COREDO > Licensing > Financial Licences in the EU > EMI Licence in Latvia

EMI Licence in Latvia

What an EMI Licence in Latvia Is

An EMI licence in Latvia lets your company issue electronic money and provide payment services under the supervision of the Bank of Latvia. With a single authorisation you serve clients across the European Union: wallets, payment accounts, cards, transfers and acquiring work under the passporting principle.

COREDO has supported financial licensing projects since 2016. We register your Latvian company, prepare the legal documents and AML policies, compile and file the application, and then handle the dialogue with the regulator until the licence is granted.

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Cost of the service
EUR 70,000

Regulatory Framework: the Bank of Latvia, EMD2 and PSD2

In Latvia, the electronic money institution licence is issued by the Bank of Latvia (Latvijas Banka): it accepts the application, assesses it and supervises after the licence is issued.

The rules are set at two levels. At EU level, these are Directive 2009/110/EC (EMD2) on electronic money and Directive (EU) 2015/2366 (PSD2) on payment services. In Latvia they are applied through the Law on Payment Services and Electronic Money (Maksājumu pakalpojumu un elektroniskās naudas likums), which is why a Latvian licence is recognised in every country of the Union.

Two further sets of rules apply to the application, and we build both into the documents from day one. Latvia’s anti-money laundering law sets the requirements for the internal AML control system, while the DORA Regulation (EU) 2022/2554 sets those for digital operational resilience. DORA has applied to electronic money institutions since 17 January 2025.

Licence Details: What an EMI Licence in Latvia Permits

A licensed EMI may issue electronic money and provide the payment services listed in its authorisation.

Electronic money and accounts

Issuing electronic money for wallets and prepaid products
Cash deposits and withdrawals on payment accounts
All operations needed to run a payment account

Payments and transfers

Execution of payment transactions: credit transfers, direct debits and standing orders
Payments by card and similar devices
Issuing of payment instruments and acquiring of payments
Money remittance

Open banking services

Payment initiation services
Account information services

Passporting across the EU.

A Bank of Latvia licence is valid throughout the Union: you open a branch, work through an agent or provide services cross-border, with no separate licence in each country.

Important limitation: an EMI provides only the services stated in its authorisation and does not take deposits from the public.

Requirements for Obtaining an EMI Licence in Latvia

The Bank of Latvia assesses the applicant’s capital, people, presence in the country and internal systems.

Initial Capital

The minimum initial capital of an EMI is EUR 350,000, and it must be in place on the day the Bank of Latvia decides to issue the licence. This is a regulatory requirement for the company itself: it is not part of the cost of COREDO’s services.

Management Board and Shareholders

Persons in management — with suitable education, three years of relevant experience and an impeccable reputation
The chairperson and members of the management board — with a higher education qualification
Persons in management and shareholders holding 10% or more of the capital or voting rights — with no criminal record and of good repute

Presence in Latvia

The registered office and the management board of a licensed EMI are located in Latvia, and at least part of the company’s business is connected with the country.

AML/CFT and Internal Control

COREDO prepares the AML/CFT policies and compliance documentation around your business model and your clients. They cover risk assessment, customer due diligence and the procedure for reporting suspicious transactions. The Bank of Latvia applies the same requirements to the person responsible for AML as to management.

Safeguarding of Client Funds

Your clients’ money must be protected: by a guarantee insurance policy, or by a guarantee from an insurer or bank that is independent of your EMI. The law also allows a second method — a separate account with a credit institution or a central bank.

IT Systems and Governance

The application describes the IT systems architecture, network elements, data protection and monitoring tools, as well as the governance arrangements, internal control and accounting policies.

Liability Insurance for Open Banking Services

If you plan payment initiation or account information services, you will need a professional civil liability insurance policy or an equivalent bank guarantee. The Bank of Latvia expects a certified copy of the policy by the day of the licence decision.

