Payment Services Regulations 2019 - Singapore Statutes Online

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.

Security

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.

Prescribed major payment institution in respect of prescribed payment service under section 23(1)(b) of Act

13A. For the purposes of section 23(1)(b) of the Act —

(a)	every major payment institution that carries on a business of providing a digital payment token service is a prescribed major payment institution; and
(b)	a digital payment token service is a prescribed payment service. [S 287/2024 wef 04/10/2024]

Prescribed licensee in respect of prescribed payment service under section 23(1)(c) of Act

13B. For the purposes of section 23(1)(c) of the Act —

(a)	every standard payment institution that carries on a business of providing a digital payment token service is a prescribed licensee; and
(b)	a digital payment token service is a prescribed payment service. [S 287/2024 wef 04/10/2024]

Safeguarding of money received from customer

14.—(1) If a major payment institution or licensee 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 or licensee 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 or licensee for the purpose of complying with section 23(2) or (4) of the Act, as the case may be; [S 287/2024 wef 04/10/2024]

(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 or licensee satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a)(i) or (d).

[S 287/2024 wef 04/10/2024]

(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 that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; or [S 460/2021 wef 01/07/2021] [S 221/2023 wef 31/12/2021]
(b)	a finance company licensed under the Finance Companies Act 1967. [S 221/2023 wef 31/12/2021]

Safeguarding of relevant moneys by guarantee

15.—(1) If a major payment institution or licensee 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 or licensee 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 or licensee for the purpose of complying with section 23(2) or (4) of the Act, as the case may be; [S 287/2024 wef 04/10/2024]

(b)

ensure that —

(i)

the guarantee states that in the event of the insolvency of the major payment institution or licensee, 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 or licensee at the end of the business day immediately preceding the date the major payment institution or licensee becomes insolvent; and

[S 287/2024 wef 04/10/2024]

(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 or licensee in accordance with section 23(6) of the Act, in the event of the insolvency of the major payment institution or licensee;

[S 287/2024 wef 04/10/2024]

(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)

[S 287/2024 wef 04/10/2024]

(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 that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; [S 460/2021 wef 01/07/2021] [S 221/2023 wef 31/12/2021]
(b)	a finance company licensed under the Finance Companies Act 1967; or [S 221/2023 wef 31/12/2021]
(c)	any financial guarantee insurer as defined in regulation 2 of the Insurance (Financial Guarantee Insurance) Regulations (Rg 6). [S 221/2023 wef 31/12/2021]

Safeguarding of relevant moneys by segregation of funds

16.—(1) If a major payment institution or licensee 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 or licensee —

(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 or licensee 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 or licensee to the safeguarding institution; and [S 287/2024 wef 04/10/2024]
(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 or licensee deposits its own moneys; and [S 287/2024 wef 04/10/2024]

(ii)

disclose in writing to its customer —

(A)	that the customer’s relevant money will be held by the major payment institution or licensee on behalf of the customer in a trust account opened with the safeguarding institution; [S 287/2024 wef 04/10/2024]
(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 or licensee from its other customers; [S 287/2024 wef 04/10/2024]
(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 or licensee from its other customers, the risks of such commingling; and [S 287/2024 wef 04/10/2024]
(D)	the consequences for the customer in respect of the relevant money if the safeguarding institution becomes insolvent;

(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 or licensee satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a) or (e); and

[S 287/2024 wef 04/10/2024]

(g)

subject to paragraph (3), must not withdraw any money that is deposited in the trust account.

[S 287/2024 wef 04/10/2024]

(2) Despite paragraph (1)(d), a major payment institution or licensee 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. [S 287/2024 wef 04/10/2024]

(3) Despite paragraph (1)(g), a major payment institution or licensee 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 or licensee for money that the major payment institution or licensee has advanced to the trust account from its own money to open or maintain the trust account; or [S 287/2024 wef 04/10/2024]
(c)	the withdrawal of the money (whether or not it is money that belongs to the major payment institution or licensee) is for the purpose of payment to the customer. [S 287/2024 wef 04/10/2024] [S 287/2024 wef 04/10/2024]

(4) Subject to any agreement between the major payment institution or licensee 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.

[S 287/2024 wef 04/10/2024]

(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 is a bank that holds a licence granted under section 7 or 79 of the Banking Act 1970; [S 221/2023 wef 31/12/2021]
(b)	the person is a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; or [S 221/2023 wef 31/12/2021]
(c)	the person is a finance company licensed under the Finance Companies Act 1967. [S 221/2023 wef 31/12/2021] [S 460/2021 wef 01/07/2021]

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).

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 $20,000.

[S 827/2023 wef 15/12/2023]

(2) For the purposes of section 24(1)(b) and (c)(ii) of the Act, the prescribed amount is $100,000.

[S 827/2023 wef 15/12/2023]

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