1. [Statutory Commercial and Supervisory Mechanism] for Luxembourg EMI License
EU Passport Rights of Passage
According to the EU Electronic Money Directive(EMD2) Applicable to the “EU Passporting” mechanism。After completing the notification and registration procedures，Available in EEA Other 27 member states provide services across borders in accordance with the law orSet up a branch。
Legal business authorization
Legal authority includes：issued、Store and manage electronic money；Provide payment account operations (deposit/withdrawal/transfer)；Issuance of prepaid cards and other payment instruments；as well asCross-border remittanceandforeign exchange。
Wholly owned holding structure
Allow overseas holding companies 100% Wholly-owned shares of Luxembourg EMI。The premise is to submit the ultimate beneficial owner (UBO) equity penetration chart and proof of legal source of funds to CSSF。
Statutory tax rate base
Luxembourg’s corporate income tax (CIT) and municipal business tax total approximately 24.94% (fluctuates by region)，The standard rate of Value Added Tax (VAT) is 17%。Specific financial services are subject to tax exemption or simplified reporting in accordance with the law。
2. [Statutory classification and capital standards] of Luxembourg CSSF payment license
| Statutory license type | Business authority and regulatory definition | Legal minimum initial capital |
|---|---|---|
| electronic money institution (EMI) |
Authorized to issue electronic money (e-money)，and offers a wide range ofpayment servicesand payment account operations。 | 350,000 EUR。The full amount must be paid in one lump sum and deposited in a local bank for capital verification before approval.。 |
| payment institution (PI) |
Only payment services (such as remittances)、Acquiring、payment gateway)，No authority to issue electronic money or retain customer balances。 | According to specific service type，between 20,000 to 125,000 EURbetween。 |
Legal Notes：Loans are strictly prohibited as sources of capital、Revolving financing or parent company guarantee。During operation，Institution’s own funds (Own Funds) Not less than 35 0,000 euros or 2% of the sum of all unredeemed e-money balances (whichever is higher)。
3. [Corporate governance and local substantive requirements] for Luxembourg EMI
Local content versus central management：The applicant must be a public limited company registered in Luxembourg (on)。The headquarters and central management organization are located in Luxembourg，Need to rent physical office space，and employ at least 5 local full-time employees with actual ability to perform their duties。
Board configuration：The board of directors contains at least 3 members，of which at least 2 People possess 5 More than 10 years of executive experience in the financial/payment industry。There must be at least one local manager or Luxembourg-based executive director responsible for day-to-day operations。
Head of Compliance and AML (MLRO)：Must be resident in Luxembourg。Required 3 More than 2 years of financial institution AML/KYC experience，Familiar with EU Anti-Money Laundering Directives (AMLD)，Ability to independently submit suspicious transaction reports (STR) ability，Ability to communicate with CSSF in English or French。Outsourcing of core anti-money laundering responsibilities is strictly prohibited。
Appropriateness and Reliability Review (Fit and Proper)：All directors、Executives and shareholdings 10% The above shareholders must pass CSSF review。Must provide proof of no criminal record、Statement of Integrity and Proof of Legal Source of Funds。
4. [List of documents submitted to Luxembourg CSSF for statutory review]
| File category | Submission details for statutory requirements (English/French) |
|---|---|
| Corporate Fundamentals and Equity Documents | Luxembourg SA Articles of Association、Excerpt from RCS Business Register、35 Bank certificate of paid-in registered capital of Wanou、Local physical office lease contract。UBO equity penetration chart and proof of legal source of funds。 |
| Business and Financial Documents | Contains at least 3 annual financial forecastbusiness plan。Capital flow and data flow structure diagram (Flow of Funds Diagram)。Capital adequacy ratio calculation instructions。Customer fund isolation mechanism (Safeguarding) Instructions and letter of intention to open a bank account。 |
| Internal Governance and Compliance Policy | Anti-money laundering and counter-terrorism financing (AML/CFT) Policy and KYC Handbook。risk managementand internal control framework。Data and IT security policy compliant with EU DORA regulations、Disaster recovery mechanism (BCP/DR) and outsourcing management policies。 |
5. [Statutory application and CSSF review procedures] for Luxembourg EMI license
first stage：Entity formation and documentation (Months 1-2)
Complete SA Corporate Entity Registration。Open capital account and complete 35 10,000 euros paid frozen。Leasing entity office address，Appoint local management team and compliance officer。Initial introductory meeting with CSSF。
second stage：Submit electronic case file (About 3-4 months)
Via CSSF Electronic Document Transfer System (eDesk/MFT) Formal submission of complete written application dossier，and pay the initial application acceptance fee。
The third stage：Substantive examination and executive interviews (About the 4th-8th month)
CSSF vs Business Model、Conduct substantive review of risk control and capital guarantee mechanisms and issue written inquiries。Arrange interviews and assessments for proposed directors and compliance officers。
Stage 4：Approval of licensing and operation (Approximately 8-12 months)
CSSF submits recommendations to the Luxembourg Ministry of Finance after passing the review，Licensed and approved by the Ministry of Finance。Institutions open client fund segregation accounts，Complete system launch and CSSF filing。
6. Client funds segregation (Safeguarding) Mechanism and [IT Compliance Red Line]
Physical segregation requirements for funds：EMI strictly prohibits the use of customer funds for its own operations or investments。Client funds must be held in full in segregated accounts opened by regulated credit institutions in the EU，Or obtain an equal amount of guarantee from a regulated insurance institution in the EU。
