Payment Services Regulations 2019

all of the following items in the latest accounts of the company:

paid‑up ordinary share capital;

paid‑up irredeemable and non‑cumulative preference share capital; and

any unappropriated profit or loss in the latest audited accounts of the company,less —

any interim loss in the latest accounts of the company; and

any dividend that has been declared since the latest audited accounts of the company.

the principal of each share of the company is perpetual;

the shares of the company are not callable at the initiative of the company or the shareholders, and the principal of the shares cannot be repaid outside of liquidation of the company, except in the case of a repurchase or other manner of reduction of share capital that is initiated by the company and permitted under written law;

the company has full discretion to cancel dividend payments, and —

the cancellation of dividend payments is not an event of default of the company under any agreement;

the company has full access to cancelled dividend payments to meet its obligations as they fall due; and

the cancellation of dividend payments does not result in any restriction being imposed on the company under any agreement, except in relation to dividend payments to ordinary shareholders of the company.

the form is not completed or lodged in accordance with this regulation; or

a fee is specified in the Schedule for the matter in respect of which the form is lodged, and the form is not accompanied by the fee.

the prescribed condition is the applicant must have at all times at least one director who is a citizen or permanent resident of Singapore; and

the prescribed class of persons is a class constituted by persons each of whom has been issued an employment pass by the Controller of Work Passes under section 7(2) of the Employment of Foreign Manpower Act 1990.

is authorised to provide more than one payment service; and

has commenced business in providing one or more but not all of the payment services it is authorised to provide,must make an application to the Authority in Form 2 to remove every payment service it has not commenced business in, immediately upon the expiry of the period of 6 months after the grant of the licence.

is authorised to provide more than one payment service;

has ceased to carry on business in providing one or more of the payment services it is authorised to provide (each called in this regulation a ceased payment service), but has not ceased to provide every type of payment service it is authorised to provide; and

has not resumed business in the ceased payment service or services (as the case may be) for a continuous period of 6 months after the date of the cessation of business,must make an application to the Authority in Form 2 to remove every ceased payment service mentioned in sub‑paragraph (c), immediately upon the expiry of that period of 6 months.

before obtaining an undertaking from the safeguarding institution —

assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the undertaking; and

give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that the undertaking is being obtained by the major payment institution or licensee for the purpose of complying with section 23(2) or (4) of the Act, as the case may be;

ensure that the undertaking is not subject to any condition or restriction in respect of being fully liable to the customer for the relevant money;

disclose in writing to the customer that the customer’s relevant money is being safeguarded by an undertaking from the safeguarding institution, to be fully liable to the customer for the relevant money;

assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the undertaking, on an annual basis subsequent to obtaining the undertaking; and

keep, for a period of 5 years or longer, records of the grounds on which the major payment institution or licensee satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a)(i) or (d).

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; or

a finance company licensed under the Finance Companies Act 1967.

before obtaining a guarantee from the safeguarding institution —

assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the guarantee; and

give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that the guarantee is being obtained by the major payment institution or licensee for the purpose of complying with section 23(2) or (4) of the Act, as the case may be;

ensure that —

the guarantee states that in the event of the insolvency of the major payment institution or licensee, the safeguarding institution assumes a primary liability to pay a sum equal to the amount of the relevant money held by the major payment institution or licensee at the end of the business day immediately preceding the date the major payment institution or licensee becomes insolvent; and

there is no other condition or restriction on the immediate paying out of money by the safeguarding institution to a separate trust account held by the major payment institution or licensee in accordance with section 23(6) of the Act, in the event of the insolvency of the major payment institution or licensee;

disclose in writing to the customer that the relevant money is being safeguarded by a guarantee given by the safeguarding institution for the relevant money;

assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the giving of the guarantee, on an annual basis subsequent to obtaining the guarantee; and

keep, for a period of 5 years or longer, records of the grounds on which the major payment institution or licensee satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a)(i) or (d).

