Application for entry in the register of small payment institutions

We advised in:

APPLICATION FOR ENTRY IN THE REGISTER
OF SMALL PAYMENT INSTITUTIONS

• Obtaining MIP status allows for the provision of payment services with the exception of PIS and AIS, although the regulations provide for certain limitations. In the case of MIPs, the total amount of funds accepted for one user at any time cannot exceed the equivalent in Polish currency of €2,000, while exceeding statutory limits on transactions performed requires reporting this to the FSA, to name just a few.
• In September 2023, a law commonly referred to as the “Vegetable Law” came into force, which amended, among other things, the provisions of the Payment Services Act. The new regulation affected restrictions on the provision of payment services as a small payment institution and changed the requirements for the process of obtaining registration.
• For many entities planning business models involving the provision of payment services, and wishing to avoid – at least in the initial phase – the need to obtain a license to operate as a national payment institution (NIP), an option is to obtain registration in the register of small payment institutions.

DLK’s advisory included:

• Preparation of an application for registration in the register of small payment institutions in accordance with the requirements of the Payment Services Law and relevant supervisory guidelines.
• Development and operationalization of internal documentation applicable to MIPs, in accordance with the requirements of the relevant regulations (including the program of activities and financial plan, procedure against money laundering and terrorist financing, risk management procedure).
• Submission of an application and representation of the applicant in proceedings before the FSC.