Course Overview

This course provides a comprehensive introduction to electronic money (e-money), its operational framework, and the regulatory obligations that Electronic Money Institutions (EMIs) must follow. Participants will learn how e-money products work, how institutions issue and safeguard customer funds, and the capital requirements that ensure financial stability.

The program also explores the governance and compliance framework surrounding e-money institutions, including the role of agents and distributors, safeguarding of customer funds, and regulatory expectations for transparency and fair conduct.

In addition, the course examines financial crime risks faced by FinTechs and EMIs, covering anti-money laundering (AML), sanctions compliance, fraud prevention, and customer due diligence practices. By the end of the course, learners will understand how e-money institutions operate within a regulated environment while maintaining strong risk management and compliance standards.

Course Objectives 

By the end of this course, participants will be able to:

1. Understand the Concept and Regulatory Framework of E-Money

• Explain what e-money is and how it differs from other digital financial products such as cryptocurrencies.
• Understand the regulatory framework governing Electronic Money Institutions and Small EMIs.
• Identify the four legal conditions that define e-money and the product structures used in the market.

2. Explain the Operational Lifecycle of E-Money

• Describe how e-money is issued, stored, and redeemed.
• Understand customer rights regarding redemption and associated fees.
• Recognize operational rules governing contracts, partial redemption, and restrictions on interest or incentives.

3. Understand Capital Adequacy Requirements for EMIs

• Distinguish between capital resources and regulatory capital requirements.
• Understand minimum capital thresholds for EMIs and Small EMIs.
• Apply the regulatory methods used to calculate ongoing capital requirements.

4. Identify Safeguarding Mechanisms for Customer Funds

• Explain the importance of safeguarding customer funds.
• Understand segregation requirements and safeguarding accounts.
• Recognize the role of insurance or guarantees as alternative safeguarding methods.

5. Understand the Role of Agents and Distributors

• Differentiate between agents and distributors in e-money operations.
• Understand regulatory requirements for registration and oversight.
• Recognize the responsibilities of EMIs for AML compliance and operational control over their agents.

6. Recognize Financial Crime Risks and Regulatory Obligations

• Identify major financial crimes affecting financial institutions, including money laundering and terrorist financing.
• Understand the legal framework addressing financial crime and sanctions.
• Recognize obligations related to fraud prevention and anti-corruption laws.

7. Understand Conduct and Consumer Protection Expectations

• Recognize regulatory expectations for fair customer treatment.
• Understand transparency requirements for financial services.
• Identify complaint handling and dispute resolution mechanisms.

8. Apply Customer Due Diligence and Monitoring Practices

• Apply risk-based customer due diligence approaches.
• Conduct identity verification and beneficial ownership checks.
• Understand the role of sanctions screening, PEP monitoring, and RegTech tools in ongoing compliance.