Malta Electronic Money Institution License
A Malta Electronic Money Institution (EMI) License is issued by the Malta Financial Services Authority (MFSA) and authorizes entities to issue electronic money and provide payment services to clients within a fully EU-compliant regulatory framework. Malta's strategic location, strong regulatory reputation, and EU membership make it a highly attractive jurisdiction for EMIs seeking a credible and cost-effective base for their electronic money operations. Neptune Fiduciaries helps clients obtain their EMI license in Malta, ensuring full compliance with all MFSA requirements from the very beginning.
Electronic Money Issuance
Licensed EMIs in Malta are authorized to issue electronic money in exchange for funds received, providing clients with a digital stored-value product that can be used for payment transactions across multiple platforms.
Payment Services Provision
Malta EMIs can provide a full range of payment services alongside electronic money issuance, including money transfers, payment processing, and card-based payment solutions to retail and corporate clients.
EU Passporting Rights
A Malta EMI license provides full EU passporting rights under the Electronic Money Directive, allowing the institution to offer its services across all EU member states under a single MFSA authorization.
Multi-Currency Operations
Licensed Malta EMIs can operate across multiple currencies, providing clients with flexible and efficient cross-border payment and electronic money solutions tailored to international business needs.
Neptune Fiduciaries provides complete end-to-end support for obtaining a Malta EMI license, handling all documentation, compliance preparation, and regulatory communication on your behalf for a smooth and timely approval.
Outsourcing of Services by Malta EMIs
EMIs based in Malta are permitted to outsource certain operational functions and services to third-party providers, subject to prior evaluation and approval by the MFSA on its own merits, ensuring that outsourcing arrangements do not compromise the institution's regulatory obligations or the quality of services provided to clients.
MFSA Prior Approval Requirement
Any outsourcing arrangement must be submitted to the MFSA for evaluation before implementation, ensuring the proposed outsourcing meets all regulatory standards and does not create unacceptable operational or compliance risks.
Accountability Retained by the EMI
Despite outsourcing certain functions, the licensed EMI retains full legal and regulatory responsibility for all outsourced activities, ensuring accountability remains with the institution at all times.
Third-Party Provider Standards
All third-party service providers engaged by a Malta EMI must meet specific competence, reliability, and security standards, ensuring the quality and integrity of outsourced services are maintained to MFSA expectations.
Ongoing Monitoring and Review
Licensed EMIs must continuously monitor all outsourcing arrangements, conducting regular reviews to ensure third-party providers remain compliant and capable of delivering services to the required standard.
Legal Requirements and Features
Minimum Initial Capital
A Malta EMI must maintain a minimum initial capital of EUR 350,000 before commencing operations, ensuring the institution has sufficient financial resources to meet its obligations to clients and the MFSA.
Fit and Proper Management
All directors and key personnel must demonstrate relevant professional qualifications, adequate experience, and a clean financial and criminal background that satisfies the MFSA's strict fit and proper standards.
AML and Compliance Framework
A fully documented compliance program covering AML, CFT, and risk management procedures must be established and operational before the MFSA grants the applicant an EMI license.
Safeguarding of Client Funds
Licensed EMIs must implement proper client fund safeguarding measures, ensuring all electronic money issued is fully backed by equivalent funds held in segregated accounts at all times.
Tax Treatment
Malta EMIs benefit from a highly competitive corporate tax system in which shareholders can reclaim a significant portion of the tax paid by the institution on distributed profits, resulting in a very low effective tax rate for international businesses. Additionally, Malta's extensive network of double tax treaties further enhances the overall tax efficiency of operating an EMI from Malta.
Get in Touch
For further details, please contact Neptune Fiduciaries via email info@neptunecorporate.com or sales@neptunecorporate.com or visit our Contact Us page.
