Payment Services Bill
Bill No. 48/2018.
Read the first time on 19 November 2018.

PAYMENT SERVICES ACT 2019(No.

of 2019)

ARRANGEMENT OF SECTIONSPART 1PRELIMINARY
Section
1.
2.
3.
4.

Short title and commencement
Interpretation
Application of Act
Appointment of assistants
PART 2LICENSING OF PAYMENT SERVICE PROVIDERS
Division 1 — Licensing of payment service providers

5.
6.
7.
8.
9.
10.
11.
12.
13.

Licensing of payment service providers
Application for licence
Variation or change of licence
Holding out as licensee, etc.
Prohibition against solicitation
Annual fees of licensees
Lapsing, surrender, revocation or suspension of licenceAppeals to Minister
Exempt payment service providers
Division 2 — Conduct of businessSubdivision (1) — General

14.

Place of business or registered office of licensee

2Section
15.
16.
17.
18.
19.
20.
21.

Obligation of licensee to notify Authority of certain events
Obligation of licensee to provide information to Authority
Obligation of licensee to submit periodic reports
Prohibition against use of unlicensed agent
Prohibition against exchanging e-money withdrawn frompayment account for Singapore currency
Prohibition from carrying on certain businesses
Application of section 14 of Currency Act
Subdivision (2) — Major payment institutions

22.
23.
24.
25.
26.

Security
Safeguarding of money received from customer
Restrictions on personal payment account that contains e-money
Powers of Authority to ensure interoperability between payment
accounts and payment system
Powers of Authority to ensure interoperability between payment
systems
Division 3 — Control of controllers of licensees

27.
28.
29.
30.
31.
32.
33.

Application and interpretation of this Division
Control of shareholding in licensee
Objection to existing control of licensee
Power of Authority to issue directions for this Division
Power of Authority to obtain information relating to this
Division
Offences, penalties and defences
Appeals to Minister
Division 4 — Control of officers of licensees

34.
35.
36.

Approval of chief executive officer, director or partner oflicensee
Removal of chief executive officer, director or partner oflicenseeAppeals to Minister
Division 5 — Audit of licensees

37.
38.
39.
40.

Auditing
Powers of auditor appointed by Authority
Restriction on auditor’s and employee’s right to communicate
certain matters
Offence to destroy, conceal, alter, etc., records

3PART 3
PAYMENT SYSTEMSDivision 1 — Information gathering powers over payment systems
Section41.

Provision of information to Authority
Division 2 — Designation of payment systems

42.
43.
44.
45.
46.

Power of Authority to designate payment systems
Prohibition against holding out as designated payment system
Power of Authority to impose conditions or restrictions
Withdrawal of designation of payment system
Exemptions applicable to operator, settlement institution or
participant of payment system designated to ensure efficiency orcompetitiveness

Division 3 — Obligations of operators and settlement institutions ofdesignated payment systems
47.
48.
49.
50.

Obligation of operator or settlement institution to have place ofbusiness or registered officeObligation of operator or settlement institution to notify
Authority of certain events
Obligation of operator to submit periodic reports
Obligation of operator to notify Authority of businesses andacquisition of corporations
Division 4 — Access regime

51.
52.
53.
54.

Power of Authority to impose access regime
Variation of access regime
Cessation and revocation of access regime
Right to apply to High Court in respect of access regime
Division 5 — Voluntary transfer of business

55.
56.
57.

Interpretation of this Division
Voluntary transfer of businessApproval of transfer
Division 6 — Control of controllers of operators of designatedpayment systems

58.
59.
60.

Application and interpretation of this Division
Control of shareholding in operator
Objection to existing control of operator

4

Section
61.
62.
63.
64.

Power of Authority to issue directions for this Division
Power of Authority to obtain information relating to this
Division
Offences, penalties and defences
Appeals to Minister
Division 7 — Control of officers of operators and settlement
institutions of designated payment systems

65.
66.
67.

Approval of chief executive officer or director of operator
Removal of executive officer or director of operator or
settlement institution
Appeals to Minister
Division 8 — Audit of operators and settlement institutions ofdesignated payment systems

68.
69.
70.
71.