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970;

a finance company licensed under the Finance Companies Act 1967; or

any financial guarantee insurer as defined in regulation 2 of the Insurance (Financial Guarantee Insurance) Regulations (Rg 6).

must, before opening the trust account, assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the depositing of the relevant money in a trust account opened with the safeguarding institution;

must, before depositing the relevant money in the trust account —

give written notice to the safeguarding institution and obtain an acknowledgment from the safeguarding institution that —

all moneys deposited in the trust account will be held on trust by the major payment institution or licensee for its customer and the safeguarding institution cannot exercise any right of set‑off against the moneys for any debt owed by the major payment institution or licensee to the safeguarding institution; and

the account is designated as a trust account, or a customer’s or customers’ account, which is distinguishable and maintained separately from any other account maintained with the safeguarding institution in which the major payment institution or licensee deposits its own moneys; and

disclose in writing to its customer —

that the customer’s relevant money will be held by the major payment institution or licensee on behalf of the customer in a trust account opened with the safeguarding institution;

whether or not the relevant money received from the customer will be deposited in a trust account together with, and commingled with, the relevant money received by the major payment institution or licensee from its other customers;

if the relevant money received from the customer will be deposited in a trust account together with, and commingled with, the relevant money received by the major payment institution or licensee from its other customers, the risks of the commingling; and

the consequences for the customer in respect of the relevant money if the safeguarding institution becomes insolvent;

must —

treat and deal with all the relevant money received from a customer as belonging to the customer; and

deposit all the relevant money in the trust account;

subject to paragraph (2), must not commingle the relevant money with other moneys;

must assess, and satisfy itself of, the suitability of the safeguarding institution with respect to the depositing of the relevant money in the trust account maintained with the safeguarding institution, on an annual basis subsequent to the depositing of the relevant money;

must keep, for a period of 5 years or longer, records of the grounds on which the major payment institution or licensee satisfied itself of the safeguarding institution’s suitability under sub‑paragraph (a) or (e); and

subject to paragraph (3), must not withdraw any money that is deposited in the trust account.

deposit the relevant money of a customer in a trust account together with, and commingled with, the relevant money received from its other customers;

advance money to the trust account from its own money to open the trust account; or

from time to time, advance money to the trust account from its own money to maintain the trust account.

the withdrawal of the money will not reduce the amount of the relevant money that is deposited and safeguarded in the trust account;

the money is for the purpose of reimbursing the major payment institution or licensee for money that the major payment institution or licensee has advanced to the trust account from its own money to open or maintain the trust account; or

the withdrawal of the money (whether or not it is money that belongs to the major payment institution or licensee) is for the purpose of payment to the customer.

the person is a bank that holds a licence granted under section 7 or 79 of the Banking Act 1970;

the person is a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970; or

the person is a finance company licensed under the Finance Companies Act 1967.

deposited in a trust account maintained by the licensee with any person (called in regulations 18C, 18D and 18F the safeguarding person) or by the licensee itself; or

returned to the customer.

must be designated as a trust account, or a customer’s or customers’ account; and

must be distinguishable and maintained separately from any other account in which the licensee deposits its own assets.

cannot be used for the payment of the debts of the licensee; and

are not liable to be taken under or pursuant to an enforcement order or a process of any court.

must treat and deal with all assets received from, or on account of, a customer as belonging to the customer;

subject to paragraph (2), must not commingle assets belonging to a customer with other assets;

subject to paragraphs (3) and (4), must not transfer any right, interest, benefit or title in any assets that are deposited in a trust account to itself or any other person; and

must apply any assets belonging to a customer that are deposited in a trust account solely for any purpose that may be agreed to by the customer.

deposit any assets belonging to a customer in a trust account together with, and commingled with, assets belonging to —

other customers of the licensee; or

customers of the safeguarding person with which the trust account is maintained (but not the licensee, even if the licensee is such a customer); and

deposit its own assets in a trust account together with, and commingled with, assets belonging to a customer in order to —

open the trust account; or

facilitate the settlement of fees arising from a transaction carried out on behalf of a customer in accordance with the customer’s written instructions.

particulars of every transaction carried out on behalf of the customer, including —

a description and the quantity of assets that are the subject of the transaction;

the price and fee arising from the transaction;

the name of the customer;

the name of the counterparty to the transaction;

the transaction date and settlement or delivery date; and

in the case of a transaction in which the customer lends assets deposited in a trust account —

the terms and conditions of the transaction; and

if any collateral is received, a description of the collateral received;

the amount and description of each asset belonging to the customer deposited in a trust account as required under regulation 18B(1)(a) and the date of the deposit;

the date and quantity of each transfer of assets belonging to the customer from or to any trust account mentioned in sub‑paragraph (b) arising from any borrowing or lending activity or otherwise in respect of the assets;

the date, amount and purpose of each transfer of assets from any trust account mentioned in sub‑paragraph (b);

the date and amount of, and the reason for, each disposal of collateral from any trust account mentioned in sub‑paragraph (b); (f)whether the customer has a trust account maintained by the licensee solely for that customer, or shares the same trust account with other customers of the licensee; and

the name of each safeguarding person with whom the licensee deposits any assets belonging to the customer.

