04 Feb 2019
The Monetary Authority of Singapore (MAS) has clarified its stance on whether remittance firms can lend out money following a query about their operations.
The query, which was published in the Straits Times, said that many maids were being paid through a remittance firm.
In its response, the watchdog cited the mitigation of financial crime, specifically money laundering.
“The Money-changing and Remittance Businesses Act (MCRBA) regulates licensees for their money-changing and remittance activities, primarily to mitigate the risks of money-laundering and terrorism financing,” a MAS spokesman said.
“It is not the intent of MAS to allow remittance licensees to conduct consumer lending. If licensees wish to do more, they must hold the appropriate licence and be subject to the relevant regulatory measures. We have explained [that] when the new Payment Services Bill (PSB) comes into force later this year, licensees under the PSB will be prohibited from conducting consumer lending.”
You can claim CPD minutes for reading this article, by signing up to our CPD WalletFREE CPD Wallet