In 2023, one of the most relevant jurisdictions for doing business is Great Britain. The country’s lawfullment is sufficiently adapted to obtain a license to carry out FCA financial activities.
Overview
Authorised e-money license in UK – It is also called complete, and the opened online bank will have the right to supply services without any restrictions in the European Union. The provided authorized capital should reach the size of 350 thousand euros. The duration of this procedure is 4-6 months, if the regulator is provided with all the necessary documents. One of the most important demands is that the payment institution has 2 resident directors.
Benefits of obtaining
Being an AEMI licensed means that as a business, you can get started and enjoy worldwide benefits such as opening IBAN, SWIFT and SEPA accounts, as well as offering your own payment cards. The key difference between the offerings compared to a conventional bank is that an AEMI cannot make loans or hold interest-bearing deposits.
Due to the inability to offer interest-bearing loans or deposits, the AEMI industry is less regulated. This means that AEMI has a much more flexible business structure than a conventional bank and is subject to less stringent oversight rules.
An e-money license acts as an authorization granted by the FCA (which acts as the sole regulator) to establish virtual money to run its business. This generally requires fewer FCA approval requirements, but also provides less protection than a regular banking license. This gives the AEMI the ability to hold customer funds for an unlimited period of time when an individual opens an IBAN account.
The practical difference between an electronic money establishment and a payment institution and a conventional payment institution is that virtual money institutions, in addition to the favors provided by the remittance establishment, have the right to issue virtual money.
Requirements for AEMI license in UK
The FCA sets out 12 conditions that a firm must meet before applying:
- You are a legal entity
- Payment for services will be made in Great Britain
- You have reliable management arrangements
- You have a business plan
- You have significant measures for trusted users (EMBank can help you secure a trusted account to fully meet this condition)
- You have adequate reimbursement coverage
- Directors must be of good standing and have relevant skills
- No executive should be convicted of money laundering
- The head office must be in the UK
- You must comply with money laundering regulations
- Anyone holding 10% or more of the shares must be “fit and proper”.
- If the candidate has a close relationship with another person, that relationship must be well received by the FCA’s effective oversight of the business.
On average it will take 7 days for your application to accept AEMI. See to it that the application conditions can be fulfilled from time to time if you are going to w. FCA before application.
How to get AEMI license in UK
In order to obtain AEMI license in UK, you must contact the local financial regulator (FCA), acting on the basis of the Directive on payment services.
The Authorised electronic money institution license in UK must fully comply with the FCA. Before considering a request for a permit, the FCA analyzes in detail the business plan, financial risks and other mandatory data about the company, its owners and managers.
When obtaining a license, detailed attention should be paid to the fact that it will allow legally providing financial favors and issuing electronic money exclusively in the UK. If a corporation has a SEMI license, then it has every chance of acquiring an AEMI license.
Documents that need to prepare
- Business plan for AEMI in the UK;
- AML policy, action plan to effectively combat money laundering;
- Risk Analysis Policy;
- Financial forecast;
- Organizational structure;
- In addition, prospective AEMI owners in the UK will have to prove that they are able to control the risks associated with the activity and therefore fill out several lengthy forms for the supervisory authority. You may also need to provide a considerable list of other documentation.
Taxation of AEMI license
- If the business provides remittance services, the tax to be authorized by the UK payment system is £5,000 and then £1,500.
- Virtual currency trading permission – £5,000.
- For small electronic payments and electronic money – around £500.
- The licensee is also obliged to pay an annual fee imposed by the FCA after the company’s services have been approved.
- But each AEMI license has a personal documentation installed.
