Central bank introduces new pre-licensing stage for firms

The Central Bank of Cyprus (CBC) will overhaul the licensing process for electronic money institutions and payment institutions from August 3, 2026, introducing a new pre-application stage, higher fees and tougher scrutiny for applicants.

The changes form part of a wider licensing and supervisory strategy for the sector, first announced on December 20, 2024, the central bank said.

A new pre-application exploratory stage will be added before a formal licence application can be submitted.

At this stage, entities seeking authorisation will have to provide specific information that the CBC considers necessary for an initial assessment of the business.

A non-refundable fee of €5,000 will be charged at this stage, the announcement mentioned.

The central bank said the new process has two main aims. First, it is intended to improve transparency and help interested companies better understand the licensing process, together with the CBC’s requirements and expectations for the operation of such institutions.

Second, it is designed to allow the bank to identify at an early stage any issues that could affect the later assessment of a licence application, particularly the criterion of good repute.

The CBC also said that, alongside the new pre-application stage, other changes will be introduced to the wider licensing process.

The fee for submitting a formal licensing application will rise from €5,000 to €10,000.

The CBC will also be able, where it deems necessary, to require interested entities during the exploratory stage, or applicants during the assessment process, to submit an enhanced due diligence report prepared by a firm with relevant expertise.

Applications that remain inactive will be treated as withdrawn after a set period of non-response to comments or requests issued by the central bank.

The new rules will apply from August 3, 2026, the CBC confirmed.

Entities planning to apply for a licence are being advised to consult the relevant sections of the CBC website for further details or contact the bank by email.