Auditing
Powers of auditor appointed by Authority
Restriction on auditor’s and employee’s right to communicate
certain matters
Offence to destroy, conceal, alter, etc., records
PART 4
INSPECTION AND INVESTIGATIONS

72.
73.
74.
75.
76.

Inspection by Authority
Investigation by Authority
Confidentiality of inspection and investigation reports
Self-incrimination
Savings for advocates and solicitors
PART 5EMERGENCY POWERS

77.
78.
79.
80.
81.
82.

Interpretation of this Part
Action by Authority if payment entity unable to meet
obligations, etc.
Emergency powers of Authority applicable to designatedpayment systems
Assumption of control
Other provisions concerning control
Responsibilities of directors, officers, etc., of payment entity

5Section83.

Remuneration and expenses of Authority and others in certain
cases
PART 6ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

84.
85.
86.
87.
88.
89.

Interpretation of this Part
Conditions for provision of assistance
Other factors to consider for provision of assistance
Assistance that may be rendered
Offences under this Part
Immunities
PART 7
OFFENCES

90.
91.
92.
93.
94.
95.
96.

Offences by corporations
Offences by unincorporated associations or partnerships
Offences by officers
Falsification of records by officers, etc.
General duty to use reasonable care not to provide false
information to Authority
General penalty
Composition of offences
PART 8MISCELLANEOUS

97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.

Jurisdiction of court
Opportunity to be heard
Power of court to make certain orders
General exemption
Codes, guidelines, etc., by Authority
Power of Authority to issue notice in writing
Power of Authority to make regulations
Publication of certain information
Service of documents
Electronic service
Amendment of Schedules
Repeal6PART 9CONSEQUENTIAL AND RELATED AMENDMENTSTO OTHER ACTS
Section
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.

Amendment of Central Provident Fund Act
Amendment of Companies Act
Amendment of Credit Bureau Act 2016
Amendment of Financial Advisers Act
Amendment of Financial Holding Companies Act 2013
Amendment of Insolvency, Restructuring and Dissolution Act
2018
Amendment of Insurance Act
Amendment of Limited Liability Partnerships Act
Amendment of Monetary Authority of Singapore Act
Amendment of Remote Gambling Act 2014
Amendment of Securities and Futures Act
Amendment of Small Claims Tribunals Act
PART 10SAVING AND TRANSITIONAL PROVISIONS

121.
122.

123.
124.
125.
126.

Interpretation of this Part
Saving and transitional provisions for holders of licences under
MCRBA and approved holders of stored value facilities under
PSOA
Saving and transitional provisions for persons granted
exemptions under MCRBA or PSOA
Pending applications for licences and renewals under MCRBA
and pending applications for certain approvals under PSOA
Saving and transitional provisions for designated payment
systems
Other saving and transitional provisions
First Schedule — Payment services
Second Schedule — Specified provisions

7

A BILL
intituled
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 RemittanceBusinesses 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:8PART 1PRELIMINARY
Short title and commencement5

1. This Act is the Payment Services Act 2019 and comes into
operation on a date that the Minister appoints by notification in theGazette.
Interpretation
2.—(1) In this Act, unless the context otherwise requires —10“5% controller”, in relation to a corporation (being a licensee oran operator of a designated payment system), means a personthat alone or together with the person’s associates —(a) has an interest in at least 5%, but less than 12%, of theshares in the corporation; or

15(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 oran operator of a designated payment system), means a personthat alone or together with the person’s associates —20(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;

25“20% controller”, in relation to a corporation (being a licensee oran operator of a designated payment system), means a personthat alone or together with the person’s associates —(a) has an interest in at least 20% of the shares in thecorporation; or(b) is in a position to control at least 20% of the votes in
the corporation;

30“access”, in relation to a payment system, means an entitlement
or eligibility to be a participant in the payment system;

9“access regime”, in relation to a payment system, means anaccess regime imposed by the Authority under section 51 andthat is in force;“account issuance service” has the meaning given by Part 3 of
the First Schedule;5“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);

