EMI License in Latvia
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Latvia offers an attractive Electronic Money Institution (EMI) license for fintech companies looking to issue electronic money and provide payment services across the EEA. The country's cost efficiency, access to the EU market.
What are the Legal Requirements in EMI License in Latvia?
Establish a Latvian Company
You must register a company in Latvia (typically as a limited liability company). Minimum Share Capital: EUR 350,000, fully paid up and verified by a bank. The share capital must be free of encumbrances and sourced from legitimate funds.
Financial and Technical Resources
Capital Adequacy: Maintain adequate reserves proportional to the scale of operations. IT and Security Systems: Implement robust and secure IT infrastructure for electronic money issuance, payment processing, and data protection. Operational Office: The company must have a registered office and presence in Latvia.
AML and KYC Compliance
Appoint a Compliance Officer responsible for Anti-Money Laundering (AML) and Know Your Customer (KYC) processes. Develop and submit detailed AML/KYC policies, including: Procedures for customer identification and verification. Transaction monitoring and reporting of suspicious activities. Risk management frameworks to mitigate financial crimes.
Directors and Key Personnel
At least two directors with relevant experience in financial services or payment systems. Demonstrated knowledge of Latvian and EU financial regulations. Clean criminal records for directors, shareholders, and other key individuals. Key individuals must pass an evaluation by the FCMC to ensure they meet competence, integrity, and financial stability standards.
Detailed Business Plan
Submit a comprehensive business plan covering: Description of the proposed services (e.g., e-wallets, payment processing, etc.). Target market and growth strategy. Financial projections (typically for 3 years). Organizational structure, including roles and responsibilities.
Application Documentation
You must submit a detailed application package to the FCMC, including: Corporate Documents, Financial Documents, Proof of paid-up share capital, Audited financial statements (if applicable), AML/KYC Policies,Detailed operational policies and risk management frameworks, Personal Documentation, Operational Documentation
Licensing Fees
Maintain a minimum regulatory capital of EUR 350,000 at all times. Regularly file reports with the FCMC on: Financial performance. Risk assessments. Compliance with AML/KYC regulations.
Physical Presence and Local Office
While the licensing process can be handled remotely, the company must maintain a physical office and local presence in Latvia. Appointing a local representative for communication with the FCMC is recommended.
Regulatory Capital and Ongoing Obligations
Maintain a minimum regulatory capital of EUR 350,000 at all times. Regularly file reports with the FCMC on: Financial performance. Risk assessments. Compliance with AML/KYC regulations.
5 STEPS TO GET EMI LICENCE IN LATVIA
Understand Regulatory Requirements
Familiarize yourself with Latvian laws and EU directives related to electronic money, including the Payment Services Directive 2 (PSD2). Ensure your business complies with legal requirements, such as minimum capital requirements of €350,000, operational frameworks, and anti-money laundering (AML) measures.
Develop a Comprehensive Business Plan
Prepare a detailed business plan outlining your company’s objectives, target market, and financial projections. Include:
- Corporate structure: Shareholders, board members, and organizational chart.
- Risk management strategies: Plans to mitigate operational, financial, and compliance risks.
- AML/KYC policies: Procedures to prevent money laundering and terrorism financing.
Incorporate a Local Entity
Establish a company in Latvia with a physical office and at least one local director. Register the company with the Commercial Register of Latvia. Open a corporate bank account to deposit the minimum capital.
Submit Application to the FCMC
Prepare a comprehensive application that includes:
- Corporate documents: Articles of association and proof of share capital.
- Operational policies: IT security, risk management, and AML/KYC protocols.
- Management team details: CVs and proof of relevant expertise.
Pay the required application fee. Collaborate with FCMC throughout the evaluation process.
Post-License Compliance and Operations
After approval, comply with ongoing requirements such as: Regular audits and reporting to the FCMC. Maintaining a robust IT infrastructure and security measures. Updating AML/KYC protocols as needed. Scale your operations in alignment with EU cross-border regulations. The process can take 6–12 months.
Frequently Asked Questions
Still have a questions?
What is an EMI license, and why is it needed?
An EMI license authorizes a company to issue electronic money, process payments, and provide related financial services in Latvia and across the EU. It ensures compliance with EU regulations, enabling secure and legitimate financial operations.
Who regulates EMIs in Latvia?
The Financial and Capital Market Commission (FCMC) regulates EMI licenses in Latvia, ensuring compliance with EU directives like the Payment Services Directive 2 (PSD2).
Can a foreign company apply for an EMI license in Latvia?
Yes, foreign investors can apply for an EMI license in Latvia, but they must establish a Latvian legal entity and maintain a physical presence in the country.
What services can an EMI in Latvia provide?
An EMI can:
- Issue electronic money.
- Process payments.
- Provide online wallets and prepaid cards.
- Facilitate international money transfers.
- Offer currency exchange related to payment services.
How much does the entire EMI licensing process cost?
The overall cost, including application fees, legal assistance, minimum capital, and administrative costs, ranges from €400,000 to €500,000, depending on the complexity of the business model.
OUR SERVICES INCLUDE
Legal support
We provide comprehensive legal support for the process of obtaining an EMI license in Latvia, including preparation of all necessary documents, submission of an application to the Financial and Capital Market Commission (FCMC) and interaction with regulatory authorities.
Company registration
We will help you register a company in Latvia, prepare statutory documents, organize the corporate structure and ensure compliance with regulatory requirements.
Opening a bank account
We will support the process of opening a corporate bank account for depositing a minimum capital of €350,000 and conducting financial transactions.
Development of AML/KYC policies
Our experts will develop and implement AML (Anti-Money Laundering ) and KYC (Know Your Customer) procedures in accordance with the requirements of the regulator, ensuring compliance with financial crime standards.
Financial and tax support
We will provide accounting, financial reporting, tax planning and timely submission of reports to the FCMC and tax authorities.
License compliance
We will help you prepare your company for regulatory inspections, ensure compliance with PSD2 (Payment Services Directive 2) and other EU directives necessary for the legal operation of an electronic payment institution.
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