PART 2 | LICENSING OF PAYMENT SERVICE PROVIDERS |
| Division 1 — Licensing of payment service providers |
6.—(1) An application for the grant of a licence must be in Form 1 and must be lodged with the Authority together with any relevant document or information as may be specified in the Form or by the Authority.| (2) For the purposes of section 6(6)(a) of the Act, the prescribed period is 30 days after the relevant date. |
| (3) In this regulation, “relevant date” has the meaning given by section 6(17) of the Act. |
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| Prescribed class of persons under section 6(9)(c)(ii) of Act |
7.—(1) For the purposes of section 6(9)(c)(ii) of the Act —| (a) | the prescribed condition is the applicant must have at all times at least one director who is a citizen or permanent resident of Singapore; and | | (b) | the prescribed class of persons is a class constituted by persons each of whom has been issued an employment pass by the Controller of Work Passes under section 7(2) of the Employment of Foreign Manpower Act (Cap. 91A). |
(2) In this regulation —| “Controller of Work Passes” means the Controller of Work Passes appointed under section 3 of the Employment of Foreign Manpower Act; |
| “employment pass” means the employment pass mentioned in regulation 2(1)(c) of the Employment of Foreign Manpower (Work Passes) Regulations 2012 (G.N. No. S 569/2012). |
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| Prescribed financial requirements under section 6(9)(d) of Act |
8. For the purposes of section 6(9)(d) of the Act, the prescribed financial requirements are —| (a) | where the applicant applies for a standard payment institution licence —| (i) | if the applicant is incorporated in Singapore — a base capital of not less than $100,000; or | | (ii) | if the applicant is a foreign company — net head office funds of not less than $100,000; and |
| | (b) | where the applicant applies for a major payment institution licence —| (i) | if the applicant is incorporated in Singapore — a base capital of not less than $250,000; or | | (ii) | if the applicant is a foreign company — net head office funds of not less than $250,000. |
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| Variation or change of licence |
9.—(1) For the purposes of section 7(1) of the Act, an application by a licensee for a variation or change of the licensee’s licence must be in Form 2 and must be lodged with the Authority together with any relevant document or information as may be specified in the Form or by the Authority.(2) A standard payment institution or major payment institution that —| (a) | is authorised to provide more than one payment service; and | | (b) | has commenced business in providing one or more but not all of the payment services it is authorised to provide, |
| must make an application to the Authority in Form 2 to remove every payment service it has not commenced business in, immediately upon the expiry of the period of 6 months after the grant of the licence. |
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(3) A standard payment institution or major payment institution that —| (a) | is authorised to provide more than one payment service; | | (b) | has ceased to carry on business in providing one or more of the payment services it is authorised to provide (each called in this regulation a ceased payment service), but has not ceased to provide every type of payment service it is authorised to provide; and | | (c) | has not resumed business in the ceased payment service or services (as the case may be) for a continuous period of 6 months after the date of the cessation of business, |
| must make an application to the Authority in Form 2 to remove every ceased payment service mentioned in sub‑paragraph (c), immediately upon the expiry of that period of 6 months. |
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10. For the purposes of section 11(1)(c) of the Act, the prescribed events upon which occurrence a licence lapses are —| (a) | if the licensee has not commenced business in at least one of the payment services authorised to be provided by the licensee for a period of 6 months (or any longer period that the Authority may allow) after the grant of the licence, immediately upon the expiry of that period; | | (b) | if the licensee —| (i) | has ceased to carry on business in providing all of the payment services authorised to be provided by the licence; and | | (ii) | has not resumed business in any of those payment services for a continuous period of 6 months (or any longer period that the Authority may allow) after the date of such cessation of business, |
| immediately upon the expiry of that period; |
| | (c) | if the licensee is licensed to carry on a business of providing one or more payment services other than digital payment token services, and the licensee does not accept, process or execute any payment transaction for a continuous period of 6 months (or any longer period that the Authority may allow) after the grant of the licence, immediately upon the expiry of that period; and | | (d) | if the licensee is licensed to carry on a business of providing digital payment token services, and the licensee fails to provide at least one of the following services for a continuous period of 6 months (or any longer period that the Authority may allow) after the grant of the licence, immediately upon the expiry of that period:| (i) | accepting, processing or executing any payment transaction; | | (ii) | buying or selling any digital payment token in exchange for another digital payment token (whether of the same or a different type); | | (iii) | executing any transaction that involves any exchange of any digital payment token for another digital payment token (whether of the same or a different type). |
