Act of Parliament · 2008 Revised Edition
Money-changing and Remittance Businesses Act
Feedback & supportLicensing of money-changing and remittance businessesOfficial textFrom Singapore Statutes Online, unchanged
s 1Short title
This Act may be cited as the Money-changing and Remittance Businesses Act.
In this Act, unless the context otherwise requires —
“Authority” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186);
“company” means any company incorporated under any written law for the time being in force relating to companies and includes any company incorporated outside Singapore;
“licence” means a money-changer’s licence or a remittance licence, as the case may be, granted under this Act;
“licensee” means the holder of a money-changer’s licence or a remittance licence, as the case may be;
“limited liability partnership” has the same meaning as in section 2(1) of the Limited Liability Partnerships Act (Cap. 163A);
“money-changer’s licence” means a licence granted under this Act authorising the holder thereof to carry on money-changing business;
“money-changing business” means the business of buying or selling foreign currency notes;
“partner” and “manager”, in relation to a limited liability partnership, have the respective meanings assigned to them in section 2(1) of the Limited Liability Partnerships Act (Cap. 163A);
“place of business” means each place or location in Singapore used by a licensee for carrying on money-changing business or remittance business, whether within a single building, at a single business address, or otherwise;
“remittance business” means the business of accepting moneys for the purpose of transmitting them to persons resident in another country or a territory outside Singapore;
“remittance licence” means a licence granted under this Act authorising the holder thereof to carry on remittance business;
“substantial shareholder” has the same meaning as in section 81 of the Companies Act (Cap. 50).
For the purposes of this Act, a person shall be deemed to be carrying on —
money-changing business if he offers to buy or sell any foreign currency notes; and
remittance business if he offers to transmit money on behalf of any person to another person resident in another country.
In this Act, a reference to a document or record shall include a reference to any or part of any —
document or record kept on any magnetic, optical, chemical or other medium;
map, plan, graph, picture or drawing; and
film (including a microfilm and microfiche), negative, disc, tape, sound track or any other device in which one or more visual images, sounds or other data are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced therefrom.
s 3Scope of this Act
This Act shall not be construed as requiring any person who accepts foreign currency notes from a customer or client in payment for goods sold or services rendered by him to obtain a money-changer’s licence.
s 4Authority responsible for administration of this Act
The Authority shall be responsible for the administration of this Act and may authorise any of its officers to exercise any powers and perform any duties or functions of the Authority under this Act.
No person shall carry on or advertise that he carries on money-changing business unless he is in possession of a valid money-changer’s licence.
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a fine not exceeding $10,000 for every day during which the offence continues after conviction.
No person shall carry on or advertise that he carries on remittance business unless he is in possession of a valid remittance licence.
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a fine not exceeding $10,000 for every day during which the offence continues after conviction.
Any person who desires to obtain or renew a money- changer’s licence shall submit an application to the Authority in such form, and shall furnish the Authority with such information, as the Authority may require.
An application made to the Authority for the grant or renewal of a money-changer’s licence shall be accompanied by a non-refundable application fee of a prescribed amount, which shall be paid in the manner specified by the Authority.
Upon receiving an application for a money-changer’s licence under subsection (1), the Authority shall consider the application and may —
grant a money-changer’s licence with or without conditions; or
refuse to grant a money-changer’s licence.
In considering any application for a money-changer’s licence, the Authority may require to be satisfied as to —
the good character of the applicant or, if the applicant is a company, the general character of the management of the company;
the financial condition of the applicant; and
whether the public interest will be served by the granting of the money-changer’s licence.
The Authority may at any time vary or revoke any of the existing conditions of a money-changer’s licence or impose new conditions.
An application for the renewal of a money-changer’s licence shall be made not later than one month, or such other period as the Authority may prescribe, before the expiry of the money-changer’s licence.
The Authority may renew the money-changer’s licence of a person even though he does not submit an application for the renewal of his money-changer’s licence within the time required by subsection (6), if the person pays a late renewal fee not exceeding $50 for every day or part thereof that the application for renewal is late, subject to a maximum of $1,500.
Where a person submits an application for the renewal of his money-changer’s licence, whether or not within the time required by subsection (6), his money-changer’s licence shall continue in force until the date on which the licence is renewed or the application for its renewal is refused, as the case may be.
No application for renewal of a money-changer’s licence shall be made after the expiry of the licence.
Any person who desires to obtain or renew a remittance licence shall submit an application to the Authority in such form, and shall furnish the Authority with such information, as the Authority may require.
An application made to the Authority for the grant or renewal of a remittance licence shall be accompanied by a non-refundable application fee of a prescribed amount, which shall be paid in the manner specified by the Authority.
Upon receiving an application for a remittance licence under subsection (1), the Authority shall consider the application and may —
subject to section 9, grant a remittance licence with or without conditions; or
refuse to grant a remittance licence.
In considering any application for a remittance licence, the Authority may require to be satisfied as to —
the general character of the management of the applicant;
the financial condition of the applicant; and
whether the public interest will be served by the granting of the remittance licence.
The Authority may at any time vary or revoke any of the existing conditions of a remittance licence or impose new conditions.