the total amount of assets belonging to its customers deposited in trust accounts, as at the end of the previous business day;

the total amount of assets belonging to its customers required under regulation 18B(1)(a) to be deposited in trust accounts, as at the end of the previous business day; and

the total amount of the licensee’s residual interests in trust accounts, being assets belonging to the licensee that are deposited in accordance with regulation 18C(2)(b) in those trust accounts together with, and commingled with, assets belonging to its customers, as at the end of the previous business day.

in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; and

in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.

in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both; and

in any other case, to a fine not exceeding $100,000.

a copy of the annual report and directors’ report prepared in accordance with Part 6 of the Companies Act 1967;

a report by an accounting corporation appointed by the operator on the accounting corporation’s findings and recommendations (if any) on —

the internal controls of the operator; and

any non‑compliance by the operator in the financial year with —

any provision of the Act;

any direction issued by the Authority under the Act; or

any other written law of Singapore or another country or territory;

a report by the operator or an accounting corporation appointed by the operator on the business of operating the designated payment system.

name of the applicant;

where the applicant is a corporation —

its place of incorporation;

its substantial shareholders;

its directors and chief executive officer; and

its principal business;

where the applicant is an individual —

his or her nationality;

his or her principal occupation; and

his or her directorships;

the names of all corporations in which the applicant has a substantial shareholding;

the percentage of shareholding and voting power that the applicant has in the operator, if any;

the percentage of shareholding and voting power that the applicant is seeking to have in the operator;

the applicant’s reasons for seeking to have the percentage of shareholding and voting power mentioned in sub‑paragraph (f) in the operator;

the manner in which the increase in shareholding would be carried out;

whether the applicant has a present intention to seek representation on the board of directors of the operator;

any other information that would support a finding that the applicant is a fit and proper person in accordance with the Guidelines on Fit and Proper Criteria.

whether the individual is disqualified under any written law from being appointed as the chief executive officer or a director of the operator;

whether it would be contrary to the interests of the public to approve the appointment of the individual.

maintain at all times a plan of action (called in this regulation a business continuity plan) that sets out the procedures and establishes the systems necessary to restore safe and efficient operations of the designated payment system in the event of any disruption to the processes of the designated payment system; and

submit a copy of the business continuity plan to the Authority within 3 months after the end of each financial year.

the exchange rate offered by the licensee to the customer for each payment transaction;

where an exchange rate has not been offered by the licensee to the customer and the licensee is a major payment institution — the applicable exchange rate that is published by a safeguarding institution which safeguards, under section 23(2) or (4) of the Act, the relevant money received by the major payment institution, on the date on which the payment transaction is executed; or

where an exchange rate has not been offered by the licensee to the customer and the exchange rate mentioned in sub‑paragraph (b) is not available — the applicable exchange rate that is published by any bank in Singapore on the date on which the payment transaction is executed.

whether the sum of the value of e‑money mentioned in section 6(5)(b)(ii)(A) and (B) of the Act that is in foreign currency exceeds $5 million;

for the purposes of section 24(1)(a) of the Act, whether the currency equivalent of the e‑money contained in a personal payment account issued by the major payment institution to a payment service user that is in a foreign currency, exceeds the prescribed amount mentioned in regulation 18(1);

for the purposes of section 24(1)(c)(i) of the Act, whether the total currency equivalent of the e‑money contained in all personal payment accounts issued by the major payment institution to a payment service user that is in a foreign currency, exceeds the prescribed amount mentioned in regulation 18(1);

for the purposes of the definition of “small personal payment account” in section 24(5) of the Act, whether the currency equivalent of the e‑money stored in a personal payment account that is in a foreign currency exceeds $1,000.

