30 October 2018
On 28 September 2018, the Monetary Authority of Singapore (“MAS”) released the E-Payments User Protection Guidelines (“Guidelines”). The Guidelines will take effect on 31 January 2019.
The Guidelines aim to establish a common baseline of protection offered by responsible financial institutions (“FI”) to individuals or sole proprietors from losses arising from isolated unauthorised transactions or erroneous transactions from the account holders’ protected accounts. The Guidelines set out the expectations of the MAS of any FI that issues or operates a protected account, including the duties of users of protected accounts.
A “responsible FI” in relation to any protected account, means any bank, non-bank credit card issuer, finance company or approved holder that issued the protected account. A “protected account” means any payment account that is held in the name of one or more persons, all of whom are either individuals or sole proprietors; is capable of having a balance of more than S$500 (or equivalent amount expressed in any other currency) at any one time, or is a credit facility, and is capable of being used for electronic payment transactions.
Briefly, from 31 January 2019 an FI must:
- Inform every account holder of a protected account of the protection duties set down for account holders pursuant to the Guidelines.
- Provide an account user with the opportunity to confirm payment transactions, including recipient credentials, on-screen where the transaction is being authorised via internet banking, mobile phone application or other such device, prior to the FI executing the payment transaction.
- Provide account holders of protected accounts with a reporting channel for the purposes of reporting unauthorised or erroneous transactions.