The Comoros, an archipelago nation nestled in the Indian Ocean between Madagascar and the coast of Mozambique, is not only a picturesque tourist terminus but also a budding hub for monetary services. With its strategic location and favorable supervisory circumstances, the Isles has become an attractive terminus for individuals and enterprises seeking to acquire brokerage...
Contemplating the intricacies of contemporary business sans the protective veil of a fairness-affirming license presents a formidable problem. In the current landscape, regulatory guardianship is paramount among discerning clientele, particularly in the intricate realm of financial entities like Forex. While some minor participants might dare entrust their funds to an unlicensed Forex enclave, discerning investors...
Moving an enterprise to a distant financial heaven represents a widespread ambition for numerous global people looking to lower their levy burdens. In many cases, particularly those from the USA, Europe, or Canada, relocating their operations holds great appeal. The allure intensifies when considering the illegality of double taxation in most nations. Conducting business in...
In the fast-paced world of business, innovation and efficiency are key. One strategy that businesspersons and established businesses often employ is the use of shelf firms. In the following, we will explore the ins and outs of such formations, shedding light on their purpose, advantages, and drawbacks. Whether you’re a business owner looking for a...
In the dynamic and rapidly evolving monetary sector, Money Service Businesses (MSBs) play a crucial role in facilitating various monetary activities. Operating in the Great Britain as an MSB requires conformity with regulatory frameworks designed to ensure transparency, security, and legality in monetary transactions. In this comprehensive direction, we delve into the intricacies of MSB...
In fiscal maneuvers, envision pooled assets as collective monetary tools, resembling an unorthodox financial institution uniting a group we’ll term investors. This amalgamation flows a constant income into various additional instruments, like stocks. It mirrors depositing funds without official banking intervention, channeling resources directly into the enterprise. Naturally, risks escalate in this scenario, but so...
Many business people have long been seeking ways to move their primary assets offshore or to foreign platforms. Dominica is a good choice, with its increasing popularity every year. There’s also a special government provision that involves granting citizenship for certain financial investments, similar to the United Arab Emirates. Long-term residency visas are provided for...
Collective Investment Schemes continue to evolve as a robust acquisition option, offering depositors a gateway to a world of monetary opportunities. These systems encompass a variety of structures, each designed to meet specific acquisition objectives. Commonly known as mutual funds or acquisition funds, these vehicles pool resources from diverse depositors, fostering a collaborative approach to...
In the bygone decade, innovative offerings have profoundly stirred the transmissions arena. The shift away from physical currency has gained momentum, particularly in the aftermath of the pandemic. Consumers now revel in an unprecedented array of options, rendering them more inclined to finalize transmissions on e-commerce and retail platforms that accommodate their preferred remittance modes....
Embarking on the journey of establishing a remittance business may seem overwhelming, considering the myriad factors involved. Critical considerations include the type of remittance business you intend to start, the remittance processing methods you’ll adopt, and the regulatory landscape that governs your industry. Amidst these considerations, one aspect often overlooked is the importance of obtaining...
This is any of the below-mentioned legal entities carrying out payment activities and related operations:
Authοrized payment institutions (AEMI);
Small payment institutions (SPI);
E-money institutions (EMI);
Retail post office company in the United Kingdom;
The Bank of England; and
Government organizations, other than when doing public functions.
After being approved by any EU Financial Authority, PI can provide the range of belowlisted operations:
Placement made by cash or electronic transfer;
Converting the account holdings into cash;
Payments, including crossborder bank-to-bank funds transfers;
Payments in which funds are included in LOC: direct debit, payments carried out a payment card or a similar tool; credit transferring, etc.;
The main contrast between these approvals is that only E-Money Institutions can provide digital currency or e-wallet or other device. EMI can deliver all the services an API is authorized to offer.
Though there are some similar features between virtual currency and electronic funds, crypto assets are not deemed electronic funds. While e-funds are applied for operations with government-issued and regulated monetary units such as USD and EUR, cryptocurrency is a virtual currency that has no fiat equivalent. If you wish to offer cryptocurrency exchange and cryptowallets, you may be mindful of acquiring a separate authorization.
You can become a SPI license holder, if you meet the following criteria:
Overall payments as per month in the previous year must not be over 3,000,000 EUR.
If you have not been offering services of transactional nature, or have been delivering them for less than one year, forecasted total monthly payment transactions must not be over 3,000,000 EUR.
Employees must not have been accused of illegitimate turnover of funds and the transfer of funds to terrorists;
The main difference between an API and SPI license is an average monthly turnover in payments.
If it is under 3,000,000EUR, you can start operation as a SPI. If it exceeds this amount, then you will have to apply as an API.
You can acquire a SEMI license, if you meet the following criteria:
Proof that when you launch your business, your e-funds business will generate a median number of liabilities regarding e-funds of lesser than 5,000,000EUR.
Proof that, in one year preceding the application, the average of payments as per one month was not over 5,000,000EUR.
An overlook of how you will safeguard the funds of clientele.
Capital obligations must be fulfilled.
The max. storage sum on the client payment platform where the e-money is stored must not be over 250EUR.
When the business operations of the EMI bring average οutstanding e-funds less than 1,000,000EUR, it shall hold holdings (as a contributed capital) of at min. 50,000EUR. If the sum is over, the institution shall hold initial capital of at least 100,000EUR.
The main contrast between these approvals is a volume of payments circulation.
If your monthly turnover transactions are less than 5,000,000 EUR, you can become a small electronic money institution. If your monthly transaction amount exceeds this, then you will have to apply as an EMI.