Financial Business Act.pdf

While this translation was carried out by a professional translation agency, the text
is to be regarded as an unofficial translation based on the latest official Consolidated
Act no. 286 of 4 April 2006. Only the Danish document has legal validity.
October 2006, GlobalDenmark Translations
IX Electronic money institutions
Part 19
Electronic money institutions
Introductory provisions
308.-(1) Undertakings that carry out activities comprising issuing means of payment in the
form of electronic money shall be licensed as electronic money institutions. For the purposes of
this Act, ”electronic money” shall mean a monetary value, as represented by a claim against
the electronic money institution, which is stored on an electronic medium. Electronic money
may not be issued at a premium and must be recognised as means of payment by
undertakings other than the electronic money institution.
(2) Apart from issuing electronic money, electronic money institutions shall only carry out
activities associated with
1) delivery of closely linked financial and non-financial services, and
2) storage on the electronic medium on behalf of other companies or public institutions.
(3) Electronic money institutions and banks shall have exclusive right to issue electronic
money.
(4) An undertaking seeking a license under subsection (1) shall have a share capital of an
amount corresponding to no less than EUR 1 million.
(5) Apart from subsection (7), the provisions of this part of this Act shall not apply to
undertakings issuing electronic money if the maximum amount stored on the electronic
medium cannot exceed EUR 150 and one of the following conditions is met:
1) the undertaking's total financial liabilities in respect of outstanding electronic amounts
may never exceed EUR 6 million, cf. subsection (6). The outstanding electronic amounts
may not, on average, exceed EUR 5 million, cf. subsection (6).
2) the electronic money issued by the undertaking is only recognised as a means of
payment by companies within a single group, or
3) the electronic money issued by the undertaking is only recognised as a means of
payment by a limited number of companies that can be clearly identified by virtue of
their location at a single site or within another limited area, or by virtue of their close
financial or business relationships with the undertaking, cf. however subsection (7).
(6) When calculating the outstanding electronic amounts, cf. subsection (5), no. 1,
outstanding electronic amounts which the issuer itself receives as a means of payment shall
not be included in the calculation of the amounts. The average, cf. subsection (5), no. 1, shall
be calculated as the weighted average of the last six months’ outstanding electronic amounts
at the end of the month. The sum of the previous month’s electronic payments to undertakings
other than the electronic money institution divided by the sum of the previous month’s total
use of the prepaid funds as a means of payment shall be applied as weights.
EXCLUDING MINOR AMENDMENTS
(7) Undertakings which do not fall within the scope of this part of this Act, cf. subsection (5),
shall submit annual statements detailing their activities, including details on the size of the