The Central Bank of Cyprus (CBC) has introduced changes to the licensing process for Electronic Money Institutions and Payment Institutions, with effect from today, Monday, 3 August 2026, as part of the implementation of a comprehensive licensing and supervisory strategy.
The CBC noted in a press release that a new stage is introduced prior to the submission of a licensing application, namely the “pre-application exploratory stage”. At this stage, entities interested in obtaining a licence must submit specific information that the CBC considers important for the preliminary assessment of the interested entity. A non-refundable fee of €5,000 will be payable by interested companies in the pre-application exploratory stage.
As the CBC noted the objective of the pre-application exploratory stage is twofold: firstly, to enhance transparency and improve interested entities’ understanding of the licensing process, as well as the CBC’s requirements and expectations regarding the operation of Institutions; and secondly, to facilitate the early identification of any issues that may affect the subsequent assessment of a potential licensing application, particularly with regard to the criterion of good repute.
The CBC also noted that, inter alia and independently of the above, the following changes are also introduced to the overall licensing process: the fee for the submission of a licensing application for an Institution is increased from €5,000 to €10,000, the CBC may, where deemed necessary, require interested entities during the pre-application exploratory stage or applicants during the assessment of an application, to submit an enhanced due diligence report prepared by a firm with relevant expertise, and inactive applications will be deemed withdrawn after a predefined period of non-response to comments or requests issued by the CBC.
The new process will apply as of 3 August 2026. Interested entities intending to submit an application for licensing as an Institution are encouraged to consult the relevant sections of the CBC website for further details or contact the CBC by email at LicensingSection@centralbank.cy
(Source: CNA)