Dedalos  has extensive experience in the market and can offer a solution to our  clients during the process of obtaining an specific Financial License, from the preparation of the application and forms or hiring the appropriate personnel in Cyprus, provision of all services required during the life of the company or ensuring full compliance with laws and regulations.

We are always close to our client.

 Electronic Money License

Electronic money is a digital equivalent of cash, stored on an electronic device or remotely at a server. One common type of e-money is the ‘electronic purse’, where users store relatively small amounts of money on their payment card or other smart card, to use for making small payments.

But e-money can also be stored  on (and used via) mobile phones or in a payment account on the internet.

The new E-Money Directive (2009/110/EC) (EMD) aims to:

  • enable new, innovative and secure electronic money services to be designed
  • provide market access to new companies
  • foster real and effective competition between all market participants.

This should benefit consumers, businesses and the wider European economy.

The directive focuses on modernizing EU rules on electronic money, especially bringing the prudential regime for electronic money institutions, into line with the requirements for payment institutions in the Payment Services Directive.

Dedalos can assist you during the process to obtain the Electronic Money License or we can connect you with companies that already has the license and they can provide you the specific service that you would like to offer.

The Central Bank of Cyprus (“CBC”) request the following documentation in order to apply for the electronic money licenses:

  • The necessary application form for licensing of electronic money requested by the Central Bank of Cyprus (CBC).

Each form must be submitted together with the following documents:

  1. Operations Manual which will include the issuance of electronic money and it will cover any payment service.
  1. A business plan including a financial forecast for the first three years, which demonstrate that the applicant is able to employ the right people and provide systems, sources and procedures to properly operate.
  1. Evidence that the company requesting the license holds the required initial capital (The minimum capital required is 350,000 Euros, but we always advise to deposit 500,000 Euros deposit as social capital).
  1. Description of the measures that will taken in order to meet the section 13 of the Electronic Money Act 2012.
  1. A description of the mechanisms of social organization and internal control mechanisms, which should include administrative management, risk minimization and accounting procedures, which demonstrate that these preparations steering control mechanisms and procedures are proportionate, appropriate and suitable.
  1. An estimate of the internal controls which the applicant has established in order to fulfill the obligations regarding the prevention and suppression of the Laws of Money Laundering.
  1. A description of the applicant company to participate in national or international systems of payment and preparations intended for outsourcing of operational activities.
  1. The identity of persons who will have direct or indirect control of the applicant company, including the identity of individuals who directly or indirectly, shares or voting rights in one or more legal entities that have control company requesting the license.
  1. The identity of the directors and managers of electronic money institution and, where appropriate, those responsible for managing the issuance of electronic money and the provision of payment services activities, must be demonstrate the reputation of these and they have the knowledge and experience to perform these services.
  1. Corporate Documentation of the company.
  1. Address where main offices are established.

We will assist you:

  • Incorporating the Cyprus company with the specifically drafted Memorandum and Articles of Association
  • Preparing the application forms to be submitted to the Central Bank of Cyprus
  • Support and drafting if it is needed of the Institution´s Internal Operation Manual, Business plan and Operations procedures Manual.
  • Provision of qualified Directors and Personnel if it is required.
  • Assisting our clients to find the correct place to establish the offices.

Payment Institutions License

Payment institutions can be licensed to provide the following (amongst others) services:

  • services enabling cash to be placed on, or to be withdrawn from, a payment account and all of the operations required for operating a payment account;
  • the execution of direct debits and credit transfers (including standing orders) and payment transactions executed through a payment card or similar device;
  • issuing payment instruments or acquiring payment transactions; and
  • money remittance.

Dedalos can assist you during the process to obtain the Payment Insititutions License or we can connect you with companies that already has the license and they can provide you the specific service that you would like to offer.

 The Central Bank of Cyprus (“CBC”) request the following documentation in order to apply for the electronic money licences:

  • The necessary application form for licensing of Payment Insitutions requested by the Central Bank of Cyprus (CBC).

Each form must be submitted together with the following documents:

  1. Operations Manual which will include the issuance of electronic money and it will cover any payment service.
  1. A business plan including a financial forecast for the first three years, which demonstrate that the applicant is able to employ the right people and provide systems, sources and procedures to properly operate.
  1. Evidence that the company requesting the license keeps the required initial capital (The minimum capital required is 350,000 Euros, but we always advise to deposit 500,000 Euros deposit as social capital).
  1. Description of the measures that will taken in order to meet the section 13 of the Electronic Money Act 2012.
  1. A description of the mechanisms of social organization and internal control mechanisms, which should include administrative management, risk minimization and accounting procedures, which demonstrate that these preparations steering control mechanisms and procedures are proportionate, appropriate and suitable.
  1. An estimate of the internal controls which the applicant has established in order to fulfill the obligations regarding the prevention and suppression of the Laws of Money Laundering.
  1. A description of the applicant company to participate in national or international systems of payment and preparations intended for outsourcing of operational activities.
  1. The identity of persons who will have direct or indirect control of the applicant company, including the identity of individuals who directly or indirectly, shares or voting rights in one or more legal entities that have control company requesting the license.
  1. The identity of the directors and managers of electronic money institution and, where appropriate, those responsible for managing the issuance of electronic money and the provision of payment services activities, must be demonstrate the reputation of these and they have the knowledge and experience to perform these services.
  1. Corporate Documentation of the company.
  1. Address where main offices are established.

We will assist you:

  • Incorporating the Cyprus company with the specifically drafted Memorandum and Articles of Association
  • Preparing the application forms to be submitted to the Central Bank of Cyprus
  • Support and drafting if it is needed of the Institution´s Internal Operation Manual, Business plan and Operations procedures Manual.
  • Provision of qualified Directors and Personnel if it is required.
  • Assisting our clients to find the correct place to establish the offices.

Forex license

Cyprus has become a very interesting place for businesses to establish their headquarters and obtain the Forex License and from where international business can be conducted. Being a member of the EU, Cyprus is in full compliance and duly harmonized with the EU Markets in Financial Instruments Directive (MiFID). Currently there are more than 100 Forex firms based in Cyprus.

¨Cyprus Securities and Exchange Commission¨ (CySec) is the regulatory body which grants the license of Cyprus Investment Firm (CIF).

Regarding the requirements for the capital, this will vary depending on the services provided and the risk profile of the investors:

  • Forex Brokerage Firms providing only advice and order transmissions require a share capital of EUR 80.000.(Straight-Through-Processing “STP” Broker that does not hold clients’ funds). It will not take any risk and covers all client positions with third parties.
  • Forex Brokerage Firms (STP broker holds clients funds) operating only as Broker / Agent require a share capital of EUR 200.000.
  • Forex Brokerage Firms (market maker) providing all services and handling third party funds require a share capital of EUR 1.000.000.

The main requirements demand by CySECin  order to receive the License are the following ones:

  • Fully fledged office in Cyprus, hire staff and have in place all the infrastructure needed.
  • Minimum one local Director
  • Risk Management processes, anti-money laundering procedures and IT support must be in place.

Investment firms