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| Prohibition against solicitations |
11. For the purposes of section 9(5) of the Act, the considerations with which a person must have regard to in determining whether an offer, invitation or advertisement is made or issued to the public or any section of the public in Singapore are —| (a) | whether the offer, invitation or advertisement contains any information specifically relevant to Singapore; | | (b) | whether the offer, invitation or advertisement is published in or through any of the following:| (i) | any newspaper, magazine, journal or other periodical publication; | | (ii) | any broadcast media; | | (iii) | any website, mobile application or other electronic media; | | (iv) | any poster or notice; | | (v) | any circular, handbill, brochure, pamphlet, book or other document, |
| which is principally for — |
| (vi) | display, circulation, reception or use in Singapore; | | (vii) | display or circulation to persons in Singapore; or | | (viii) | reception or use by persons in Singapore; |
| | (c) | whether the offer, invitation or advertisement, directly or indirectly, states that e‑money or any digital payment token is available to be purchased or otherwise acquired by persons in Singapore; | | (d) | whether the offer, invitation or advertisement, directly or indirectly, states that e‑money denominated in Singapore dollars is available to be purchased or otherwise acquired; | | (e) | whether the offer, invitation or advertisement is for dealing in or facilitating the exchange of digital payment tokens in exchange for Singapore dollars; | | (f) | whether the offer, invitation or advertisement contains a prominent notice that no payment service is provided to any person in Singapore, and whether the notice is viewed with or before the advertisement; and | | (g) | whether any reasonable step is taken to guard against the provision of any payment service to any person in Singapore. |
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| Division 2 — Conduct of business |
| Financial requirements while licence is in force |
12. For the purposes of section 6(12)(a) of the Act —| (a) | the prescribed financial requirements for a standard payment institution, while its licence is in force, are —| (i) | if the standard payment institution is incorporated in Singapore — a base capital of not less than $100,000; or | | (ii) | if the standard payment institution is a foreign company — net head office funds of not less than $100,000; and |
| | (b) | the prescribed financial requirements for a major payment institution, while its licence is in force, are —| (i) | if the major payment institution is incorporated in Singapore — a base capital of not less than $250,000; or | | (ii) | if the major payment institution is a foreign company — net head office funds of not less than $250,000. |
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13. For the purposes of section 22(1) of the Act, the prescribed amount of security that a major payment institution must maintain with the Authority is —| (a) | in the case where the average, over the current calendar year, of the total value of all payment transactions that are accepted, processed or executed by the major payment institution in one month does not exceed $6 million (or its equivalent in a foreign currency) for each payment service the major payment institution provides — $100,000; and | | (b) | in any other case — $200,000. |
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| Safeguarding of money received from customer |
14.—(1) If a major payment institution mentioned in section 23(1) or (3) of the Act intends to safeguard or safeguards the relevant money of a customer by an undertaking, from a safeguarding institution mentioned in paragraph (a) of the definition of “safeguarding institution” in section 23(14) of the Act, to be fully liable to the customer for the customer’s relevant money, the major payment institution must —| (a) | before obtaining an undertaking from the safeguarding institution —| (i) | assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the undertaking; and | | (ii) | give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that the undertaking is being obtained by the major payment institution for the purpose of complying with section 23(2) or (4) of the Act, as the case may be; |
| | (b) | ensure that the undertaking is not subject to any condition or restriction in respect of being fully liable to the customer for the relevant money; | | (c) | disclose in writing to the customer that the customer’s relevant money is being safeguarded by an undertaking from the safeguarding institution, to be fully liable to the customer for the relevant money; | | (d) | assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the undertaking, on an annual basis subsequent to obtaining the undertaking; and | | (e) | keep, for a period of 5 years or longer, records of the grounds on which the major payment institution satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a)(i) or (d). |
