Application Process for Payment Institutions

The purpose of this section is to provide information to firms considering applying for authorisation as a payment institution or registration as an account information service provider (the latter in respect of the provision of account information services (AIS) only). The Central Bank of Ireland (the Central Bank) is the competent authority in Ireland for the authorisation and supervision of payment institutions under the European Union (Payment Services) Regulations 2018 (PSR).

Each applicant seeking authorisation/or registration must satisfy the Central Bank that it can meet the authorisation/registration standards set out in the PSR. In fulfilling its statutory role in this regard, the Central Bank adopts a robust, structured and risk-based process that seeks to ensure that only those applicants that demonstrate compliance with these authorisation requirements are authorised.

The Central Bank seeks to process each application as expeditiously as possible while meeting its obligation to operate a rigorous and effective gatekeeper function. It aims to ensure that the application process is facilitative and accessible from the perspective of applicants and, importantly, that applicants have clarity with regard to the process, its requirements and timelines.

Application Process

Before Applying for Authorisation/Registration

In advance of submitting an application for authorisation/registration, the firm should satisfy itself that:

- its proposed business model requires authorisation/registration;

- it can comply with the authorisation requirements for payment institutions or registration requirements for account information service providers (in respect of the provision of AIS only);

- it is capable of complying with, and adhering to, the authorisation/registration requirements and on-going supervisory requirements that must be satisfied on an on-going basis; and

- it has read the Guidance Note on Completing an Application and has taken the information provided therein into consideration when completing the Application for Authorisation as a Payment Institution Form or Application for Registration as an Account Information Service Provider Form.

Firms are advised to seek legal advice if they are unsure as to whether their proposed activities require authorisation/registration or if they are unsure as to how they should comply with the authorisation/registration requirements. If, after having received and considered such advice, firms have any doubt about their status, they are advised to submit an application for authorisation/registration.

Pre-Application Meeting

A pre-application meeting, with the Central Bank, is an option for applicant firms. Specific questions can be raised about any aspect of the application process, service standards or completing the application form. However, it is not within the remit of the Central Bank to provide advice at these meetings, including the provision of advice on any proposed business model or proposed payment services which may require authorisation. It is the responsibility of a firm or individual proposing to provide a financial service in Ireland, to ascertain whether they fall to be regulated by the Central Bank or any other regulatory authority.

The Central Bank recommends that firms who wish to avail of this facility have completed their application material to an advanced stage before requesting such a meeting. Specific questions should be prepared in advance in order to make the meeting as productive as possible. Such meetings will typically be no longer than one hour.

Innovation Hub

The Innovation Hub is an additional facility available to firms to engage with the Central Bank outside of existing formal regulator / firm engagement processes,

Summary of the Key Stages in the Application Process

The applicant submits a completed Application Form with supporting documentation;

The Central Bank acknowledges receipt of the application submission;

The Central Bank assesses whether the application submission contains the key information and documentation required to progress to the assessment phase;

Where all key information and documentation has been provided, the Central Bank completes an assessment of the application submission and may issue detailed comments and/or seek additional information;

The applicant is provided with the opportunity to address the comments and requests issued by the Central Bank in a revised application submission(s);

The Central Bank will assess these subsequent application submission(s) and notify the applicant of its assessment and next steps. The applicant is provided with a further opportunity to address any concerns arising at this stage in the process (if any); and

The Central Bank will notify the applicant of its decision in respect of the application submission.

In the sections set out below, the firm will be able to learn about the different stages of the application process in more detail.

Documentation Required to Make an Application for Authorisation/Registration

Documentation Required to Make an Application for Authorisation

Applicants should submit the following documentation, which should be fully completed:
1. Application for Authorisation as a Payment Institution including the specific information and documentation requested therein.

2. Anti-Money Laundering, Counter-Terrorist Financing and Financial Sanctions Pre Authorisation Risk Evaluation Questionnaire for Payment and Electronic Money Institution Applicants

3. Qualifying Holder Application Forms, as appropriate:
a) Application for Legal Person or other entity type with a Qualifying Holdings in an Applicant Payment Institution or Electronic Money Institutions
b) Application for a Natural Person with Qualifying Holding in an Applicant Payment Institution or Electronic Money Institution
c) Application for a Director with Qualifying Holdings in an Applicant Payment Institution or Electronic Money Institution

Once an application is submitted the applicant will also need to ensure that all relevant individuals proposed to hold a Pre-Approval Controlled Function role (typically board members, senior management, key function holders) complete Fitness and Probity Individual Questionnaires.

Individual Questionnaires must be submitted electronically via the Central Bank’s Online Reporting System by all relevant individuals. Applicants should review the Guidance on the sector specific requirements that apply to persons seeking approval for a Pre-Approval Controlled Function role in a Payment Institution or Electronic Money Institution in advance of submitting an Individual Questionnaire. Please note that access to the online Individual Questionnaire only becomes available after an application has been deemed to contain all the key information needed to progress to the assessment phase of the application process.

The completed Application Form, along with all relevant accompanying material, should be submitted in electronic format to the Central Bank via our secure file transfer system. Please request access via email to applications@centralbank.ie.

Documentation Required to Make an Application for Registration

Applicants should submit the following documentation, which should be fully completed:
1. Application for Registration as an Account Information Service Provider including the specific information and documentation requested therein.

Subject to certain exempting criteria, AISPs come within the definition of a ‘designated person’ under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (CJA 2010). AISPs that are classed as a ‘designated person’ under the CJA 2010 are subject to all of the AML/CFT obligations contained under Part 4 of the legislation. Accordingly, those AISPs that come within the definition of a ‘designated person’ should ensure that they are in compliance with all of their AML/CT obligations under the CJA 2010.

