Starting a FinTech or a crypto company comes with a set of requirements. One of the main requirements is setting up local operations with local personnel.
This means that you’ll need to hire people in a country where you don’t know practically anyone, assuming you’re not Estonian nor have any prior ties to Estonia. While it’s always challenging, it’s possible to find good people to include to your team.
For this purpose, we’ve included recruiting services for FinTechs and crypto companies to the FinTech Launchpad.
The standard requirement for the most financial services is to have a local board member in the country where the license is obtained. And just a nominee director is not sufficient in Estonia (or in most other Member States), as nominee directors aren’t really allowed by the law. The goal of this requirement is to have the actual company management in the country.
We always recommend hiring real people who can contribute to the business, because you’ll need to pay them anyway. No one is willing to be on the company board and take the liability for the company actions without compensation. And if you’re going to pay a salary, why not have someone who can actually contribute and be useful? You can read our article about tax risk for board members if you are thinking about outsourcing the function to a third-party company.
There are examples of companies who advise installing a person on the board for less money than the average salary, but these companies propose the same person for 20 different companies, which ends up hurting the legitimacy of the whole license application.
Another standard required position is to have an AML officer in Estonia. AML or the compliance officer is the contact person for the Estonian FIU (Financial Intelligence Unit). The FIU is the institution which monitors the market for any money-laundry threats and signs. We’ve been creating a database of qualified AML/compliance officers to fulfil that requirement.
Recruiting is a crucial part of the licensing process. Without legitimate people and strong team it’s impossible to obtain some financial licenses, like E-Money Institution license or fund manager licenses.
It’s understandable, as companies operating with these licenses are handling or processing money of the consumers. And protecting the consumers is the number one task of the authorities issuing the licenses. If the team doesn’t have experience, education or a good plan how they are going to provide the services, the authorities are going to make it very difficult to succeed with the license applications.
If you are planning to obtain any financial licenses and need recruiting services for AML officers or managers of the company, don’t hesitate to get in touch with us at [email protected]