Nicosia, Cyprus. The Central Bank of Cyprus will overhaul the licensing process for electronic money institutions and payment institutions from August 3, 2026, introducing a pre-application stage, higher fees and stricter assessment requirements.
The measures form part of a broader licensing and supervisory strategy for the sector, first announced on December 20, 2024.
Pre-application stage
Before submitting a formal licence application, entities seeking authorisation will be required to complete a new exploratory pre-application stage.
Applicants will have to provide information considered necessary by the Central Bank of Cyprus for an initial assessment of their business. A non-refundable fee of €5,000 will apply at this stage.
Purpose of the changes
The central bank said the revised process is intended to improve transparency and help companies understand the licensing procedure, as well as the bank’s requirements and expectations for the operation of electronic money institutions and payment institutions.
It also aims to allow the CBC to identify early any issues that could affect the subsequent assessment of a licence application, particularly in relation to the good repute criterion.
Higher application fee and due diligence
The fee for submitting a formal licensing application will increase from €5,000 to €10,000.
The CBC may also require entities at the exploratory stage, or applicants during the assessment process, to submit an enhanced due diligence report prepared by a firm with relevant expertise.