Business Plan for PI/EMI  License Application:

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• A business activity plan for at least the first three years, including routine and stressful situations, banking activities and a description of organizational structure and internal control function, initial and continuous activity model viability and competitiveness, target market, products, sales channels, operational and regulatory risk factors, including money laundering and terrorist financing risks and how they shall be managed, confirmation that the bank has a plan for the transitional period pending the capacity to fully carry out the functions, and a description of the plan, strategic objectives and strategies for achieving them, a description of the competitive advantages and disadvantages, etc.

 

Financial  Estimates for PI/EMI License Application :

 

• Financial projections and statements at the level of the bank and, where applicable, of the consolidated group including existing and future debts of the bank prior to the commencement of banking activities; collateral, guarantees or indemnities provided or intended to be provided by the bank prior to the commencement of banking activities; the rating of the bank and, if applicable, the overall rating of the consolidated group; analysis of the extent of consolidated supervision; description of the risk management system, including risk limit system, credit and lending risk taking, interest rate and settlement risk management, liquidity and concentration risk management, and diversification policy, provisioning compilation, collateral management, dividend allocation; draft of the accounting policy and a detailed description of the accounting system; a bank resuscitation plan prepared in accordance with the Resolution No. 03-209 of the Board of the Bank of Lithuania of 29 December 2015; description of the Internal Liquidity Adequacy Assessment Process (ILLAP), etc.

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Legal and Compliance Part for PI/EMI License Application:

 

• Preparation of documents and the application for SB license, including the incorporation of the company with the governance structure and capital as those which are required for the bank, corporate resolutions of the relevant bodies deciding on applying for the banking license, approving various internal rules and procedures, program of operations including the initial Internal Control Policy, Compliance Function Rules, Internal Audit Regulations, Internal Audit Procedure and Working Regulations of the Audit Committee, Risk Management Function, whistleblowing policy, the conflicts of interest policy, the policy promoting diversity in the management body, the complaints handling policy, the remuneration policy for staff, the systems and policies for assessing and managing the risks of money laundering and terrorist financing, the internal audit resources and an outline of the methodology and internal audit plan, external and intra-group outsourcing rules, and other documents required by the law.

 

Shareholders and Group Companies Due Diligence for PI/EMI License Application:

 

• Preparation of the forms about direct and indirect holders of qualifying holdings (>10 percent of shares / votes or ability to exercise significant influence up until UBOs). Information about proposed managers of the bank including CEO and deputy CEO, CFO, CRO, CTO, which should normally at the same time serve as board members, supervisory council members, internal auditor, etc. Information on licenses, authorizations, registrations or other permits granted by any Member State or a third country authority or other public sector entity in the financial services sector of any group company; the history of litigation and their outcome; information on significant events that have occurred or are taking place and that may reasonably be considered relevant for the application for a banking authorization.

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Development of IT System for PI/EMI:

 

• Mediation in finding an IT system supplier and/ or facilitation of IT system development to meet the requirements for the SB application; Preparation of a detailed description of the IT infrastructure, systems, functions organization, management, security assurance and other systems and controls of the bank including KYC process, Anti-money laundering check tools and databases, anti-terrorist financing check tools and databases, fraud prevention check tools, personal data protection, etc.

 

Human  Resources Management for PI/EMI:

 

• Facilitation of essential staff recruitment process, preparation of employment contracts, workplace safety consultancy, organization of training programs if necessary,  etc. The minimum number of a bank’s management employees must be 10 people. More details could be found above.

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The difference between Electronic Money Institution (EMI) and Payment Institution (PI) licenses is that EMI institutions in addition to the services provided by PI are entitled to open Electronic Money accounts to the clients, issue and redeem Electronic Money in different currencies and store clients’ funds for a unlimited period rather than immediate payment processing allowed to Payment Institutions. EMI license also allows to process various types of payments, provide currency exchange, handle cash, issue limited period loans related to payment issue payment cards and other payment instruments, .

 

Electronic Money Institution licensed in one European Union (EU) member state opens up business opportunities to act and provide services in all other EU/EEA countries, enjoying the benefits of a Common Market without any restrictions and additional requirements raised by the national regulators.

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