Licence for Carrying on the E-Money Business; Authorisation to Issue Statutory Instruments

(1) A person who intends to carry on the e-money business in Germany, without being an e-money issuer within the meaning of section 1(2), first sentence, nos. 2 to 4, requires a written or electronic licence from BaFin. Beyond carrying on the e-money business, the licence under the first sentence covers 1. the provision of payment services; 2. the granting of credit in accordance with section 3; 3. the provision of operational services and closely related ancillary services connected with the issuance of e-money or with the provision of payment services; 4. the operation of payment systems in accordance with section 57; 5. business activities other than the issuance of e-money, within the framework of the applicable Community and national legal provisions.
(2) Section 10(2), first sentence, nos. 2, 5 to 11, 13 and 15 to 17, applies correspondingly to the content of the licence application. The licence application must additionally contain the following particulars and evidence: 1. a description of the business model, from which the intended issuance of e-money and the nature of the intended payment services in particular are apparent, 2. evidence that the applicant possesses the initial capital required under section 12, no. 3, letter d, as well as, for payment initiation services and account information services, evidence of the safeguarding of professional liability under section 16 or section 36, 3. a description of the measures taken to comply with the safeguarding requirements under sections 17 and 18, 4. a description of the applicant's organisational structure, where applicable including a description of the intended use of e-money agents, branches and, insofar as payment services are provided, agents, together with a description of outsourcing arrangements and a description of its participation in a national or international payment system, and 5. the names of managers, of the persons responsible for the management of the applicant, and, insofar as the undertaking pursues, in addition to the issuance of e-money and the provision of payment services, other business activities, of the persons responsible for the issuance of e-money and the provision of payment services of the applicant. The application must contain evidence that the persons named in the second sentence, no. 5, are reliable and have adequate theoretical and practical knowledge and experience, including management experience, for carrying on the e-money business and providing payment services. The applicant must appoint at least two managers; for undertakings of small size, one manager is sufficient. Section 10(2), second, third and sixth sentences and (3) and (6) apply correspondingly to the further procedure.
(3) BaFin may grant the licence subject to conditions that must remain within the scope of the purpose pursued by this Act. Where the e-money institution simultaneously provides payment services or pursues other business activities, BaFin may require it to spin off the provision of payment services or the other activities, or to establish a separate undertaking for its e-money business, where these activities impair, or could impair, the institution's financial soundness or the possibilities for its examination. In the case referred to in section 15(7), third sentence of the Securities Institutions Act, the licence under subsection (1) is to be restricted to the issuance of e-money tokens under Article 48 of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40).
(4) The e-money institution must without delay notify BaFin of every materially and structurally significant change in the factual and legal circumstances, insofar as it affects the accuracy of the particulars and evidence submitted under subsection (2), first and second sentences.
(5) Insofar as a licence under subsection (1) is required for carrying on the e-money business, entries may be made in public registers only once the licence has been proven to the registration court.
(6) The Federal Ministry of Finance is authorised to issue, by statutory instrument not requiring the consent of the Bundesrat, in agreement with the Deutsche Bundesbank, more detailed provisions on the type, scope and form of the application documents provided for under this provision. The Federal Ministry of Finance may transfer the authorisation, by statutory instrument, to BaFin, on condition that the statutory instrument is issued in agreement with the Deutsche Bundesbank. The leading associations of the institutions must be heard before the statutory instrument is issued. The Federal Office for Information Security must be heard insofar as the security of information technology systems is concerned.
(7) Subsections (1) to (5) also apply where, in the course of a conversion under section 305, section 320 or section 333 of the Conversion Act, a legal person carrying on business subject to licensing under subsection (1) transfers its legal seat from abroad to Germany.