TransferWise Australia secures limited ADI licence from APRA
The Australian Prudential Regulation Authority (APRA) today announces that it has granted TransferWise Australia Pty Limited a licence to provide purchased payment facilities, as a limited authorised deposit-taking institution (ADI) under the Banking Act 1959.
The banking business that the body corporate (that is, TransferWise Australia) is authorised to carry on is limited to providing purchased payment facilities.
The body corporate must at all times, hold Tier 1 Capital in the greater of the following two amounts:
- (a) $3 million; or
- (b) 5% of total outstanding stored value liabilities.
Finally, the body corporate must not pay interest on amounts held for the benefit of its customers.
TransferWise Australia Pty Ltd holds an Australian Financial Services licence number 513764 issued by the Australian Securities and Investments Commission (ASIC). The company also holds an authorised deposit-taking institution licence as a Provider of Purchased Payment Facility (“PPF”) granted by APRA.
TransferWise is part of the TransferWise Ltd group. TransferWise Ltd is registered in the United Kingdom and holds an Electronic Money Institution (EMI) licence issued by the UK Financial Conduct Authority.
TransferWise is authorised to:
- deal in and provide general financial product advice on non-cash payment products and foreign exchange contracts; and
- make a market for foreign exchange contracts; for retail and wholesale clients.
The financial products the company can provide to customers include a TransferWise debit card and facilities to send money and contracts to exchange one currency for another.