Electronic Money Institution License in Brazil

Opening and maintaining digital accounts/wallets for end-users (consumers or merchants)

Launching prepaid credit/debit cards or digital tokens backed by pre-deposited funds

Facilitating transfers, billing, deposits, cash-in, and cash-out services

Linking directly into the Pix instant payment network and the wider Brazilian Payment System (SPB)

Limitations: An EMI cannot extend credit lines or loans using client deposits, nor can they accrue interest on user balances

The entity must be incorporated in Brazil, typically structured as a Sociedade Anônima (S.A.) or an authorized Sociedade Limitada (Ltda.)

A minimum corporate capital requirement of BRL 2,000,000 must be fully paid-in and maintained as net worth

Client funds must be segregated from the institution's operational assets and allocated exclusively to safe liquid assets (such as federal government bonds or deposits at the Central Bank) to protect consumers from bankruptcy

If foreign shareholders own the entity, a permanent, legally designated representative residing in Brazil must be appointed to handle governmental and administrative procedures.

The company must designate qualified Executive Directors who are responsible for general business oversight and financial performance.

Separate dedicated positions must be filled for a Compliance Officer, a Cybersecurity/IT Officer, and an Anti-Money Laundering (AML) Reporting Officer. All leaders must pass extensive background, professional, and reputation checks by the BCB

Robust, documented compliance mechanisms aligned with Federal Statutes 9,613/1998 and 13,260/2016 for Know Your Customer (KYC) onboarding, transaction monitoring, and reporting suspicious behavior

Implementation of highly secure, resilient IT frameworks that comply with BCB Rule #80. Data handling procedures must also remain strictly compliant with Brazil's General Data Protection Law (LGPD)

A formalized governance policy reviewed biennially and documented clearly for auditing

An independent customer resolution or ombudsman framework must be implemented to manage client conflicts directly

The license primarily authorizes operations throughout the entire federal territory of Brazil

Licensed EMIs can execute cross-border transactions and basic currency exchanges (e.g., eFX solutions) under secondary BCB authorizations, though they remain bound to local remittance caps and reporting requirements

Standard corporate income taxes apply via the Lucro Real method, combining Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL), averaging an effective rate close to 34%

Sector-specific social integration and social security turnover taxes are levied at varying cumulative rates based on the exact revenue structure

Cross-border conversions or foreign exchange operations handled by the EMI for its clients trigger the standard IOF tax, which fluctuates depending on the financial product type

The primary account type offered to clients. They act as "transactional wallets" where users store balances to execute instant payments, debit operations, or Pix transfers

Separate commercial accounts held at commercial banks to handle corporate expenses

Dedicated custody or clearing accounts maintained either with the Central Bank or a top-tier clearing bank to house segregated client money