Safeguarding Accounts

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 Account 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 keep the funds of your customers safe, but you’ll also be able to meet a regulatory obligation not to commingle your clients’ funds with the funds of any natural or legal person other than your clients.

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.

Statement Letter for Safeguarding Account

Safeguarding Acknowledgment Letter

EMBank will provide you an official Acknowledgement Letter including your Safeguarding Account details that you will be to submit to the relevant supervisory authority and proceed with your license application.

Why Choose EMBank for a Safeguarding Account?

Our Core Business is Fintechs and SME’s – Fintech friendly approach: We know that bringing a Payment or Electronic Money Institution into life and running it is a challenging task. In EMBank you will find a fintech-friendly approach with customized banking solutions. We are here to assist you along the way.

Consultative Approach: We are here to consult you with our fintech experience.

Dedicated Relationship Manager: We believe in technology, but we also still believe in the power of human contact! We will never leave you alone. In EMBank you will be assigned to a dedicated Relationship Manager to act as your single point of contact all through your journey.

Industry Expertise: EMBank is a young bank but our team has extensive experience in digital and traditional banking and is ready to assist you.

Centralized Service Model: Operation is not distributed separately in branches. Operation center allows fast and error-free operation.

Client testimonial on Safeguarding Account

“European Merchants Bank 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 set.

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. Added to this 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 PDS2

European Authorised Payment Institutions (PIs) and Electronic Money Institutions (EMIs) must comply with certain safeguarding requirements according to PDS2 Directive (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 (Payment Institutions, APIs, or PIs) and Authorised Electronic Money Institutions (E-money Institutions) are subject to substantial regulatory requirements which are imposed upon them by the legislation stemming from the European Union level and further is implemented by the national authorities. One of such requirements is safeguarding customers’ funds. It can be done by segregation, which requires for the “relevant funds” (that are defined further) to be identified and kept in separate designated customers’ funds safeguarding accounts.

 

Who must follow safeguarding requirements?

The Financial Conduct Authority of the United Kingdom emphasized that safeguarding requirement applies to APIs, EMIs and credit unions that issue e-money and it is their responsibility to ensure appropriate organizational arrangements are in place to protect the 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 requirements to safeguard arise from 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.

Provide your information and we will get back to you in 1 day!

* We, EMBank, will process your personal data indicated herein to register your application and contact you as per your preferences.

F.A.Q.

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, keeping the funds safeguarded.
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 should be safeguarded. They are covering the sums of money that were received by the institutions for the benefit or transactions that would be executed on behalf of a customer of a payment institution. Whereas, when speaking about e-money institutions, they concern the funds for which electronic money was issued to the customer.
How should you Safeguard?
You should be able to segregate your client funds from your companies’. This could be achieved by opening a Safeguarding Account in European Merchant Bank.
How to prove you have a safeguarding account?
EMBank will provide you an official Acknowledgement Letter including your Safeguarding Account details that you will be to submit to the relevant supervisory authority and proceed with your license application.
How can a start-up or newly authorized fintech get a safeguarding account?
All PI’s and EMI’s that have passed KYC processes can open a Safeguarding Account in EMBank.