ARGENTA SOLUTIONS

Finance institutions and fintech licensing in the single European financial market

Payment institution

Electronic money institution

Specialised Bank/Bank

Compliance

IT security officer

Bank account opening

PAYMENT INSTITUTION LICENSE FOR GLOBAL MONEY REMITTANCE AND PROCESSING. PAYMENT SERVICE PROVIDER LICENSING IN EUROPE (EU)

Perfect solution for pan-European and global payment processing. Equity capital – from EUR 20,000 to EUR 125,000.

Licensed Payment Institution or Payment Service Provider (PSP) is a perfect solution for financial service providers, FinTech companies processing corporate payments and money transfers of private individuals.
Payment Institution is the most popular license providing payment solutions for internet shops and internet merchants all around the Europe. The European Union Payment Services Directive adopted in 2007 provides the legal background to the European single market for payments in all EU/EEA area and Single Euro Payment Area (SEPA).

Fast and easy licensing and friendly regulation

The Bank of Lithuania combines the functions of the central bank and the financial supervisory authority (regulator). Business-oriented regulatory behaviour and significantly lower incorporation, licensing and maintenance costs for financial institutions make Lithuania a preferred jurisdiction for global financial institutions as well as FinTech start-ups. The Bank of Lithuania implemented regulatory “Sandbox” in Lithuania aiming to attract financial institutions coming to the common European financial market.

Services provided by the Payment Institution:
*services enabling cash to be placed on a payment account
*services enabling cash withdrawals from a payment account
*execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
*execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
*issuing and/or acquiring of payment instruments
*money transfers
*execution of payment transactions where the consent of the payer to execute a payment transaction is given by the means of any telecommunications terminal equipment, digital or IT device and the payment is made to the telecommunications network or IT system operator who is acting only as an intermediary between the supplier of goods or provider of services and the payment service user

*Payment Initiation Service (PSD2 implementation)

*Account Information Service (PSD2 implementation)

*Second Payment Services Directive (PSD2) implementation

Second Payment Services Directive (PSD2) implementation

Lithuania has already implemented EU Second Payment Services Directive (PSD 2) which allows Payment Initiation Service (PIS) – initiation of a payment order from the client’s bank account at the request of the client from the payment account held at another payment service provider (bank). PSD 2 also allows the Payment Institution to provide Account Information Service (AIS) accessing consolidated information from the client accounts held by other payment service providers (banks) and have an overall view of client financial information.

One license for all Europe and Passporting of the license in EU/EEA area

European Union Payment Services Directive (PSD) provides the legal background to the European single market for payments. Payment Institution licensing in one of the member states within the EU/EEA opens up business opportunities to act and provide services in all other EU/EEA countries, enjoy benefits of the Common Market and advantages of the Single Euro Payments Area (SEPA). SEPA has 450 million consumers and over 20 million businesses making and receiving payments in Euro under the same basic conditions, rights and obligations, regardless of their location in Europe. SEPA allows arranging electronic credit transfers and direct debits in Euro at a low cost just as easy as in the home country. Pan-European payment license issued in Lithuania provides a significant competitive advantage and opens up the European financial market at significantly lower incorporation and operational costs. Lithuania and primarily its capital Vilnius became a new hub for the FinTech companies focused on international financial markets. Favourable regulatory and tax environment, excellent infrastructure, fastest internet and quality talent pool makes Lithuania and primarily its capital Vilnius attractive to large international financial institutions as well as FinTech start-ups.

Reasons why Lithuania is the top jurisdiction for Payment Institution licensing?

1.No particular requirement for the directors and board members to reside in Lithuania/Europe.

2.Application for a license submitted without establishing a company and freezing equity capital.

3.Fast licensing process.

4.Licensing documentation can be submitted in English.

5.Possibility to provide individual client IBAN accounts. Lookup for the IBAN account according to the alternate identifier: mobile phone number (MSISDN) and Email (URI).

6.Direct access to Single Euros Payment Area (SEPA) through the CENTROlink payment system managed by the Bank of Lithuania (Central Bank). Only the banks in other jurisdictions can access SEPA directly.

7.Possibility to safeguard clients’ funds in the accounts of the Bank of Lithuania (Central Bank of EU member state)

8.PSD2 implementation allowing Payment Initiation Service (PIS) and Account Information Service (AIS).

9.Remote client verification. Innovative “know your customer” processes for remote client verification allows to open the accounts without the physical presence of the client.

