A Report by CYS Global Remit Legal & Compliance Office
In July 2024, the Monetary Authority of Singapore (MAS) introduced significant updates to its Licensing Guidelines for Payment Service Providers (PS-G01), effective August 26, 2024. These changes impact new applicants and existing license holders under the Payment Services Act (PSA), including Standard Payment Institutions (SPIs) and Major Payment Institutions (MPIs).
Key Updates:
Legal Opinion Requirement: New applicants and current licensees offering services like Digital Payment Tokens (DPT) must now submit a legal opinion. This document will clarify whether the applicant’s services fall within the regulatory scope of the PSA, ensuring compliance and transparency regarding business models.
Independent External Auditor Assessments: Entities applying to provide DPT services must engage an external auditor to assess their Anti-Money Laundering (AML) and consumer protection measures. The assessment report must accompany the license application.
Technology Risk Management: Starting November 2024, companies dealing with digital payment tokens will be required to adhere to stricter technology risk management guidelines.
These updates aim to enhance regulatory oversight, particularly in AML measures and counterterrorist financing, while also bolstering consumer protection within the rapidly expanding payment services industry.
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