Licensing and supervision of payment institutions

1. In the Republic of Cyprus the provision of payment services is regulatated by the Provision and Use of Payment Services and Access to Payment Systems Law of 2018 ("Law"), which transposed into national law the provisions of Directive (EU) 2015/2366 of the European Parliament and of the Counsil of 25 November 2015 on payment services in the internal market.

The Law has provisions, inter alia, concerning:

a) the transparency of conditions and requirements for payment services;

b) the respective rights and obligations of payment service users and payment service providers in relation to the provision of payment services as a regular occupation or  business activity; and

c) the granting of authorisation and supervision of payment institutions.

2. Where any of the payment services as referred to in points 1 - 7 of Annex I of the Law is intended to be provided from or from within the Republic of Cyprus, an authorisation must be granted by the Central Bank of Cyprus (“CBC”) in accordance with the provisions set out in the Law.

CBC shall grant authorisation to a payment institution, only if it is legal person incorporated in the Republic of Cyprus where it is required to have its registered office and head office from where it must carry out at least part of its payment service business. Payment services may also be offered from or from within the Republic of Cyprus by authorised EU payment institutions pursuant to right of establishment and freedom to provide services, in accordance with the provisions set out in the Law.

3. For the provision of account information services as referred to in point 8 of Annex I of the Law, the provisions of section 34 of the Law are applied.

4. In order to obtain an authorisation as a payment institution, an application should be submitted to CBC together with all the information referred to in subsection (3) of section 5 of the Law. Regarding the content of the information which is required to be submitted by the applicant, you may refer to the guidelines EBA/GL/2017/09 issued by the European Banking Authority for that purpose, which the CBC has fully adopted.

5. Payment institution register

The CBC maintains public register, which provides the following:

a) the payment institutions to which authorisation was granted, the agents and branches acting on their behalf; as well as the EU member states in which they have passported their activities; and

b) the payment institutions that have been authorised by an EU competent authority and which have exercised their right of establishment and freedom to provide payment services from within the Republic of Cyprus.

Date Published: 05/03/2018

Register of Payment Institutions