New regulations governing payment services have been developed in Singapore. Developed by the Monetary Authority of Singapore, these regulations have recently entered into force under the Singapore Payment Services Act. With this new legislation, it was aimed to create a robust e-payment system in Singapore and to make consumer e-payment transactions secure. With this law, regulations are created within the scope of traditional payment institutions, technological developments, and various payment techniques.
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) plays a supervisory and regulatory role in Singapore's financial services. In addition to regulating the financial sector, it also works for Singapore's economic growth and support.
MAS creates policies to supply CFT and AML compliance requirements in Singapore. These policies, which banks and other financial institutions are obliged to comply with, include various laws, statements, and regulations.
What is Singapore Payment Service Act?
Singapore has achieved significant growth in the financial sector quickly through the new payment systems it has developed. The Payment Services Law is seen as a result of this growth with its regulations keeping up with technological developments. The Payment Service Act (PS Act) as a regulator of payment services in Singapore, entered into force as of January 28, 2020. This law, which adapts to many technological developments, promotes the growth of FinTech.
As a regulator of payment services in Singapore, the PS Act entered into force as of January 28, 2020. This law, which adapts to many technological developments, promotes the growth of FinTech. Maintaining Singapore's financial stability is one of the primary goals of this new law. PS Act also creates a fair competition environment for market participants.
According to the law, all institutions and organizations with payment systems or provide payment services must comply with AML / CFT regulations. Under the Payment Service Act, a licensing regime is established by the Monetary Authority of Singapore, and It checks whether these institutions comply with AML / CTF regulators.
New Singapore Regulations
The increasing similarity between various types of payment activities has created a specific regulatory framework for payment services. The new legislation includes two regulatory plans. These are designation and licensing regimes. According to the designation regime, for payment systems, which play a critical role in the Singapore financial system's security and efficiency, a more comprehensive and closer audit can be established according to the provisions of the PS law.
On the other hand, the licensing regime is the license that payment service providers obtain if they provide payment services specified under the PS Act. According to the regime, all payment service regulators providing payment services are obliged to obtain a license. Some of the payment services under the law include:
- All services that offer payment accounts to customers or include transactions required by a payment account.
- Money transfer services International money transfer services
- All services related to e-money agencies like Crypto money.
Along with the new regulations, the Singapore economy has a feature that encourages technological compliance and the growth of FinTech. Fintech companies operating in Singapore determine their obligations in line with AML / CTF Notifications.
Singapore started to develop new cryptocurrency regulations for banks and financial services. The regulations aim to control and management of Cryptocurrency activities.
On the one hand, In Singapore, Know Your Customer(KYC) and Customer Due Diligence(CDD) regulations are not complicated. KYC procedures for MAS has an automatic and non-face-to-face detection structure such as face ID.
AML Requirements of Singapore
According to MAS, Financial institutions based in Singapore must implement robust controls to detect illegal fund flows through Singapore's financial system, detect money laundering activities, and prevent and deter terrorist financing. The Monetary Authority of Singapore publishes AML / CTF statements and guidelines to meet compliance requirements for Anti-Money Laundering and Counter-Terrorist Financing.
AML / CTF Regulations vary by business. The AML / CTF statement created for insurance companies has different compliance details than the notification created for commercial banking. However, although the details change from business to business, these are general AML/CTF obligations, including Get to Know Your Customer Determining money laundering and terrorist financing risks with regular Risk-Based Assessment, To Report any suspicious activity. To determine whether the customer is on Politically Exposed Person (PEP) List or not.
Sanction Scanner Softwares for New Regulation in Singapore
According to the new regulations in Singapore payment institutions, companies need to manage KYC and CDD processes properly. Singapore KYC procedures have a broader and more uncomplicated structure than other countries. Therefore, companies' security measures while implementing procedures will help protect them from money laundering and the risk of financial crime. Companies quickly implement KYC compliance procedures with the PEP and Adverse Media Screening provided by the Sanction Scanner.
Although it has a general definition, AML / CTF obligations vary from industry to industry. Institutions determine their regulators according to these obligations. Sanction Scanner AML Solutions comply with all regulations. Sanction Scanner's AML Transaction Monitoring Software has end-to-end features that enable companies to AML /CTF obligations. Thus, you can prevent your company's money laundering and terrorist financing risks and protect your company from financial penalties.
As Sanction Scanner, we offer solutions for AML needs of businesses in more than 200 countries. Through to the AML Name Screening Software offered by the Sanction Scanner, businesses can easily perform CDD and KYC transactions in line with their obligations. For more information contact us or request a demo.