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Steps for the Establishment an Operation of Payment Services in the Republic of Cyprus

Michalaki, Pitsillidou Law Firm > English Articles  > Steps for the Establishment an Operation of Payment Services in the Republic of Cyprus

Steps for the Establishment an Operation of Payment Services in the Republic of Cyprus

Payment services provides a common legislative framework across Europe which is directs to a higher level of consumer protection.

The provision of payment services in the Republic of Cyprus is regulated by Payment Services Directive of 2009. In accordance to the aforementioned Directive, Central Bank of Cyprus, is the main and responsible authority for granting an authorization for the operation of payment services in the internal market in the Republic of Cyprus. These services shall be provided only by a payment institution which has been granted an authorization by the Central Bank of Cyprus. The Directive introduces a new licensing regime to encourage non banks to enter the payments market.

Only the legal persons which has been incorporated (and have their head office) in the Republic of Cyprus shall be granted an authorization for the operation as a payment institution.

Furthermore, the Central Bank of Cyprus is the Registrar of payment institutions in the Republic of Cyprus αnd according to the Directive persons who interested of obtaining an authorization must submit an application to the Central Bank of Cyprus.

The payment services that can be offered with such license, issued by the Central Bank, are the following:

  1. Services enabling cash to be placed on a payment account

  2. Services enabling cash withdrawals

  3. Execution of payment transactions

  4. Issuing and/or acquiring of payment instruments

  5. Money remittance

Aspects that must be complied with for a legal person to be authorised as a payment institution under Cyprus law include the following:

  • The amount of the initial capital as well as the amount of own funds that payment institutions are required to maintain

  • The methods for safeguarding the funds received by payment institutions

  • The delegation of operational functions to third parties

  • The exercise of the freedom of establishment and the freedom to provide services in another EU member state

  • The criteria which an agent of a payment institution must fulfil in order to be listed in the public register maintained by the Central Bank of Cyprus.

iMPK Global Business Law firm can assist you from the registration until the licensing from Central Bank of Cyprus and delivering the New Licensed Payment Services Company in Cyprus,  at the best value for money procedure.

For more information and guidance get in touch with our lawyers or email iMPK Global Business Law Firm – Cyprus Lawyers, at info@impklawyers.com .Tel. +357 99345000 – Fax +357 25 660097

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