The Electronic Money Regulations 2011 or EMR supervises the issuance of electronic money. The EMR enforces the second EU Electronic Money Directive or 2EMD that the European Parliament along with the Council of the European Union adopted in September 2009. The Financial Conduct Authority of FCA accredits MegaTransfer under the Electronic Money Regulations 2011 for the issuance of electronic money, Register No. The regulation comprise of fundamental section that need thorough discussion.
One of the main functions of the FCA is to prevent Financial Crime. As such, we are compelled to comply with legal requirement to identify these illegal activities. Financial crime comprise of but are not limited to fraud, money laundering, and terrorist financing. Electronic money users are subject to the provisions of the following:
- Electronic Money Regulations 2011
- The Proceeds of Crime Act 2002
- The Money Laundering Regulations of 2007
- Section 21A of the Terrorism Act
- The EC Wire transfer regulation 21 and Schedule of the Counter-Terrorism Act of 2008
- UK's financial sanctions regime
The EMR and 2EMD mandates authorized e-money issuers for the security of funds submitted by the client for e-money. This is part of the set of regulations implemented by the FCA regarding the safeguarding of client money its investment. This is carried out as a preventive measure in case of insolvency under the Float Management section. Doing such will protect the client funds from the claims of other creditors.
One of the main topics covered is the Liquidity and Capital Requirements . Under this section, we are required to hold enough liquid assets so that whatever happens we are able to liquidate all issued e-money so that our working capital requirements are reached. We are also compelled to keep capitals at minimum levels with an initial and enduring threshold of € 350,000.
As per our legal obligations, we must satisfy FCA requirements as to the concerns on who holds responsibility for the management of e-money and money transfer services. Under the Management & Vetting at Entry , all accountable personnel must be of good reputation, with ample experience and skill proficiency. This means that FCA carries out a "fit a proper test" which takes into account candor, competence, financial aptitude, and the integrity of MegaTransfer's management.
Under the Systems & Controls section we are bound by our responsibilities to keep an administrative structure that reduces the risk of loss or decrease in the client's fund and assets. We are also prompted to have risk management plans, comprehensive records, and effective internal control mechanisms.