Singapore consults on money laundering risks to payment services
24 Nov 2017

KYC360 News

Singapore’s central banking authority is seeking views on plans to regulate risks to payment services such as money laundering and terrorism financing.

The Monetary Authority of Singapore (MAS) has published its second consultation on the Payment Services Bill which also aims to empower it to set standards on technology risk management and migrate the regulation of payments services under a single law.

Newer platforms, such as digital currencies, will also fall under MAS’ remit.

MAS Managing Director, Mr Ravi Menon said, “We want to put in place a forward-looking regulatory regime to encourage wider adoption of secure e-payment solutions. The novel, activity-based licensing framework aims to right-size regulatory requirements to address the risks posed by specific payment activities.”

Under the proposals, MAS will also regulate stored value facilities (SVFs), such as prepaid electronic cash and other retail payment services.

Firms that provide virtual currency intermediary services and money-changing services (i.e. the exchange of physical currency notes) will be regulated primarily for money laundering and terrorism financing risks, the proposals state.

Separately, MAS and the Abu Dhabi Global Market (ADGM) signed an agreement aimed at strengthening the supervision of cross-border financial operations.

This deal between MAS and the Financial Services Regulatory Authority (FSRA) of ADGM will cover the full spectrum of banks, financial markets and fintech-related activities.

MAS Deputy Managing Director Ong Chong Tee said the Memorandum of Understanding (MoU) will facilitate greater regulatory and supervisory cooperation.

“This affirms the strong working relationship between MAS and FSRA and our mutual commitment to the close business and investment ties between our two economies,” he said.

FSRA has recently awarded in-principle approval to a Singapore firm that provides credit services, MAS said, adding that the FSRA “is also in regular communication with various Singapore firms, such as fund managers, who are interested in expanding their operations and establishing funds in Abu Dhabi and the wider region.”

Related topics:

Global money laundering group urges Singapore to step up its efforts

Singapore money-laundering probe targets banks

Singapore cryptocurrency firms facing bank account closures

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