Payment Services Act 2019

• Jurisdiction: Singapore
• Coming into Force: 28 January 2020
• Record Number: Act 2 of 2019

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

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NO. 7] Friday, February 22 [2019

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The following Act was passed by Parliament on 14 January 2019 and assented to by the President on 11 February 2019:—

Payment Services Act 2019

(No. 2 of 2019)

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I assent.

HALIMAH YACOB, President. 11 February 2019.

Date of Commencement: 28 January 2020 Parts 1 to 8, sections 109, 110, 112, 115 to 120, Part 10, the First and Second Schedules

Date of Commencement: 30 July 2020 Section 114

An Act to provide for the licensing and regulation of payment service providers, the oversight of payment systems, and connected matters, to repeal the Money‑changing and Remittance Businesses Act (Chapter 187 of the 2008 Revised Edition) and the Payment Systems (Oversight) Act (Chapter 222A of the 2007 Revised Edition), and to make consequential and related amendments to certain other Acts.

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

PART 1 PRELIMINARY Short title and commencement 1. This Act is the Payment Services Act 2019 and comes into operation on a date that the Minister appoints by notification in the Gazette. Interpretation 2.—(1) In this Act, unless the context otherwise requires — “5% controller”, in relation to a corporation (being a licensee or an operator of a designated payment system), means a person that alone or together with the person’s associates — (a) has an interest in at least 5%, but less than 12%, of the shares in the corporation; or (b) is in a position to control at least 5%, but less than 12%, of the votes in the corporation; “12% controller”, in relation to a corporation (being a licensee or an operator of a designated payment system), means a person that alone or together with the person’s associates — (a) has an interest in at least 12%, but less than 20%, of the shares in the corporation; or (b) is in a position to control at least 12%, but less than 20%, of the votes in the corporation; “20% controller”, in relation to a corporation (being a licensee or an operator of a designated payment system), means a person that alone or together with the person’s associates — (a) has an interest in at least 20% of the shares in the corporation; or (b) is in a position to control at least 20% of the votes in the corporation; “access”, in relation to a payment system, means an entitlement or eligibility to be a participant in the payment system; “access regime”, in relation to a payment system, means an access regime imposed by the Authority under section 51 and that is in force; “account issuance service” has the meaning given by Part 3 of the First Schedule; “arrangement” includes any formal or informal scheme, arrangement or understanding, and any trust whether express or implied; “Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186); “bank”, “bank in Singapore” and “banking business” have the meanings given by section 2(1) of the Banking Act (Cap. 19); “book” includes any record, register, document or other record of information and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or by electronic process or otherwise; “calendar year” means a period from 1 January to 31 December (both dates inclusive); “chief executive officer”, in relation to a corporation, means a person (however designated) who — (a) is in the direct employment of, or acting for or by arrangement with, the corporation; and (b) is principally responsible for the management and conduct of the business of the corporation; “company” and “corporation” have the meanings given by section 4(1) of the Companies Act (Cap. 50); “consolidated financial statements” has the meaning given by section 209A of the Companies Act; “credit card” and “charge card” have the meaning given by section 56 of the Banking Act; “cross‑border money transfer service” has the meaning given by Part 3 of the First Schedule; “currency” means currency notes and coins that are legal tender in Singapore or a country or territory other than Singapore; “deposit” and “deposit‑taking business” have the meanings given by section 4B of the Banking Act; “designated payment system” means a payment system that is designated by the Authority under section 42 to be a designated payment system for the purposes of this Act; “digital payment token” means any digital representation of value (other than an excluded digital representation of value) that — (a) is expressed as a unit; (b) is not denominated in any currency, and is not pegged by its issuer to any currency; (c) is, or is intended to be, a medium of exchange accepted by the public, or a section of the public, as payment for goods or services or for the discharge of a debt; (d) can be transferred, stored or traded electronically; and (e) satisfies such other characteristics as the Authority may prescribe; “digital payment token service” has the meaning given by Part 3 of the First Schedule; “director” has the meaning given by section 4(1) of the Companies Act; “domestic money transfer service” has the meaning given by Part 3 of the First Schedule; “e‑money” means any electronically stored monetary value that — (a) is denominated in any currency, or pegged by its issuer to any currency; (b) has been paid for in advance to enable the making of payment transactions through the use of a payment account; (c) is accepted by a person other than its issuer; and (d) represents a claim on its issuer, but does not include any deposit accepted in Singapore, from any person in Singapore; “e‑money issuance service” has the meaning given by Part 3 of the First Schedule; “employee”, in relation to an employer, includes an individual seconded or temporarily transferred to the employer from another employer; “entity” means any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore; “excluded digital representation of value” means a digital representation of value that is prescribed by the Authority as an excluded digital representation of value; “executive director” means a director who is concurrently an executive officer; “executive officer”, in relation to a corporation, means any individual (however designated) who — (a) is in the direct employment of, or acting for or by arrangement with, the corporation; and (b) is concerned with or takes part in the management of the corporation on a day‑to‑day basis; “exempt payment service provider”, in respect of any payment service, means a person that is exempt under section 13(1) from the requirement under section 5(1) to have in force a licence that entitles the person to carry on a business of providing that payment service; “financial regulatory authority”, in relation to a foreign country or territory, means an authority of the foreign country or territory exercising any function that corresponds to a regulatory function of the Authority under this Act, the Monetary Authority of Singapore Act or any of the written laws set out in the Schedule to that Act; “financial statements” has the meaning given by section 209A of the Companies Act; “financing business” has the meaning given by section 2 of the Finance Companies Act (Cap. 108); “Guidelines on Fit and Proper Criteria” means the document (as revised from time to time) that is called by that title, issued by the Authority and published on the Authority’s website; “indirect controller”, in relation to a corporation (being a licensee or an operator of a designated payment system) — (a) means any person, whether acting alone or together with any other person, and whether with or without holding shares or controlling voting power in the corporation — (i) in accordance with whose directions, instructions or wishes the directors of the corporation are accustomed or under an obligation, whether formal or informal, to act; or (ii) that is in a position to determine the policy of the corporation; but (b) excludes any person — (i) who is a director or other officer of the corporation and whose appointment has been approved by the Authority; or (ii) in accordance with whose directions, instructions or wishes the directors of the corporation are accustomed to act by reason only that they act on advice given by the person in the person’s professional capacity; “licence” means a licence granted under section 6; “licensee” means a payment service provider the licence of which is in force; “limited liability partnership” has the meaning given by section 4(1) of the Limited Liability Partnerships Act (Cap. 163A); “major payment institution” means a person that has in force a major payment institution licence granted under section 6; “merchant” means a person (other than an individual who is not required to be registered under the Business Names Registration Act 2014 (Act 29 of 2014)) who, in the course of the person’s business — (a) provides goods or services; (b) promotes the use or purchase of goods or services; or (c) receives, or is entitled to receive, any money or other consideration for providing goods or services, and includes any employee or agent of the person; “merchant acquisition service” has the meaning given by Part 3 of the First Schedule; “money” includes e‑money but excludes any digital payment token and any excluded digital representation of value; “money-changing service” has the meaning given by Part 3 of the First Schedule; “operator”, in relation to a payment system, means a person that operates the payment system; “participant”, in relation to a payment system, means any person that is recognised in the rules of the payment system, or is otherwise recognised by the operator or settlement institution of the payment system, as being eligible to settle payments through the payment system with other persons that are similarly recognised, or to process payments through the payment system; “partner”, in relation to a limited liability partnership, has the meaning given by section 2(1) of the Limited ...