1. Details of the Electronic Money Institution

EMDB

Notification of Intention to exercise right of establishment in accordance with Regulation 28 of the Financial Services (Electronic Money) Regulations 2011

The form is to be completed by all authorised Gibraltar electronic money institutions that wish to exercise its right to establish a branch in another EEA State in accordance with Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009.

Before completing this form, applicants should read the Financial Services (Electronic Money) Regulations 2011 and the Notes tothis form.

Completed notification forms should be sent to the applicant’s normal supervisory contact at the Financial Services Commission.

1. Details of the Electronic Money Institution

1.1State the name(s) of the institution (corporate name and any business name(s)) used for the purposes of, or in connection with, any business carried on by it in Gibraltar.

1.2Contact Information;

Address:

Telephone number:

E-mail address:

Contact person:

1.3Indicate any former name(s) by which the firm has been known.

2.Details about the establishment

2.1Does the firm intend to establish a branch?

Yes / No

If “yes”, please complete section 3.

2.2Does the firm intend to use an agent located outside of Gibraltar, but within the EU, to provide services in the EEA State?

Yes / No

If “yes”, please complete section 4.

2.3Does the firm intend to appoint a distributor locatedoutside of Gibraltar, but within the EU, to provide services in the EEA State?

Yes / No

If “yes”, please complete section 5.

3.Details about the Branch

3.1Please indicate the EEA State in which the institution wishes to establish a branch.

3.2Please provide the address in the EEA State where the branch will be established and from which we can get information about the business.

Address
Postcode
Telephone number
Fax number
Email address at the branch

3.3Please list the names of all the persons responsible for the management of the branch

Title / Forename / Surname

For the person(s) responsible for the management of the branch, the institution must submit fully completed Individual Questionnaires [which can be obtained from the FSC’s website].

3.4Please provide the proposed date for the start of business at the branch. (Note: The date should not be earlier than one month from the date this form is received by the Financial Services Commission.)

3.5Please tickthe appropriate boxes to show which activities are to be provided by the branch.

Electronic Money Activities
Issuance of electronic money
Distribution of electronic money
Redemption of electronic money
Payment Services
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:
(i) execution of direct debits, including one-off direct debits,
(ii) execution of payment transactions through a payment card or a similar device,
(iii) execution of credit transfers, including standing orders.
4. / Execution of payment transactions where the funds are covered by a credit line for a payment service user:
(i) execution of direct debits, including one-off direct debits,
- does this include the granting of credits?*
Yes
No
(ii) execution of payment transactions through a payment card or a similar device,
(iii) execution of credit transfers, including standing orders.
5. / Issuing and/or acquiring of payment instruments;
- does this include the granting of credits?*
Yes
No
6. / Money Remittance
7. / 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.
- does this include the granting of credits?*
Yes
No

* In accordance with the rules provided for in Regulation 32(2) Financial Services (Electronic Money) Regulations 2011

3.6Please provide the following information;

a) / Full description of the branch's structural organisation (number of business units/premises; initial number of anticipated employees; organisational chart, showing both functional and legal reporting lines) and how the branch fits into the corporate structure of the group
b) / Full description of outsourcing arrangements
c) / Full description of participation or intention to participate in a national or international payment system (if applicable)
d) / Full details of the anti-money laundering procedures to be adopted by the branch in the host Member State, which include:
- / procedures to identify the customers and the beneficial owner of the transaction and what is prescribed regarding the record keeping
- / procedures to distinguish situations with different risk levels (risk based approach) and the enhanced customer due diligence measures applicable in cases of higher risk
- / procedures to detect suspicious transactions which have to be reported to the financial intelligence unit (FIU) and to report these transactions
- / measures which have been implemented in relation to the training and education of their employees in order to apply the AML procedures.
e) / Full details of the links with internal control system of theinstitution
f) / Details of the amount of control by senior management in Gibraltar over the day to day operations of the branch and systems in place for reporting.
g) / How the branch will contribute to the strategy of the firm/group

3.7Please provide a forecast statement for the profit and loss and cash flow, both over a twelve month period.

