FINANCIAL LICENSE (EMI) IN MALTA

An EMI (Electronic Money Institution) financial license in Malta is a permit from the MFSA (Malta Financial Services Authority) to issue electronic money and provide payment services within the EU.

An EMI (Electronic Money Institution) license allows a company to:

issue electronic money (e-money);
open accounts for customers and store funds;
make transfers, payments, monetary transactions;
issue payment cards;
integrate with EU fintech and banking systems.

After obtaining an EMI license in Malta, the company can provide services in all EU countries through the “EU passporting” mechanism.

ADVANTAGES

Possibility of passporting to all EU countries
A reputable jurisdiction with a unique tax regime
Prestigious jurisdiction with transparent regulation
High trust of banks and partners
English is the official language of the regulator

Support for fintech startups and blockchain projects
EU-wide operating permit
Access to European banking infrastructure (SEPA, SWIFT)
Effective corporate taxation (~5%)
Strong legal protection and support for fintech companies

The procedure for obtaining an EMI (Electronic Money Institution) financial license in Malta, which is one of the most popular fintech jurisdictions in the EU.

Regulator: Malta Financial Services Authority (MFSA)

Main law: Financial Institutions Act (Cap. 376), Electronic Money Regulations (S.L. 376.02)

Types of EMI licenses in Malta

Small EMI: for companies issuing electronic money up to €2 million per year; no passporting
Full EMI Licence: full license for operations throughout the EU; passporting is available (via EU passporting)

Business documents:

detailed business plan (for 3 years);
description of products / services (wallets, cards, transfers);
forecast of revenues, expenses, operating profit;
description of financial flows (flow of funds)

Corporate structure:

ownership and management scheme;
CVs of directors and key employees,
documents confirming the source of capital

Policies and proceures:

AML/ CFT Policy;
KYC Policy;
Risk Management Policy;
IT & Data Security Policy;
Internal Audit / Governance Policy;
Safeguarding Policy (захист коштів клієнтів)

Other:

Memorandum & Articles of Association;
description of technical infrastructure; proof of capital (€350,000)

Application Process

Pre-Application Stage
A meeting or call with the MFSA is recommended to clarify the business model.
A brief description of the company and structure is provided.
Submission of the formal application
Through the MFSA portal (with all documents).
Application fee: €3,500 (non-refundable).
MFSA Initial Check (Completeness Check) Checks whether the package of documents is complete - up to 30 days.
Assessment Stage: The MFSA assesses: "Fit and proper" of directors and owners, business plan and risks, AML / IT systems.
Additional documents or interviews are requested as necessary.
Authorization Stage After approval, the MFSA issues an EMI Licence Certificate.
The company is entered into the MFSA public register.

Process duration

Document preparation 1–2 months
Preliminary consultation 2–3 weeks
MFSA review 3–6 months
Total time 4–8 months

Post-license obligations:

Annual audit and financial reporting to the MFSA AML/CFT reporting
Internal compliance monitoring
Storage of client funds in segregated accounts
Maintenance of minimum capital of €350,000

WHAT IS PASSPORTING

Passporting is a key concept in European Union (EU) financial regulation that opens up great opportunities for companies licensed in one EU country.

Passporting is the right of a financial institution licensed in one European Union or EEA country (e.g. Malta, Estonia, Lithuania, Poland) to provide its services in other EU countries without the need to obtain a new license in each of them.

Passporting is like a "European financial passport": get a license in one EU country and you can legally work in all 27 countries without new permits.

Advantages of passporting

No need to obtain a license in each EU country
Reduction of costs and time to enter new markets
Single compliance center and regulator
Transparency and customer trust across the ES

Types of passporting

Freedom to provide services (FPS): activity in other EU countries without a branch (via the internet or remotely)
Freedom of establishment (FoE): opening a representative office or branch in another EU country

How it works: ️

The company obtains, for example, an EMI license in Lithuania (issued by the Bank of Lithuania).
Then it submits a notification to the regulator (MFSA, KNF, FI, etc.) about its intention to provide services in other EU countries.
The regulator sends a notification to the relevant supervisory authorities of other countries.
After 1–2 months, the company can legally operate in these countries - open accounts, issue electronic money, make payments, advertise services, etc.

Example:

If an EMI company has a license in Estonia, it can, through passporting: Offer e-wallets to customers in Germany, France, Spain, etc.;
Operate under the same brand in all EU countries;
Not open a new company or obtain a local license.

What services can be “passported” :

Issuance of electronic money (e-money)
Provision of payment services (transfers, wallets, cards)
Currency exchange, FX services
Maintenance of payment accounts

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