Luxembourg Payment Institutions License_Guideline

Luxembourg Payment Institutions License

Payment institutions and electronic money institutions are governed by the Law of 10 November 2009 on payment services (“the PSL”). The PSL was amended by the Law of 20 July 2018 which transposed Directive (EU) 2015/2366 of 25 November 2015 on payment services in the internal market (PSD2).

Permitted Activities

A Payment Institution (PI) is a legal person that has been granted authorization to provide and execute payment services in accordance with article 7 (Luxembourg undertakings) or 22 (non-EU undertakings) of the Law. PIs duly authorized in their home member state and acting through a branch, an agent or free provision of services, do not need formal authorization from Luxembourg authorities as they benefit from EU rules on freedom of provision of services (article 21 of the Law)

The following are permitted activities of a PI:

1. Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.
2. Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.
3. Execution of payment transactions, including transfers of funds on a payment account with the user’s payment service provider or with another payment service provider:

• Execution of direct debits, including one-off direct debits;
• Execution of payment transactions through a payment card or a similar device;
• Execution of credit transfers, including standing orders.

1. Execution of payment transactions where the funds are covered by a credit line for a payment service user:

• Execution of direct debits, including one-off direct debits;
• Execution of payment transactions through a payment card or a similar device;
• Execution of credit transfers, including standing orders.

1. Issuing and/or acquiring of payment instruments.
2. Money remittance.
3. Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.

Legal Requirements

Sr. No	Element	Requirement(s)
	Entity Requirements	Authorisation may only be granted to a legal person incorporated under Luxembourg law, which must be established in the form of a public limited company (société anonyme – SA).
	Director’s Requirements	The licensee will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.
	Shareholder requirements	A PI entity will need at least one shareholder Corporate shareholding is also allowed.
	Auditor	The Audutor must be a réviseur d’entreprises agréé (approved statutory auditor) approved by CSSF Any change in the réviseurs d’entreprises agréés (approved statutory auditors) shall be authorised in advance by the CSSF
	Minimum Capital Requirements	The PSL Law requires a minimum capital of at least EUR 20,000 – 125,000 for a Payment Institution, depending on the type of payment services.

Ongoing Obligations

1. Payment institutions shall draw up their annual accounts and, if appropriate, their consolidated accounts in accordance with the law of 19 December 2002 concerning the trade and companies register, as well as the accounting and annual accounts of companies, as amended, “the law of 10 August 1915 on commercial companies, as amended,”6 and Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards.

About Valsen Fiduciaries

Valsen Fiduciaries is a licensed independent global service provider of a broad range of fiduciary, administrative, legal, corporate secretarial and support services.

• 1. Company formations and Administration
  2. Assistance with Bank Account opening
  3. Collective Investment Setup and Administration
  4. Intellectual Property Registrations and Maintenance.
  5. Trusts and Foundations setup and administration
  6. Online Payment Gateway Solutions
  7. Banking Licenses and PSP, E-Money, E- Wallet Licenses
  8. Yacht and aircraft registrations.
  9. Cryptocurrency Solutions (ICO, STO, Crypto Exchanges etc)

The Valsen Advantage

• We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of securities dealer licenses in all major jurisdictions.
• Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
• We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
• We have a full in-house compliance support for all compliance requirements with the regulator and service providers

Our Contact Details

Please visit us on: www.offshorelicense-regulatory.com , www.valsen-corporate.com

OR Contact us on:

• Tel: +248 4321018
• WhatsApp: +248 2525217
• Skype: vf-international.com
• Email: [email protected]