Ambracer helps clients in the FINTECH Industry in Singapore to obtain Singapore Payment Institution Licenses

MAS introduces the new Singapore Payment Institution License

Businesses are now required to apply Singapore Payment Institution License in order to carry out certain payment services. On 28 January 2020, Monetary Authority of Singapore (MAS) announced the introduction of Singapore Payment Services Act with the aim of enhancing regulatory framework for payment services in Singapore. The Monetary Authority of Singapore (MAS) introduced the new Singapore Payment Institution License as part of the Payment Services Act 2019 (PS Act). The PS Act unifies and streamlines the regulatory requirements for various payment services provided in Singapore, including electronic payments and cryptocurrency dealing andexchange services. The main goal is to promote higher confidence in overall use of electronic payments while protecting the safety ofconsumers. There are currently two types of Singapore Payment Institution Licenses: Standard Payment Institution License and Major PaymentInstitution License. In the past, Singapore companies can conduct Stored Value Facility (SVF) and money remittance businesses while being license exempt.With the new regulations, it is mandatory for payment services businesses to attain the Payment Institution License. Existing SingaporeSVF companies or money remittance companies will be able to apply for a one-year grace period from MAS to meet the additionalrequirements. Failure to comply with the above will result in the individual being subject to a fine not exceeding SG$125,000 or imprisonment notexceeding 3 years or both.

New guidelines to be issued by Monetary Authority of Singapore

PSNO1: Notice to payment services providers (specified payment services) on prevention of money laundering and countering thefinancing of terrorism

PSNO1A: Notice on AML/CFT requirements to facilitate transition of existing stored value facility holders

PSN02: Notice to payment services providers (digital payment token service) on prevention of money laundering and countering the financing of terrorism

PSN03: Notice on reporting of suspicious activities and incidents of fraud

PSN04: Notice on submission of regulatory returns

PSN04A: Notice on submission of statement of transactions and profit/loss

PSN05: Notice on technology risk management

PSN06: Notice on cyber hygiene

PSN07: Notice on conduct

PSN08: Notice on disclosures and communications

PSN09: Notice on administrative matters

FSG-G01: Guidelines on fit and proper criteria

Business activities allowed

Under the Singapore Payment Services Act, your business is required to secure Payment Institution License in order to provide paymentservices below. In Singapore, the Standard Payment Institution License is the most common and has fewer mandatory requirements ascompared to the Major Payment Institution License