Cost of COREDO Services

Service	Cost
Full EMI licence package in Latvia	EUR 70,000 + VAT

The package price includes:

Company registration in Latvia
Preparation of the basic legal documents
Preparation of AML/CFT policies and compliance documentation
Preparation and submission of the complete licence application to the Bank of Latvia
Communication with the regulator throughout the entire licensing process

Additional Services

Service	Cost
Pre-assessment of the project before filing (optional)	agreed individually
Physical office in Latvia: help with finding premises	quoted individually, depends on size and location
Corporate bank account and safeguarding account: help with opening	discussed individually
Accounting services	charged separately
MLRO and other staff: help with hiring	depends on profile and requirements

Additional services are not included in the package price: you add only those your project needs. The final cost depends on your case and the scope of services, so we agree the exact amount with you before work begins.

Payment Terms

You pay the Bank of Latvia’s fees directly to the regulator, on top of the cost of COREDO’s services:

Application review fee — EUR 5,000. Payable when the licence application is filed.
Annual supervisory fee — EUR 7,000 per year plus up to 1.4% of gross income from EMI services, capped at EUR 100,000 per year.

The payment schedule for COREDO’s services is set out in the service agreement.

Comparison with Other Licence Types in Latvia

Alongside the EMI licence, Latvia offers the payment institution (PI) licence, and the choice between them depends on whether your product needs electronic money.

Licence type	What it permits	Minimum initial capital
EMI — this page	Issuing electronic money and payment services	EUR 350,000
PI — full scope	Payment services without issuing electronic money	EUR 125,000
PI — payment initiation	Payment initiation services only	EUR 50,000
PI — money remittance	Money remittance only	EUR 20,000

When to choose an EMI. If your product has a wallet, a client balance or a prepaid card, you need electronic money, and that means an EMI. The same licence covers payment services, so you will not need a second licence for transfers and acquiring.

All types of financial licence in the country are on the Financial Licence in Latvia page. We explain how the licence works in general on the EMI Licence page, and for comparing jurisdictions, EMI Licence in Estonia is useful.

List of Documents for Obtaining an EMI Licence

The list below is what we will need from you. COREDO reviews every document, tells you what is missing and assembles them into the application for the Bank of Latvia.

Documents on Directors, Shareholders and Beneficial Owners (UBO)

Copy of passport and proof of address no older than 3 months

Contact details: phone number and e-mail

Information on participation in other companies

Professional CV covering at least the last 10 years, with positions and functions

Copies of educational documents

Certificate of no criminal record issued by a competent state authority

General information on the origin of funds

Corporate and Financial Documents

Detailed business plan

Proof of initial capital

Audited annual accounts for the last three years (if available) or a summary of the financial position

Provisional budget for the first three financial years

Organisational structure chart

Insurance contract or guarantee for the safeguarding of client funds

Bank statement or agreement with the bank (or its draft) for the payment accounts intended for client funds

Description of the governance arrangements and internal control system

Accounting policies and procedures for the control, valuation and reporting of own funds and client funds

Description of IT systems: architecture, network elements, information systems, data protection and monitoring tools

Scope of statistical data collection: type, method and frequency

Professional civil liability insurance policy or an equivalent bank guarantee — for payment initiation and account information services

The Bank of Latvia may also request other documents.

Procedure for Obtaining an EMI Licence in Latvia

The project moves through clear stages, and at each of them you know what COREDO does and what is needed from you.

Pre-assessment of the Project (Optional)

We go through the project in detail before filing — the business model, ownership structure, team and readiness of the documents — so that you see in advance what is worth strengthening. This stage is optional and charged separately; we agree its cost individually. The company does not yet have to be established at this point.

01

KYC/AML Check and Company Registration

The project starts with a standard customer due diligence (KYC/AML) check. COREDO then registers the company in Latvia and prepares its basic legal documents — this work is included in the package. Read more about incorporation on the Company Registration in Latvia page.

02

Preparation for Filing

We collect and prepare the information on shareholders, directors and UBOs, and document the business model, payment flows, client types, target countries and services. In parallel, we draft the AML/CFT policies, the compliance documentation and the remaining application documents.

03

Filing the Application with the Bank of Latvia (Completeness Check — up to 15 Working Days)

COREDO files the application with all documents and information, and on filing you pay the regulator’s fee of EUR 5,000. The Bank of Latvia checks the application for completeness within 15 working days of filing. If the regulator points out deficiencies, we remedy them and return the documents.

