Business requirements EMI

Electronic money institutions are subject to NBS supervision. AS well as obligations which all business entities follow according to business law, tax, accounting and other rules, they have to fulfil regulatory requests according to the Payment Services Act, for example:

• maintain minimal requests for own funds,
• protect funds received from users of payment services,
• maintain rules of protection and legalization of income from criminal activities and terrorism financing,
• maintain rules of consumer protection.

Electronic money institutions have different reporting requirements and obligations to NBS.  Members of statutory bodies of electronic money institutions and senior employees shall be unimpeachable and professionally fit. Professional capacity means that persons have practical and theoretical knowledge about the business. Electronic money institutions shall elaborate and maintain procedures for ensuring procedures for the fulfilment of prudential rules, including managing operational and IT risks. Entrusted performance of some of its activities can be done only by conditions laid down. Electronic money institutions shall pay an annual fee for the NBS supervision. They are subject to external audits. If they are also payment services providers they shall report major operational and security incidents, as well as fraud data related to payments. Details of some of the obligations can be found below and in relevant legislation.

Own funds. The own funds of the electronic money institution shall not decrease under the level of its paid-up share capital (consequently under 350,000 eur). The electronic money institution is obliged to dispose of its own funds at the level of at least 2% of the average electronic money due.

The domain of protection against the legalization of income from criminal activity and against terrorism financing (AML/CFT)

Rights and obligations of legal persons and natural persons (obliged entities) by prevention and detection of legalization of incomes from criminal activities and terrorism financing are contained in the Act no 297/2008 on anti-money laundering (Act on AML).

The electronic money institution, branch of foreign electronic money institution is obliged entity according to Act on AML.

Issuers of electronic money are obliged to elaborate and regularly adjust the program of their own activity. Program of own activity is the basic framework for the domain of AML/CFT, which contains practical assurance of fulfilment of rights and obligations, which result from the Act on AML.

The issuer of electronic money within the framework of the provision of activities is according to this act obliged to identify, judge, assess and update risks of legalization and terrorist financing according to types of business and commercial relationships while taking into account the own risk factors and the risk factors set out in annex No 2 of the act. Risk factors are the issuer of electronic money being obliged to determine according to the client´s profile, aim, regularity and length of a commercial relationship or occasional business outside the scope of execution of business and riskiness of a county or geographical area to which commercial relationships or business is related. It is about applying a risk-oriented approach in relation to clients and the activities it provides.

Further important information to the domain AML/CFT:

1. National risk assessment of risks of legalization of incomes from criminal activity and terrorism financing („NHR“)
2. International sanctions – The Ministry of Foreign and European Affairs
3. FATF recommendations (standards) and further documents
4. Moneyval – Committee of experts for assessment in the domain of protection against the legalization of incomes from criminal activities and terrorism financing
5. Financial Intelligence Unit of Police Force – methodological measures and opinions on the domain AML/CFT
6. The European Banking Authority – EBA – measures and delegated regulations
7. Additional information on AML/CFT