4.Details about the agent

4.1Please indicate the EEA State in which the institutionwishes to engage an agent.

4.2For each agent please provide details of the links with internal control system of the e-money institution, including a description of thepermanent and periodic control procedures implemented by the e-money institution to ensure that agents properly apply the AML procedures.

Name of Agent / Response

* The agent(s) should be separately registered with the FSC using the Form EMDAD – Registering an agent or distributor located on our website.

4.3Please list the names of the persons responsible for the management of each agent.

Agent / Title / Forename / Surname

For the person(s) responsible for the management of the agent, the institution must submit fully completed Individual Questionnaires [which can be obtained from the FSC’s website].

4.4Please provide the proposed date for the start of business at the agent. (Note: The date should not be earlier than one month from the date this form is received by the Financial Services Commission.)

4.5Please tick the appropriate boxes to show which activities are to be provided by the agent.

If different agents are carrying on different activities, please advise of the activities for each agent by completing this question per agent.

Electronic Money Activities
Distribution of electronic money
Redemption of electronic money
Payment Services
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:
(i) execution of direct debits, including one-off direct debits,
(ii) execution of payment transactions through a payment card or a similar device,
(iii) execution of credit transfers, including standing orders.
4. / Execution of payment transactions where the funds are covered by a credit line for a payment service user:
(i) execution of direct debits, including one-off direct debits,
- does this include the granting of credits?*
Yes
No
(ii) execution of payment transactions through a payment card or a similar device,
(iii) execution of credit transfers, including standing orders.
5. / Issuing and/or acquiring of payment instruments;
- does this include the granting of credits?*
Yes
No
6. / Money Remittance
7. / 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.
- does this include the granting of credits?*
Yes
No

* In accordance with the rules provided for in Regulation 32(2) Financial Services (Electronic Money) Regulations 2011

5.Details about the distributor

5.1Please indicate the EEA State in which the firm wishes to appoint a distributor.

5.2For each distributor please providedetails of the links with internal control system of the e-money institution, including a description of the permanent and periodic control procedures implemented by the e-money institution to ensure that agents properly apply the AML procedures.

Name of Distributor / Response

* The distributor should be separately notified to the FSC using the Form EMDAD – Registering an agent or distributor located on our website.

5.3Please list the names of the persons responsible for the management of each distributor.

Distributor / Title / Forename / Surname / Date of Birth

5.4Please provide the proposed date for the start of business at the distributor. (Note: The date should not be earlier than one month from the date this form is received by the Financial Services Commission.)

5.5Please tick the appropriate boxes to show which activities are to be provided by the distributor.

If different distributors are carrying on different activities, please advise of the activities for each distributor by completing this question per distributor.

Electronic Money Activities
Name of Distributor / Distribution of E-money / Redemption of E-money

Declaration

We certify that we have read Regulation 66 of the Financial Services (Electronic Money) Regulations 2011. We are aware that it is an offence to provide any information which is untrue in a material respect in connection with an application under the Regulations.

We certify that the information given in answer to the questions above is complete and accurate to the best of our knowledge, and believe that there are no other facts relevant to this application of which the Financial Services Commission should be aware.

We undertake to inform the Financial Services Commission of any changes material to the application which arises while the Financial Services Commission is considering the application.