where the issuer of the e‑money mentioned in paragraph (2)(a), (b), (c) or (d) is a major payment institution or exempt payment service provider — the applicable daily exchange rate that is published by a safeguarding institution which safeguards, under section 23(2) or (4) of the Act, the relevant money received by the issuer; or

where the exchange rate mentioned in sub‑paragraph (a) is not available — the applicable daily exchange rate that is published by any bank in Singapore.

the applicable daily exchange rate that is published by a safeguarding institution which safeguards, under section 23(2) or (4) of the Act, the relevant money received by the major payment institution; or

where an exchange rate mentioned in sub‑paragraph (a) is not available — the applicable daily exchange rate that is published by any bank in Singapore.

for the purposes of section 24(1)(b) of the Act, whether the total currency equivalent of the e‑money transferred in any period of one year, from a personal payment account issued by the major payment institution to a payment service user, other than to any personal deposit account that is either in the name of or designated by that payment service user, that is in a foreign currency exceeds the prescribed amount mentioned in regulation 18(2);

for the purposes of section 24(1)(c)(ii) of the Act, whether the total currency equivalent of the e‑money transferred in any period of one year, from all personal payment accounts issued by the major payment institution to a payment service user, other than to any personal deposit account that is either in the name of or designated by that payment service user, that is in a foreign currency exceeds the prescribed amount mentioned in regulation 18(2).

the exchange rate offered by the issuer of the e‑money mentioned in paragraph (6)(a) or (b) (as the case may be) to the payment service user for each transfer;

where an exchange rate has not been offered by the issuer of the e‑money and the issuer of the e‑money is a major payment institution or an exempt payment service provider — the applicable exchange rate that is published by a safeguarding institution which safeguards, under section 23(2) or (4) of the Act, the relevant money received by the issuer of the e‑money, on the date on which the transfer is executed; or

where an exchange rate has not been offered by the issuer of the e‑money and the exchange rate mentioned in sub‑paragraph (b) is not available — the applicable exchange rate that is published by any bank in Singapore on the date the transfer is executed.

the holder also carries on a business of keeping or managing a hotel; and

the holder’s business of providing any money‑changing service is solely incidental to its business mentioned in sub‑paragraph (a).

an account issuance service;

a domestic money transfer service;

a cross‑border money transfer service;

a merchant acquisition service;

an e‑money issuance service.

where the person carries on a business of providing an account issuance service, all the following conditions:

the person is not exempt under regulation 3 of the Payment Services (Exemption for Specified Period) Regulations 2019;

the person does not allow the withdrawal of any currency from any payment account it issues;

the person only allows a refund of money that is more than $100 in currency (or its equivalent in a foreign currency) to any person from any payment account it issues, if —

an identification document of the holder of the payment account that bears a photograph of the holder and is in force is produced to the person; and

the person has in place a policy to keep a record of any refund and the relevant identification document mentioned in sub‑paragraph (A) for at least 5 years after the date on which the refund is made;

the person does not allow the currency equivalent of e‑money or the amount of money contained in any payment account it issues to exceed $1,000 (or its equivalent in a foreign currency);

the person complies with sections 19 and 20(1) of the Act as if the person were a licensee mentioned in those provisions;

but for paragraph (1), the person would be required to hold a standard payment institution licence under section 6(4) of the Act, but not a major payment institution licence under section 6(5) of the Act;

where the person carries on a business of providing a domestic money transfer service, all the following conditions:

the person is not exempt under regulation 4 of the Payment Services (Exemption for Specified Period) Regulations 2019;

the business only involves one or more of the following types of transactions:

payment for goods or services where the payment is funded from an identifiable source;

payment for goods or services where the transaction value does not exceed $20,000 (or its equivalent in a foreign currency); (C)payment for any transaction (other than for goods or services) where the payment is funded from an identifiable source and the transaction value does not exceed $20,000 (or its equivalent in a foreign currency);

the person complies with section 20(1) of the Act as if the person were a licensee mentioned in that provision;

but for paragraph (1), the person would be required to hold a standard payment institution licence under section 6(4) of the Act, but not a major payment institution licence under section 6(5) of the Act;

where the person carries on a business of providing a cross‑border money transfer service, all the following conditions:

the person is —

not deemed to have been granted a licence under section 122(1), (4), (5) or (7) of the Act, or if the person was so deemed to have been granted a licence, the person has since ceased to hold the licence; and