10.License allows provision of the financial services in all EU/EEA without any additional licensing.

11.Start-up visa. Special visas for citizens of non-EU/EEA countries running innovative businesses in Lithuania.
E-MONEY LICENSE FOR GLOBAL PAYMENT PROCESSING AND ISSUANCE OF PAYMENT CARDS. ELECTRONIC MONEY INSTITUTION (EMI) LICENSING IN THE EUROPEAN UNION

A wide range of payment services. Issuance of payment cards. Equity capital is EUR 350,000.

Licensed Electronic Money Institution (EMI) allows to provide a wider range of financial services as compared with the Payment Institution and allows to safeguard the client’s funds for an unlimited period of time. The Electronic Money Institution licensed in one European Union (EU) member state opens up business opportunities to act and provide services in all other EU/EEA countries by enjoying the benefits of the single European financial market within the Single Euro Payments Area (SEPA). Single Euro Payments Area has 450 million consumers and over 20 million businesses making and receiving payments in Euro at a low cost, under the same basic conditions, rights and obligations, regardless of their location in Europe. Payment and Electronic Money Institutions licensed in Lithuania are allowed to join SEPA directly as banks.

Difference between Payment and Electronic Money Institution

The European Central Bank defined the Electronic Money (E-money) as an electronic store of monetary value on a technical device that may be widely used for making payments to entities other than the e-money issuer. The device acts as a prepaid bearer instrument, which does not necessarily involve bank accounts in transactions. The Directive 2009/110/EC established the legal basis for e-money issuing in the European Union (EU). The practical difference between the Electronic Money Institution (EMI) and the Payment Institution (PI) is that e-money institutions in addition to the services provided by the PI are entitled to issue Electronic Money and store clients’ funds for the unlimited period of time. The Payment Institutions usually provide instant payment processing services. Possibility to safeguard client’s funds allows to issue payment cards, provide e-wallet services and issue other payment instruments.

Electronic Money Institution license is the right decision for the payment service providers planning wider range of services than just instant payment processing.

The Electronic Money Institution registered in Lithuania provides a significant competitive advantage and opens up the European financial market at significantly lower incorporation and maintenance costs. Lithuania and primarily its capital Vilnius became a new hub for the FinTech companies focused on international financial markets. Business-oriented regulatory behaviour and significantly lower finance institution’s incorporation costs make Lithuania attractive for large international financial institutions as well as FinTech start-ups. Regulatory “Sandbox” of the Bank of Lithuania. Implemented EU Second Payment Services Directive (PSD2) allows provision of the Payment Initiation Service (PIS) – initiation of a payment order from the client’s bank account at the request of the client from the payment account held at another payment service provider (bank). PSD2 also allows E-money Institution to provide Account Information Service (AIS) by accessing consolidated information from the client accounts held at other payment service providers (banks) and have overall view of the client’s financial information.

Services provided by EMI

Licensed Electronic Money Institution provides the following payment services:

*services enabling cash to be placed on a payment account
*services enabling cash withdrawals from a payment account
*execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
*execution of payment transactions where the funds are covered by a credit line for a payment service user: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
*issuing and/or acquiring of payment instruments;
*money transfers

*Payment Initiation Service (PSD2 implementation)

*Account Information Service (PSD2 implementation)

*issuing of Electronic Money and safeguarding of client funds

*Issue of Electronic Money on Blockchain

The modern regulatory approach allows licensed Electronic Money Institutions to issue Electronic Money on the Blockchain. Employment of the Blockchain and other modern technologies in traditional finance gives the Electronic Money Institutions licensed in Lithuania the possibility to provide a wider range of services and create a competitive advantage comparing to the companies licensed in other EU jurisdictions which practice traditional methods for licensing of financial institutions.

Reasons why Lithuania is top jurisdiction for E-money institution licensing?

1.No particular requirement for company directors and board members to reside in Lithuania/Europe.

2.Application for a license submitted without establishing a company and freezing up a capital.

3.Fast licensing process.

4.Licensing documentation can be submitted in English.

5.Possibility to provide individual client IBAN accounts. Lookup for the IBAN account according to the alternate identifier: mobile phone number (MSISDN) and Email (URI).

6.Direct access to Single Euros Payment Area (SEPA) through the CENTROlink payment system managed by the Bank of Lithuania (Central Bank).

