ADVAPAY PAYMENT SOLUTIONS · 5. IT-system documentation: compliance of SW with PSD2 requirements....

ADVAPAY PAYMENT SOLUTIONS

advapay.eu

https://advapay.eu/ru/

Sections

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PAYMENT INSTITUTION AND E-MONEY INSTITUTION LICENSES

INFRASTRUCTURE SOLUTIONS FOR CRYPTO PROVIDERS

IT SOLUTION FOR PSP - CANOPUS EPAYSUITE

SALE OF READY-MADE BUSINESS

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Advapay offers consulting services for obtainment of payment licenses in European Union

PAYMENT INSTITUTION AND E-MONEY ISSUER LICENSESsections 1

3 PAYMENT INSTITUTION AND E-MONEY ISSUER LICENSES

LICENSE TYPESEU legislation provides for two types of payment licenses:

Authorized Payment Institution (API) and Authorized E-Money Institution (AEMI), and similar (by activity type) small licenses

such as Small Payment Institution (SPI) and Small E-Money Institution (SEMI) Unlike global licenses, they are limited in

terms of turnover of € 3,000,000 per year and limitation in terms of card emission for SEMI: € 5,000,000

License Authorized capital Limitation of turnover per year \ card emission Establishing offices

API € 125 000 Not limited EU

SPI not set € 36 000 000 Licensing country

EMI € 350 000 Not limited EU

SEMI not set € 36 000 000 \ € 5 000 000 Licensing country

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AUTHORIZED ACTIVITIESPayment institution or E-money Institution license gives the right to provide the following services:

Payment account opening and management (natural persons and legal entities)

Bank transfer services on behalf of customers using their payment account

Retail money transfers (remittance)

Issue of financial instruments (including payment bank cards)

Acceptance of card payments, including Internet acquiring

Mobile payments

Overdra� payments

PAYMENT INSTITUTION AND E-MONEY ISSUER LICENSES

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OFFERED JURISDICTIONSMain jurisdictions for registration and licensing of payment companies are:

Subject to the client's needs, it is possible to apply for a license in other EU countries (Netherlands,

Liechtenstein, etc.) but in this case it is necessary to take into account the requirement of jurisdiction for

company directors, availability of country residents among the directors, the cost of legal services and further

ownership of the company.

Another important factor when choosing a jurisdiction is the number of licenses issued by the regulator and

their composition by licensing type (global licenses or turnover-limited licenses).

Great Britain Ireland Czech Republic Lithuania Malta Cyprus


ADVAPAY CONSULTING

Primary consulting, selection of optimal infrastructure, jurisdiction, license type, business model, etc.

Assistance in licensing in some EU and other countries

Development of internal procedures and documents

Arrangement of local office activities, recruitment

We offer "turnkey" payment business in various jurisdictions, including all aspects:

Building a comprehensive IT-solution, including accounting system, mobile and Internet banking systems, AML-control, etc.

Establishing relationships with banks, external payment systems and payment service providers, including card issuers, remitters, etc.

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COMPANY REGISTRATION AND LICENSING STAGES:

Legal entity registrationI.

II. Preparation of a complete package of documents for license application(the list can be supplemented at the request of the regulatory authority):

Application for license

Detailed business plan for the first 3 years with a description of individual activities

Management and development strategy of the company in accordance with the legislation

1. Rules for development of internal company regulations

2. Rules and procedures for the provision of payment services, customer communications rules

Basic documents:

Continuation on the next slide


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3. Rules of payments and segregated account management, clients' funds accounting

4. Compliance/AML — rules and methods of compliance procedures,

communications with governmental and regulatory authorities, protection of personal data, etc.

5. IT-system documentation: compliance of SW with PSD2 requirements.

6. Internal audit rules and procedures

7. Organizational structure of the company, allocation of responsibility and authorities

8. Risk management regulations: risk identification, control methodology, limits, liquidity management, responsible persons

9. Methods of computation and monitoring of capital adequacy

10. Contractual documentation: agreements, general service use conditions, notification forms

NB: Communications with regulatory authority when requesting supplements and specifications in the company licensing process remain with Advapay.


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PAYMENT LICENSES IN HONG KONG AND SINGAPOREIn addition to European jurisdictions, we are now in position to offer such payment licenses as e-money services and stored value facilities (SVF) in Hong Kong and Singapore.Licensing is provided by Hong Kong Monetary Authority (HKMA) and Monetary Authority of Singapore (MAS). We offer full support for licensing in Hong Kong, including the preparation of documents, filing them with the HKMA and interaction with the regulatory authorities until the license is obtained.

Singapore is currently in the process of amending the legislation concerning regulation of financial

company activities, and MAS will soon publish a time frame for these changes. We are now in position to

arrange a preliminary meeting with the regulatory authority and prepare your business for obtainment of

the MAS license.


Advapay offers ready-made licensed companies in various jurisdictions of the European Union.

Advapay as the transaction operator provides a full range of services necessary for sale/purchase of ready-made business, including initial consulting, due diligence, assistance in audit and legal support of the transaction.


