INTRODUCTION

  • 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?