Financial Supervision Authority issues paying authority activity license
The Financial Supervision Authority has issued the Järva County based savings and loan association Maaelu Edendamise Hoiu-laenuühistu a permit for exercising the exception set forth in the Paying Authorities and E-Money Institutions Act.
The permit for the exception set forth in the Paying Authorities and E-Money Institutions Act will allow the savings and loan association to provide money transfer service. The exception means that simplified requirements are in effect for applying for a paying authority activity license and the prerequisite is that company’s average monthly total of payment transactions in the last 12 months does not exceed 1 million euros a month.
The Paying Authorities and E-Money Institutions Act, which entered into force in January 2010, requires companies that provide payment service to apply for an activity license or permission for an exception (as specified in the Act) from the Financial Supervision Authority. The decision to grant or deny the exception shall be made by the Financial Supervision Authority within one month of receiving all of the required documents and data and no later than within three months.
Paying authorities were not previously subject to Financial Supervision Authority supervision, and companies could provide payment services without a relevant activity license until 30 April 2011.