Electronic Money Institution (EMI) Malta

Electronic Money Institution (EMI)

CSB Group provides clients with professional assistance with the Licensing of Electronic Money Institutions (EMI). As leaders in Electronic Money Institution Licensing, we provide comprehensive consultancy and support service throughout the entire application procedure, establishment of the appropriate company/ies required to conduct the operation/s in Malta and post-licensing support.

An Electronic Money Institution (“EMI”) is defined as “a financial institution that has been licensed in accordance with this Act and authorised to issue electronic money or that holds an equivalent authorisation in another country in terms of the Electronic Money Directive to issue electronic money”.

Electronic Money Institutions – Permitted Activities

In addition to issuing electronic money, EMIs are entitled, subject to the prior authorisation of the MFSA, to engage in any of the following activities

  • the provision of certain payment services;
  • the granting of credit related to certain payment services. Provided that any such credit shall not be granted from the funds received in exchange of electronic money and held in accordance with the prescribed safeguarding requirements.
  • the provision of operational services and closely related ancillary services in respect of the issuing of electronic money or to the provision of payment services referred to in point (i) above;
  • the operation of payment systems;
  • business activities other than the issuance of electronic money, having regard to the applicable law regulating such activities.

Minimum Initial Capital

In terms of the Act, EMIs are expected to satisfy a minimum initial capital requirement of €350,000. This enables EMI’s to enter into the market more affluently when compared to the previous restrictive regime which required an initial capital of €1,000,000.

Main Features of Electronic Money Institutions in Malta

  • The minimum initial capital requirement is €350,000. The licensed EMI is obliged to ensure that its own funds do not fall below this amount of initial capital.
  • It is necessary to have at least two individuals who will effectively direct the business of the EMI in Malta. Such persons must be of a sufficiently good repute and must have sufficient experience to perform such duties.
  • Members of the Board of directors, senior managers and shareholders of the applicant are subject to a rigorous due diligence exercise whereby their fitness and properness will be assessed during the application stage.
  • EMIs based in Malta are allowed to outsource services subject to the MFSA’s evaluation on their own merits.

Passporting of Licence

Once the relative Malta licence is obtained, the EMI would benefit from the right to passport such licence into other EU Member State country/ies by following some basic procedures of notification thereby enabling the EMI to provide its services within the relevant Member State/s and/or EEA State/s either through the establishment of a branch or remotely, under the freedom to provide services.

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