A Summary: E-Money Regulations

E-money usage is on the rise. Companies such as PayPal make online transactions easier and less stressful, however, with ever-growing concerns of online security, tight regulation in such an area is of utmost importance.

We speak to Criton Tornaritis, who often deals with e-money institutions, on the regulations and boxes such organisations must tick.

When submitting applications to grant authorization for electronic money services, what ‘boxes’ do institutions need to tick?

All applicants should comply with all the provisions in the set of guidelines that applies to them (guidelines on the information requirements from the applicants for authorisation as electronic money institutions). The level of detail should be proportionate to the applicant’s size and internal organisation, and to the nature, scope, complexity and riskiness of the particular service(s) that the applicant intends to provide. In accordance with the (EU) Directive, the directors and others responsible for the management of the electronic money institution, are of good repute and possess appropriate knowledge and experience to perform payment services, regardless of the institution’s size, internal organisation and the nature, scope and complexity of its activities and the duties and responsibilities of the specific position.

What are important regulations under the e-money law, that issuers need to be aware of?

The payment services and e-money Licence are evolving and innovating at a fast pace. In light of the revised Payment Services Directive (PSD2) which was applied on 13 January 2018, the sector has undergone a substantial degree of change recently.

We have seen some payment service providers (PSPs) and e-money issuers challenge more traditional players (credit institutions, such as banks and building societies) in banking related services and often in currency exchange transfer services as well.

If they are unaware about the above regulations, what complications can arise?

Payment services and e-money sectors must improve trust and confidence with their consumers. Consumers are confident that the information they receive from PSPs and e-money issuers is fair, clear and not misleading, and that they are not misled about the rates they can achieve or alternative providers’ services.

Criton G Tornaritis
Managing Partner
16 Stasikratous
6th Floor
Nicosia 1065 – Cyprus
Tel: +357 22456056

Tornaritis Law Firm has specialised in Cyprus Law for the last eighty years and three generations of Lawyers Including the first Attorney General of Cyprus.

Criton G Tornaritis is now the Managing partner of Tornaritis & Co. LLC.

He has also counselled and represented companies and banks in connection with supervisory Cyprus Securities and Exchange Commission, Cyprus Stock Exchange and Central bank of Cyprus.

He is also Legal Adviser to several Institutions, the Cyprus Oil and Gas Association and the Family Foundation and the local contributor of the IFC, International Finance Corporation of The World Bank.

Criton participates in several international conferences and has many international awards.


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