The Bank of Albania has prepared a draft regulation to supervise the activities of electronic money institutions amid the proliferation of such businesses at the global scale.
The draft regulation “on the exercise of activity and supervision of electronic money institutions” is another step towards creating a regulatory framework for these businesses which are attracting more interest from investors.
In 2021, the bank prepared the new regulation on licensing payment institutions, money institutions, and payment services providers. But the inclusion of electronic money institution in this new draft, is a natural next step.
The proposed rules lay down the basic principles of effective institutional management, including on the necessary capitalisation of electric money institutions.
For example, at no time can the capital of an institution fall below the minimum amount of capital defined in the regulation which is 45 million lek, or EUR 377,150.
Other provisions include establishing a liquidity risk management system, an internal control system, and not investing more than 25% of customer funds in any one single party or entity.