Poland EMI license

Poland EMI (Electronic Money Institution) License

Poland EMI License for electronic payment transactions in Poland is hassle-free to obtain with Tetra Consultants’ assistance.

Despite their hesitant approach to regulate cryptocurrency, the Polish Financial Supervision Authority (KNF) has stressed that they are in support of innovative financial services, in particular the adoption of FinTech-based systems. This might make them an up and coming region in the FinTech sphere, and future developments in the country are definitely something to be watched.

Introduction to Poland EMI License

• Although Poland has not directly regulated cryptocurrencies and other virtual assets, business that are designated to be qualified payment service providers such as domestic and foreign banks, as well as credit and electronic money institutions are still legally allowed to continue their business dealings in cryptocurrencies under the purview of the Polish Act on Payment Services 2011. This is an all-encompassing legislation governing payment services in general as opposed to just cryptocurrencies, a significant difference from other jurisdictions since it does leave some uncertainty with regards to electronic payments.

• The PKD (Polska Klasyfikacja Działalności, Classification of Activities Code) that allows a business to run a cryptocurrency exchange is PKD 64.19.Z.

When will you require a Poland EMI License?

• You will require a Poland EMI license when you are looking to perform payment transactions through electronic means or when you are seeking to transact electronically with another electronic payment institute. If you are an intermediary to such transfer, you will also require a Poland EMI license.
  

Requirements for Poland EMI License

Business plan

• Organization and management plan

• • This is in relation to how the firm plans to manage its employees, and other internal controls that will also be elaborated on below.

• Marketing

• • This is in relation to the target consumers of the firm, what services it will offer and what distribution channels it will use.

•  Operations

• • This is in relation to how to firm plans to carry out its activities, such as investment sources, financing sources, use of technology and how it plans to satisfy audit requirements.

• Timeline of when the firm will achieve key strategic outcomes.

• Information on types of activities to be conducted, and if it will include other activities not under coverage of the Payment Services Act.

Financial plan

• Profit and Loss statement (based on estimated revenues and costs).

• Balance sheet (including proposed capital structure and sources).

• Cash flow statement.

Own funds and share capital requirements

• Each firm must have a minimum initial share capital of €125,000 (US$152,000). As a guarantee to this, it must also hold sufficient funds of its own.

Risk management through internal control systems

• This refers to the internal controls put in place by the company in terms of how decision making and organization structure is being designed to mitigate risks determined to be present based on risk assessment methods.

• Conformance to AML/CTF (Anti Money-Laundering and Countering Terrorist Financing) principles laid out by the EU is also expected.

Rules of conduct

• Specific rules of conduct should be put into place governing the acceptance criteria for customers and they must also set in place procedures to handle customer complaints and subsequent problem resolution.

KYC documents for management and main shareholders

• These KYC documents are to determine if the company in question are able to operate a payment institution with sufficient stability and caution. Thus, the approving authorities will require:

• • Educational and professional experience of the members

• • Criminal records or pending criminal proceedings, and any bans or restrictions as a result of past proceedings

• • Personal and corporate affiliations

• • Current financial and corporate commitments

• • Tax returns

How long to secure Poland EMI License?

• Given the subjective nature of the requirements and the relative inexperience of the Polish regulatory authorities, it is likely for the application process to take up to 6 months. This might be extended if further requests for information or clarification are required.

How to apply for Poland EMI License

• Poland EMI licenses are issued by the Polish Financial Supervision Authority, the Komisja Nadzoru Finansowego (KNF) alongside the Narodowy Bank Polski (NBP), the National Bank of Poland.

• Prospective applicants will be checked for suitability and appropriateness based on the three criteria as listed below:

• • Legality

• • Safety of the operating system

• • Efficient operation

• In addition to these criteria, criteria set out by the European Central Bank and the Second EU directive will also be considered, in particular:

• • Three-year plan for the first three years of running the business

• • Details of the company structure, mechanisms to operate the company and tools for payment services

• • Evidence of technical abilities in the use of such systems confirm the suitability and qualifications of the Board of Directors

• • Proof of sufficient capital

• • Protection of client payments

• • Adherence to anti-money laundering directives

• • Adequate and suitable risk management systems

Step 1: Assessment of business activity and license requirements

• Before assisting you in applying for the license, our team of consultants will seek to understand your company’s business activities and structure to determine if a license is required, and if a Poland EMI license is the most suitable option. Some considerations include the nationalities of the directors and shareholders, working capital and tax obligations. We will also require KYC of the main shareholders and directors to conduct a preliminary KYC clearance.

