{"id":34487,"date":"2020-05-06T12:40:06","date_gmt":"2020-05-06T04:40:06","guid":{"rendered":"https:\/\/zegal.com\/?p=34487"},"modified":"2024-12-27T18:06:49","modified_gmt":"2024-12-27T10:06:49","slug":"singapore-payment-service-act","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-hk\/blog\/post\/singapore-payment-service-act\/","title":{"rendered":"New Singapore Banking Laws: The Payment Service Act"},"content":{"rendered":"
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What is the PSA and what is its purpose?<\/span><\/h4>\n

A new piece of legislation recently came into effect in Singapore<\/span>\u2014<\/span>the Payment Services Act<\/span>\u00a0<\/span>(<\/span>\u201c<\/span>PS Act<\/span>\u201d<\/span>)<\/span>\u2014<\/span>a comprehensive set of laws that are now being administered by the Monetary Authority of Singapore<\/span>\u00a0<\/span>(<\/span>\u201c<\/span>MAS<\/span>\u201d<\/span>). On January 28th, 2020, the PS Act came to life and consequently replaced the Payment Systems (Oversight) Act of 2006 and the Money-Changing and Remittance Businesses Act of 1979, both of which are now repealed. <\/span><\/p>\n

The PS Act is basically a consolidation of the aforementioned repealed pieces of legislation and one that accounts for new innovations that come since 2006, like cryptocurrencies.<\/strong> The PS Act will require almost all businesses engaged in payment services to be <\/span>licensed and regulated<\/span>.<\/span><\/p>\n

The PS Act is an expansion of protection for the consumers as well implementing a more encompassing regulatory framework for any businesses engaging in payment services and the payment systems providers use. If you’re a payment service provider you should already know about this but if not, you’ll need to wrap your head around the PS Act ASAP. It’s a big change for anyone in this line of work. <\/span><\/p>\n

Additionally, <\/span>Fin-tech<\/span> businesses may be affected by their legal obligations and changes to regulatory requirements under the PS Act and should ensure that their practices are compliant. <\/span><\/p>\n

In this article, I’ll outline the key points you’ll need to know about the PS Act<\/span>\u2014<\/span>who the Act applies to, what type of license you’ll need, and other obligations that might apply to you under the PS Act.<\/span><\/p>\n

Note: There is a transitional period in effect now, but the deadline has passed for notifying the MAS that you require that exemption (February 27, 2020).<\/span><\/p>\n

Who the PSA applies to: Categories of payment activities<\/span><\/h4>\n

These are the 7 types of businesses the PS Act will apply to and will have to apply for a license to be legal:<\/span><\/p>\n

Account issuance services<\/span><\/strong><\/h5>\n

Services involving issuing a payment account or any service relating to any operation of a payment account<\/span><\/p>\n

Old regulatory framework: Only as part of another currently regulated service<\/span><\/p>\n

Examples:<\/span><\/em><\/p>\n