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11 SALE OF READY-MADE BUSINESS

ADVANTAGES OF READY-MADE BUSINESS PURCHASE

https://advapay.eu/en/services/ready-business-en

If you are an owner of a payment company

for sale, please contact [email protected]

For our current offers on sale of ready-made business, please reference

Customer base with real flow of payments / income

Advanced infrastructure (correspondent accounts, IPU membership, SEPA / SWIFT, etc.)

Advapay recommends considering purchase of a ready-made licensed business provided that at least one of the following conditions is met:

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IF YOU WOULD LIKE TO SELL A PAYMENT COMPANYWe have a constant demand for ready-made payment companies.We are now in position to consider your offer on company selling.

Advapay expert panel will analyze the company, make an objective evaluationtaking into account the current demand and status of your business.

We will select bidders for the purchase and organize a tender

We will provide transaction services, help to prepare a set of legal documents for approval of the transaction by the regulatory authority

We will help to add on the infrastructure of your company in order to increase its market value, including opening of additional correspondent accounts, IPU membership, so�ware upgrade, etc.


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Adoption of the 5 European AML Directive was the starting point for development of crypto currency regulation in various jurisdictions. The epoch of crypto market erratic development is changed to adoption of relevant legislative framework by some European powers.

The following countries got ahead of others along this avenue: Switzerland, Estonia, Malta, and Gibraltar.

We offer legitimate solutions for crypto-providers and blockchain projects on the basis of the above mentioned jurisdictions.


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14 INFRASTRUCTURE SOLUTIONS FOR CRYPTO PROVIDERS

SWITZERLANDAs efforts to legitimate the crypto currency operations of the company, we suggest registering and licensing the company in Zug canton (Switzerland), which recognizes crypto currencies as a payment facility.

Advantages of this solution:

1. Allocation of crypto and fiat currencies to different companies and jurisdictions will give a free hand in dealing with

correspondent banks.

2. Carrying out the client identification procedure on the side of a Swiss company in accordance with

all AML / KYC procedures will provide additional benefits when opening correspondent accounts.

3. More than 20 companies working with crypto currencies are now certified in this jurisdiction.

4. Swiss law allows for remote identification of customers, which is an advantage when carrying

out onboarding procedures for customers.

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ADVAPAY SERVICES IN SWITZERLANDStep 1: Creation of a Swiss company

Step 2: SRO VQF membership:

• company registration (GmbH / LLC) in Switzerland with cash charter capital and two shareholders

• opening of the company's account in a Swiss Bank (inactive until commencement of company activities)

• registration of company address and office administration

• accounting services

• nominee directors (if required)

• audit report (if required)

The created LLC will have the following object of the company: "Purchase and sale of crypto currency on a

commercial basis and transactions therewith on trading platforms."

According to Swiss law, stock exchanges, multi-user trading platforms operating in the country require permission

from the Swiss Financial Market Supervisory Authority (FINMA). The same regulation applies to the business related

to exchange of crypto currencies.

The usual registration procedure for companies dealing with crypto currencies will take 2-3 months.


ESTONIAProvider of alternative means of payments License

Obtainment of this license in the Estonian Republic is a more budget friendly alternative to registering a company in Switzerland. A company engaged in crypto currency exchange activities should have the following licenses issued by the Financial Intelligence Unit of the Estonian Republic):

Provider of a service of exchanging a virtual currency Agency a fiat currency; Provider of a virtual currency wallet service.

16 INFRASTRUCTURE SOLUTIONS FOR CRYPTO PROVIDERS

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ADVAPAY SERVICES IN ESTONIA1. Registration of a company in Estonia with a minimum capital of € 2,5002. Development of AML/KYC for the company3. Obtainment of two license types in Financial Intelligence Unit4. Selection and rent of the company office5. Assistance in recruitment (minimum MLRO Officer)6. Opening a company account with a partner payment company (API or EMI license)

The average project implementation time is ca. 2 months.

The law of Estonia recognizes the exchange of crypto currency as a legitimate economic activity.According to Decision of the Supreme Court of Estonia No. 3-3-1-75-15 dated April 11, crypto currencies may be sold in Estonia, both in the form of exchange of conventional (fiat) currencies into crypto currencies, and vice versa.Crypto currency exchange is recognized to be an economic activity of a virtual currency exchange service provider.

Legal framework


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PROFESSIONAL INVESTMENT FUNDS (PIF) FOR CRYPTO CURRENCY HANDLING (MALTA)Malta is an innovative, reliable and flexible center in EU for attraction of various financial services, including professional investor funds (PIF), alternative investor funds (AIF). Malta is considered to be one of the best jurisdictions in the area of financial technologies and block chain, which has adopted world legal framework standards for companies using the distributed ledger technologies (TRR) and crypto currency exchange platforms.

PIF allows to control a fund in flexible manner when choosing assets and managing up to EUR 100 million, with the possibility of switching to the AIF, when the amount of managed assets exceeds the threshold value.


