Payment institution registration in the UK

According to the legislation of the jurisdiction, it is possible to register a payment institution in the UK for non-residents. For this purpose, it is required to obtain a licence. It allows opening own accounts in the form of IBAN and provides access to SWIFT. There are some restrictions, for example, you may not issue loans. It is important that there is a share capital of 350 000 euros if you need a full licence.

Requirements for registration

To open a payment institution in the UK, you must apply for a licence. It allows you to serve both physical and corporate clients in all countries, so you can work with banks, including abroad. In addition, the tax system is simple enough - you need to pay a profit tax once a year.

If employees are non-residents, it is not required to contribute to the treasury if the conditions of the law are met. The staff must have an AML specialist, who monitors cash flows and conducts transactions for opening accounts. A financial organization operating online must control the flow of funds as any bank.

What rights are granted to online banks:

• Making payments to other banks, including those abroad, in different currencies;
• Opening accounts remotely;
• The possibility of accepting payments made through the SWIFT system;
• Creating correspondent accounts.

The financial institution must carefully control whether or not transactions are conducted for the purpose of money laundering. You can learn more about the peculiarities of registration from our specialists at IT-OFFSHORE.

Types of business licences

Payment institutions planning to work in the UK may obtain an AEMI or SEMI licence. The first licence is full and the second is called a small licence.

If the first licence is issued, the bank may provide services within the EU. The capital must be at least 350 000 euros. The duration of obtaining is on average up to six months if all relevant documents have been provided. The main requirement for obtaining a permit is that the institution must have 2 resident directors.

A small licence allows working with clients only within the jurisdiction. It is much easier to obtain it, and the authorized capital is not provided. One director with resident status is required to manage a payment institution. The average time to obtain a permit is about 5 months.

Stages of obtaining a permit

In order to obtain permission to operate, you must first collect and provide the regulator with a package of documents. It is obligatory to have business strategy, risk analysis, and data on organizational structure. It is necessary to have a financial forecast as well as an action plan to combat money laundering.

To work properly, it is necessary to select an office and conclude an accounting service contract. You will also need to select the staff and the bank for work, to register the institution.