The Monetary Authority of Singapore (MAS) announced the commencement of the Payment Services Act (PS Act). The new PS Act will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.
The PS Act adopts an activity-based licensing framework in recognition of the different kinds of activities and new developments in payment services. It also expands MAS’ regulatory ambit to include new types of payment services, such as digital payment token services. For more information, please refer to the Second Reading Speech of the Payment Services Bill .
MAS closely engaged the industry through dialogues and public consultations in designing the PS Act. To support the transition of payment services firms to the new PS Act, MAS has initiated a payments regulatory evaluation programme to help them connect with providers of legal services.
Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said,
“The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry. The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
The Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act will be repealed with the commencement of the PS Act.
MAS thanks all respondents for their feedback to our public consultations on the PS Act-related subsidiary legislation and guidelines in 2019. The response to the feedback received can be found on the MAS website at this link.
Additional Information
The Payments Regulatory Evaluation Programme or PREP is an initiative launched by the MAS and the Singapore Academy of Law (SAL) to help connect the payments industry with legal service providers. Instead of relying on informal referrals, PREP provides payment firms with a streamlined process to gain access to lawyers specialising in payment services regulations to meet their compliance needs. Details are available on the SAL website.
The Association of Cryptocurrency Enterprises and Start-ups, Singapore (ACCESS), the Singapore Blockchain Association (SBA) and the Singapore FinTech Association (SFA) will be organising workshops on licensing under the Payment Services Act 2019, which will be conducted by MAS representatives. Details of the workshops are available on the associations’ respective websites.