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ADVAPAY SERVICES IN MALTA1. Assistance in registration of a Maltese company

2. Preparation of a required complete set of documents

3. Obtainment of a DFI license under MFSA control

4. Office rent

5. Assistance in local staff recruitment

6. Opening an account with a PSP*-partner

The total period of Malta crypto currency fund establishment is ca. 6 months

ADVANTAGES OF PIF/AIF• Company structure option• New advantage: Investment in crypto currencies with regulated frameworks• Freedom of foreign administrator use• No restrictions on investments / fund raising• Rules and documentation in English


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Canopus Innovative Technology is a partner of Advapay; it delivers and implements comprehensive IT solution for licensed payment companies, including hosting solution, Canopus EpaySuite payment platform, as well as solutions of our partners: payment gates for Internet acquiring, issue of payment cards, remote identification of customers, information security systems, etc.


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IT SOLUTION FOR PSP - CANOPUS EPAYSUITE21

FEAT

URE

SET

SOFTWARE FOR PAYMENT SERVICE

PROVIDERS AND ACQUIRING BANKS

CLIENT REGISTRATION

REMITTANCE

PAYMENTS

ADDING FUNDS VIA WITHDRAWALS VIA

ISSUE OF PAYMENT PRODUCTS

MOBILE AND INTERNET-BASEDPAYMENTS

ACCEPTANCE OF PAYMENT PRODUCTS

• AML/KYC procedures• identification, document authentication• client profiling• payment account opening

• retail money transfersvia external money remitters •

(Unistream, Contact, etc.)

• same-client transferssame-system transfers• recurrent (periodic) payments• bank remittance (SWIFT/SEPA)• NOSTRO-transfers• mass pay outs•

• bank remittance (SWIFT/SEPA)• money remitters• e-wallets• credit / prepaid cards• payment terminals• own electronic cheques (vouchers)

• bank remittance (SWIFT/SEPA)• money remitters• e-wallets• credit / prepaid cards• payment terminals

• co-branding cards• virtual cards• own electronic cheques (vouchers)• own card programs

• Internet-banking• mobile banking• native applications for Android and iOS systems

• Internet acquiring

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PLAT

FORM

A

RCH

ITEC

TURE

Black lists

Crypto Providers

Agents MerchantsPOS-terminals

Rates

Card providers

SMS providers

E-Commerce

SWIFT

ForExproviders

Banks & PSP

Accounts Tariffs Reporting

Money tranfer systems

Payment gates & systems

Gates to external systems

Database interface

SOAP

API

(inc

ludi

ng A

gent

API

)Ra

tes &

oth

er d

ata

in re

al ti

me

Adm

in A

ppOp

erat

or A

ppM

erch

ant A

PI

Web

Bank

App

Mob

ile A

ppAg

ent W

eb A

ppWorkflow

CORE

Workflow engine

Types of documents(Meta-data)

Scenarios(Business processes)

Clients Balances Limits

AMLRates Posting


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COMPLIANCE WITHPSD 2

CANOPUS EpaySuite is in full compliance with RTS (Regulatory Technical Standards) of the new pan European PSD 2 (Payment Service Directive):

SCA (Strong Customer Authentication): using at least two factor secure authentication of the clients (OWASP, HTTPS, multi factor security)

Real time fraud detection and prevention: we implemented real time transaction monitoring and risk scoring

Secure processing and storage of sensitive payment data: sensitive data encryption with FIPS, NIST

Compliant with secure transactional data exchange and maintenance standard ISO20022

Open API for secure transaction data exchange with external service providers


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ADVANTAGES OF EPAYSUITE Open architecture. Quick and seamless integration with external payment systems and providers

Powerful system of business processes design, tariffs and notifications

Multi-currency payment accounts

Powerful report design and generation system

Compliance with all significant financial and banking (ISO 8583, ISO 20022, RTS/PSD 2, IFRS etc.)

Numerous ready for use integrations and gateways

Quick system deployment

Built in AML and KYC modules, agile transaction monitoring and risk scoring tools

Modern and user friendly interface

Cryptocurrency transactions support


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SECURITYCANOPUS EpaySuite complies with the highest IT systems security requirements, including PSD2 RTS и ISO27000. We use the most advanced public and private keys and token applications from Thales E-security,hardware and so�ware token generators using FIPS/NIST encryption protocols

How does it work?


101011

THALES nShield Edge, smart-card with the security keys Computer SmartPhone/Tabet POS

terminal

Key management system on the basis of THALES HSM nShield module

MS SQL data encryption

Systemdatabase

Security system remote management mechanism using

THALES nShield Edge and smart-card with the security key

Safe access of the client's mobile and web-applications through the secure channel

Transactions authentication system using safe SIGN technology

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COMPOSITION OF CANOPUS EPAY SUITE MODULES:

System Core

AML

Internet Bank

Crypto Currency

Payment Cards

Internet-Acquiring Module

Remittance

Mobile Banking application (IOS and Android)

Overdra�s

Token


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OUR CUSTOMERS


[email protected]

THANKS FOR ATTENTION

+7 495 984-96-82127051, Moscow, Lihov str., 3 building 2

MOSCOW

TALLINN+372 635-51-087B, Narva maantee, Tallinn, Estonia, 10117

ADVAPAY PAYMENT SOLUTIONS · 5. IT-system documentation: compliance of SW with PSD2 requirements....

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