1. 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, 新加坡金融管理局 (MAS) announced the introduction of Singapore Payment Services Act with the aim of enhancing regulatory framework for payment services in Singapore. The main goal is to promote higher confidence in overall use of electronic payments while protecting the safety of consumers.
There are currently two types of Singapore Payment Institution Licenses: Standard Payment Institution License and Major Payment Institution 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 Singapore SVF companies or money remittance companies will be able to apply for a one-year grace period from MAS to meet the additional requirements.
Failure to comply with the above will result in the individual being subject to a fine not exceeding SG$125,000 or imprisonment not exceeding 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 the financing of
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
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
2. Business activities allowed
Under the Singapore Payment Services Act, your business is required to secure Payment Institution License in order to provide payment services below. In Singapore, the Standard Payment Institution License is the most common and has less mandatory requirements as compared to the Major Payment Institution License.
What types of payment services are included in the new Singapore Payment License?
Account issuance service: Payment services that issue payment accounts to users. Some examples include e-wallets or a credit card that is not issued by banks.
Domestic money transfer service: Payment services that allow users to conduct money remittance locally. Some examples include payment gateway services and payment kiosks.
Cross-border money transfer service: Payment services that allow users to conduct international money remittance in and out of Singapore.
Merchant acquisition service: Payment services which allows users to accept and process payments for merchants. Some examples include point-of-sale terminals or online payment gateways.
E-money issuance service: Payment services which allows users to make payments to merchants or transfer funds to other individuals.
Digital payment token services: Payment services which allows users to buy or sell cryptocurrencies. This includes cryptocurrency wallets and cryptocurrency exchanges.
Money-changing service: Payment providers that allow users to physically exchange currency notes. This includes money changers in Singapore.
- 任何支付服务（电子货币账户发行和货币兑换服务除外）的每月交易额为 300 万新元。
- 两项或多项支付服务（电子货币账户发行和货币兑换服务除外）的每月交易额为 600 万新元。
- 每日 500 万新元的未偿电子货币
Do note that MAS will require applicants to describe the monitoring measures that will be taken to ensure your business does not exceed these thresholds.
- If your business exceeds the above-mentioned threshold, you will be required to apply for a Major Payment Institution License. By applying for a 主要支付机构牌照, your business will be subject to additional requirements. It is mandatory for Major Payment Institutions to maintain a security deposit with the Monetary Authority of Singapore.
- If the monthly average of payment transactions for any one payment service does not exceed S$6 million, the security deposit will be S$100,000. If your business exceeds this threshold, the security deposit will be increased to S$200,000. Applicants can choose to maintain the security deposit as a cash deposit with MAS or as a bank guarantee.
- Holders of Major Payment Institution License are subject to safeguarding of funds. This can take the form of undertaking/ guarantee or trust account.
3. Mandatory requirements of Singapore Payment Institution License
For both Payment Institution Licenses, you are required to meet the following requirements:
- The application must be submitted by a company registered in Singapore or a foreign branch registered in Singapore. See this 此网页 on the steps required to establish a Singapore company within 1 week.
- The minimum paid-up capital for Standard Payment Institution License is S$100,000 while that of Major Payment Institution License is S$250,000. This is also known as the base capital.
- 至少 1 名新加坡公民或新加坡永久居民的非执行董事和至少 1 名持有新加坡就业准证的执行董事。
- Appoint external auditor annually to carry out an audit of the transactions in relation to the payment services and submit the audited report to MAS.
- You are also required to prepare an array of corporate documents prior to license application submission. Some of these documents include AML/CFT policies and procedures, technology risk management policies, cyber hygiene procedures and cyber security protocols.
4. Admission criteria
新加坡金融管理局 (MAS) 表示，他们将在评估标准支付机构牌照的颁发时考虑以下标准。
- 能够遵守 PS 法案规定的义务，包括合规、技术风险管理和审计安排。
How to apply for Singapore Payment Institution License?
Tetra Consultants expects to register your Singapore company, open local corporate bank account and secure Standard Payment Institution License within 4 months. 现在联系我们 to find out more about how to secure Singapore Standard Payment Institution License.