.
  3. Some countries are more tolerant to high risks 
  4. Its good to obtain a licence in a state which is tolerant to gaming for example 

 

Factors to consider when registering for an EMI

1. UBO Who should be the UBO a legal entity or legal person ? 

The main problem in obtaining a license for the electronic money may be searching for qualified personnel.

Without qualified staff it will be impossible to obtain a license for electronic money. Usually in any EU country where we apply for a license (Malta, Czech Republic, Cyprus, Latvia, Estonia, Germany), the regulator will check carefully managers (directors) provided who will manage the company. According to the EU directive there must be a minimum of two directors. And both must be resident in the EU. In some countries, you can apply one of the EU resident and another resident of CIS.

The experience and qualifications of directors of the company must be confirmed by certificates, diplomas, certificates and other documents that the regulator will check for the validity.

The education of directors cannot be technical, but financial, economic, international, and similar higher education.

2. Funds What is the source of funding - 3 years audited tax accounts ?

3. Control What board and CXX  with pre-requisite skills should be appointed - are they already approved as fit and proper  in EU ? 

4. Local Local offices and/or local persons needed and if so how many.

5. Payments - Where will the new company get acquiring and payments access in EU and globally and at what rates are the CXX known SEPA/UK/SWIFT  (see 3)

6. Bank Accounts  - Where can we get these opened - where is the bank presentation of the business model and flows and the MLRO related on-boarding  controls.

7. TAX - if you intend to make a profit its important to have a tax domicile but do you need to obtain a license in the best EU tax jurisdiction.