Safeguarding Accounts

Keep your customers’ funds safe,
while meeting your regulatory obligations.

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A safeguarding account is a special kind of segregated account. With a safeguarding account, as in any segregated account, clients’ funds are kept separate from the company’s operational funds.

 

Payment Institutions (PIs) and Electronic Money Institutions (EMIs) require safeguarding accounts, opened with a licensed credit institution or a central bank, to hold their customers’ money.

Safeguarding Accounts at EMBank

Safeguarding your customers’ funds is of paramount importance. To ensure this, we have created the option to open a designated separate account for your clients’ funds. Not only will you be able to ensure your customers’ funds are safe, but you’ll also meet the regulatory obligation of keeping your clients’ funds separated from the funds of any other natural or legal person.

Safeguarding client funds is a legal obligation for most financial institutions. With our segregated accounts, EMBank provides you with safeguarding accounts to meet this requirement.

Apply for a Safeguarding Account

Safeguarding client funds is a legal obligation for most financial institutions. EMBank can provide you with safeguarding accounts to cater to this requirement.

Application

Fill out this form. We will contact
you in 1 business day

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Documents

Complete the required
documents.

AML/KYC

Your Safeguarding Account will be
ready after AML/KYC procedures.

Statement Letter for Safeguarding Account

Safeguarding Acknowledgment Letter

EMBank will provide you with an official acknowledgement letter including your Safeguarding Account details that you will submit to the relevant supervisory authority to proceed with your license application.

Opening a Safeguarding Account in European Merchant Bank

  • Provide your information in this form
  • Our Relationship Manager will contact you in 1 business day.
  • Complete the required documents.
  • Your Safeguarding Account will be ready after AML/KYC procedures.

*All above services and products are subject to the screenings and reviews of our Compliance Unit and your success in finalizing our KYC due diligence process.

Why Choose EMBank for a Safeguarding Account?

Fintech friendly approach

Our core business is fintechs and SMEs. We know that starting and running a payment or electronic money institution (PMI and EMI) is a challenging task. At EMBank, we employ a fintech-friendly approach with customized banking solutions that cater to our various clients’ needs. As a player in a dynamic sector, we are always here to assist our clients along the way.

Consultative Approach

We offer advice to our clients, using our fintech experience.

Dedicated Relationship Manager

We believe in technology, but we also believe in the power of human contact! At EMBank, we ensure our partners/clients never feel alone by assigning them a dedicated Relationship Manager who acts as their single point of contact throughout their journey with us.

Industry Expertise

EMBank may be a young bank but our team has extensive experience in digital and traditional banking and is ready to assist you, no matter the problems you may be facing.

Centralized Service Model

Our operations are not distributed throughout multiple different branches. Instead, our operation centre allows for fast and error-free operations.

Client testimonial on Safeguarding Account

“European Merchants Bank (EMBank) has been extremely professional in all their dealings with our company Recary Ltd. From the inception they took our account opening query with proper consideration, the responses were very clear and timely, and all our expectations were properly met.

After we satisfied their requirements, our account opening and onboarding were met with the required speed and service required for a firm in the fintech sector. In addition, our customer relationship manager is always accessible and ready to handle our queries and or requests.”

Satish Samtani
Recary Ltd

Safeguarding Requirements

Safeguarding Requirements
According to PSD2

European Authorised Payment Institutions (PIs) and Electronic Money Institutions (EMIs) must comply with certain safeguarding requirements according to PSD2(Directive 2015/2366/EU) and the EMI Directive (Directive 2009/110/EC). They require most payment or e-money license holders must segregate client funds and not incorporate them into their own working capital.

Safeguarding Account Requirements for Authorised PIs and EMIs

Authorised payment institutions (APIs or PIs) and authorised electronic money institutions (EMIs) are subject to substantial regulatory requirements, which are imposed upon them by the legislation stemming from the European Union level and is implemented by national authorities. One such requirement is safeguarding customers’ funds. This can be done by segregation, which requires that the “relevant funds” (to be defined later ) be identified and kept in separately designated safeguarding accounts.

Who must follow safeguarding requirements?

The UK’s Financial Conduct Authority (FCA) has emphasized that this safeguarding requirement applies to all APIs, EMIs and credit unions that issue e-money and that it is their responsibility to ensure appropriate organizational arrangements are in place to protect these safeguarded funds. In the case of payment institutions, the requirement to safeguard the relevant funds emanates from regulation 23 of Payment Service Regulations 2017 (PSRs 2017). Whereas for e-money institutions and credit unions, safeguarding requirements are articulated in regulation 20 of Electronic Money Regulations 2011 (EMRs 2011). Furthermore, where EMIs provide unrelated payment services, they are subject to the safeguarding provisions of the PSRs 2017 as if they were APIs. Credit unions that issue e-money and provide unrelated payment services are subject to regulation 23 of the PSRs 2017 on the same basis as small EMIs.

Frequently Asked Questions

What is a safeguarding account?

A safeguarding account is a special type of segregated account that can only be set up with a bank in which PIs and EMIs hold customers’ money. The main function of this account is to segregate client money from operational funds and to block access to this money by third parties, thus safeguarding the funds.

Why do you need a safeguarding account?

You must confirm and provide details of the credit institution with whom your client funds will be safeguarded in order to be granted an authorised payment institution or electronic money institution license from a financial regulator. Without this, you will not be able to qualify for a license.

When do you need a safeguarding account?

A safeguarding account is required before applying for an Authorised Payment or Electronic Money Institution license from a financial regulator.

What should you safeguard?

Funds that belong to the customers of the financial institution in question and against which such customers have a claim that should be safeguarded. These accounts thus cover the sums that were received by the institutions for transactions to be executed on the behalf of a payment institution’s customer. For e-money institutions, these accounts concern the funds for which electronic money was issued to the customer.

How should you safeguard these funds?

To do this, you must be able to segregate your client funds from your companies’. This can be achieved by opening a safeguarding account at EMBank.

How do you prove you have a safeguarding account?

EMBank will provide you with an official acknowledgement letter that includes your safeguarding account details, which you will then submit to the relevant supervisory authority to proceed with your license application.

How can a start-up or newly authorized fintech get a safeguarding account?

All PIs and EMIs that have passed the KYC processes can open a safeguarding account in EMBank.

If you want to learn more about or
apply for a safeguarding account at EMBank,

Other Accounts at
EMBank

We know that one size does not fit all, so we are working hard providing you various options to choose from. Let’s talk about how we can help you accelerate your business with the correct type of accounts.

Accumulative Accounts

Simple to open and allows you to instantly deploy authorised capital.

Business Accounts

Meet your daily banking needs and regulatory requirements.

Segregated Accounts

Comply with regulations by our segregated multi account solution.

Term Deposit Accounts

Ideal account to store and manage your funds in a safe way.

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