Cyprus Guidelines on Completing and Submitting Applications for Authorisation as an Electronic Money Institution (‘EMI’) and Payment Institution under Directive 2012 [“the EMD”]; the Appointment of Agents & the Establishment of Branches
The new e-money regulatory law affects not only e-money issuers but also, for the first time, intermediaries of e-money issuers involved in the distribution or redemption of e-money. A kiosk or supermarket operator which sells or charges pre-paid cards for an e-money issuer will be classified as an ‘e-money agent’. Under the new law, these intermediaries are subject to a regulatory regime of their own.
Licensing and supervision of Electronic Money Institutions in Cyprus
In accordance with the provisions of the Electronic Money Law, 2012 (hereinafter to be referred to as the «Law») which was enacted for the purposes of harmonization with the act of the European Community entitled “Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009” amending Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC, electronic money services in the Republic of Cyprus may only be provided by an electronic money institution which has been granted an authorization by the Central Bank of Cyprus («CBC»).
Notwithstanding the provisions of the Law concerning authorizations, the following persons may provide electronic money services in the Republic of Cyprus without obtaining the prior approval of the CBC:
Electronic money institutions that have been granted and maintain a valid authorization to operate by the competent supervisory authorities of other EU member states. These institutions may either exercise the right of establishment or the right to provide services on a cross – border basis, provided that the competent authorities of the home member state submit to the CBC a notification in the manner prescribed by the Electronic Money Institutions Directive (241/2012) issued by the CBC.
An authorization for the operation of an electronic money institution is only granted to a legal person who has been incorporated and has its head office in the Republic of Cyprus. For the purpose of obtaining an authorization as an electronic money institution, interested persons must submit an application to the CBC accompanied by the information and documents prescribed in paragraph 3 of the Electronic Money Institutions Directive (241/2012) issued by the CBC by virtue of the powers vested in it under the Law.
In the aforementioned Directive the following are also, inter alia, defined: