The Monetary Authority of Singapore (“MAS”) has issued the Guidelines on Licensing for Payment Service Providers (“Guidelines”) and specimen forms in relation to the Payment Services Act 2019 (“PS Act”). The PS Act, which will come into force on 28 January 2020, provides a new framework for the regulation of payment systems and payment service providers in Singapore.
Guidelines on Licensing for Payment Service Providers
The Guidelines provide guidance on the licensing criteria and ongoing requirements for payment service providers under the PS Act. They should be read in conjunction with the PS Act, the Payment Services Regulations (“PSR”) and other relevant legislation, notices, guidelines and FAQs issued by MAS.
Licences under PS Act
Under the PS Act, any person that conducts payment services is required to hold a licence unless that person is exempted from doing so. The PS Act recognises seven types of payment services.
The PS Act provides for three classes of licences whose regulatory requirements differ according to the risks posed by the scope and scale of services which the licensee provides. An applicant should:
The Guidelines provide information on what licensees must do if they intend to add or remove any payment service, or change their licence type.
An applicant must fulfil stipulated criteria and demonstrate how it will be able to comply with its obligations under the PS Act. The Guidelines provide information on the admission criteria, including the following:
The Guidelines also set out some of the applicable notices and guidelines concerning ongoing requirements for licensees in relation to matters such as anti-money laundering and countering the financing of terrorism, periodic regulatory returns, cyber hygiene, business conduct, disclosures and communications, and annual audit.
Specimen forms
MAS has also released the following specimen forms:
It should be noted that these forms are currently specimens only. The link to the online forms will be made available on the relevant MAS webpages on 28 January 2020. Notifications and applications will only be accepted via the online form after the PS Act commences on 28 January 2020.
Reference materials
The following materials are available on the MAS website www.mas.gov.sg: