18 April 2024

On 2 April 2024, regulatory instruments relating to the Payment Services Act 2019 (“PS Act”) to expand the scope of payment services regulated by the Monetary Authority of Singapore (“MAS”), amend ongoing compliance requirements, and impose user protection and financial stability-related requirements on digital payment token (“DPT”) service providers were published. These amendments, implemented by way of the Payment Services (Amendment) Act 2021 (“Amendment Act”), subsidiary legislation, and notices, take effect in stages from 4 April 2024.


On 23 December 2019, MAS proposed to make amendments relating to anti-money laundering and countering the financing of terrorism (“AML/CFT”), amendments in respect of DPT services, and certain technical amendments, in the PS Act. The Amendment Act was gazetted in 2021 and on 8 May 2023, MAS published a consultation paper seeking feedback on the proposed regulations and notices to operationalise amendments introduced by the Amendment Act. This was followed by another consultation paper published on 3 July 2023 in which MAS proposed amendments to the Payment Services Regulations 2019 to implement key segregation and custody requirements for DPT services under the PS Act. On 2 April 2024, MAS published its responses to feedback received from the 8 May 2023 and 3 July 2023 consultation papers.

Expansion of scope of regulated payment services

The scope of regulated activities has been expanded to include the following:

Previously unregulated payment service


Previously unregulated domestic money transfer service

The service of accepting money for the purpose of executing or arranging for the execution of, any of the payment transactions, each of which is between a payer in Singapore and a payee in Singapore, in any case where either the payer or the payee is a financial institution:

  • a payment transaction executed from, by way of or through a payment account;
  • a direct debit (including a one‑off direct debit) through a payment account;
  • a credit transfer (including a standing order) through a payment account;
  • accepting any money from any person for transfer to the payment account of a different person.

Previously unregulated cross-border money transfer service

Any service of arranging for the transmission of money from any country or territory to another country or territory, whether as principal or agent.

Previously unregulated DPT service

Any service of:

  • accepting (whether as principal or agent) DPTs from one DPT account (whether in Singapore or elsewhere), for the purposes of transmitting, or arranging for the transmission of, the DPTs to another DPT account (whether in Singapore or elsewhere);
  • arranging (whether as principal or agent) for the transmission of DPTs from one DPT account (whether in Singapore or elsewhere) to another DPT account (whether in Singapore or elsewhere);
  • inducing or attempting to induce any person to enter into or to offer to enter into any agreement for or with a view to buying or selling any DPT in exchange for any money or any other DPT (whether of the same or a different type);
  • safeguarding a DPT or DPT instrument, where the service provider has control over the DPT or one or more DPTs associated with the DPT instrument; or
  • carrying out for a customer an instruction relating to a DPT or one or more DPTs associated with a DPT instrument, where the service provider has control over the DPT or the DPT instrument.

Following feedback, the transitional arrangements provided for entities currently conducting activities under the PS Act’s expanded scope will be staggered. Such entities must notify MAS within 30 days, and submit a licence application within six months from 4 April 2024, if they wish to continue the activities on a temporary basis while MAS reviews their licence applications. The licence application must be accompanied by an attestation report of the entity’s business activities and compliance with AML/CFT requirements, duly completed by a qualified external auditor, within nine months from 4 April 2024.

Entities that do not fulfil the requirements above are required to cease the activities when the amendments come into effect.

Amendment of ongoing compliance obligations

Revised scope of application of PSN01 and PSN02

Effective 4 April 2024, the existing AML/CFT requirements in PSN01 (Prevention of Money Laundering and Countering the Financing of Terrorism - Specified Payment Services) and PSN02 (Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism - Digital Payment Token Service) have been revised to apply to all newly scoped-in payment services.

With the general support from the feedback received, MAS will implement the “group policy” requirements which are also currently imposed on other financial institutions, and are in line with the enhanced standards adopted by the Financial Action Task Force. Accordingly, the guidelines to PSN01 and PSN02 will be updated in due course, setting out the supervisory expectations on the implementation of the “group policy”.

Extension of data collection requirements in PSN04

Following feedback, MAS will delay the effective date of the revised PSN04 (Notice on Submission of Regulatory Returns), from the consulted six months from the commencement date of the Amendment Act, to begin on 1 January 2025 instead. This means that entities that are licensed prior to 1 January 2025 will continue to submit the existing forms set out in PSN04. From 1 January 2025, all licensed entities will be required to submit the amended forms accordingly.

Updates to requirements in PSN07 and PSN08

MAS had sought comments on the proposed amendments to PSN07 (Notice on Conduct) and PSN08 (Notice on Disclosures and Communications), including on the money transmission requirement to accord more flexibility to licensees dealing with corporate customers, and proposed enhancements to the risk disclosure statements under PSN08 to better inform customers of the unregulated status of certain services provided by licensed DPT service providers.

Following feedback, MAS will accommodate more flexibility for a broader range of customers who were businesses to contractually determine the money transmission timelines. As the policy intent behind the transmission timelines was to set baseline service conduct standards to cater for customers who were transacting as private individuals (rather than in the course of business), MAS will expand the scope beyond corporate customers, to include sole proprietors.

Following feedback, MAS has also amended PSN07 to specifically cover the business model of merchant acquirers.

MAS has also clarified that PSN08 applies to all customers, including accredited and institutional investors.

The revised PSN07 takes effect on 4 October 2024, while the revised PSN08 took effect on 4 April 2024.

Implementation of DPT consumer protection measures

The amendments to the Payment Services Regulations 2019 on safeguarding of assets belonging to customers of DPT service providers will take effect on 4 October 2024. These measures include segregating customers’ assets and placing them in a trust account for the benefit of customers, maintaining proper books and records, and ensuring that effective systems and controls are in place to protect the integrity and security of customers’ assets. MAS has also published the Guidelines on Consumer Protection Measures by DPT Service Providers (PS-G03).

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

The following materials are available on Singapore Statutes Online sso.agc.gov.sg: