EMI Licence in Latvia: Authorisation by Latvijas Banka

Latvijas Banka, the central bank of Latvia, licenses and supervises electronic money institutions. Licensed and registered EMIs are listed in its register of financial market participants and in the EBA register.

The Law on Payment Services and Electronic Money (Maksājumu pakalpojumu un elektroniskās naudas likums), which implements the EU E-Money Directive (EMD2) and Payment Services Directive (PSD2). Latvijas Banka Regulation No 270 sets the licensing procedure and forms, and Regulation No 275 the internal control rules.

Count on 9 to 12 months in total. After preparation and the pre-application meeting, Latvijas Banka checks completeness within 15 working days and must decide within 3 months of receiving all documents, a period it can extend for objective reasons.

Initial capital of at least €350,000 on the day of the licence decision. After that, own funds must also cover at least 2% of the average outstanding electronic money.

Latvijas Banka charges €5,000 to examine an EMI application (€450 for innovative-only e-payment services) and an annual supervision fee of up to 1.4% of gross income, capped at €100,000 a year. Our packages are listed in the pricing section.

A lighter regime for closed models: average outstanding e-money of up to €2,000,000, e-money with payment instruments or money remittance only, users linked to Latvia and no passporting. It needs no fixed initial capital, but the management board and legal address must be in Latvia.

Yes. The management board and the legal address must be in Latvia. Managers need adequate education and experience, and board members and shareholders with 10% or more must be of good repute. We can set up the Latvian company (SIA) and source the people.

Funds received for e-money must be kept in a separate account at a credit institution, invested in secure, low-risk liquid assets, or covered by an insurance policy or a guarantee. The arrangement is part of the application.

Yes. Before starting in another EU/EEA country through a branch, agent or cross-border services, the EMI notifies Latvijas Banka, which informs the host authority. No separate licence is needed in each country.

For certain services, yes. Under MiCA, existing financial institutions such as EMIs can provide some crypto-asset services by notifying Latvijas Banka at least 40 working days before they start. Other models need a full MiCA CASP licence in Latvia.

As a financial institution under the Latvian AML law (the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing), an EMI must identify and monitor its customers, screen for sanctions, report suspicious transactions to FIU Latvia via goAML and commission an independent external AML audit.

Corporate income tax in Latvia applies only when profit is distributed, at 20%, for example on dividends. Profit kept in the EMI is not taxed until it is paid out, which helps build own funds.

Yes: AML team outsourcing, MLRO and compliance officer roles, safeguarding and supervisory reporting, and DORA support for ICT risk. See our compliance services.