Continuing the topic of registering Small Payment Institutions (you can find the previous article at https://business-in-poland.eu/ru/articles/view/maloe-platejnoe-uchrejdenie/?Newlang=en) , in this article you will find a more detailed description of the requirements and the opportunities offered by the Small Payment Institution (SPI).
Opportunities provided by the Small Payment Institution:
1) acceptance and payment of cash from the payment account and any other actions necessary for maintaining the account;
2) payment transactions, including money transfers to the account of the financial services provider of another user or just to the account of another user:
- a) execution of payment transactions, including one-time or standing orders,
- b) use of a payment card or similar payment instrument,
3) execution of payment transactions, from credit funds provided to the user under a loan agreement,
4) issue of payment instruments;
5) the provision of money transfer services.
SPI in Poland providing a service of accepting cash can store users' funds in payment accounts, while the total amount of funds accepted for one user at a certain time cannot exceed the equivalent of 2,000 euros, calculated at the announced average rate of the National Bank of Poland, obligating on the last day of the month previous to that day.
SPI, in addition to providing payment services, can also:
1) provide additional services closely related to the provision of payment services:
- a) currency exchange,
- b) the safe storage of funds provided for the execution of a payment transaction,
- c) data storage and processing;
2) conduct other entrepreneurial activities (SPI), which turns the SPI into the so-called hybrid SPI.
SPI may conduct its activities through agents, i.e. individuals or legal entities or organizational units that are not legal entities to which the law recognizes legal capacity, to act on behalf of and in the interests of the SPI exclusively in the field of payment services. To conduct business, the SPI may also create branches in Poland. Information about agents and branches of SPI stored in the register of payment service providers and electronic money issuers.
Requirements for registration a Small Payment Institution:
The activity in the field of payment services as a SPI is regulated in accordance with the provisions of the law the Right of Entrepreneurs, which means that the conduct of this activity requires first obtaining an entry in the register of payment service providers and issuers of electronic money at the Financial Supervision Commission (KNF). Starting activities as a SPI does not require KNF approval.
SPI has the right to conduct activities only in Poland, independently, including through a branch or agents. The average of the total amount of payment transactions for the previous 12 months made by the SPI, including through agents, cannot exceed the amount equivalent to 1,500,000 euros per month.
Due to the fact that the conduct of the SPI is regulated by law, there are a number of requirements that this payment institution must comply with. For example, activities as a SPI can be performed if an entity has the following organizational decisions and fulfills the requirements:
- allowing to calculate the total monthly amount of payment transactions;
- to combat money laundering and the financing of terrorism in accordance with the law of March 1, 2018 on combating money laundering and the financing of terrorism;
- the person managing the SPI was not convicted of a crime against justice, as well as an economic crime.
In addition, the SPI must have:
- an activity program and financial plan for the period of the first 12 months of it’s activity,
- the current risk management procedure to which it may be exposed.
SPI is required to protect the funds received for payment transactions, using the following rules:
- funds accepted for payment transactions in the amount to be transferred to the recipient are never combined with funds held by the SPI for another purpose;
- funds accepted for payment transactions that were not transferred to the recipient or other provider before the end of the business day following the receipt of these funds:
- remain in bank accounts specified for this purpose in a Polish bank, credit institution or branch of a foreign bank, or
- invested in safe, liquid assets with low risk, credited to separate accounts for this purpose.
It should be noted that the above rules do not apply if the funds accepted for payment transactions are protected by a bank guarantee agreement or insurance policy.
During the conduct of activities, in addition to all of the above procedures, the SPI is also required to:
- inform the Financial Supervision Commission (KNF) of the total amount and number of payment transactions performed including by agents for the month, quarter and year. *
* NOTE: the transfer of information of the amount cost and number of payment transactions carried out in a given quarter and during the year, as well as the annual financial statements are also necessary when the SPI did not carry out any transaction and did not conduct any activity during this period.
- transmit to the KNF the annual financial report together with a copy of the decision or decision of the approving authority on the adoption of the financial report - within 15 days from the date of its approval, if this report is prepared;
- realize and comply with recommendations issued by KNF;
- inform KNF of any changes to the data included in the registry (for example, renaming, deleting an agent) by submitting an application;
- inform KNF of the intention to terminate the company's activities or activities as an SPI.
In case of violation of the conditions and obligations of the SPI related to the conduct of activities in the field of payment services, the Financial Supervisory Commission may apply measures and sanctions, including monetary fines, and even decide to prohibit activities as a SPI.
When registering the SPI, there is a state payment of 616 zlotys, as well as 17 zlotys for the power of attorney, if a proxy is acting on behalf of the company. The Financial Supervision Commission is obliged to record the SPI in the register within 3 months from the date of receipt of the full application for entering the company in the register, which is containing all the documents and information required by the Law.
Often we also encounter the question of whether it is possible to open a Polish SPI without involving Polish personnel, only with board members who are non-residents of Poland. Yes, it is possible; there are no additional requirements for the citizenship of founders and the board, as there is no requirement for work experience or education in the management of financial institutions. However, the head of the board of MPI cannot have a criminal record. For more information on this subject, contact us today.