Key Stages in the Application Process

Stage 1 - Acknowledgement

The Central Bank will acknowledge receipt of an application for authorisation/registration submitted by the applicant within 3 working days of receipt.

Stage 2 - Key Information Check

The Central Bank will then check that the application material submitted contains all the key information and documentation required to proceed to the assessment phase.

Within 10 working days of receipt of the application, the Central Bank will either:

1. Advise the applicant that the application contains sufficient material to proceed to the assessment phase (further information is likely to be required as part of the assessment phase and may be required thereafter before a decision will be made in respect of the application); or

2. Advise the applicant that the application does not contain sufficient material to proceed to the assessment phase and so is not being progressed to that phase. A statement of the omitted information is also provided to assist the applicant should it wish to submit another application in the future. Any subsequent application will be considered a new application and the application process commences again.

Stage 3 - Assessment Phase

Where sufficient information has been received, as outlined in 2(1) above, the Central Bank will then proceed to the assessment phase of the application process. The application material submitted will be reviewed against the relevant authorisation/registration requirements to determine whether sufficient information has been provided to enable the Central Bank to issue a 'Notification of Assessment' letter as referred to in Stage 4 below.

The Central Bank will issue initial comments to the applicant based on its review of the application material submitted and any subsequent comments based on its review of responses submitted by the applicant.

The Central Bank has published service standards in respect of the processing of applications for authorisation/registration and in the context of meeting those standards the service standard timeframe to which the Central Bank has committed for the assessment phase of the application process is 90 working days. However, it should be noted that in the event of further and/or subsequent information being sought, this 90 day ‘clock’ is paused until such information is received by the Central Bank from the applicant.

Please note, The Central Bank can in its authority disband its 90 working day service standard where it considers any or all of the following have arisen in an application:

a) where another regulatory authority has to be contacted,
b) which are subject to interview,
c) where significant legal issues arise,
d) where significant fitness and probity issues arise,
e) where the business model of an applicant is complex or novel in nature,
f) where significant changes to the business model, the applicant’s shareholder structure or other key aspects of an application arise during the review process, or where the application becomes dormant, and
g) where the Central Bank is minded to refuse an application.

In the event of the applicant failing to respond to a request from the Central Bank for further and/or subsequent information, after 60 working days the application may not be considered further by the Central Bank.

Stage 4 - Notification of Assessment

The Central Bank will notify the applicant of the outcome of the Assessment Phase of the application process as follows:

a) Where the assessment is favourable, the Central Bank will notify the applicant by letter that it proposes to authorise/register the applicant on the basis of the information provided in its application submission, provided any specific final steps are taken and/or any specified final items of information and evidence are received. This letter will also specify any specific conditions the Central Bank proposes to impose on the authorisation/registration itself once granted. The letter will explain the reasons for these proposed conditions and the applicant will be afforded the opportunity to make representations in respect of the proposed conditions before the Central Bank makes any decision on the application.

b) In the event that the Central Bank has not been satisfied on foot of the Assessment Phase such that it can issue a Notification of Assessment Letter under (a) above, the Central Bank will advise the applicant of this by letter. The letter will set out the areas to be addressed and afford the applicant the opportunity to do so and to make any submissions it wishes to the Central Bank in respect of these matters.

Stage 5 - Notification of decision in respect of the Application

The Central Bank will assess any further information/evidence/representations submitted by the application following on from Stage 4 above.

Within 10 working days of receipt of a satisfactory response to issues set out following the outcome of Stage 4 above, the Central Bank will notify the applicant, via letter, of its decision on the application as follows:

a) Authorisation/Registration
The Central Bank has decided to grant an authorisation/registration.

b) Authorisation/Registration with Specific Conditions

The Central Bank has decided to grant an authorisation/registration with specific conditions attached to the authorisation/registration. The specific conditions will be outlined in the letter.

c) Proposed Refusal of Authorisation/Registration
The Central Bank is minded to refuse the application for authorisation/registration. In accordance with the applicable legislation, the Central Bank will notify the applicant of the grounds for the proposed refusal of the authorisation/registration. The applicant will then have the opportunity to make submissions in response to the proposed refusal. These submissions will then be considered by the Central Bank following which a decision will be taken by the Central Bank to grant or refuse the authorisation/registration applied for, as appropriate. Read more about the Central Bank's process for refusal of an application for authorisation/registration.

The legislation provides that the Central Bank must inform firms whether their application for authorisation/registration has been granted or refused within three months of receiving all the information required to make a decision. For the purposes of this statutory timeframe, the Central Bank does not consider this three month period to have commenced until the receipt of any outstanding information or any representations arising from the assessment phase, or thereafter, of the application process.

If the firm has any queries in respect of the application process it can contact the Central Bank at piauthorisations@centralbank.ie

Small Payment Institutions

Please note that while Regulation 41 of the PSR provides that the Central Bank may waive all or part of the procedure and conditions set out in Regulations 7 to 40, with the exception of Regulations 25,26, 33 and 35 of the PSR and register a firm as a “small payment institution” as defined therein, the Central Bank has not availed of this discretion. There is, therefore, no small payment institution regime in place in the State and firms wishing to provide payment services are required to apply for authorisation as a payment institution.

Service Standards Performance Reports

Read more about our Service Standards Performance Reports.
The reports set out the Central Bank's performance against Service Standards that it has committed to in respect of

(i) Authorisation of Funds

(ii) Authorisation of Financial Service Providers and

(iii) Processing of Fitness and Probity applications, on a half-yearly basis.