04

Assessment of the Application by the Bank of Latvia (Typical Timeframe — 8–12 Months)

Once completeness is confirmed, the regulator assesses the application on its merits. The assessment may include an interview with representatives of the Bank of Latvia, and we prepare your team for it. The law allows three months for reviewing a complete application and permits an extension when the regulator needs additional information; COREDO answers such requests.

05

Receipt of Authorisation

The Bank of Latvia takes its decision and issues the licence; by that day the initial capital of EUR 350,000 must be in place. Once authorised, the company may issue electronic money and provide payment services in Latvia, and subsequently in other EU countries.

06

The typical overall timeframe is 8–12 months from the start of the substantive review.

Advantages of Obtaining an EMI Licence in Latvia

The whole EU market on one licence.

A Bank of Latvia authorisation is valid throughout the Union, and you add new countries by notification, not by a new licence.

Electronic money and payments in one authorisation.

Wallets, payment accounts, cards, transfers, acquiring and open banking services fit into a single licence. Your product grows without a change of regulatory status.

A start before the company exists.

You can go through the pre-assessment while there is no Latvian company yet, and decide on the project before spending on the structure.

Tax on distributed profit only.

The profit of a Latvian company is taxed at the moment of distribution, and while it stays in the business you can channel it into developing the product.

One contractor for the whole project.

The company, the documents, the AML policies, the application and the correspondence with the regulator come in one package at one price.

Contact us

Our Experts

The COREDO team has supported financial licensing projects since 2016.

Pavel Kos

Head of Legal. Has been with COREDO since June 2017 and has headed the legal team since July 2020. Possesses extensive experience in supporting financial licensing projects in the Czech Republic and other EU jurisdictions.

Alena Mach

Executive Director

Nikita Veremeev

Founder & NED

Gregory Lutsenko

Head of Compliance

Frequently Asked Questions

How does a licence differ from registration as an electronic money institution?

Registration with the Bank of Latvia is available only while the average amount of electronic money in circulation does not exceed EUR 2 million, and only for operating within Latvia. A licence removes both limits: you grow with no volume threshold and provide services across the whole EU. If the institution is already entered in the register, the Bank of Latvia’s fee for reviewing the licence application is EUR 4,000 instead of EUR 5,000.

How do you enter other EU countries once you hold the licence?

You send the Bank of Latvia a notification naming the country and the services you plan to provide there. Three formats are possible: a branch, an agent or cross-border services without a presence. The Bank of Latvia decides on the notification within three months, and COREDO prepares it together with you.

Can the project be discussed with the Bank of Latvia before the application is filed?

Yes: Bank of Latvia consultations are free of charge, and answers arrive within 30 days, depending on the scope and complexity of the questions. Only COREDO’s work is paid for: a detailed analysis of the project and preparation of the questions for the regulator.

What capital must be maintained once the licence is granted?

The own funds of an EMI do not fall below the higher of two amounts: EUR 350,000 or the calculated requirement. For issuing electronic money the calculation is simple — at least 2% of the average amount of electronic money in circulation. While volumes are small, the benchmark remains the same EUR 350,000.

Can a shareholder be changed during the project or after it?

Yes: the Bank of Latvia is notified in writing and in advance of an intention to acquire a qualifying holding. The regulator assesses the new owner no later than 60 working days after the notification or the additional information, and we prepare the notification and the documents on the new shareholder.

What is required of the company after the licence is issued?

An EMI files reports with the Bank of Latvia and notifies it of changes to the licence documents and of major incidents. The law requires the AML control system to be reviewed at least once every 18 months, and COREDO has an AML audit for that. Day-to-day legal matters are covered by our legal services in Latvia.

How is the profit of a Latvian EMI taxed?

Corporate income tax is deferred until the profit is distributed. The rate is 20% of the tax base with a coefficient of 0.8, so the effective rate is 25%. Undistributed profit is not taxed.

Contact Us

Tell us about your product, countries and ownership structure — we will assess the project and show you the plan for obtaining an EMI licence in Latvia. COREDO has run financial licensing projects since 2016 and takes care of the company, the documents, the application and the dialogue with the Bank of Latvia.

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