- Ireland’s strong technology and financial services sectors make Ireland a natural choice for establishing an electronic money institution (“E-Money Institution”) to service EU/EEA customers.
- E-Money Institutions are regulated entities which are authorised to issue electronic money and provide payment services.
- Authorisations from the Central Bank of Ireland (the “CBI”) as an E-Money Institution are granted under the European Communities (Electronic Money) Regulations 2011 (“E-Money Regulations”) which transposed the Second Electronic Money Directive into Irish law.
- William Fry has acted for one-third of the E-Money Institutions which have been granted authorisation in Ireland to date on their applications for authorisation as an E-Money Institution.
TYPES OF E-MONEY INSTITUTION AUTHORISATION
- Two types of authorisations are available – E-Money Institutions and Small E-Money Institutions.
- E-Money Institutions have the ability to passport their services across the EU and their applications must comply with the full set of authorisation requirements set out in the E-Money Regulations.
- Small E-Money Institutions may be exempted from many (though not all) of the authorisation requirements but their authorisation will be limited as a result. They must not execute more than €3 million in monthly payment transactions and they are not able to passport their payment services outside of Ireland.
PROCESS AND TIMELINES
MAIN FEATURES OF THE APPLICATION
- Fully completed and signed application form.
- Identification details of applicant.
- Programme of Operations.
- Business plan.
- Structural organisation.
- Evidence of initial capital
- Measures to safeguard the funds of electronic money users.
- Governance arrangements and internal control mechanisms.
- Procedures for monitoring, handling and following up on security incidents and security-related customer complaints.
- Process for filing, monitoring, tracking and restricting access to sensitive payment data.
- Business continuity arrangements.
- The principles and definitions applicable to the collection of statistical data on performance, transactions and fraud.
- Security policy document.
- Internal control mechanisms to comply with obligations in relation to money laundering and terrorist financing.
- Identity of statutory auditors and audit firms.
- Shareholder information including group structure and required supporting documentation.
- Professional indemnity insurance.
- Completed Individual Questionnaires for all proposed holders of functions requiring prior CBI approval (e.g.
- directors and certain senior managers).
- Detailed policies and procedures.
- Minimum standards to safeguard client funds.
KEY ISSUES FOR THE APPLICANTS
WHY ARE FIRMS CHOOSING IRELAND?