Overview of Belgian EMI Licensing
Belgium operates under the European Union's harmonized regulatory framework for electronic money institutions, with the Financial Services and Markets Authority (FSMA) serving as the primary regulatory body. As an EU founding member and eurozone participant, Belgian EMI authorization provides access to the broader European market through passporting arrangements.
The Belgian regulatory approach accommodates both domestic entrepreneurs and international companies seeking to establish electronic money operations within a well-established Western European financial center.
Regulatory Framework
Belgian EMI regulation derives from European harmonization requirements:
EU Directive 2009/110/EC: The Electronic Money Directive, implemented in Belgian law, establishes authorization and operational standards for electronic money institutions.
Payment Services Directive 2 (PSD2): Directive 2015/2366 governs payment services, including strong customer authentication and open banking provisions.
Belgian Law on Payment Services: The primary domestic legislation implementing EU payment and e-money directives.
Anti-Money Laundering Legislation: Implements EU AML directives, establishing customer due diligence and suspicious activity reporting obligations.
Capital Requirements
Belgian EMI capital requirements align with EU standards:
Minimum Authorized Capital: €350,000 for electronic money institution authorization.
Ongoing Capital: Licensed EMIs must maintain own funds calculated according to prescribed methods based on outstanding electronic money and payment transaction volumes.
Fund Segregation: Customer funds received for e-money issuance must be separately identified and maintained in distinct accounts, ensuring customer protection.
Corporate Structure Requirements
Registration
- •Company must be legally registered in Belgium
- •Appropriate corporate form for financial services activities
- •Physical office premises required (legally leased or purchased)—virtual offices are insufficient
Board Composition
- •Minimum three board members required
- •Board must include Belgian resident members
- •Clear governance structure with defined responsibilities
Operational Infrastructure
- •Electronic, telecommunications, and IT systems necessary for payment transaction processing
- •Secure infrastructure meeting regulatory technical standards
- •Business continuity and disaster recovery capabilities
Compliance Framework Requirements
Anti-Money Laundering
Belgian EMIs must implement comprehensive AML/CFT frameworks:
- •Customer identification and verification procedures
- •Enhanced due diligence for higher-risk relationships
- •Transaction monitoring systems
- •Suspicious activity reporting to Belgian Financial Intelligence Processing Unit (CFI)
- •Record keeping and documentation
Security Controls
- •Security policies appropriate for electronic money operations
- •Access controls and authentication mechanisms
- •Data protection measures
- •Incident response procedures
Services Under Belgian EMI Authorization
Licensed institutions may provide:
Electronic Money Services
- •Issuance of electronic money against receipt of funds
- •Redemption at par value
- •Distribution through authorized channels
Payment Services
- •Operation of payment accounts
- •Credit transfers and standing orders
- •Direct debit collections
- •Card issuance and processing
- •Money remittance services
- •Payment initiation services (with appropriate authorization)
Authorization Process
Pre-Application Phase
- •Business model development
- •Corporate establishment in Belgium
- •Capital arrangement and banking relationships
- •Compliance framework development
- •Board composition and personnel recruitment
Application Submission
- •Complete documentation package to FSMA
- •Application fee payment
- •Formal acknowledgment of receipt
Regulatory Review
FSMA evaluates:
- •Business plan viability and sustainability
- •Capital adequacy
- •Management fitness and propriety
- •Governance and compliance frameworks
- •Operational and technical readiness
Decision
- •Authorization granted (with or without conditions)
- •Or refusal with stated reasons
Post-Authorization
- •Implementation of operational systems
- •Banking relationship establishment
- •Connection to payment infrastructure
- •Supervised commencement of activities
Documentation Requirements
EMI applications require comprehensive documentation:
Corporate Documents
- •Certificate of incorporation
- •Articles of association
- •Shareholder structure and beneficial ownership
- •Board composition and governance arrangements
- •Office lease documentation
Business Planning
- •Detailed business plan
- •Financial projections
- •Description of proposed services
- •Target market analysis
- •Risk assessment
Compliance Documentation
- •AML/CFT policies and procedures
- •Risk management framework
- •Internal control mechanisms
- •IT security policies
- •Business continuity plans
Personnel Documentation
- •Management CVs and qualifications
- •Fit and proper declarations
- •Organizational structure
Advantages of Belgian EMI Licensing
EU Market Access
Belgian authorization enables passporting throughout the European Economic Area, providing access to over 450 million consumers.
Financial Center Status
Brussels serves as a major European financial center with established infrastructure and professional services ecosystem.
Eurozone Membership
As a eurozone member, Belgium offers seamless euro-denominated operations and SEPA participation.
Regulatory Framework
The FSMA provides clear, predictable regulatory oversight aligned with EU standards.
Business Environment
- •Central location within Western Europe
- •Multilingual business environment
- •Strong financial services infrastructure
- •Access to skilled workforce
Ongoing Compliance Obligations
Licensed Belgian EMIs must maintain:
Prudential Requirements
- •Capital adequacy at prescribed levels
- •Customer fund safeguarding through segregation
- •Liquidity management
Regulatory Reporting
- •Periodic financial returns to FSMA
- •Annual audited accounts
- •Notification of material changes
AML/CFT Compliance
- •Ongoing customer due diligence
- •Transaction monitoring
- •Suspicious activity reporting
Conduct Standards
- •Fair customer treatment
- •Transparent pricing
- •Effective complaint handling
Practical Considerations
Professional Support
Most applicants engage:
- •Belgian legal counsel familiar with FSMA requirements
- •Compliance specialists for policy development
- •Local accounting and audit support
Language
Multiple languages used in Belgian business (French, Dutch, German). Official submissions may require specific language compliance.
Timeline
FSMA processing times vary based on application quality and complexity. Well-prepared applications typically progress more efficiently.
Banking Relationships
Belgium hosts major international banks providing options for corporate banking facilities. Early engagement advisable.
Conclusion
Belgian EMI licensing provides access to the European electronic money market through a well-established regulatory framework in a major Western European financial center. The FSMA's clear supervisory approach offers operational certainty for licensed institutions.
Success requires thorough preparation, including comprehensive documentation, qualified management with Belgian resident board members, and robust compliance frameworks. Companies should engage appropriate Belgian professional support and ensure genuine operational substance within Belgium.