Cross border business EMI

With the membership of the Slovak Republic in the European Union come related simplified conditions for the business of Slovak companies in other member states and vice versa. Such simplified conditions are valid also in the domain of issuance of electronic money, where the principle of a single European passport, which enables electronic money institutions to provide services based on an authorization from a domestic supervisory authority in all member states of the European Union and of the European Economic Area (further only “other member state”), without having to request in host member states other authorization. Notification obligations are linked to the cross-border provision of services.

Provision of services by the Slovak electronic money institution in other member states of the European Union

The domain of cross-border provision of services by Slovak electronic money institutions is arranged set namely in Payment Services Act and Delegated Regulation of the Commission (EU) 2017/2055 (further only “regulation for cooperation”). Regulation for cooperation contains standard forms of notifications in annexes II to VI. Electronic money institutions shall issue and administer electronic money in other member states via:

1. its branch – electronic money institution sends to NBS in electronic form annex II from regulation for cooperation or,
2. without establishment – electronic money institution sends to NBS in electronic form annex V of the regulation for cooperation.

The obligation of the electronic money institution in case it has the intention to issue and administer electronic money in other member states is to notify to NBS in written form data stated in § 86 section 12 of Payment Services Act. NBS within one month from the reception of notification notifies the supervisory institution in the host member state and informs about its electronic money institution. If the supervisory authority of the host member state within one month from the reception of information notifies NBS about relevant information regarding its intention to issue and to administer electronic money, namely about justified doubts concerning the establishment of the branch if it concerns legalization of incomes from criminal activities or terrorist financing, NBS refuses inscription of a branch of electronic money institution into the register or cancels the registration, if it was already made; if NBS does not agree with these doubts, it notifies the supervisory institution of the host member state its decision including its justification. NBS within three months from the reception of notification according to section 12 notifies the supervisory institution of the host member state and electronic money institution of its decision, on whether electronic money institution shall issue and administer electronic money in the host member state via its branch or without the establishment of a branch.

The branch of an electronic money institution shall start providing its services on the territory of the host member state after inscription into the list according to § 85d section 1 of the Payment Services Act.

If the electronic money institution intends to provide or redeem electronic money via other persons (so-called distributors) in other member states, it notifies this intention to NBS. Part of the notification is data according to § 81 section 11 letter c) of the Payment Services Act. Electronic money institution together sends to NBS in electronic form annex IV from regulation of cooperation.

Provision of payment services by Slovak electronic money institution which provides payment services in other member states of the European Union via an agent of payment services

If the electronic money institution intends to provide payment services via an agent of payment services in other member states, it notifies this intention to NBS. Part of the notification is also data contained in § 75 section 2 of the Payment Services Act and annexes according to § 75 section 3 of the Payment Services Act. Both? electronic money institutions send to NBS in electronic form annex III from regulation of cooperation. If the notification and data within are truthful, NBS informs the respective supervisory institution of the host member state about its intention to inscribe agent of payment services into the list of agents of payment services. NBS inscribes agent of payment services into the list of agents of payment services within 15 days from the reception of standpoint of the host member state, no later than 60 days from the date of reception of the notification.

Issuance and administration of electronic money with the establishment in another member state of the European Union in Slovakia

The foreign electronic money institution with an establishment on the territory of another member state shall issue and administer electronic money on the territory of the Slovak republic via its branch or without establishment if it disposes of authorization for the issuance of electronic money granted in another member state, and this is based on the written notification of the respective supervisory institution of the home member state delivered to NBS.

The foreign electronic money institution shall notify its home supervisory authority that intends to provide payment services in Slovakia in accordance with domestic rules. Home supervisory authority subsequently sends to NBS notification about this evidence within the scope of the requests in Delegated regulation of the Commission (EU) 2017/2055.

A list of foreign electronic money institutions authorized in Slovakia to issue and administer electronic money, eventually to provide payment services, i.e. list of distributors of electronic money, which are authorized to offer and to redeem electronic money according to the territorial scope is here.