7.Possibility to safeguard client’s funds in the accounts of the Bank of Lithuania (Central Bank of EU member state).

8.PSD2 implementation allowing Payment Initiation Service (PIS) and Account Information Service (AIS).

9.Remote client verification. Innovative “know your customer” processes for remote client verification allows open the accounts without physical presence of the client.

10.License allows provision of the financial services in all EU/EEA without any additional licensing.

11.Regulatory “Sandbox”.

12.Start-up visa. Special visas for citizens of non-EU/EEA countries running innovative businesses in Lithuania.

13.Principal Membership in Mastercard and VISA.
BANKING LICENSE. EUROPEAN (EU/EEA) BANK LICENSING. SPECIALISED BANK

Prestigious European EU/EEA banking license opening the world’s biggest financial market of 450 million consumers and over 20 million businesses. The requirement for the Specialised Bank’s capital is from EUR 1 million. The requirement for the Full Service Bank’s capital is EUR 5 million.

According to the European Regulation (EU) No. 575/2013, only the Banks as Credit Institutions have an exclusive right to accept deposits and other repayable funds from non-professional market participants and provide a full scale of banking lending and other financial services. The banks licensed in one European Union (EU) member state are allowed to offer all banking services in a single European financial market consisting of 27 member states.

Specialised Bank is a unique pan-European banking license

Specialised Bank license with the capital requirement of only 1 million EUR currently is unique in all European Union and European Economic Area (EU/EEA). Prestigious pan-European banking license issued by the European Central Bank through the Bank of Lithuania (Central Bank and financial regulator) allows provision of all traditional banking services in all common European financial market and has no equivalents in other EU jurisdictions.

Banking services provided by the Specialised Bank:
*business and retail lending;
*payment services
*receipt of deposits
*currency exchange
*issuing of e-money
*issuing guarantees
*fund administration
*financial leasing
*financial intermediation
*creditworthiness assessment services
*safe-deposit box rental
*all other traditional banking services

The Specialised Bank is only restricted to provide investment advisory services, securities brokerage, investment fund management and other similar services.

Instant access to the common European banking market at a low cost.

Licensed Specialised Bank/Bank provides significant competitive advantages and opens up the European financial market at significantly lower incorporation and operational costs. Lithuania and primarily its capital Vilnius became a new hub for the European banking service centers. Favourable regulatory and tax environment, excellent infrastructure and quality pool of relatively cheap labour force make Vilnius attractive for large international banking institutions and FinTech start-ups. Operational costs became vital in today’s financial business. New FinTech companies are challenging traditional banking institutions and cutting margins. This is the main reason why traditional finance institutions and FinTech start-ups discover Lithuania. They need jurisdictions which open a large single European banking market and allow to create safe, efficient and cost effective banking institution ready to face intense competition in EU/EEA banking market.

Lithuanian easy-to-get banking license of the Specialised Bank is exactly what they need. It opens the single banking market of the EU/EEA, including large national markets such as French or German, at significantly lower costs. Scandinavian competitors SEB, Swedbank, Danske Bank as well as the financial industry leader Western Union, the world’s biggest stock exchange operator NASDAQ have service centers and operate their global business from Vilnius. Traditional European financial jurisdictions are losing their importance in our days. The UK and London have suffered from BREXIT. The UK-based financial institutions are looking for new jurisdictions in order to secure their financial licenses in continental Europe. Offshore jurisdictions are no longer considered attractive because of automatic tax information exchange, restrictions for opening correspondent bank accounts and limited access to the single European market.

The reasons why Lithuania is one of the top banking jurisdictions in EU/EEA:

1.Fast licensing process.

2.Capital requirement for the Specialised Bank is from EUR 1,000,000, for the Bank – EUR 5,000,000.

3.Licensing documentation can be submitted in English.

4.Direct access to the Single Euro Payments Area (SEPA).

5.Deposits amounting up to EUR 100,000 are insured according to EU Deposit Insurance Scheme.

6.Remote client verification. Innovative “know your customer” processes for remote verification allows identification of the client without being physically present.

7.Direct access to all EU/EEA banking and financial markets.

8.Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
REGULATORY COMPLIANCE, DUE DILIGENCE, RISK MANAGEMENT AND AML

Argenta Solutions offers:

1.Assistance in the implementation of Know Your Customer (KYC) procedures.
2.Assessment of the level of customer risk.
3.Investment, financing or credit check.
4.Assessment of existing business relations, structures, activities.
5.Commercial analysis and assessment of location and market factors.
6.Assistance by determining the competitive landscape.