not exempt under section 123(1) of the Act or regulation 29 of these Regulations or regulation 5 of the Payment Services (Exemption for Specified Period) Regulations 2019;

the business only involves transactions that are used as payment for goods or services and are funded from identifiable sources;

the person complies with section 20(1) of the Act as if the person were a licensee mentioned in that provision;

but for paragraph (1), the person would be required to hold a standard payment institution licence under section 6(4) of the Act, but not a major payment institution licence under section 6(5) of the Act;

where the person carries on a business of providing a merchant acquisition service, all the following conditions:

the person is not exempt under regulation 4 of the Payment Services (Exemption for Specified Period) Regulations 2019;

the person complies with section 20(1) of the Act as if the person were a licensee mentioned in that provision;

but for paragraph (1), the person would be required to hold a standard payment institution licence under section 6(4) of the Act, but not a major payment institution licence under section 6(5) of the Act; or

where the person carries on a business of providing e‑money issuance service, all the following conditions:

the person is —

not deemed to have been granted a licence under section 122(3), (5), (6) or (7) of the Act, or if the person was so deemed to have been granted a licence, the person has since ceased to hold the licence; and

not exempt under section 123(3) of the Act or regulation 6 of the Payment Services (Exemption for Specified Period) Regulations 2019;

the person complies with section 20(1) and (2) of the Act as if the person were a licensee mentioned in those provisions;

but for paragraph (1), the person would be required to hold a standard payment institution licence under section 6(4) of the Act, but not a major payment institution licence under section 6(5) of the Act.

for the purposes of paragraph (2)(a)(iii), whether an amount of money that is in foreign currency which is refunded by a person that issues a payment account from the payment account to the holder of the payment account exceeds $100;

for the purposes of paragraph (2)(b)(ii)(B), whether the value of a payment for goods or services executed by a person for a customer that is in foreign currency exceeds $20,000;

for the purposes of paragraph (2)(b)(ii)(C), whether the value of a payment which is executed by a person for a customer that is in foreign currency exceeds $20,000.

the exchange rate offered by the person to the customer for each refund or payment, as the case may be; or

where an exchange rate is not offered by the person to the customer — the applicable exchange rate that is published by any bank in Singapore on the date the refund is made, or the payment is executed.

A is —

not deemed to have been granted a licence under section 122(1), (4), (5) or (7) of the Act, or if A was so deemed to have been granted a licence, A has since ceased to hold the licence; and

not exempt under section 123(1) of the Act, regulation 28(1) of these Regulations or regulation 5 of the Payment Services (Exemption for Specified Period) Regulations 2019, in respect of the cross‑border money transfer service;

A has in force a licence that entitles A to carry on a business of providing a domestic money transfer service;

A transmits the money to D for the purpose of enabling D to transmit the money to C under an agreement between B and D;

D is —

licensed to carry on a business of providing cross‑border money transfer service;

exempt from holding a licence to carry on a business of providing cross‑border money transfer service under regulation 28(1); or

an exempt payment service provider;

D transmits the money to C pursuant to the agreement mentioned in sub‑paragraph (c).

the licensee is a casino operator or an international market agent licensed under section 110B of the Casino Control Act 2006; and

the licensee grants a credit facility in connection with any gaming in a casino in accordance with section 108 of the Casino Control Act 2006 (other than in the manner mentioned in section 108(14)(a) of that Act) and the Casino Control (Credit) Regulations 2010.

on account of a customer that is a foreign entity in respect of a provision of a merchant acquisition service by the major payment institution to the customer; or

on account of a customer that is a foreign entity in respect of a provision of a cross‑border money transfer service by the major payment institution to the customer for the purpose of enabling the major payment institution to provide a merchant acquisition service to the customer.

the major payment institution must inform the customer in writing that the money the major payment institution receives from, or on account of, the customer is not safeguarded under the Act; (b)the major payment institution must not accept or receive the relevant money in Singapore; (c)the payer must be a foreign individual or foreign entity;

the payee must be a foreign individual or foreign entity.

stating the decision the Authority intends to make that affects the person and the grounds for the decision; and

inviting the person to give to the Authority, within the period specified in the notice (not being less than 10 days after the date of the receipt of the notice), a written statement, accompanied by relevant supporting documents, as to why the Authority should reconsider the decision the Authority intends to make.

in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; and

in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.