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Obtaining a Payment Institution license in Singapore

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Obtaining a payment license in Singapore in 2020

Benefits of applying for a PI license in this jurisdiction:

  • High level of economic development;
  • Modern banking and financial sectors;
  • Access to the Asian markets;
  • Tax incentives;
  • It is possible to order 2 types of licenses (a license of a standard or a major payment institution).
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The situation with the provision of payment services in Singapore changed after the PSA was entered into force in 2020. PSA provides licensing and regulation of PSPs, as well as supervision of Singapore payment institutions. In accordance with Section 5, PSA, any person who intends to provide payment services, as defined in the law, must obtain a PSP license in Singapore, which can also be called a PI license.

Further, in the article, we will consider in detail the necessary requirements for obtaining a PI license in Singapore, determine the necessary package of documents, and answer some frequently asked questions.

How to obtain a PI License in Singapore

The MAS issued a special form for applying for obtaining a PSP license. The applicant company must fill in this form, and then, along with the prepared package of documents, submit it to the MAS in order to obtain a Singapore PI license.

Also, it must be stressed that the MAS has published a special Guidelines on Licensing, which contains all the conditions and criteria by which the company is evaluated, and, in fact, a description of the application process itself.

Before applying for a PSP license in Singapore, the company must ensure that it fulfills all the requirements outlined in the PSA. Inter alia, the applicant must:

  • Have an initial capital of 100,000 SGD (approximately 66,000 EUR) for SPI, or 200,000 SGD (approximately 132,000 EUR) for MPI;
  • Prove that the top management of the company has a good reputation, education and business skills;
  • Have an independent audit plan.

The application must be completely filled out, checked for errors, and supplemented with the necessary documents specified in the special form.

Process of preparing documents needed for ordering a PI license

In particular, to apply for a PI license in Singapore, you will need to prepare a detailed business plan. In it, you must:

  • Illustrate compliance with the PSA;
  • Specify the profile of the target clientele;
  • Describe the products and services offered;
  • Describe the plan and the ways of cash flows, including diagrams of transactions and/or processes;
  • Describe the business creation plan, as well as mention third parties that will play a key role in its operation;
  • Provide a brief description of any other activities regulated by the MAS, which is also planned to be conducted.

MAS individually considers each application for obtaining a license for payment services in Singapore, so it should be understood that in each specific case of licensing, many other factors are taken into account, which may not be mentioned in the regulations.

Read also:
Requirements for the holder of a Singapore license for electronic payment services

The company must also understand that after obtaining of a Singapore PSP license, it will have to comply with all the requirements set forth in the PSA. This also includes the requirement to comply with the AML/CFT rules outlined in PSN01 and PSN02. In addition, the licensee must comply with the requirements of Cyber ​​Hygiene, and take certain measures to protect customer data. He must also comply with liabilities to protect client's funds, keep records of transactions and issue receipts.

Regarding the disclosure of information, in accordance with PSN08 the licensee must (where necessary) disclose the scope of the license, and ensure that customers receive all information about any changes.

Among other things, the licensee must use the MAS Guidelines, such as the Guidelines on Risk Management, and the Guidelines for User Protection.

Audit requirements

After obtaining of a Singapore PI license, you will need to audit your accounts and transactions annually, as well as comply with certain rules and requirements. For example, the license holder should make sure that the auditor provides a report on the work done to the MAS.

IQD Consulting services

Please, take into account that this article is presented to the reader for informative purposes, and should not be construed as legal advice or recommendations.

Since, obtaining a license for E-payment services in Singapore is a rather complicated process requiring responsibility and careful preparation in order to minimize the risks associated with licensing, it would be advisable to take care of reliable legal support at an early stage.

If you have any questions regarding licensing, we draw your attention to the fact that IQD Consulting experts provide comprehensive legal advice on licensing of payment institutions, and are ready to:

  • Provide legal support services on obtaining a PI license in Singapore;
  • Provide legal assistance in a business plan preparation for a payment institution;
  • Assist in preparing documents needed for ordering a license;
  • Provide legal aid in registering a company in Singapore and opening a Singapore bank corporate account, etc.

To order personal legal advice on licensing a payment institution in Singapore, or to obtain detailed information about the services of our company, please, fill out the feedback form, or call our office right now through the contacts specified below.

  • The information outlined in the article is actual at the time of its publication.
  • Please refer to our specialists for checking possible solutions for your business.
  • Still have any questions?

    Fill out the form or contact us as you find convenient. Our experts will help you resolve the issue.

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