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E-money directive finally transposed

05.03.2006

The Electronic Money Institutions Act finally entered into force on January 1 2006, implementing the EU E-money Directive (2000/46/EC). The implementation of the directive comes at a time when the European Commission is carrying out consultations regarding the suitability of the present e-commerce framework to the requirements of the modern market.

The act establishes:

• conditions for issuing electronic money;
• requirements for electronic money institutions; and
• liability.

It also provides for a supervisory regime for electronic money institutions. The act includes a transitional clause, according to which undertakings intending to issue electronic money once the act entered in force were obliged, by March 1 2006, to (i) ensure that their activities conform with the act, and (ii) file an activity licence or waiver request.

The right to waive the application of some or all of the provisions of the E-Money Directive and the application of the EU Codified Banking Directive (2000/12/EC) to electronic money institutions in cases where the total business activities of such institutions generate a total amount of financial liabilities related to outstanding electronic money not usually exceeding €5 million, and never exceeding €6 million, has not been implemented by the act.

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