Luxembourg Payment System License

Luxembourg payment system license obligates all payment system makers to obtain a license from a local FCA regulatory authority. As a member of the EU, the dukedom is based on the act on electronic money regulation of 2011 and the European regulation 1781/2006, it requires licensees to meet the criteria of directives and MLD norms for:

• counteracting to illegal money laundering and terrorist organizations financing;
• the financial transactions control - it is necessary to provide a full supervision over them;
• standards of quality of services provided and ensuring the safety of money held by EU citizens.

To fulfill the general conditions of the company that needs a Luxembourg payment system license, it is necessary to provide the regulator with:

• a confirmation that it has telecommunication, software, digital and IT capacities necessary for operation (payments, purchase, delivery of electronic money);
• a detailed description of security policies, management and control mechanisms of electronic money and additional services issue, as well as a commercial plan for the nearest years;
• a confirmation of the management and business founders qualification: directors should have a specialized education in the field of finance, management should have an experience of deploying  of projects in the field of payment systems and e-commerce;
• a proof of trustworthiness, good business reputation (lack of financial crimes, convictions at business founders, etc.).

Requirements to Companies Receiving a Luxembourg Payment License

To obtain an e-money license in Luxembourg, issuers of electronic money and payment system operators (merchant accounts, purses) must create in the dukedom a legal entity with a "physical" real head office and a minimum capital of 350,000 euros. The most attractive and convenient organizational form for the electronic money issuer is SICAR in the form of SeCS, a limited partnership (like Russian LLC). As a partner it can be a foreign, offshore company, nominal shareholders and directors are allowed.

• The electronic money license in Luxembourg is issued to the company if the following conditions are met:
• at least three directors, one of whom is a resident of the  dukedom (an individual person), and the rest may be non-residents or legal entities;
• an account with a local bank for business transactions performing;
• accounting;
• the number of shareholders is from one (it is not necessary to identify real beneficiaries in the official structures);
• hiring employees, renting a real office.

A Luxembourg payment license is issued to companies that have paid the fee and submitted a full set of documentation to the regulatory body. The procedure of an application consideration takes, on average, up to a year. To maximally simplify it and do not waste time in vain, after receiving a dismissal, you should gather a support of specialists.

Our Services

"Prifinance" company will help in the documentation preparation and obtaining of permits for the activity electronic money issue and core services provision. Our experts, specializing in payment systems, will check the license package for a completeness and a correctness, will help to draw up policies and other descriptions. We provide the support for:

• companies registration and bank accounts registration;
• a selection of organizational forms and tax models;
• a translation and legalization of documents;
• filing of documents with the licensing authority.

We will monitor the case progress and will help to receive all the permits. With us customers save time, minimize the dismissal risk and receive a company with EMI of Luxembourg on turnkey bases.