E-money and Payment Institutions - Set-up/Licensing

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The non-stopping development of new technologies favors the surge of e-commerce and generates an explosion of electronic transactions, mobile and internet payments. The Law of 10 November 2009 provides a framework for payment services and electronic money. It allows new players to enter the financial sector.

These players are Electronic Money Institutions (EMIs) and Payment Institutions (PIs).

An EMI is a legal person that has been granted the authorisation to issue electronic money as per Article 24-2 (Luxembourg undertakings) or Article 24-16 (non-EU undertakings) of the Law. EU EMIs duly authorised in their home Member State and acting through a branch, an agent or free provision of services, do not need formal authorisation from the Luxembourg authorities as they benefit from EU rules on free provision of services (Article 24-15 of the Law).

A PI is a legal person that has been granted authorisation to provide and execute payment services in accordance with Article 7 (Luxembourg undertakings) or Article 22 (non-EU undertakings) of the Law. EU PIs duly authorised in their home Member State and acting through a branch, an agent or free provision of services do not need formal authorisation from the Luxembourg authorities as they benefit from EU rules on free provision of services (Article 21 of the Law).

For further details, please refer to our presentation of services related to PIs and EMIs here.

Timeline

  • Applicants who wish to incorporate a Luxembourg Electronic Money Institution or Payment Institution office have to obtain prior authorisation from the Luxembourg authorities and have to follow the licence application procedure described hereafter.
  • The authorisation procedure is described in the amended Law of 10 November 2009.
  • Before taking a formal decision to set up an EMI or a PI operation in Luxembourg, it is advisable that senior representatives of the applicant have an introductory meeting with the CSSF in order to give a general overview of the project to the authorities.
  • The standard procedure when applying for an EMI or a PI licence is to first submit an application file to the CSSF and thereafter to the Ministry of Finance.
  • The CSSF will examine the application file and may address additional queries to the applicant. The Ministry of Finance will seek advice from the CSSF before granting the EMI or a PI licence for an unlimited duration.

Contact us

Olivier Carré
Regulatory & Compliance Advisory Services Leader, PwC Luxembourg
Tel: +352 49 48 48 4174
Email

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