The issue of electronic money is regulated by the Electronic Money Regulations 2011 (“EMR”) which implement the second EU Electronic Money Directive (“2EMD”), which was adopted by the European Parliament and the Council of the European Union in September 2009. Skrill Ltd. is authorised by the Financial Conduct Authority (FCA) under the Electronic Money Regulations 2011 for the issuing of electronic money, Register No. 900001.
Key features of the regulation include:
- Capital requirements & liquidity — Our business is required to maintain minimum levels of capital. There is an initial and continuous threshold of € 350,000 own funds. We must also hold sufficiently liquid assets to be able to redeem all e-money issued and to meet our working capital requirements.
- Float Management — There is a clear set of regulations on how we have to safeguard our customers funds and how we can invest the funds received in exchange for the issue of e-money. In particular the EMR and 2EMD require authorised e-money issuers to safeguard funds received from customers for e-money so that, if there is an insolvency event, the e-money issued would be protected from other creditors’ claims and can be repaid to customers.
- Management & Vetting at Entry — The FCA must be satisfied that all individuals who are responsible for the management of the e-money and payment service are of good repute and possess appropriate knowledge and experience. The FCA performs a " fit and proper test " on each member of Skrill Limited senior management considering honesty, integrity, reputation, competence, capability and financial soundness.
- Systems & Controls — We must maintain organisational arrangements that are sufficient to minimise the risk of the loss or reduction of our customers funds or assets through fraud, misuse, negligence or poor administration. In addition we are required to have effective risk management procedures, adequate internal control mechanisms and to maintain relevant records.
- Financial Crime — We must comply with legal requirements to deter and detect financial crime, which includes money laundering and terrorist financing. Relevant legislation includes the financial crime provisions in the EMRs, section 21A of the Terrorism Act 2000, the Proceeds of Crime Act 2002, the Money Laundering Regulations 2007, the EC wire transfer regulation21 and Schedule 7 to the Counter-Terrorism Act 2008. Electronic money issuers are also subject to the various pieces of legislation that implement the UK’s financial sanctions regime.
The Money Laundering Regulations 2007 require firms to put preventative measures in place. They require firms to ensure that they know their customers (including conducting customer identification and verification and undertake ongoing monitoring where applicable), to keep records of identity and to train their staff on the requirements of the Regulations. A senior member of staff needs to be appointed to oversee appropriate policies and procedures.
Skrill Ltd. FCA e-money register: 900001