UK Electronic Money Institution (EMI) License: Your Gateway to Fintech Innovation
The rise of digital payments has given birth to a new form of currency: e-money. In the UK, if you want to issue e-money (think prepaid cards, digital wallets) and offer e-money accounts to customers, you need an Electronic Money Institution (EMI) license.
What is E-Money?
E-money is essentially digital cash. It’s stored electronically, issued when you deposit funds, and accepted as payment by various businesses.
Why You Need a UK EMI License
An EMI license from the UK’s Financial Conduct Authority (FCA) allows you to offer a wide array of financial services:
- Issue e-money
- Manage payment accounts (deposits, withdrawals, transfers)
- Process payments (direct debits, card transactions, etc.)
- Issue payment instruments (like prepaid cards)
- Offer money remittance services
- And more!
Benefits of a UK EMI License
The UK is a prime location for fintech businesses:
- UK licenses are held in high esteem worldwide.
- The FCA is known for its clear rules and guidance.
- The UK offers a business-friendly environment.
What Does It Take to Get an EMI License?
The FCA has specific requirements, including:
- Minimum capital of €350,000
- Safeguarding of customer funds
- Qualified and experienced management team
- A solid business plan and financial projections
- Robust compliance and security measures
Documents Required for Your UK EMI License Application:
- Company Identification Details: Proof of registration and legal status in the UK.
- Program of Operations: A detailed overview of your intended e-money and payment services.
- Business Plan & Financial Forecasts: A comprehensive plan outlining your business model, revenue projections, and financial stability.
- Organizational Structure: A description of your company’s hierarchy, roles, and responsibilities.
- Evidence of Initial Capital: Proof that you meet the minimum capital requirement of €350,000.
- Safeguarding Measures: Details on how you’ll protect customer funds (segregated accounts, insurance, etc.).
- Compliance & Governance: Your procedures for risk management, internal controls, and regulatory compliance.
- Security Incident Procedures: How you’ll handle and prevent security breaches and customer complaints.
- Data Protection: Your systems for securing sensitive payment data.
- Business Continuity: Your plans for maintaining operations during disruptions.
- Statistical Data Collection: How you’ll collect and report data on performance, transactions, and fraud.
- AML/CTF Measures: Your internal controls to prevent money laundering and terrorist financing.
- Shareholder Details: Information about your company’s ownership structure.
- Outsourcing Arrangements: Details of any outsourced functions and how they’ll be managed.
How Long Does It Take to Get a UK EMI License?
Application Acceptance: The FCA typically acknowledges your application within 7 business days.
Decision Timeline:
- Complete Application: The FCA aims to decide within 3 months.
- Incomplete Application: The process can take up to 12 months.
Can a UK EMI License be Revoked?
Yes, the FCA can revoke an EMI license if your company:
- Fails to meet the minimum regulatory standards.
- Fails to fulfill basic obligations like paying fees or submitting required reports.
- Cannot meet its financial liabilities or fails to compensate consumers as ordered by the Financial Ombudsman Service.
Are you looking to overcome financial boundaries in the modern digital economy? Unlock vast opportunities with IFB. Contact us and obtain an EMI license in the United Kingdom or buy ready-made companies with this license!