Licensing Procedure and Conditions for EMIs (Electronic Money Institutions) - Khalid Zafar & Associates

In order to apply for license of an Electronic Money Institution (“EMI”) the following steps/conditions shall be followed:

    1. A limited liability company (LLC) whether public or private shall be registered with SECP.
    2. The applicant should have capability to efficiently handle all the transactions as an EMI as prescribed under Payment Systems and Electronic Fund Transfers Act, 2007.
    3. The applicant should have capability to efficiently handle all the transactions as an EMI as prescribed under EMI Regulations.
    4. The applicant shall have necessary financial resources, policies, procedures, system & controls, IT systems etc. to effectively and efficiently discharge its responsibilities as an Electronic Money Institution.
    5. An application together with the documents mentioned in the following paragraphs shall be submitted.

Documents Required to be submitted:

The following documents shall be submitted with application.

    1. Certified copy of certificate of incorporation;
    2. Certified copy of memorandum and articles of association;
    3. No Refundable Application Processing Fee amounting to PKR 200,000/-.
    4. Business feasibility report (consisting of business plan including the financial projections for the first five years) including detailed description of operations related to e-money issuance, redemption, delivery channels, payment services to be offered, contractual arrangements with banks/microfinance banks , IT Systems, data security and data storage.
    5. Description of the measures to be taken to safeguard the customers’ funds in line with the EMI regulations.
    6. Copy of trust agreement with trustees.
    7. Details of the internal control mechanisms established to comply with Anti Money Laundering and Countering the Financing of Terrorism guidelines issued by State Bank of Pakistan from time to time.
    8. Details about the use of agents and outsourcing arrangements.
    9. List of sponsor shareholders and their fit and proper test.
    10. Fit and proper tests of Directors, CEO and key executives in the prescribed format.
    11. Audited financial statements of the company for the last three (3) years where applicable.
    12. any further information as may be required by State Bank of Pakistan after perusal of above-mentioned documents. 

 

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