Daily automatic reconciliation process：Institutions must establish daily automatic reconciliation procedures。Account discrepancies need to be reviewed by the compliance officer，Reconciliation documents must be retained in accordance with the law for at least 5 Year。
DORA framework and penetration testing：Must comply with EU Digital Operations Resilience Act (DORA) and EBA guidance，Establish business continuity and disaster recovery mechanism (BCP/DR)，Perform independent network penetration testing (Pen Test) annually。
Outsourcing service data compliance：cloud hosting、Outsourcing providers such as IT development must be located in the EU。A data processing agreement (DPA) with clear opt-out clauses and audit rights is required。
7. [Details of government fees and statutory operating costs] for Luxembourg EMI license
| Funding and Expense Categories | Legal requirements and budget standards (EUR) |
|---|---|
| Legal initial paid-in capital | lowest 350,000 EUR。The full amount must be paid in one lump sum and deposited in a local bank for capital verification before approval.。 |
| CSSF official fees | Initial application processing fee：10,000 to 30,000 EUR。 annual supervision fee：Floats according to trading volume，between 15,000 to 50,000 EUR between。 |
| Rigid statutory maintenance costs | Must hire a local external auditor accredited by CSSF (About 15,000-25,000 euros/year)；Independent IT Penetration Testing Fees (About 10,000-20,000 euros/year)。 |
| Comprehensive operating budget requirements | Need to cover at least 5 Salary and office leasing of local full-time employees (including resident compliance officer)。Regulation generally recommends that companies have at least 500,000 EUR before 12 Monthly operating buffer。 |
8. Hong Kong Huitong's legal agency service for Luxembourg EMI license case
Corporate establishment and personnel recruitment
Apply for Luxembourg SA Setup。Legally matching CSSF appropriateness (Fit & Proper) Resident local executive director and head of anti-money laundering for review standards (MLRO)。
Compliance system and business plan preparation
Compose contains 3 Business plan with year-round financial forecasts。Prepare an AML/KYC policy that is compliant with the EU DORA framework and the Anti-Money Laundering Directive、IT disaster recovery mechanism and outsourcing data processing agreement。
CSSF Application and Interview Agent
Handle CSSF electronic system file submission。Provide systematic supervisory interview coaching，Assist in connecting with local banks in Luxembourg for implementation 35 Capital verification of 10,000 euros and segregated account opening。
9. Luxembourg EMI / PI regulatory license core legal questions and answers (FAQ)
In accordance with the Payment Services Act(PSL)，EMI authorized to issue electronic money，And can provide a wide range of payment services and payment account operations。PI is limited to providing payment services，No authority to issue electronic money。The statutory minimum paid-in capital of the two is respectively 35 million euros (EMI) and 2 Wanzhi 12.5 million euros (PI)。
Luxembourg EMI is based on the EU Electronic Money Directive(EMD2) Apply the "EU Passport" mechanism。After completing the notification and registration procedures with CSSF，Available in European Economic Area (EEA) other 27 Member states legally provide cross-border services or establish branches。
Legal minimum initial capital 35 Ten thousand euros must be paid in full in one lump sum before approval，And deposit it into a local bank to freeze the capital for verification.。The source of funds must be legally traceable，Loans are strictly prohibited、Revolving financing or parent company guarantees as capital supplement。
during ongoing operations，The institution's own funds must not be less than 2% of the initial paid-in capital (€350,000) or the total outstanding balance of all unredeemed electronic currencies (whichever is higher)。
EMI strictly prohibits taking deposits or investing customer funds。Client funds must be established 100% isolation mechanism，The full amount is deposited in a segregated account opened with a regulated bank in the EU，And a daily automatic reconciliation process must be established。
The headquarters and central management organization must be located in Luxembourg。Must lease physical office space and employ at least 5 local full-time employees with actual ability to perform their duties。Core decisions must be made in Luxembourg。
The Head of Compliance and the MLRO must be based in Luxembourg。Need to have at least 3 More than 2 years of AML/KYC experience in financial or payment institutions，Familiar with EU Anti-Money Laundering Directives，Ability to independently submit suspicious transaction reports (STR) ability。Outsourcing of core anti-money laundering responsibilities is strictly prohibited。
Allow foreign holding companies to wholly own Luxembourg EMI。The premise is that a complete UBO (ultimate beneficial owner) equity penetration chart and proof of legal source of funds must be provided to CSSF，Ensure UBO structure is transparent。
EMI account funds are strictly limited to customer fund protection and maintenance of own operations.，Free transfer to parent company or affiliated company accounts is strictly prohibited。Except for normal statutory dividend distributions that are independently audited and reported to the CSSF。
Outsourced IT and cloud hosting services，But the service provider must be located in the EU。Agencies must comply with Digital Operations Resilience Act(DORA)，Establish business continuity mechanism (BCP)，Sign a data processing agreement (DPA)，and perform independent network penetration testing annually。
The approval cycle is usually 4 to 12 months。After submitting to the CSSF electronic system，Regulators conduct substantive review of business models，Conduct interviews and assessments for proposed directors and compliance officers。Finally, the Ministry of Finance of Luxembourg approved the licensing。
License has no fixed expiration date。Institutions are required to submit business and financial statements quarterly through the eDesk platform，Submit AML reports biannually。After the end of the financial year 6 within months，Annual financial audit and internal control assessment reports issued by CSSF accredited auditors must be submitted。