An application for the renewal of a remittance licence shall be made not later than one month, or such other period as the Authority may prescribe, before the expiry of the remittance licence.
The Authority may renew the remittance licence of a person even though he does not submit an application for the renewal of his remittance licence within the time required by subsection (6), if the person pays a late renewal fee not exceeding $50 for every day or part thereof that the application for renewal is late, subject to a maximum of $1,500.
Where a person submits an application for the renewal of his remittance licence, whether or not within the time required by subsection (6), his remittance licence shall continue in force until the date on which the licence is renewed or the application for his renewal is refused, as the case may be.
No application for renewal of a remittance licence shall be made after the expiry of the licence. [7A
No remittance licence shall be granted to or renewed for any person, and no person shall continue to hold a remittance licence, unless the person —
is a company;
has a minimum capital of $100,000 or such other sum as may be prescribed by the Authority; and
has furnished and maintains with the Authority the security required under section 10.
Any person who holds a remittance licence in contravention of the minimum capital requirement in subsection (1)(b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. [7B
Every licensee which carries on remittance business shall maintain with the Authority security of the value of $100,000, or such other amount as may be prescribed, in respect of its place of business, for the due performance of its obligations to those persons who will deposit or have deposited moneys with the licensee for remittance purposes.
Where a licensee carries on remittance business at more than one place of business, the licensee shall maintain with the Authority such amount of additional security as may be prescribed in respect of each additional place of business.
The security referred to in subsection (1) or (2) shall be —
in the form of a cash deposit;
in the form of a bank guarantee specified by the Authority; or
in such other form as the Authority may, in any particular case, allow.
All moneys deposited by a licensee which carries on remittance business under this section shall be treated as a single security and may be applied by the Authority, in respect of that licensee, for the purposes of subsection (5).
Where a licensee which carries on remittance business has surrendered its licence or its licence has lapsed or expired or has been revoked, it shall be lawful for the Authority to enforce the security referred to in subsection (1) or (2) to the extent required to pay any sums outstanding and claimed by the customers of the licensee who had given money to the licensee for remittance purposes; and if the security is insufficient to cover all sums claimed by such customers, the Authority may pay part of the sums claimed by such customers.
For the avoidance of doubt, where the security referred to in subsection (1) or (2) is provided in the form of a bank guarantee, it shall be lawful for the Authority to call on the bank guarantee for the purposes of subsection (5) notwithstanding that a closure certificate required under section 19 has not been submitted to the Authority.
Where a licensee which carries on remittance business has surrendered its licence or its licence has lapsed or expired or has been revoked, the Authority shall, upon being satisfied that there is no outstanding claim by any customer of the licensee and upon receiving the closure certificate required under section 19, release the security or the remainder thereof, as the case may be, to the licensee.
Any security furnished by a licensee which carries on remittance business under this section shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever, and if the licensee is declared insolvent or is wound up by an order of the court, the security shall be deemed not to form part of the property of the licensee. [8
No licensee shall operate a money-changing business or remittance business, as the case may be, unless he or it has a permanent place of business.
No licensee shall carry on money-changing business or remittance business at any additional place of business other than the licensee’s permanent place of business referred to in subsection (1) except with the approval of the Authority.
A licensee which intends to commence money-changing business or remittance business at any additional place of business shall, prior to commencing such business at the additional place of business, apply in writing to the Authority for approval, and the Authority may approve the additional place of business subject to such conditions as it thinks fit.
The Authority shall not grant its approval under subsection (3) unless the licensee has furnished the Authority with the additional security required under section 10(2) and the additional licence fee required under section 15(3).
The Authority may revoke its approval granted under subsection (3) if the licensee breaches any of the conditions imposed on the licensee under that subsection.
Every licensee shall notify the Authority of any change in the address of any of the licensee’s place of business within 7 days of such change.
Any licensee who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine of $5,000 for every day or part thereof during which the offence continues after conviction.
Where a licensee fails to notify the Authority within the time period specified in subsection (6) of any change in the address of the licensee’s place of business, the Authority may impose a late notification fee not exceeding $50 for every day or part thereof that the notification is late, subject to a maximum of $1,500. [9
No holder of a money-changer’s licence shall —
where the holder is a partnership (including a limited liability partnership), appoint a person as a partner; or
where the holder is a company, appoint a person as its director,unless the holder has obtained the approval of the Authority.
No holder of a remittance licence shall appoint a person as its director unless it has obtained the approval of the Authority.
Where a licensee has obtained the approval of the Authority to appoint a person as its director under subsection (1)(b) or (2), the person may be re-appointed without break as director of the licensee immediately upon the expiry of his earlier term without the approval of the Authority.
Without prejudice to any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1) or (2), have regard to such criteria as may be prescribed or specified in written directions.
Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. [9A
Where a licensee is a company, no person shall become a substantial shareholder of the licensee unless he has obtained the approval of the Authority.
Without prejudice to any other matter that the Authority may consider relevant, the Authority may, in determining whether to grant its approval under subsection (1), have regard to such criteria as may be prescribed or specified in written directions.
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. [9B