Singapore legislation
Regulation 8
Regulation 8
Minimum requirements for issuance of credit cards and charge cards
Subregulation 1
This regulation shall not apply to —
the issue of any credit card or charge card referred to in section 57G(b) of the Act;
the issue of a supplementary credit card or supplementary charge card if the card issuer complies or has complied with this regulation in respect of the principal cardholder; or
the sending or giving of a credit card or charge card under the circumstances set out in regulation 10(2).
Subregulation 2
Subject to paragraph (3), a card issuer shall not issue a fully unsecured or partially secured credit card or charge card to an individual who is a citizen of Singapore or a permanent resident unless, at the time of application for the card —
in the case of an individual who is 55 years of age or younger, the individual has —
an annual income of at least $30,000 (or its equivalent in foreign currency);
financial assets (net of any related liabilities) exceeding $1 million (or its equivalent in foreign currency); or
total net personal assets exceeding $2 million (or its equivalent in foreign currency);
in the case of an individual who is above 55 years of age, he has —
an annual income of at least $15,000;
total net personal assets exceeding $750,000;
a guarantor other than a Singapore guarantor; or
a Singapore guarantor with an annual income of at least $30,000; or
the individual already holds a fully unsecured or partially secured credit card or charge card (other than by way of a supplementary credit card or supplementary charge card) pursuant to paragraph (2)(a) or (b)(i) or (ii) issued by the card issuer.
Subregulation 3
Subject to paragraph (4), a card issuer may issue to an individual who is a citizen of Singapore or a permanent resident, a fully unsecured or partially secured corporate card or business card notwithstanding that the individual does not fulfil the applicable requirement specified in paragraph (2)(a), (b) or (c) if, at the time of application for the card —
the individual is to travel or is to be posted to a foreign country for the purposes of the business of the body corporate, partnership or sole proprietor concerned; and
the corporate card or business card is required for the purchase of goods or services for or in connection with such travel, posting or business.
Subregulation 4
A card issuer which issues a corporate card or business card pursuant to paragraph (3) shall specify a period of validity for the card that takes into consideration what would be a reasonable period for which the use of the corporate card or business card is required for the purposes referred to in that paragraph.
Subregulation 5
Any card issuer which contravenes paragraph (2) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Subregulation 6
It shall be a defence for a card issuer charged with an offence under paragraph (5) in relation to paragraph (2) to prove that, at the time of application for the card —
it had taken all reasonable steps to verify that the individual fulfilled the applicable requirement specified in paragraph (2)(a), (b) or (c); or
it had taken all reasonable steps to verify the existence of the circumstances specified in paragraph (3)(a) and (b).
Subregulation 7
A card issuer must not issue a partially or fully secured credit card or charge card to an individual who is a citizen of Singapore or a permanent resident unless any amount that may become outstanding on the credit card or charge card —
is secured by specified deposits amounting in the aggregate to not less than $10,000; or
is guaranteed by any bank, merchant bank or finance company, other than the card issuer, for an amount not less than $10,000.
Subregulation 8
If a card issuer has issued a partially secured credit card or charge card to an individual who is a citizen of Singapore or a permanent resident, the card issuer must ensure that, for the whole period specified in paragraph (10), the amount that is outstanding on the credit card or charge card is —
secured by specified deposits amounting in the aggregate to not less than $10,000; or
guaranteed by any bank, merchant bank or finance company, other than the card issuer, for an amount not less than $10,000.
Subregulation 9
If a card issuer has issued a fully secured credit card or charge card to an individual who is a citizen of Singapore or a permanent resident, the card issuer must ensure that, for the whole period specified in paragraph (10), the amount that is outstanding on the credit card or charge card is —
secured by specified deposits amounting in the aggregate to not less than the higher of the following:
$10,000;
the amount that is outstanding on the credit card or charge card and all supplementary cards (if any); or
guaranteed by any bank, merchant bank or finance company, other than the card issuer, for an amount not less than the higher of the following:
$10,000;
the amount that is outstanding on the credit card or charge card and all supplementary cards (if any).
Subregulation 10
The period specified in paragraphs (8) and (9) is —
where the card that is issued by the card issuer is a supplementary credit card or a supplementary charge card, the whole period during which the principal cardholder holds the principal card; or
in any other case, the period during which the cardholder holds the card.
Subregulation 11
A card issuer that breaches or fails to comply with paragraph (7), (8) or (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence under paragraph (8) or (9), to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction.
Subregulation 12
In paragraphs (7), (8) and (9), “specified deposits” has the same meaning as in regulation 3(3).