The Monetary Authority of Singapore (MAS) today introduced amendments to the Payment Services Act (PS Act) and its subsidiary legislation to expand the scope of payment services regulated by MAS, and to impose user protection and financial stability-related requirements on digital payment token (DPT) service providers. These amendments will take effect in stages from 4 April 2024.
2 The amendments will bring the following activities within the scope of regulation under the PS Act:
(i) Provision of custodial services for DPTs;
(ii) Facilitation of the transmission of DPTs between accounts and facilitation of the exchange of DPTs, even where the service provider does not come into possession of the moneys or DPTs; and
(iii) Facilitation of cross-border money transfer between different countries, even where moneys are not accepted or received in Singapore.
3 The amendments will empower MAS to impose requirements relating to anti-money laundering and countering the financing of terrorism, user protection and financial stability on DPT service providers.
4 Transitional arrangements will be provided for entities currently conducting activities under the PS Act’s expanded scope. 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 anti-money laundering and countering the financing of terrorism requirements, duly completed by a qualified external auditor, within nine months from 4 April 2024.
5 Entities that do not fulfil the requirements above are required to cease the activities when the amendments come into effect.
6 The amended Payment Services Regulations on safeguarding of assets belonging to customers of DPT service providers
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[1] The commencement of the Payment Services (Amendment) Act 2021 (PS Amendment Act) is accompanied by the amended Payment Services Regulations (PS Regulations) and Notices (PS Notices). Documents relating to the consultation processes are linked here and here . Entities who wish to notify MAS that they are conducting the newly regulated activities, should submit the notification here
[2] MAS has also published Guidelines on implementation measures to safeguard customers’ assets here .
