What is an Electronic Money Institution?
An electronic money institution (EMI) is an undertaking that has been authorised by a regulatory body to issue e-money and e-money accounts. An EMI is allowed to issue and redeem electronic money. Electronic money is a digital equivalent of cash stored in an e-money account. EMIs are authorised to provide all of the services of a payment institution and can provide payment services as an alternative to traditional transaction banking infrastructure, including accounts with sort-codes, IBANs, and access to payment schemes in a fast, easier and reliable way.
How does eqwire protects customer funds?
As an Electronic Money Institution authorised by the Financial Conduct Authority in the UK (firm reference number 901100), eqwire must comply with specific regulatory requirements to protect customer funds. However, eqwire is not a bank. As such, the protection scheme applied to banks, like the Financial Services Compensation Scheme (FSCS), does not apply to eqwire’s business model. Instead, eqwire uses the safeguarding to protect the customer funds it receives in exchange for issued e-money and segregates client funds from eqwire’s own funds. Safeguarding is a regulated process applicable to e-money institutions to protect customer funds which e-money institutions hold on behalf of their clients by segregating these funds from the e-money institution’s funds to ensure that these funds could be quickly returned to customers in the event of the e-money institution’s failure.
Where is UK customers’ money safeguarded?
eqwire must deposit 100% of the value if all the e-money it has issued to customers at a credit institution (bank). eqwire holds funds associated with GBP and EUR flows at Banking Circle S.A. in special safeguarding accounts segregated from eqwire’s money and flows. Our safeguarding policy and process are subject to independent yearly external audit, providing further confidence that we adhere to the regulations required for safeguarding.
Where is EU customers’ money safeguarded?
EU law, similar to the UK regulation, requires the safeguarding of client funds that EMIs receive from clients to ensure these funds are safe. For the provision of services to EU clients, eqwire is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. If you are domiciled in the EU, your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and the full value safeguarded in line with the Financial Supervision Act of Netherlands (Wet op het Financieel Toezicht, Wft).
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