29 May 2019
On 10 April 2019, the Monetary Authority of Singapore (“MAS”) released a consultation paper on “Proposed Payment Services Regulations” (“Consultation Paper”). The Payment Services Act 2019 (“PS Act”) was gazetted on 20 February 2019, but has yet to come into effect.
Under the PS Act, MAS will regulate significant payment systems and the provision of payment services in Singapore. The PS Act provides for the licensing and regulation of payment service providers and the oversight of payment systems. Payment services will be streamlined through the combination of the Payment Systems (Oversight) Act (“PS(O)A”) and the Money-Changing and Remittance Businesses Act (“MCRBA”) in the PS Act. The PS(O)A and the MCRBA will be repealed when the PS Act comes into force.
The Consultation Paper states that the Payment Services Regulations (“PS Regulations”) are intended to be the main regulations for licensees and other regulated persons under the PS Act. The PS Regulations will include control of provision of payment services, financial requirements and business conduct requirements that will apply to licensees where relevant.
The PS Act sets out three classes of licences:
- Money-changing licensee: Money-changing licensees can provide only money-changing services. They will continue to be regulated under the PS Act in largely the same way as they are under the MCRBA.
- Standard payment institution: Standard payment institutions may provide any combination of the seven defined payment services, but below specified transaction flow or e-money float thresholds.
- Major payment institution: Major payment institutions can go above the specified thresholds. As the scale of their operations would pose more risk, they will be subject to more regulation.
Standard payment institutions and major payment institutions are required to meet initial and ongoing financial requirements.
In addition to the PS Regulations, MAS proposes to issue the Payment Services (Exemptions for a Limited Period of Time) Regulations, the Payment Services (Singapore Dollar Cheque Clearing System and Inter-Bank GIRO System) Regulations and the Payment Services (Designated Payment Systems) Order.
The consultation closed on 10 May 2019.
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