EMI license in Georgia

This treatise is devised to furnish an exhaustive scrutiny of the methodologies for acquiring and prerequisites for an EMI permit in Georgia. It encompasses legislative facets, commencing with the Statute “Regarding the Payment System and Payment Services” delineated in 2012, and incorporates an assessment of the phases of founding a corporation and assembling the requisite dossier of records. The criteria for governance and administrative staff, the terms for annual recounting and scrutinizing, along with the peculiarities of the global undertakings of corporations in the domain of electronic currency are also deliberated.

General information about Georgia as a financial center

Georgia, strategically positioned at the nexus of Europe and Asia, has lately been vigorously fortifying its stance as a consequential pecuniary hub. The nation's economic revamps are geared toward establishing optimal circumstances for drawing investment and bolstering commerce, notably in the realm of fintech novelty. The existence of a diminished degree of corporate levies, a streamlined scheme of business enrollment, and permissive jurisprudence render Georgia an enticing site for enrolling a commerce and securing authorizations for digital currency.

Special focus in Georgia is dedicated to facilitation of commerce for alien enterprises. For instance, there are no stringent domiciliation prerequisites for executive personnel and overseers, which simplifies entry for global institutions. The procedure of acquiring an electronic currency permit (EMI) in Georgia encompasses not solely presenting the requisite records, but also adhering to stringent regulatory norms, executing financial examinations, and submitting yearly statements.

Georgia additionally offers a combative milieu for the genesis and licensing of electronic remittance arrangements, distinguishing itself amidst other nations for its governmental steadiness, reasonable livelihood expenses, and transaction outlays. Moreover, the indigenous banking framework has demonstrated to be exceedingly dependable and sophisticated, which is exceedingly pivotal for entities operating in the domain of electronic finance.

The method for granting charters for electronic funds in Georgia is noteworthy for its effectiveness. Unlike numerous nations where the procedure of acquiring such a charter can be protracted, in Georgia it typically endures from a moon to several moons, which is imperative for a prompt initiation of operations.

The need for an EMI license for entrepreneurs and the business sector in Georgia

A numeral cash permit is a pivotal regulatory facet for firms with aspirations to operate in the numeral pecuniary amenities sector. Possession of an EMI permit in Georgia furnishes the capability to execute a broad spectrum of dealings with numeral cash, encompassing its promulgation, conveyance, and manipulation. This confers upon organizations the lawful entitlement to conduct remittance transactions, oversee numeral assets in virtual accounts, and effectuate transnational transfers.

Hence, an electronic pecuniary sanction in Georgia acts as a potent implement for fortifying a venture, broadening its capacities, and engaging in the worldwide economic stage. It not only manifests adherence to global standards and statutes but also fosters circumstances for advancement and evolution within the cybernetic economy.

Regulatory framework for EMI licenses in Georgia

The regulatory framework in Georgia concerning electronic currency matters is evidently organized and governed by the Law “On the Payment System and Payment Services”, enacted in 2012. This regulatory decree establishes the fundamental regulatory prerequisites for undertakings associated with electronic payments and EMI licensing, and outlines the juridical framework for the operation of payment systems and the rendering of services.

The statute delineates the parameters for associations seeking to acquire a permit to operate electronic currency in Georgia, instituting regulations and protocols for the oversight and command of their endeavors. Special scrutiny is directed towards the categorization of accessible permits and the distinct prerequisites for each category.

Key elements of legislation:

• Enrollment and licensure. Any firm intending to enroll as an EMI in Georgia is obligated to undergo a authentication process. This involves submitting a petition and the necessary credential compilation to the National Bank of Georgia. The petition should incorporate details about the enterprise model, managerial framework, financing origins, and hazard mitigation tactics.
• Functional prerequisites. Enterprises are obliged to adhere to criteria concerning technological framework, individual information safeguarding, and measures against illicit monetary transactions. They are required to have formulated internal regulations and protocols, along with performing routine internal and external evaluations.
• Oversight and dominion. The National Bank of Georgia possesses authority to oversee the endeavors of accredited EMIs, encompassing the entitlement to execute examinations, demand reporting, and intervene in instances of transgressions.
• Securing consumer entitlements preservation. Statutory provisions underscore the significance of safeguarding the concerns of consumers of fiscal amenities, necessitating the obligation to apprise patrons about the expense of amenities, their stipulations, and mechanisms for redressing disputes.
• Duty and penalties. If lawfully set norms are transgressed, corporations encounter pecuniary penalties, constraints on their operations, or annulment of their permit.

Key conditions for obtaining an EMI license in Georgia

To qualify for an EMI authorization in Georgia, enterprises must fulfill several fundamental criteria stipulated by national legislation. These criteria are designed to ensure steadiness and lucidity of fiscal transactions, safeguard consumer entitlements, and fortify the economic resilience of the nation.

These regulations are part of the expansive regulatory framework that oversees the licensing of electronic remittance systems in Georgia. The procedure for granting a Georgian EMI permit is rigorously monitored to ensure adherence to international regulations and uphold a lofty level of assurance in the domestic financial system.

Stages of obtaining an EMI license in Georgia

The process of obtaining an EMI license in Georgia includes several precisely defined steps, each of which has its own time limits. The entire process requires detailed preparation of documentation and strict adherence to all criteria established by the regulator.

Collecting documents and submitting an application

The initial stage includes initiating the process and submitting an application for an EMI license to the National Bank of Georgia. At this stage, the organization is required to organize and submit all required documents, which cover:

• Legal documents of the organization (basic documents, certificate of registration, confirmation of legal address).
• A commercial plan detailing planned activities, projected transaction volumes and management system.
• Policies and practices related to risk management, information security and anti-money laundering measures.
• Documentation confirming the availability of the required authorized capital.
• Information about the qualifications and experience of management and key employees.

The duration of this stage can vary from several weeks to several months, depending on the complexity of the preparation and the completeness of the submitted documents.

Consideration of the application

Upon dispatching the petition, the National Bank of Georgia commences the procedure for its deliberation. Throughout this course, the regulator might solicit supplementary records or elucidations, as well as convene gatherings with delegates of the entity to deliberate elements of the business scheme and current operational endeavors. Audits might similarly transpire at this juncture to substantiate that the entity's actions conform with statutory stipulations.

The continuance of this phase typically fluctuates from one to three moons contingent on the volume and intricacy of the information supplied.

Making a decision and issuing a license

Upon consummation of the scrutiny and affirmation of the satisfaction of all stipulations, the National Bank of Georgia renders a conclusive determination regarding bestowing an EMI permit. In the event of an affirmatory determination, the entity obtains the privilege to formally conduct dealings involving electronic remittances in accordance with Georgian statutes.

This ultimate stage generally endures several weeks, subsequent to which the company can commence vigorous activities.

Typically, the process for acquiring an EMI authorization in Georgia can require anywhere from three to six moons, from the moment of presenting the necessary documents to the issuance of an authorization permit. It is prudent to bear in mind that the precise timing may fluctuate depending on the particulars of each instance and the efficacy of correspondence with the supervisory entity.

Any questions?

Contact our specialists

Send your application

Obligations of companies holding an EMI license in Georgia

In Georgia, businesses that are authorized to handle electronic money (EMI) take on a number of important responsibilities. These responsibilities can be divided into initial ones, related to registration and compliance with legal regulations, as well as permanent ones, which must be performed throughout the entire period of validity of the license.

The perquisition must be conducted by an autonomous perquisition association that possesses no pecuniary stakes in the undertakings of the licensee. The primary aim of the perquisition is to validate the precision and veracity of the fiscal data proffered. Auditors authenticate that the firm's administration adheres to extant statutes and decrees of Georgia. This guarantees that the concerns of both patrons and financiers are safeguarded.

In addition to annual reporting and auditing, companies are also required to regularly inform regulators of any significant changes to their operations, including changes in management or major financial transactions.

Key aspects of international expansion for companies with an e-money license in Georgia

Companies holding an electronic money license in Georgia and seeking to expand into international markets are faced with the need to undergo in-depth verification procedures. These additional steps are necessary to ensure that their activities comply with international financial services regulations. Important aspects of this process are:

Banking infrastructure and support in Georgia

Georgia's pecuniary sector exerts a noteworthy influence on the nation's economic well-being and first-rate service provision. This is particularly momentous for organizations aiming to acquire a digital currency permit, as the dependability and effectiveness of the pecuniary sector directly affect their business undertakings.

The Georgian banking system is characterized by stability and progress, which makes it attractive to foreign investors and businessmen. There are credit organizations operating in the country that are subject to regulation by the National Bank of Georgia. This regulator guarantees compliance with international standards in the field of financial activity, which helps maintain a stable economic environment.

Georgian banks provide a wide range of financial services, including both corporate and private banking, wealth management, investment services and international financial transactions. The use of advanced banking technologies, including Internet banking and mobile banking applications, contributes to operational efficiency and customer comfort.

For organizations seeking accreditation to issue electronic means of payment in Georgia, the procedure for opening a bank account is one of the main procedures. This process is relatively quick and uncomplicated. The main stages of the procedure are as follows:

1. Preparation of required documents. Enterprises wishing to open a corporate account are required to provide statutory documents, information about the registration of the enterprise and evidence of the authority of representatives of the enterprise.
2. Submitting an application to the bank. Having collected all the necessary documents, an application to open an account is submitted to the selected bank. Many banks offer the option of applying online, which simplifies the process.
3. Validation and analysis of documents. The bank analyzes the submitted documents and may request additional data or documents. This stage is critical to comply with regulations to prevent money laundering and terrorist financing.
4. Account activation. Once the application is approved and the documents are successfully validated, the bank activates the account, allowing the company to begin using the account for financial transactions.

Georgian financial institutions can offer additional services to corporate clients, including issuing loans, providing overdrafts, issuing international payment cards and consulting on asset management and investments. These services are very useful for organizations in the field of electronic systems, as they contribute to more effective control of financial flows and create additional opportunities for their growth and development.

Conclusion

Obtaining an EMI license in Georgia is a complex and multi-step process that requires careful preparation and strict adherence to established regulatory criteria. However, despite the complexities, the benefits of such a license are extensive and have a significant impact on the success and sustainability of your fintech company.

YB CASE acts as your reliable partner in obtaining license permits in Georgia. It offers a full range of services to support this process. With extensive experience and a thorough understanding of both national and international legislation, YB CASE guarantees comprehensive support at every step - from preparing documents to successfully obtaining a license.

Particularly valuable is that YB CASE not only helps minimize risks and errors in the application process for an EMI license in Georgia, but also provides ongoing support after approval is received, which includes assistance in complying with regulatory obligations, as well as advice on business expansion and its adaptation to changing market and legislative conditions.