Step 2: Poland company registration

• Thereafter, our team will assist you in registering a Poland company. Regulated activities in Poland can only be undertaken by either limited partnerships, limited joint-stock partnerships or corporations. If you have a pre-existing company, you can also establish a branch in Poland. Tetra Consultants will recommend the most suitable structure for your business activities based on the operation and management flexibility, compliance costs and tax obligations. The company incorporation process is expected to take 3 weeks.

Step 3: Preparation of business plan and financial plan with the appropriate compliance policies

• Our team will then assist you to prepare these items in detail so that you may satisfy the requirements stated above.

Business plan

• Organization and management plan

• • Organizational structure with background of key office holders

• • Compliance with AML/CTF policies

• • Risk compliance

• • Technical system risk compliance

• Marketing

• • Market analysis

• • Market segmentation and distribution channels

• • Marketing plan

• Operations

• • Description of payment services to be provided

• • Payment transaction diagram

• Any other key assumptions and explanations

• • Transaction volume

• • Size of client base

• • Pricing

Financial plan

• Capital requirements

• Quarterly budget forecasts for the next 3 years under target and stress scenarios

• Any other key assumptions and explanations

• • Capital source

• • Revenue and Cost projections

Step 4: Preparation of any other supporting documents

• Organizational structure

• Protection of customer fund

• Management structure and internal control system

• Outsourcing services and control

• AML/CTF policy

Step 5: Submission of license application

• Tetra Consultants will submit the completed application form along with all the required documents to the regulatory authorities. Sometimes the authorities might revert with requests for additional information or interviews. We will continue to prepare the information as requested as well as liaise with them on your behalf. Before the interview, we will also prepare you for questions that might be asked. If needed, we will also send a representative down to ensure this meeting goes smoothly. This whole approval process is expected to take 6 months.

Step 6: Corporate bank account opening

• After you have successfully gotten the license, Tetra Consultants will assist you in opening a corporate bank account. We work with an extensive network of Polish and international banking partners that are experienced in dealing with foreign investors. Having a bank within the SEPA (single Euro payment area) will also make it cheaper and faster for your business to transact with customers in Europe. We will present your business plan to each compliance team and relationship manager.

• Considering that your business is likely to be dealing heavily in international payments, we will open a multi-currency account for you. To facilitate the verifiability of such transactions, we will also provide you your IBAN and SWIFT number, two commonly used methods of verifying a bank account’s identity and authenticity.

• Typically, a corporate bank account opening will take roughly four weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request for a waiver.

Step 7: Annual accounting and tax services

• Our team of chartered accountants will also assist you in preparing your annual financial statements and tax returns in a timely manner to ensure that you remain compliant to all regulations. This will also prevent any unnecessary financial penalties or sanctions.

Our services

• Tetra Consultants’ team of licensing consultants will provide professional assistance in jurisdiction choice and with payment license acquisition, including preparation of required documents for application, company formation, search for personnel, support with Bank account opening, and consulting on full compliance with applicable regulations. On the completion of the license application, we will provide corresponding maintenance concerning accounting and reporting and legal support for your business.

• Depending on your business needs and goals, Tetra Consultants can also provide support in attaining other offshore financial licenses as well.

How we can help you obtain Poland EMI License

• Contact us to find out more about how to secure Poland EMI license to conduct electronic payment transactions and activities. Our team of experts will revert within the next 24 hours.

FAQs

Is forex trading legal in Poland?

Do I require a different license to operate an EMI in Poland?

What is the currency of Poland?

Is the Euro accepted in Poland?

How many EMIs operate in Poland?

Can I provide cross-border services through my Polish EMI?

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