Singapore – MAS Publishes Guidelines On Licensing For Payment Service Providers.

Soon after the Monetary Authority of Singapore (MAS) announced that the Payment Services Act 2019 (PS Act) will commence on 28 January 2020 (Commencement Date), MAS has now published the Guidelines on Licensing for Payment Service Providers (Guidelines), as well as certain specimen notification and application forms. The Guidelines set out the eligibility criteria and application procedures for payment service providers under the PS Act and will take effect on the Commencement Date.

 

Summary of the Guidelines

 

We provide a brief summary of guidance provided on the licensing criteria and ongoing requirements for payment service providers:

 

Licences under the Payment Services Act: unless exempted, any person that conducts payment services as defined in the First Schedule to the PS Act is required to hold an appropriate licence, as follows:

 

•   a money-changing licence (to carry out money-changing service only);

•   a Standard Payment Institution licence, where payment services are conducted below the specified thresholds1; or

•   a Major Payment Institution licence, where payment services are conducted in excess of the specified thresholds.

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Admission Criteria: an applicant must fulfil specific licensing criteria, including governance and ownership requirements, competency requirements, having a permanent place of business, base capital and security requirements – and must demonstrate how it will be able to comply with its obligations under the PS Act as a licensee.

 

Ongoing Requirements for Licensees: a licensee must ensure ongoing compliance with all applicable requirements set out under the PS Act and other relevant legislation, such as:

 adopting anti-money laundering and countering the financing of terrorism requirements;