AEMI license in Cyprus

Published:
March 13, 2023
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AEMI is a financial establishment that carries out electronic money circulation. According to Cyprus law, AEMIs must have an appropriate license from the Central Bank of Cyprus to ensure a high level of protection of client funds.

Overview

Cyprus legislation allows AEMI to carry out a wide range of financial operations, such as issuing electronic money, processing payments, carrying out currency exchange operations, as well as providing financial services to online businesses.

One of the advantages of setting up an AEMI in Cyprus is the attractive financial legislation. In addition, this country is a member of the European Union, which makes it possible to work with customers from different EU countries and allows the free movement of capital.

However, in order for AEMI to operate in Cyprus, it is necessary to meet high standards of financial reporting and ensure an appropriate level of security and confidentiality of customer data. Obtaining an AEMI license from the Central Bank of Cyprus requires preparation of relevant documents, compliance with all necessary demands and passing inspections.

Benefits of obtaining license

Acquiring an Electronic Money Institution permission in state can have several business advantages. Here are some of them:

  • License to carry out monetary activities: The permission provides permission to carry out financial activities within the European Union, which allows to attract funds from clients and supply various monetary services.
  • European market: As jurisdiction is a member of the European Union, the Authorised e-money license in Cyprus provides access to the single European market.
  • Improving reputation: Obtaining an Authorised virtual money establishment license in country can improve the reputation of the firm and the trust of customers in it, especially if the business is related to monetary favors.
  • Possibility of business expansion: License for Electronic Money Institution provides an opportunity to expand business and supply various financial favors , such as virtual funds transfers, issuance of plastic cards and others.
  • Technological development: As the virtual money market is relatively new and rapidly developing, to get AEMI license in Cyprus gives you the opportunity to use the latest technological solutions and developments, which can have a positive impact on the biz.

Requirements for AEMI license in Cyprus

To obtain AEMI license in Cyprus, it is needed to comply with a number of demands established by law. The requirements are quite strict, since AEMI is a financial establishment that carries out transactions with electronic money and involves interaction with other banking establishments.

First, it is necessary to have an enrolled company in Cyprus that will deal with virtual money. In addition, it is needed to have sufficiently qualified personnel who will ensure the functioning of the AEMI and carry out the necessary financial transactions.

Secondly, it is necessary to have at least €350,000 in authorized capital, which must be paid in full. In addition, it is necessary to have an effective control and risk administration system.

Thirdly, the applicant must be a resident of the EU or have an appropriate authorization institution on the territory of another EU state. It is also necessary to have permission from the Central Bank of country to carry out virtual money transfers.

Fourth, the applicant must have an effective anti-money laundering and anti-terrorist financing system.

In general, obtaining an AEMI license in Cyprus is quite complex and requires compliance with a number of demands and procedures that ensure the safety and reliability of financial transfers.

Documents that are needed

The issuance of certificates for financial actions is carried out by the Central Bank of the island. This procedure is not fast. Reviews the submitted documentation for 4-6 months. At the same time, preference is given to those companies that are created strictly according to the selection criteria.

To obtain a license, you need to prepare a number of documents:

  • Letter of recommendation received from the main bank of the founding country;
  • Personal information about the leaders of the company;
  • Papers testifying to the business reputation and wealthy position of the participants;
  • Permission to transfer data, which means commercial secrets, to authorities that control the functioning of the main office;
  • Well thought out business plan;
  • Info about the professional suitability of managers at different levels according to their position;
  • Information about the location of the main office;
  • Permission from the founding country to open branches of the bank.

Fintech on Cyprus

Cyprus is a country that is actively developing in the field of financial technologies (FinTech). Today, a significant number of companies working in the growth of financial technologies and e-commerce work in Cyprus. Country’ fintech industry, which is oriented towards the international market, attracts investments from non-citizen companies and helps the development of the local economic environment.

One of the most promising segments of the fintech industry in Cyprus is blockchain technology. Several startups have appeared on the island, which are engaged in the development of blockchain solutions for various industries, including finance, logistics and others. Also, there are several cryptocurrency exchanges in Cyprus that allow trading in cryptocurrencies and other digital assets.

In addition to blockchain technologies, other segments of the fintech industry are developing on island, such as electronic payments, virtual money, mobile payments, online lending and others. The Government of Cyprus supports the growth of the fintech industry in the country, offering various initiatives and programs to accelerate its development.

Due to the growing interest in the fintech industry, more and more jobs related to this industry are appearing in Cyprus. Cyprus is becoming an attractive place to work for professionals.

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