The PS Act adopts a licensing framework for different types of payment services activities, and new developments in the space of payment services while promoting the innovation and growth of payment services and Fintech. It is designed to create a robust e-payments ecosystem in Singapore while mitigating risk, protection of consumer’s interest, and fostering confidence in the use of e-payments. It also expands the Monetary Authority of Singapore’s regulatory ambit to include new types of payment services, such as digital payment token services.
We are proud to be among the first service providers to be issued the Major Payment Institution Licence (License No. PS20200473) by the Monetary Authority of Singapore (“MAS”) to perform payroll-related payment services for our clients, in accordance with the highly regulated standards.
The PSA certification provides credibility to the payment service providers, and the assurance to businesses in the use of digital payment services.
Services that fall within the scope of the PS Act
Domestic Money Transfer Services
Services that perform fund transfer services in Singapore that include physical payment kiosks or online payment gateway services.
Cross-border Money Transfer Services
Services that perform a cross-border transfer of funds into and out of Singapore.
Fostering Confidence for Businesses
The enhanced regulatory framework provides assurance and certainty to businesses, and aims to mitigate the key risks specific to payment services:
User Protection
The PS Act will require major payment institutions to safeguard customer monies from loss through the institutions’ insolvency, using the following ways:
- an undertaking or guarantee by any bank in Singapore or prescribed financial institution to be fully liable to the customer for such monies;
- a deposit in a trust account; or
- safeguarding in such other manner as may be prescribed by MAS.
Technology and Cybersecurity Risk Management
The MAS has set out guidelines on IT risk management principles and best practices to guide payment institutions in establishing a robust technology risk management framework; ensuring adequate risk governance and strengthening cybersecurity controls in areas such as user authentication and data access.
Anti-money laundering and Counter-Financing of Terrorism (“AML/CFT”)
Payment services may be used for money laundering or terrorism financing activities. The PS Act imposes AML/CFT measures on persons conducting business in providing payment services that have been assessed to pose Money Laundering/Terrorist Financing risks. Payment service providers are to exercise due diligence when dealing with customers and conduct their business in conformity with high ethical standards.
Interoperability
A range of e-payment solutions are introduced to encourage innovation and growth in Singapore as a Smart Nation. However, the proliferation of multiple options also creates fragmentation and lack of interoperability across payment solutions. The PS Act grants MAS formal power to enforce the interoperability of payment solutions, making e-payments simple for both consumers and businesses to use.
Why AccountServe
Apart from being MAS PSA-certified, AccountServe is also compliant with
SSAE 18. This underscores our commitment to consistently provide clients with quality services backed by internal controls and safeguards of the highest standards.