DIFC Category 3D License – Providing or Operating a Payment Account, Executing Payment Transactions, or Issuing Payment Instruments
An Authorised Firm in this category may be licensed to carry out one or more Financial Services related to providing money services. This includes operating payment accounts, executing payment transactions, and issuing payment instruments. This encompasses the creation and maintenance of accounts for payment transactions, issuance of personalized procedures agreed upon by users and the provider, and the initiation or execution of payment instructions. Firms holding a 3D license can also offer Financial Services in Category 4 but are restricted from providing Financial Services in Categories 1, 2, 3A, 3B, 3C, or 5.
Base Capital: US$ 200,000
Expenditure-Based Capital Requirement: 9/52 of annual operating expenditure
Capital Plan: Must be included in the Internal Capital Adequacy Assessment Process (ICAAP) Report.
Note: Additional capital requirements may be imposed by the DFSA upon review of the application.
DIFC Category 3D License – Licensing Process
To obtain a DIFC Category 3D License, an applicant must submit a comprehensive application to the DIFC’s regulatory body, the DFSA. The DFSA will evaluate the merits and suitability of the applicant and the proposed license category.
The Application Process:
Initial Review: The DFSA will conduct an informal review of a draft Regulatory Business Plan and projected financials. If satisfied, the DFSA will permit submission of a formal application, which must include the finalized Regulatory Business Plan.
MVG Dubai Office Services:
AUT – CORE: Provides information on the applicant, its activities, prospective clients, and controllers
AUT – IND: For individuals holding mandatory functions such as directors, senior executive officer, finance officer, compliance officer, and money laundering reporting officer
AUT-AMS: For applicants seeking to conduct financial services related to arranging credit or investment deals
Introduction to the Regulator
Drafting of Regulatory Business Plan (RBP) including Application Forms, Business Flow Processes & Charts
Preparation of a 3-Year Financial Model and drafts of ICAAP and IRAP reports
Development of Policies and Manuals (Compliance, AML, Risk Management, Remuneration, Governance, Conflicts of Interest, Business Continuity Plan)
Completion of required forms:
Submission of Application:
SEO: Senior Executive Officer
FO: Finance Officer
RO: Risk Officer
MLRO: Money Laundering Reporting Officer
CO: Compliance Officer
Draft and submission of the regulatory application for the company and individuals
Provision of full-time functions including:
Office lease arrangements
Introduction to a UAE bank for account opening
Issuance of the Regulator’s financial services license
Review and Approval:
Incorporation or registration of the entity with the DIFC Registrar of Companies
Opening of a local bank account and proof of capital remittance
Evidence of office space from which financial activities will be conducted
The DFSA will review the application and engage in ongoing dialogue with the applicant, which may include interviews with the nominated authorized individuals.
If the DFSA is satisfied, it will issue an In-Principle approval with conditions to be met before granting the final license. These conditions include:
Upon fulfilling these conditions, the DFSA will issue the formal license.
The MVG Dubai office's expertise in navigating the DIFC licensing process ensures a smooth and efficient experience for clients. Our dedicated team offers comprehensive support and guidance, leveraging deep regulatory knowledge to facilitate your successful entry into the DIFC financial market.