United Kingdom is composed of Northern Ireland, England, Scotland and Wales. It is the original place where Shakespeare and the Beatles were born. The capital of England is London. London is an internationally influential spot for culture and finance. Basing on the World Bank report as per 2016, United Kingdom has a population of approximately 65 million. To add on top, it has a GDP (Gross Domestic Product) of about 2.62 trillion USD as deduced by the World bank. The main language used is English. The United Kingdom uses the pound sterling as their official currency.
Respective to the laws of the United Kingdom, electronic money has a monetarily represented value by the vast obligations by the issuer. It is stored electronically and acceptable as payment by the third parties in the form of EMI (Electronic Money Institution). Additionally, it is regarded as electronically similar in value to banknotes and coins, which are usually purposed for little payments. The legal time frame to get a license is 3 months which may be extended to 12 months, if FCA request additional information about the applicant.
Based on the rate of turnover recorded in the United Kingdom, two types of electronic money companies are in existence. They are:
- EMI, that is classic electronic money institution where the chargeable fee in the FCA would be £5000
- Small EMI, it has rights to provide services within the United Kingdom. When a company reaches a threshold of € 3 000 000 the applicant hereby must make an application with small EMI in order to get a full license.
The regulating body governing electronic money issuers is the EU Directive 2009/110/EC which works hand in hand with the FCA (the Financial Conduct Authority of Great Britain). The issuer of the EMI license is the FCA and regulates e-money usage basing their foundation on the EU Directive.
Evidence should be availed showing the ability of issuers to control the various risks that are encountered at work. All evidence is to be submitted to the Financial Supervisory Agency. Every possible measure that electronic money issuers can take to make a fulfillment of their various legal obligations to be discussed in a Manual of the Joint steering group which helps in money laundering control.
The requirement and restrictions on EMI
Only resident companies in the UK can submit an application for an EMI. This implies that company registration is only done in England. Founders and shareholders can be both residents and non-residents or individuals and legal entities. Based on legislations, there are a couple of restrictions that EMIs are subjected to which may vary in various countries. An example is Latvia, where a business plan is required. If the plan prescribes an amount not more than € 2 000 000 annually, the company may start operations based on registration and without a license.
Below are the documents required for obtaining a E-Wallet License in United Kingdom :
For the company:
A business plan containing the following details:
- A description of the objectives of the proposed bank
- Proposed customer base
- Opening balance sheet and three-year projections that have been previously certified by an auditor
- Management structure
- Anti-money laundering policies
- A feasibility study
- The economic need that the bank intends to meet
- The source of capital financing
- Proof of applicants ability to meet statutory requirements for minimum paid up capital and statutory deposits
- A description of internal systems and controls
- A copy of the ownership structure including group member and affiliated companies
For the Applicant:
- A notarised copy of valid passport
- Notarised or attested copy of proof of residential address in English or translated into English
- Certified bank statement
- One character reference and two bank references
- Proof of source of funds
- Notarized non-criminal records
- Signed and dated CV
- Notarised copies of Diplomas