EMI or Electronic money institution it is a fintech license, most common within Europe, but, there are various all around the globe. In most cases utilizes for digital banking operations. This license allowed the traditional banking system not just to upgrade itself to an online system, it allowed us to use a fintech online system that we can make almost all types of actions as in a regular bank. It is simple, user-friendly, and much more accessible than needing to go physically to your traditional bank.
In order to obtain an EMI License, here are some important guidelines, and requirements you should know in advance;
1. The first step will be to apply with a financial regulator to obtain an Electronic Money Institution license. Once applying for a license, an EMI will face regulatory due diligence in many EU countries.
2. The EMI must have at least two managers residing in the EU. They must prove their professional qualifications in order to manage an EMI.
3. Each jurisdiction in the EU may have its own rules in addition to the mandatory EU Directive. You will also need a good business plan and financial projections and a description of the EMI’s organizational structure.
4. Procedures for monitoring, handling, and following up on security breaches, customer complaints, and requests. Each EMI must have internal protocols for AML.
5. In addition, establish an operational presence in a European country, including a physical office and local staff, having adequate financial and non-financial resources to manage and operate the EMI, and having EUR 350,000 in start-up capital that is readily available in a bank account in the country where the EMI is applying for the license.
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