The Payment Services (Amendment) Act 2021, which amended the Payment Services Act 2019 (PS Act) to expand the scope of regulated payment services, takes effect on 4 April 2024.
Accordingly, the following payment services are now regulated under the PS Act:
| Domestic Money Transfer Service |
Accepting money for transfer from a payer to a payee, both of whom are in Singapore and either of whom is a financial institution |
| Cross-border Money Transfer Service |
Facilitating cross-border money transfers in different countries, regardless of whether money is accepted or received in Singapore |
| Digital Payment Token Service |
- Transferring, or arranging the transfer of, DPTs between two accounts, regardless of the location of either account.
- Safeguarding and carrying out instructions regarding DPTs controlled by the service provider (for example, custodian wallet services)
- Facilitating the exchange of DPTs without possession of moneys or DPTs by the service provider
- Brokering DPT transactions
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A person that wishes to continue conducting any of these newly regulated businesses but does not have a licence to do so (Unlicensed Person) must:
- by 4 May 2024, notify MAS of the date on which it commenced such business, unless it is operating under a temporary licence exemption because it has a pending PS Act licence application with MAS for that business;
- by 4 October 2024, apply to MAS fora PS Act licence for that business; and
- by 4 January 2025, submit to MAS an attestation report from a qualifying auditor, reporting on the Unlicensed Person’s business and compliance with anti-money laundering and countering the financing of terrorism requirements.
Conclusion
Previously unregulated companies affected by the expanded scope of the PS Act should take note of the relevant deadlines for transitional arrangements and prepare to comply with the PS Act.
For More Information
OrionW regularly advises clients on the PS Act and fintech matters. For more information about the PS Act and fintech regulatory compliance, or if you have questions about this article, please contact us at fintech@orionw.com.
Disclaimer: This article is for general information only and does not constitute legal advice.
