How to avoid the mistakes of electronic money and payment institutions in Lithuania?

Although EMI authorization procedures throughout EU member states are mostly uniform, Lithuania is working to develop its own unique and user-friendly twist. CNB normally invites applicants to have preliminary meeting contact to discuss the planning process and assist decide financial services that need to be licensed prior to beginning the official authorization procedure for EMI and submitting applications.  

Submitting an application for an EMI license to the CNB is a very common technical step in the authorization procedure. After that, CNB checks to see whether everything is in order and moves through with the application if everything is there and no errors have been found.  Additional information or documentation may be required by CNB in certain situations.

Authorization to process payments  

Electronic money institution and payment institution license applications in Lithuania follow a similar process. The main distinctions are:

1. The minimum amount of seed money
2. Pay a licensing fee. 

A Lithuania e money license starting capital must never be less than the greatest of the following amounts: 

• when the payment institution’s only offering will be money transfers, at least 20,000 EUR; 
• where the sole offering will be payment initiation, at least 50,000 EUR   
• minimum of 125,000 EUR where the payment institution intends to provide: 

1. services for cash deposits and all payment account operations; 
2. services for cash withdrawals and all payment account operations; 
3. payment transactions, including transfers of funds on a payment account with the institution of a payment service provider; 
4. payment transactions when a payment service user has a credit line, including standing orders issuing and receiving payment instruments.

The application price for a payment institution license is 898 EUR as of March 2020, and must be paid in full before a license can be requested. 

How to get an EMI license in Lithuania: the main steps

• The application for the EMI license is received by the Supervisory Service of the Bank of Lithuania. If all required materials have been provided within five business days, the Oversight Service will approve the application.
• After EMI receives the license application and supporting materials, it will grant the license within three months.
• Either a permit is issued or turned down. After the paperwork has been assessed, it is reviewed by the Bank of Lithuania’s board of directors.

The Supervision Service evaluates the submitted data and then determines whether or not to provide a license.

E-Money Financial Institution

Electronic currency institution focus areas:

• Wiring money
• Withdrawing and depositing cash
• Distributing virtual currency
• Payment instrument issuance
• Payment initiation service (PSD2)
• Account information service (PSD2)

With the goal of easing the entry of new market participants into the Lithuanian market and, later, after receiving a license to engage in usual activities, the European Economic Area market, a special project for an EMI license to engage in restricted activities has been implemented. Only in Lithuania can an electronic money institution (EMI) engage in restricted activities, but it does not need the minimum initial capital. An EMI license allows you to issue, redeem, distribute, and pay for electronic money in any EU Member State if you have EUR 350,000 in capital.

The good news is you don’t have to suffer alone with bureaucracy! Fintech Harbor Consulting with a team of worldwide trademark registration experts, offers comprehensive assistance for trademark registration and obtaining a Lithuanian e-money license. With their help, you can mitigate the risks and operate within the regulatory landscape with confidence. Let the pros handle the details so you can focus on customer service.