Refusal of the Licence

The licence to provide payment services or to carry on the e-money business must be refused where
1. the applicant is not a legal person or commercial partnership;
2. contrary to section 10(2) or section 11(2), the application does not contain sufficient particulars or documents, or the particulars and documents submitted do not permit a favourable overall assessment;
3. the funds necessary for carrying on the business, in particular sufficient initial capital, are not available in Germany; the following must be available as initial capital:
a) for payment institutions carrying on only the money remittance business, an amount equivalent to at least EUR 20,000;
b) for payment institutions offering only payment initiation services, an amount equivalent to at least EUR 50,000;
c) for payment institutions offering the payment services within the meaning of section 1(1), second sentence, nos. 1 to 5, an amount equivalent to at least EUR 125,000;
d) for e-money institutions, an amount equivalent to at least EUR 350,000; where the institution is at the same time an institution within the meaning of section 1(1b) of the Banking Act or an investment firm within the meaning of the Securities Institutions Act, the higher of the amounts applicable under this provision or under section 33(1) of the Banking Act or section 17(1) of the Securities Institutions Act applies;
4. facts justify the assumption that the applicant, or the holder of a significant holding or, where that holder is a legal person, also a statutory or constitutional representative, or, where it is a commercial partnership, also a partner, is not reliable or otherwise does not meet the requirements to be imposed in the interest of the sound and prudent management of the payment institution;
5. facts exist showing that a manager is not reliable, or does not have the professional qualifications required to manage the applicant, and no other person is designated as manager under section 1(8), second sentence; professional qualification presupposes an adequate level of theoretical and practical knowledge and skills in the relevant business and management experience;
6. the applicant does not have sound procedures for the identification, management, monitoring and reporting of risks, or adequate internal control procedures, including sound administrative and accounting procedures;
7. facts justify the assumption that effective supervision of the applicant is impaired; this is in particular the case where
a) the applicant is part of a group of undertakings with other persons or undertakings, or is closely linked, within the meaning of Article 4(1), point 38 of Regulation (EU) No 575/2013, to such a group, whose structure of shareholdings or lack of economic transparency impairs effective supervision of the institution,
b) effective supervision of the applicant is impaired by the laws, regulations or administrative provisions of a third country applicable to such persons or undertakings, or
c) the applicant is a subsidiary of an institution with its registered office in a third country that is not effectively supervised in the state of its registered office or head office, or whose competent supervisory authority is not willing to cooperate satisfactorily with BaFin;
8. the applicant does not have its head office in Germany or does not provide at least part of its payment services, or carry on at least part of its e-money business, in Germany;
9. the applicant does not have professional liability cover meeting the conditions of section 16 or section 36;
10. compliance with the safeguarding requirements under section 17 or section 18 is not adequately proven to BaFin;
11. the applicant infringes the prohibition, under section 31, on issuing e-money through other persons;
12. a legal provision of the European Union or of national law precludes the granting of the licence.