The Payment Services Bill - A New Regulatory Framework for Payments

29 Nov 2018 LegisWatch

The Monetary Authority of Singapore ("MAS") currently regulates various payment services under the Payment Systems (Oversight) Act ("PS(O)A") and the Money-changing and Remittance Businesses Act ("MCRBA"). New payment models and services have since developed which create uncertainty over the regulatory scope of the PS(O)A and MCRBA and present new risks to be addressed.

MAS conducted a public consultation on key proposals in the proposed Payment Services Bill ("PSB") on 21 November 2017 (our update on this can be accessed here) and issued its response to feedback received on the public consultation on 19 November 2018 (available here).

On 19 November 2018, the PSB (available here) was read in Parliament for the first time.

The PSB will:

  • streamline payment services under a single legislative framework by combining the PS(O)A and the MCRBA;

  • enhance the scope of regulated activities by taking into account developments in payment services; and

  • take a risk-based approach, i.e., it will calibrate regulations according to the risks posed by the various regulated activities by adopting a modular regulatory regime,

and comprises two parallel regulatory frameworks:

  • a licensing framework for payment service providers; and

  • a designation framework for significant payment systems.

This Update highlights the key points of the Payment Services Bill.

If you would like information on this or any other area of law, you may wish to contact the partner at WongPartnership that you normally work with or the following partner:

Elaine CHAN
Joint Head – Financial Services Regulatory Practice
d +65 6416 8010
Click here to see Elaine’s CV.