Financial services progress with an EMI. Banking-as-a-Service (BaaS) has fueled fintech innovation. Blockchain-based digital currencies are transforming net banking. These financial services require specific permits and integration into the global financial and banking system. A digital banking enterprise needs an EMI license to comply with the rules. The FCA issues UK EMI licenses to govern such services in the UK.
A reliable service provider can help you get an EMI license in the UK quickly. Waiting for licensing might let competitors into this fast-changing market.
Fintech Harbor Consulting is an experienced corporate service provider that assists overseas customers apply for certain payment licenses like the UK EMI license and ensures fast industry operation. Its licensing capabilities remove application administration.
EMI delivers advanced worldwide banking services online. Banks and EMIs operate differently. EMIs are licensed to transfer electronic money. EMI can issue electronic money and provide PSP services with the license.
A regulatory body grants an EMI Institution authorization to operate and disburse electronic money. Applicants need an FCA UK EMI license to create or develop an EMI in the UK.
EMIs must notify FCA about their payment services, even if no authorisation is needed. In the UK, the “small EMI UK” option is offered for entities with monthly payment volumes and average outstanding electronic money limited to the UK.
A UK small e-money institution (Small EMI) can issue e-money and provide payment services except for Payment Initiation and Account Information. The FCA, which regulates electronic money institutions, has several registration steps for Small EMIs.
Small Electronic Money Institution licensees have various restrictions:
- The Small EMI’s overall business activity before registration must not create average outstanding electronic money greater than €5,000,000,
- The 12-month average of relevant payment transactions shall not exceed €3,000,000.
1. Company registration
You need a UK-registered firm to apply for an EMI license. Fintech Harbor Consulting assists with UK entity registration. We will reserve the business name and submit corporate paperwork to UK Companies House, including the articles of incorporation for the ultimate registration entity. UK entity registration usually takes one week.
2. Meeting regulations
Fintech Harbor Consulting licensing specialists will also verify that your company meets UK EMI license requirements.
Initial capital needs to vary by license type and underlying permits. The UK or European E-money Institution license requires €350,000 starting capital.
The FCA also needs a UK resident director and money laundering reporting officer (MLRO) to get an Electronic Money Institution license in the UK or Europe. You also need a local office.
- The regulator requires the following paperwork for licensing applications:
- The company’s business plan.
- Proof of internal processes, such a company’s memorandum of association, for e-money and payment services firms.
- Detailed instructions for protecting electronic money holders’ funds.
- Documentation indicating the firm would produce less than EUR €5 million in monthly electronic money when trading begins.
- Documentation proving the 12-month average of payment services transactions was less than EUR €3 million.
- Proof of initial capital availability.
4. License application
After completing the aforementioned, our staff will schedule a pre-meeting with the regulatory agency to discuss establishing a UK e-money institution.
The licensing organization may request extra documentation or an interview depending on the application. If all goes well, you will receive a UK EMI license and must act appropriately.