The Monetary Authority of Singapore (MAS) has announced the commencement of the Payment Services Act (PS Act). The new PS Act is designed to enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments. The PS Act adopts an activity-based licensing framework in recognition of the different kinds of activities and new developments in payment services. It also expands MAS’ regulatory ambit to include new types of payment services, such as digital payment token services.

MAS says it closely engaged the industry through dialogues and public consultations in designing the PS Act. To support the transition of payment services firms to the new PS Act, MAS has initiated a payments regulatory evaluation programme to help them connect with providers of legal services.

“The Payment Services Act provides a forward-looking and flexible regulatory framework for the payments industry,” commented Loo Siew Yee, assistant managing director (Policy, Payments & Financial Crime) at MAS. “The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”

The Money-changing and Remittance Businesses Act and the Payment Systems (Oversight) Act will be repealed with the commencement of the PS Act. MAS has thanked all respondents for feedback to the public consultations on the PS Act-related subsidiary legislation and guidelines in 2019.