Basics of SPI Licensing

Licensing of commercial activities is a complex process from an organizational and legal point of view, for the successful completion of which it is necessary to clearly understand not only the formal rules and conditions for obtaining a license, but also the actual law enforcement practice in this area for this particular jurisdiction. The main difficulty in licensing financial activities is that each country is unique in terms of regulating this type of procedure. The specifics of legislation, the specifics of the operation of by-laws and the principles of their application in practice in each jurisdiction are their own. Ready SPI license for sale can be the greatest option both for experienced businesspeople and for beginner.

SPI in a particular country (Small Payment Institution license) is a prerequisite for activities in the financial market segment. Usually it is a business with electronic money and ICO. Recently, the Czech license has gained particular popularity. With such permission, the company can:

• accept and send payments to customers;
• exchange e-money;
• processing of electronic money and transfer of funds on behalf of third parties;
• issue debit cards;
• build a processing center;
• open e-money accounts for clients and maintain;
• issue financial instruments;
• make money transfers without opening an account.

List of Mandatory Requirements for Company Applying for SPI License

• The financial turnover of the company must be less than declared by the local regulatory agencies.
• The central office of the company and at least one of its representative offices must be located in the territory of the chosen jurisdiction.
• Among the top managers of the company there must be at least one resident of the jurisdiction.
• Founders, beneficial owners and top managers must have an ideal reputation. Their names cannot be involved in any financial fraud or cases related to the violation of laws.
• Preferred form of ownership – LLC or Partnership.
• The local regulator should have no doubts about the competence of the founders of the company, their sufficient level of education and experience.

The general rules for issuing such a license provide for compliance by the business with the legislative policy of the regulator regarding:

• having enough capital;
• proper control;
• control using appropriate technological systems;
• business conduct;
• reporting and notifications;
• handling customer complaints and suggestions, etc.

The regulatory body must also be satisfied with the organization that wants to obtain a license, namely:

• services that it offers, the ability to find common ground with customers, its internal rules;
• diligence in customer service;
• security measures to protect the funds of their customers;
• customer identification procedures;
• reducing the risk of money laundering and fraud.

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Very often, the activities of companies providing a wide range of financial services fall under several categories of licenses at once. This means the need to obtain several licenses, which requires significantly more money and time. In addition, a company that receives several categories of licenses at once must have a special organizational and legal structure with an officially registered office and personnel of a certain qualification. Given the overall organizational complexity of the process of obtaining several licenses at once, the help of qualified lawyers in such circumstances becomes simply necessary.