Romania Payment System License

In early summer of 2018, the Romanian government took emergency measures in the field of electronic money regulation and EMI activities in the country. Key definitions and requirements for issuers are specified in the prepared resolution of the Ministry of Finance. Under the rules that Romania intends to introduce, e-money are made equal to monetary values stored electronically. As a requirement for the issuer to perform payment transactions, they can be accepted by persons who do not act as digital funds issuers.

The resolution formulates the conditions under which the legal entity is authorized to issue electronic money in Romania. They are as follow:

• an authorized capital from 350,000 Euros;
• an approval of the organization management by the National Bank of the state (RNB);
• belonging to the type for which the activity is allowed: these are credit structures, legal entities-issuers, postal service providers that issue e-money according to the rules of the national and European regulators;
• availability of the thought over administrative structure for e-funds issue organization;
• start of work no later than 12 months from the moment of the regulator permission reception (RNB);
• passage of an audit once a year - with the receipt of the report and its submission to RNB (it acts as a supervisory authority);
• evidence of reasonable management, a well-established process of e-money issuing, a clear organizational structure and developed procedures for risk control.

For violation of operational conditions or illegal issuance of e-money, Romania imposes sanctions - penalties or imprisonment to the issuer for 6-36 months. This applies to a release of digital funds in any form - on smart cards / magnetic media, virtually (from the server).

Requirements for payment systems operators and e-money issuers

The common to the EU rules are applied as regards to a confirmation of a fine-tuning of the operation. They are defined by the second Directive of the European Parliament, European regulations and standards (PCI DSS, GDPR and others). According to them, payment systems operators and companies that want to issue electronic money in Romania should:

• register a legal entity in the country;
• hire a minimum of two EU resident directors and confirm their experience in the field, qualifications, education (financial and economic, the technical one is not allowed);
• organize a "physical" office in the country, where there is enough staff to support the activity;
• provide a detailed business plan with financial indicators for several years to the regulator for analysis;
• pass due diligence (for founders and company management);
• ensure information security of operations - to set up equipment, anti-viruses and firewalls, manage access and accounts, develop the necessary policies;
• take care of the protection of users' personal data, including EU residents (under GDPR regulation) - create a written register, meet DPO requirements, develop a security policy and implement its technical support.

"Prifinance" consulting company will help to fulfill all the conditions at the national and European levels. We successfully obtain payment systems licenses for customers in different jurisdictions, undertake the organizational side of the issue. Experts of the company will provide a legal support, help to select a tax model, register a company and open an account with the bank. With us, customers receive permits in the shortest possible time and successfully deploy activities in the field of electronic payments.