MAS issues FAQs relating to Payment Services Act
30 October 2019
On 4 October 2019, the Monetary Authority of Singapore (“MAS”) issued “Frequently Asked Questions on the Payment Services Act” (“FAQs”). The FAQs provide guidance on the licensing and regulation of payment service providers, the oversight of payment systems, and connected matters under the new Payment Services Act 2019 (“PS Act”). The PS Act is targeted to commence in January 2020.
Some of the key issues which the FAQs address include:
- Implementation of new regulatory framework: The rationale for the introduction of a new payment services regulatory framework and the expected implementation timeline of the new framework;
- Designation framework: The type of payment systems which will be designated under the PS Act, and whether an entity can be regulated under both the designation framework and the licensing framework;
- Licensing framework and licensing activities: The types of payment services which will be regulated under the licensing framework;
- Regulatory risk: Issues relating to the following risk mitigating measures - (1) anti-money laundering and countering the financing of terrorism (AML/CFT), (2) user protection, (3) fragmentation and interoperability, and (4) technology and cyber risk management; and
- Activity restrictions: The types of activities which licensees are prohibited from engaging in.
The following materials are available on the MAS website www.mas.gov.sg:
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