(2) For the purposes of paragraph (a)(ii) of the definition of “safeguarding institution” in section 23(14) of the Act, the prescribed financial institution is either —| (a) | a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186); or | | (b) | a finance company licensed under the Finance Companies Act (Cap. 108). |
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| Safeguarding of relevant moneys by guarantee |
15.—(1) If a major payment institution mentioned in section 23(1) or (3) of the Act intends to safeguard or safeguards the relevant money of a customer by a guarantee given by a safeguarding institution mentioned in paragraph (b) of the definition of “safeguarding institution” in section 23(14) of the Act for the relevant money, the major payment institution must —| (a) | before obtaining a guarantee from the safeguarding institution —| (i) | assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the guarantee; and | | (ii) | give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that the guarantee is being obtained by the major payment institution for the purpose of complying with section 23(2) or (4) of the Act, as the case may be; |
| | (b) | ensure that —| (i) | the guarantee states that in the event of the insolvency of the major payment institution, the safeguarding institution assumes a primary liability to pay a sum equal to the amount of the relevant money held by the major payment institution at the end of the business day immediately preceding the date the major payment institution becomes insolvent; and | | (ii) | there is no other condition or restriction on the immediate paying out of money by the safeguarding institution to a separate trust account held by the major payment institution in accordance with section 23(6) of the Act, in the event of the insolvency of the major payment institution; |
| | (c) | disclose in writing to the customer that the relevant money is being safeguarded by a guarantee given by the safeguarding institution for the relevant money; | | (d) | assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the guarantee, on an annual basis subsequent to obtaining the guarantee; and | | (e) | keep, for a period of 5 years or longer, records of the grounds on which the major payment institution satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a)(i) or (d). |
(2) For the purposes of paragraph (b)(ii) of the definition of “safeguarding institution” in section 23(14) of the Act, the prescribed financial institution is —| (a) | a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act; | | (b) | a finance company licensed under the Finance Companies Act; or | | (c) | any financial guarantee insurer as defined in regulation 2 of the Insurance (Financial Guarantee Insurance) Regulations (Cap. 142, Rg 6). |
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| Safeguarding of relevant moneys by segregation of funds |
16.—(1) If a major payment institution mentioned in section 23(1) or (3) of the Act intends to safeguard or safeguards the relevant money of a customer by depositing the relevant money in a trust account maintained with a safeguarding institution mentioned in paragraph (c) of the definition of “safeguarding institution” in section 23(14) of the Act, the major payment institution —| (a) | must, before opening the trust account, assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the depositing of the relevant money in a trust account opened with the safeguarding institution; | | (b) | must, before depositing the relevant money in the trust account —| (i) | give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that —| (A) | all moneys deposited in the trust account will be held on trust by the major payment institution for its customer and the safeguarding institution cannot exercise any right of set‑off against the moneys for any debt owed by the major payment institution to the safeguarding institution; and | | (B) | the account is designated as a trust account, or a customer’s or customers’ account, which is distinguishable and maintained separately from any other account maintained with the safeguarding institution in which the major payment institution deposits its own moneys; and |
| | (ii) | disclose in writing to its customer —| (A) | that the customer’s relevant money will be held by the major payment institution on behalf of the customer in a trust account opened with the safeguarding institution; | | (B) | whether or not the relevant money received from the customer will be deposited in a trust account together with, and commingled with, the relevant money received by the major payment institution from its other customers; | | (C) | if the relevant money received from the customer will be deposited in a trust account together with, and commingled with, the relevant money received by the major payment institution from its other customers, the risks of such commingling; and | | (D) | the consequences for the customer in respect of the relevant money if the safeguarding institution becomes insolvent; |
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| | (c) | must —| (i) | treat and deal with all the relevant money received from a customer as belonging to the customer; and | | (ii) | deposit all the relevant money in the trust account; |
