Firms operating within the remittance industry in the United Kingdom are regulated by the Financial Conduct Authority (FCA). In 2009, under the directives on the HMRC the United Kingdom implemented the Payments Services Directive (PSD), under the Money Laundering Regulations 2007 and its added guidelines.
This was all implemented in order to bring about enhanced efficiency, innovation and competition into the European Payments markets. Business who wish to obtain an Authorised Payment Institution license or an API are required by the FCA to submit detailed paperwork which includes their business plan and payment details which they wish to intake within the industry in which they operate. Finding common ground along with creating a bridge between our services and the compliance and regulatory framework which requires adoption for smooth operations – NZ Consultants has always aimed at providing clear steering through the gateways of payment processing too many firms operating within the European market.
While applying for an API license is integral to your business operations, it is also important to understand the major differences between obtaining and API license and moving from your current regulatory status as well. For instance if you are at present an approved SPI firm, moving to API approved status means that you are required by law to maintain minimum levels or capital along with meeting certain detailed provisions set out by the FCA.
The application process in itself is much more in-depth and involves a large amount of documentation as mentioned above as well. Whilst it may present or may seem like a daunting task – businesses are encouraged to think of it as a step towards formalising policies and procedures in order to lay a solid foundation for continued and uninterrupted growth.