What is a Small Payment Institution (SPI)?

A Small Payment Institution (SPI) is a type of payment services provider with lower transaction volume and simpler regulatory obligations than larger payment institutions. SPIs still must comply with licensing, AML/CTF, reporting and risk management requirements.

What licensing or registration is required for SPIs?

SPIs typically need to register or obtain authorisation from relevant financial regulators, depending on jurisdiction, and provide documentation that demonstrates compliance with customer due diligence, capital, governance, and risk control requirements.

How do AML/CTF obligations apply to SPIs?

SPIs must implement policies, procedures and controls for anti-money laundering and counter-terrorist financing, including customer due diligence, transaction monitoring, reporting of suspicious activity, and record-keeping.

What kinds of risk assessments are needed for SPI compliance?

Risk assessments for SPIs include evaluating customer risk, geographic risk, transaction types, frequency and amounts, and identifying any areas where regulatory or reputational risk might be higher.

Do SPIs have regulatory reporting obligations?

Yes. SPIs must frequently report to regulatory authorities in their jurisdiction. These reports may include transaction volumes, suspicious activity reports, regulatory returns and other metrics required by the regulator.

How do internal controls and oversight work for SPIs?

Internal controls for SPIs involve establishing clear governance, compliance oversight roles, audit and monitoring procedures, separation of duties, and reviews to ensure policies are adhered to.

Is compliance training required for SPI staff?

Yes. Staff involved in regulated activities should receive training on applicable regulations, AML/CTF practices, risk controls, customer due diligence, and internal compliance policies.

How often should SPIs review regulatory changes or updates?

SPI compliance frameworks should be reviewed regularly — e.g. annually or whenever there are major regulatory changes — to ensure continued compliance with evolving laws and standards.

What are the risks of non-compliance for SPIs?

Non-compliance can result in regulatory fines, loss of registration or licence, legal sanctions, reputational damage, and increased scrutiny from authorities.

How can ABM Global Compliance support small payment institutions?

We assist SPIs with registration/licensing, AML/CTF framework development, risk assessment, reporting, training, internal control setup, and ongoing advisory to maintain compliance.

SPI Compliance Services | Small Payment Institution Regulation

Overview

Small Payment Institutions (SPIs) offer businesses an efficient route into the UK’s regulated payment services sector. With simplified authorization requirements under the Financial Conduct Authority (FCA), SPIs are ideal for firms that want to provide payment services without the full regulatory burden of an Authorized Payment Institution (API).

At ABM Global, we guide you through every stage of SPI registration and compliance, ensuring your business is structured to meet FCA expectations while operating within SPI thresholds. Our tailored approach helps you reduce time-to-market, manage compliance costs, and position your business for growth.

ABM at Your Service – Redefining Business Support

Our key service areas for SPIs are:

Business Model Development
HMRC MSB Registration Support
FCA Authorisation – Application Drafting & Submission
AML/CFT Policies & Procedures Development
Transaction Monitoring & Risk Assessment Frameworks
Ongoing Compliance Support
Regulatory Reporting & Filing
Specialized Training
Audit & Assurance Services