| | (d) | subject to paragraph (2), must not commingle the relevant money with other moneys; | | (e) | must assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the depositing of the relevant money in the trust account maintained with the safeguarding institution, on an annual basis subsequent to the depositing of the relevant money; | | (f) | must keep, for a period of 5 years or longer, records of the grounds on which the major payment institution satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a) or (e); and | | (g) | subject to paragraph (3), must not withdraw any money that is deposited in the trust account. |
(2) Despite paragraph (1)(d), a major payment institution may —| (a) | deposit the relevant money of a customer in a trust account together with, and commingled with, the relevant money received from its other customers; | | (b) | advance money to the trust account from its own money to open the trust account; or | | (c) | from time to time, advance money to the trust account from its own money to maintain the trust account. |
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(3) Despite paragraph (1)(g), a major payment institution may withdraw money from a trust account opened with a safeguarding institution if —| (a) | the withdrawal of the money will not reduce the amount of the relevant money that is deposited and safeguarded in the trust account; | | (b) | the money is for the purpose of reimbursing the major payment institution for money that the major payment institution has advanced to the trust account from its own money to open or maintain the trust account; or | | (c) | the withdrawal of the money (whether or not it is money that belongs to the major payment institution) is for the purpose of payment to the customer. |
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| (4) Subject to any agreement between the major payment institution and its customer, all interest earned from the maintenance of relevant moneys received from, or on account of, the customer in a trust account accrues to the customer. |
| (5) Nothing in this regulation is to be construed as avoiding or affecting any lawful claim or lien which any person has in respect of any money held in a trust account in accordance with this regulation or any money belonging to a customer before the money is paid into a trust account. |
(6) For the purposes of paragraph (c) of the definition of “safeguarding institution” in section 23(14) of the Act, the prescribed criterion of a person mentioned in that paragraph is —| (a) | the person holds a licence under section 7 of the Banking Act (Cap. 19); | | (b) | the person is approved as a merchant bank under section 28 of the Monetary Authority of Singapore Act; or | | (c) | the person holds a licence under section 6 of the Finance Companies Act. |
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| Application of regulations 14, 15 and 16 to exempt payment service providers |
17. For the purposes of section 13(2) of the Act, read with section 23 of the Act —| (a) | regulations 14 and 15 apply in relation to an exempt payment service provider as they apply in relation to a major payment institution; and | | (b) | regulation 16 applies in relation to an exempt payment service provider as it applies in relation to a major payment institution, except that where the exempt payment service provider is also a safeguarding institution and the exempt payment service provider intends to safeguard or safeguards the relevant money of a customer by depositing the relevant money in a trust account maintained with itself, the exempt payment service provider need not comply with regulation 16(1)(a), (b)(i), (e) and (f). |
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| Restrictions on personal payment accounts that contain e‑money |
18.—(1) For the purposes of section 24(1)(a) and (c)(i) of the Act, the prescribed amount is $5,000.| (2) For the purposes of section 24(1)(b) and (c)(ii) of the Act, the prescribed amount is $30,000. |
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| Division 3 — Control of officers of licensees |
| Approval of chief executive officer, director or partner of licensee |
19.—(1) For the purposes of section 34(2) of the Act, an application made under section 34(1) of the Act must be in Form 3.| (2) The Authority may require a licensee that makes an application under section 34(1) of the Act to provide the Authority with any information or documents that the Authority considers necessary in relation to the application. |
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| Auditing requirements for licensees |
20. For the purposes of section 37(4)(c) of the Act, a report of an audit on a licensee must —| (a) | be submitted to the Authority in Form 4 —| (i) | where the licensee is a company — not later than 6 months after the end of the financial year in respect of which the audit is conducted; or | | (ii) | where the licensee is a partnership, a limited liability partnership or an individual — not later than 6 months after the end of the period for which the licensee’s financial statements are made up and in respect of which the audit is conducted; |
| | (b) | state the name and contact particulars of the auditor conducting the audit; and | | (c) | be signed by the auditor conducting the audit. |
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