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ARTICLE · 04 OCTOBER 2002

Regulation of e-money

United KingdomMedia, Telecoms, IT, Entertainment
A new regime for the regulation of e-money issuers by the Financial Services Authority (FSA) came into effect on April 27 2002. The key elements of the regime are:
  • issuers must ‘ring-fence’ their e-money activities from other business risk areas;
  • funds held in exchange for e-money must be held in high quality liquid assets;
  • a minimum capital requirement of 2% of outstanding e-money liabilities or 1 million Euros, whichever is the higher;
  • sound and prudent systems and adequate internal mechanisms including compliance with anti-money laundering requirements must be in place;

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