Central Bank creating a Directorate for the Supervision of EMIs and PIs

11:51 - 20 December 2024

Financial Services Reporter

The Central Bank of Cyprus has announced that, within the framework of its supervisory duties, a comprehensive licensing and supervisory strategy for the sector of Electronic Money Institutions and Payment Institutions has been adopted, including the creation of a Directorate for the Supervision of Electronic Money and Payment Institutions.

More specifically, according to an announcement from the Central Bank, "To prepare this strategy, the CBC appointed an international firm whose experts, in collaboration with CBC executives, conducted an analysis of the sector and the inherent risks. The experts' findings were presented to the CBC Board of Directors at its meeting on 19 December 2024."

The CBC went on to note that the aim of the new strategy is to ensure the prudent and sustainable development of the sector and, among other things, includes:

The strengthening and enrichment of the licensing procedures for Institutions that apply to participate in the sector.
Strengthening the supervision of Institutions by applying a supervisory approach based on a risk indicator per Institution and enriching supervisory tools.
The adoption of best operating practices in the sector.

"To achieve these goals, a Directorate for the Supervision of Electronic Money and Payment Institutions is being created, which now assumes the duties of prudential supervision of the sector," the announcement said.

Currently, the CBC supervises 26 Electronic Money Institutions and 11 Payment Institutions, "while a number of new licensing applications are under consideration, at various stages of the process," the announceemnt concluded.

Central Bank creating a Directorate for the Supervision of EMIs and PIs

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