The Monetary Authority of Singapore (MAS) has finalised the new regulatory framework for the payment services in Singapore.
In the new Payments Services Bill, there will be a more conducive environment for innovation within the payment space, while guaranteeing risks across the value chain are lowered.
Payment services are currently regulated under the Payment Systems (Oversight) Act and Money-Changing and Remittance Businesses Act. However, the bill will streamline regulation through a single activity-based legislation which comprises of two parallel frameworks.
The first is a designation regime which will empower MAS to regulate payment systems for financial stability and efficiency. The other framework is a licensing regime which focuses on retail payment services provided to customers and merchants.
Through this activity-based licensing framework, the country will be able to support innovation and mitigate risk, the organisation said.
The licensing regime has been expanded to incorporate a range of payment activities, such as domestic money transfers, merchant acquisition and the purchase and sale of digital payment tokens. Payment providers only need to carry one license at any point, but one which meets the risk posed by the services it offers.
Risk mitigating measures will then be tailored to specific payment services in order to provide better and more suitable controls. In doing this, MAS is hoping to lower money laundering and terrorism financing risks, decrease fragmentation and bolster technology and security within payments.
MAS managing director Ravi Menon said, “The Payment Services Bill will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and engender confidence in the use of e-payments.
“The Bill also illustrates our shift towards regulation that is modular, activity-based and facilitative of growth and development in the Singapore payments landscape.”
This bill has been submitted to the Singapore parliament, and a brief can be found on the MAS website.
Earlier this week, the Monetary Authority of Singapore proposed the launch of a new regulatory sandbox which will have fast-track approvals.
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