Nicosia: The Central Bank of Cyprus (the 'CBC') has announced changes to the licensing process for Electronic Money Institutions and Payment Institutions, effective from 3 August 2026. This move is part of the CBC's strategy to implement a comprehensive licensing and supervisory framework.
According to Cyprus News Agency, the CBC revealed in a press release that a new 'pre-application exploratory stage' will be introduced before the submission of a licensing application. Entities interested in obtaining a licence must provide specific information deemed crucial by the CBC for preliminary assessment. During this stage, a non-refundable fee of £5,000 is required from interested companies.
The CBC stated that the purpose of the pre-application exploratory stage is twofold. Firstly, it aims to enhance transparency and improve the understanding of interested entities regarding the licensing process, along with the CBC's operational requirements and expectations. Secondly, it seeks to identify any potential issues early on that might impact the assessment of a licensing application, especially concerning the criterion of good repute.
Additionally, the CBC outlined further changes to the licensing process. Notably, the fee for submitting a licensing application will increase from £5,000 to £10,000. Furthermore, the CBC may require entities, either during the pre-application stage or the application assessment, to provide an enhanced due diligence report prepared by a firm with relevant expertise. Inactive applications will be considered withdrawn after a specified period of non-response to CBC's comments or requests.
The updated process will be implemented from 3 August 2026. Entities planning to apply for licensing as an Institution are advised to visit the CBC website for more information or contact the CBC via email at [email protected].