Name / Position Held
Signed / Date
Name / Position Held
Signed / Date

Notes to Forms EMDB (Establishment of a Branch)

1Scope Of The Notification Requirement

1. Form EMDB must be completed by all Gibraltar incorporated electronic money institutions that intend to carry on activities listed in Schedule 1 of the Financial Services (Banking) Act (“Act”) through;
2. the establishment of a branch,
3. an agent located in another EEA State, or
4. a distributor located in another EEA State.
5. This notification only covers listed activities carried on by the establishment in the Member State in which it is established. Any listed activities conducted by the entity on a cross border provision of services basis within the territory of another Member State must be notified in Form EMDS.
6. The term “electronic money institution” and the associated terms have the meaning given to them in Regulation 2 of the Financial Services (Electronic Money) Regulations 2011 (“the Regulations”). In summary, these terms are defined as follows:
7. An electronic money institution means an authorised electronic money institution incorporated in Gibraltar, has its principal place of business in Gibraltar and is currently licensed by the Financial Services Commission to carry on the business of electronic money issuer.
8. A “branch” is defined in the Regulations as established by the institution to issue e-money, provide services, distribute or redeem e-money or carry out other activities in accordance with the Regulations within the EEA in another EEA State other than in Gibraltar.
9. An “agent is defined in the Regulations as a person who provides payment services on behalf of an e-money institution, where payment services refers to any activity listed in the Schedule of the Financial Services (EEA)(Payment Services) Regulations 2010.
10. A “distributor” is defined in the Regulations as a person who distributes or redeems e-money but does not provide payment services on behalf of the institution.
11. A separate notification form is required for each Member State.
12. The forms should only include any new branches, agents or distributors. Information on the current branches, agents or distributors previously notified are not required.

2Procedures

Branch

If an institution intends to establish a branch in an EEA State, it should complete sections 1, 2 and 3 of the EMDB form.

Please be advised that an application fee of £5,000 is payable each notification for the establishment of a branch. Furthermore, an annual fee of £6,328 is payable for each branch established.

Agent

If an institution intends to establish an agent located in an EEA State, it should complete sections 1, 2 and 4 of the EMDB form.

A fee of £224 is payable for each notification submitted.

Distributor

If an institution intends to establish a distributor located in an EEA State, it should complete sections 1, 2 and 5 of the EMDB form.

A fee of £112 is payable for each notification submitted.

General

The submission of Form EMDB constitutes an application to establish a branch, register an agent or appoint a distributor in an EEA Member State for the purpose of carrying on only those particular activities specified in the form in that EEA State.

The Financial Services Commission is obliged to act on the application within one month of its receipt. If the application is refused, the Financial Services Commission must give a notice of refusal, including the grounds for the decision, before the month expires. The firm has recourse to make representations as set out in the Regulations.

Subject to the FSC not having any objections to the Branch application, the FSC will send a notice (before the one month expires) to the relevant competent authority in the EEA State where the branch is to be established. Once this notice has been given, the Financial Services Commission must notify the firm of the date on which it was given.

The branch may then be established and conduct the activities specified in Q.3.5 of the EMDB Form as from one month from receipt of the notification by the FSC. However, due to the short timescale the FSC would recommend that the institution wait to start business until:

(i)the relevant competent authority in the EEA Member State informs the firm that it may establish the branch; or

(ii)one month elapses following the day on which the Financial Services Commission notified the relevant competent authority in the EEA State that the application was allowed.

The institution may be contacted by the relevant competent authority in the EEA State concerning the authority’s supervisory powers and any regulations that may be applicable to the branch’s activities.

Information on the institution

It should not be assumed that information is known to the FSC merely because it is in the public domain or has been previously disclosed to the FSC or another regulatory body. If you are not sure whether a piece of information is relevant, please include it anyway.

Change in requisite details

The institution is required to notify the FSC if there are any proposed changes to the information provided in this form. The FSC will process the notification within one month in the same manner as noted above, and will notify the institution if the notification has been submitted to the relevant home state competent authority, or if refused, the grounds for the refusal.

As per above, the changes can be effected was from one month from receipt of the notification by the FSC. However, due to the short timescale the FSC would recommend that the institution wait to effect the change until:

(i)the relevant competent authority in the EEA Member State acknowledges the notification; or

(ii)one month elapses following the day on which the FSC notified the relevant competent authority in the EEA State.

If a change in requisite details is occasioned by circumstances beyond the institution’s control, then notification of the change must be made as soon as practicable (whether before or after the change).

Version 2.0

28 January 2015