On 4 April 2024, the Payment Services (Amendment) Act 2021 came into effect, revising the Payment Services Act 2019 (“PS Act“) in the following main areas:
- Broadening the definition of “digital payment token” (“DPT“) services to align with enhanced regulation adopted by the Financial Action Task Force (FATF) standards in regulating virtual asset service providers for anti-money laundering and countering the financing of terrorism;
- Widening the definition of “cross-border money transfer” services to include arranging for the transmission of money from any country or territory to another country or territory, even where money is neither accepted nor received in Singapore given the money-laundering/terrorist financing (ML/TF) risks that may also arise from such models; and
- Empowering the Monetary Authority of Singapore (“MAS“) to impose additional measures to regulate DPT service providers to enhance consumer protection and maintain financial stability.
To operationalise these changes, amendments to the Payment Services Regulations 2019 and a set of new MAS Guidelines have been published, which will take effect in stages from 4 April 2024.
The amendments expand the scope of payment services regulated by MAS, and introduces new requirements for DPT service providers relating to the safeguarding of customers’ assets, as well as measures on consumer access and business conduct. This Update provides a brief summary of these newly regulated activities and the new requirements imposed on DPT service providers.
For more information, click here to read the full Legal Update.