Argenta Solutions offers the following services related to GDPR compliance:
1.Review the company’s internal procedures related to the processing of personal data.
2.Preparation of internal procedures and rules that will allow to continue your operations in compliance with the GDPR.
3.Building up of safety mechanisms.
4.Data protection impact assessment.
5.Representation in disputes over personal data.
6.Staff training on personal data protection issues.
7.AML compliance, risk management.

Argenta Solutions performs the following AML / CTF compliance services for financial institutions:
1.Assistance in developing an AML compliance program.
2.Assistance in reviewing and updating an AML Risk Assessment.
3.Comparison of existing company documentation versus documentation required by AML / CTF requirements.
4.Development of internal controls and systems the institution uses to detect and report the financial crime.
5.AML compliance training programs for employees.
6.AML Compliance Officer services.
7.Assistance to the clients in their AML/FT internal audits.
8.Risk mitigation guidance.
9.AML related audit services.

Our experience and consultative approach in AML and generally in the finance industry ensures a high level of precision and expertise.
INFORMATION SECURITY OFFICER SERVICES

Having an Information Security Officer or an equivalent employee in organizations has become a standard practice in business, governmental and non-profit organizations. Reliable, secure technology is critical to business success and is essential for maintaining productivity and upholding your organization’s reputation.

Tasks and responsibilities of IT security officer

The information security officer (ISO) is the executive responsible for an organization’s information, digital assets and information system’s security. In case of organizations that work in or with stringent regulatory requirements, Information Security Officer Services help the organizations to meet their compliance with the requirements and guidelines.

The sector of financial services is constantly in the heart of cyber attacks and attackers constantly continue to target organizations providing financial services. Not only does it represent a hugely lucrative target for criminals, but it is also increasingly dependent on data. FinTech companies must keep their data, including financial and personal customer records they have been entrusted to store, secure at all costs – even as it adapts to initiatives such as open banking, which requires organizations to share data externally with third parties. IT security in the financial sector must be accelerated because, according to different studies, fake mobile banking apps that are now in circulation fool more than one of the three consumers and bank trojans now are widely used.

According to some analysis of the breaches in financial industry organizations, 88 % of the time, attackers successfully breach a company in a matter of hours. The majority of attacks, either intentionally or by accident, are performed from inside. A great way to ensure that your organization has the right tools of security measures in place to effectively combat modern threats is to perform a comprehensive security assessment.

Information security officer services provided by Argenta Solutions.

Our Information Security Officer services for business organizations include the following:
1.Assisting the companies in the preparation of required application forms for acquiring EMI/PI license in EU or UK.
2.Appointing of Information, IT and Cyber Security experts.
3.Auditing existing systems from a security controls perspective and providing comprehensive operational risk assessments along with treatment plans.
4.Advising by creating a strategic plan for the deployment of information security technologies and program enhancements.
5.Supervision of development (and ensuring compliance with) corporate security policies, standards and procedures, or development of such according to ISO 27000 series requirements.
6.Data loss and fraud prevention.
7.Collaboration with the key stakeholders to establish an Information Security risk management program.
8.Ongoing support on other Information Security related topics.

If your company is looking for an assessment that gives you valuable insight into your Information Security, its controls and practices, do not hesitate to contact Argenta Solution team. Our Information Security professionals will assess your Information, IT and Cyber Security controls and will provide you with a complete picture of your current status of security controls and recommendations on what should be improved.
BANK ACCOUNT OPENING. CLIENT FUNDS SAFEGUARDING ACCOUNTS. PI AND EMI AGENT REGISTRATION

Argenta Solutions provides bank and electronic money account opening as well as segregated (correspondent) client funds safeguarding accounts for financial institutions and FinTechs in the European banks. Payment Institution and Electronic Money institution Intermediary Agent or Distributor registration is a part of our service.

The banks and financial institutions in the UK and the EU are subject to strict anti-money laundering and other prudential regulations.
As a result, opening a bank account in Eurozone is a complex procedure requiring specific knowledge and experience.

An account opened in the European financial institution allows fast and easy payment processing at low cost in all SEPA countries without any restrictions as home country payments. Payment and Electronic Money Institution Agent registration allows provision of the services and opening of IBAN accounts for own clients under the partner PI or EMI license without any additional licensing.