Electronic Money Institution ( EMI ) Licensing in Lithuania

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Licensed Electronic Money Institution (EMI) provides a broader range of financial services compared to Payment Institution for instant payment processing. Electronic Money Institution approved in a Member State of the European Union (EU) opens business opportunities to operate and provide services in all other EU / EEA countries, enjoying the advantages of a Single Market without any limitations and additional conditions posed by national regulators.

Single Euro Payments Area (SEPA) – 500 million customers and over 20 million companies making and accepting low-cost payments under the same basic terms, privileges and responsibilities, irrespective of their place in Europe. Lithuanian Payment and Electronic Money Institutions licensed to enter SEPA directly as banks.

Flexible and Business Oriented Regulation

Electronic Money Institutions or other Lithuanian-registered FinTech businesses offer a major competitive advantage and open the European financial market at considerably lower costs. Lithuania and primarily its capital, Vilnius, became a new centre for FinTech companies based on international financial markets. Business-oriented regulatory activity and substantially lower cost of incorporation, licensing, and maintenance is what makes Lithuania appealing to major international financial institutions as well as FinTech start-ups. Regulatory “Sandbox” – Bank of Lithuania is committed to helping start-ups and not punishing minor infringements in the first year of service.

Implemented EU Second Payment Services Directive (PSD2) makes Payment Initiation Service (PIS) – initiation of a payment order from the customer’s bank account upon request from the payment account held by another payment service provider (bank). PSD 2 also enables E-Money Institution to provide Account Information Service (AIS) accessing combined information from customer accounts operated by other payment service providers (banks) with an aggregate view of consumer financial details.

EMI Accredited Electronic Money Institution offers the following payment facilities:

– facilities allowing cash to be deposited on a payment account.

– Systems enabling payment account cash withdrawals.

– Execution of payment transactions, including transfers of funds to the payment service provider’s bank account or to another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions via payment card or similar system, and/or execution of credit transfers, including standing orders.

– Execution of payment transactions where funds are provided by a payment service customer credit line: execution of direct debits, including one-off direct debits, execution of payment transactions via payment card or equivalent system, and/or execution of credit transfers, including standing orders.

– Releasing and/or buying payment instruments.

– Cash transfers.

– Payment Initiation Service (PSD2).

– Payment Information Provider (PSD2).

– Electronic Money problem.

New regulatory approach enabling approved issuance of Digital Money Institutions on Blockchain. Using Blockchain and other new technology in traditional finance enables Lithuanian licensed Electronic Money Institutions to offer a broader variety of services and build a competitive advantage compared to companies licensed in other EU jurisdictions using conventional licensing methods of financial institutions.

Advantages in using Lithuania as jurisdiction for e-money institution licensing

Reasons why Lithuania has top control over e-money entity licensing: – No specific requirement for company management to live in Lithuania.

– License application submitted without company establishment. A company’s incorporation begins after the license issued.

– Quick licensing.

– Documents can be provided in English.

– Possibility of IBAN individual company accounts. IBAN account scan by alternative identifier: cell phone number (MSISDN) and email (URI).

– Direct access to the Single Euros Payment Area (SEPA) via the CENTROlink payment network operated by Bank of Lithuania. Only banks elsewhere can connect SEPA directly.

– Possibility to protect consumer funds in Bank of Lithuania (EU Member State’s Central Bank) accounts.

– PSD2 allowing Payment Initiation Service (PIS) and Account Information Service (AIS).

– Remote customer authentication. Innovative “know your customer” remote customer authentication processes allow to open accounts without the customer’s physical presence.

– License offers financial services in the European Union without any extra licensing. Quick and simple license passporting to other EU / EEA jurisdictions.

– No first-year sanctions. Bank of Lithuania is committed to helping start-ups and not punishing minor infringements during the first year of service.

– Visa start-up. Visas for non-EU / EEA people running creative companies in Lithuania.

We are a team of experienced professionals, all sharing a unique drive for learning and development through teamwork. The Group utilizes its various core activities to implement customized solutions for its clients. Our collective experience spans the areas of Global Corporate & Fiduciary Services, Assurance & Advisory Services, Fund Administration, Tax Advisory, Corporate Governance, Financial Services, Private Wealth Services and Compliance. 

Start a conversation with us today to find out how you can benefit from a relationship with Flexi Group . Please get in contact with our Head of Business Development:

Mrs Daniella May / Head of Business Development

Tel. : + 357 7000 2 5555 / + 357 22 87 57 55

E : inquiries@flexi-group.net

We also organize calls using Skype. Our flexi Skype ID is web@flexi-group.net

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