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Procedure to obtain the E-money license EMI / Electronic Money Institution in the Netherlands
Electronic Money Institution (EMI) License in the Netherlands
Obtaining an EMI license in the Netherlands allows businesses to issue and manage electronic money, opening up a range of financial services. This article provides a comprehensive overview of the licensing process, requirements, and benefits.
An Electronic Money Institution (EMI) is a non-bank entity authorized to issue electronic money, a digital equivalent of cash used for payments. In the Netherlands, the Financial Supervision Act defines EMIs and outlines their permissible activities.
Regulatory Framework: PSD2
The Second Payment Services Directive (PSD2) is a cornerstone of the European regulatory framework for payment services. It harmonizes regulations across the European Economic Area (EEA) and impacts banks, EMIs, and their customers in the Netherlands.
The Dutch Regulator: De Nederlandsche Bank (DNB)
DNB is the central bank of the Netherlands and the regulatory authority responsible for overseeing financial institutions, including EMIs. To operate as an EMI in the Netherlands, businesses must obtain authorization from DNB.
Services Offered by EMIs in the Netherlands
An EMI license in the Netherlands allows for a wide range of services, including:
- Issuance and management of electronic money;
- Payment account services (depositing/withdrawing funds, card payments);
- Merchant services (accepting card payments);
- Money remittance (international payments);
- Payment initiation services (direct bank account payments);
- Account information services (consolidated account information).
Preparing Your EMI License Application
A successful EMI license application in the Netherlands requires meticulous preparation. Key documents and procedures include:
- A detailed business plan outlining your operations and financial projections;
- Robust safeguarding measures to protect client funds;
- Comprehensive governance and risk management frameworks;
- Procedures for handling security incidents and customer complaints;
- A stringent security policy and measures to combat financial crime.
Applying for an EMI License in the Netherlands
The EMI license application process involves submitting detailed information to DNB, including:
- Company details and organizational structure;
- Business plan and financial forecasts;
- Proof of initial capital;
- Details on client fund safeguarding;
- Compliance and governance arrangements;
- Procedures for handling security incidents and data protection;
- Business continuity and recovery measures;
- Risk assessment and mitigation measures.
Passporting Within the EEA
A significant advantage of obtaining an EMI license in the Netherlands is the ability to passport your services across the EEA. This means you can offer your electronic money services in other EEA countries without obtaining additional licenses.
Timeline for Obtaining an EMI License
While the DNB aims to make a decision within three months of receiving a complete application, the entire licensing process typically takes around 5-6 months.
Obtaining an EMI license in the Netherlands offers businesses a gateway to a dynamic and regulated market for electronic money services. By understanding the requirements and carefully preparing their application, businesses can tap into the opportunities presented by this thriving sector.
IFB team can help with this. Contact us and obtain an EMI license in the Netherlands or buy ready-made companies with this license!