10“bank”, “bank in Singapore” and “banking business” have themeanings given by section 2(1) of the Banking Act (Cap. 19);
“book” includes any record, register, document or other recordof 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 orotherwise;“calendar year” means a period from 1 January to 31 December(both dates inclusive);

15

20“chief executive officer”, in relation to a corporation, means aperson (however designated) who —(a) is in the direct employment of, or acting for or byarrangement with, the corporation; and(b) is principally responsible for the management andconduct of the business of the corporation;

25“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;

30

10

“cross-border money transfer service” has the meaning given byPart 3 of the First Schedule;“currency” means currency notes and coins that are legal tenderin Singapore or a country or territory other than Singapore;5“deposit” and “deposit-taking business” have the meanings
given by section 4B of the Banking Act;“designated payment system” means a payment system that isdesignated by the Authority under section 42 to be adesignated payment system for the purposes of this Act;

10“digital payment token” means any digital representation ofvalue (other than an excluded digital representation of value)that —(a) is expressed as a unit;

15(b) is not denominated in any currency, and is not peggedby 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 ofa debt;20(d) can be transferred, stored or traded electronically;and(e) satisfies such other characteristics as the Authority
may prescribe;

25“digital payment token service” has the meaning given by Part 3of the First Schedule;“director” has the meaning given by section 4(1) of theCompanies Act;
“domestic money transfer service” has the meaning given byPart 3 of the First Schedule;30“e-money” means any electronically stored monetary valuethat —

11(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;5(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, fromany person in Singapore;“e-money issuance service” has the meaning given by Part 3 of
the First Schedule;

10“employee”, in relation to an employer, includes an individual
seconded or temporarily transferred to the employer fromanother employer;“entity” means any body corporate or unincorporate, whether
incorporated, formed or established in or outside Singapore;15“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;

20“executive officer”, in relation to a corporation, means any
individual (however designated) who —(a) is in the direct employment of, or acting for or byarrangement with, the corporation; and25(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 alicence that entitles the person to carry on a business ofproviding that payment service;

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5

“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 aregulatory function of the Authority under this Act, theMonetary 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;

10

“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 (asrevised from time to time) that is called by that title, issued by
the Authority and published on the Authority’s website;

15“indirect controller”, in relation to a corporation (being alicensee 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 thecorporation —20(i) in accordance with whose directions,
instructions or wishes the directors of thecorporation are accustomed or under anobligation, whether formal or informal, to act;or25(ii) that is in a position to determine the policy ofthe corporation; but(b) excludes any person —30(i) who is a director or other officer of thecorporation and whose appointment has been
approved by the Authority; or(ii) in accordance with whose directions,
instructions or wishes the directors of thecorporation are accustomed to act by reason

13

only that they act on advice given by the personin 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;5“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 amajor payment institution licence granted under section 6;

10“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 courseof the person’s business —(a) provides goods or services;15(b) promotes the use or purchase of goods or services; or(c) receives, or is entitled to receive, any money or otherconsideration for providing goods or services,
and includes any employee or agent of the person;“merchant acquisition service” has the meaning given by Part 3of the First Schedule;

20“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;

25“operator”, in relation to a payment system, means a person that
operates the payment system;“participant”, in relation to a payment system, means any personthat is recognised in the rules of the payment system, or isotherwise recognised by the operator or settlement institutionof the payment system, as being eligible to settle payments
through the payment system with other persons that are

30

14

similarly recognised, or to process payments through thepayment system;

5“partner”, in relation to a limited liability partnership, has themeaning given by section 2(1) of the Limited Liability
Partnerships Act;“payee” means a person that is the intended recipient of moneythat is the subject of a payment transaction;“payer” means a person that initiates, or consents to theinitiation of, a payment order for the transfer of money;

10“payment account” —(a) means any account, or any device or facility (whether
in physical or electronic form), that —15(i) is held in the name, or associated with theunique identifier, of any person, and is used bythat person for the initiation of a payment order
or the execution of a payment transaction, or
both; or20(ii) is held in the names, or associated with theunique identifiers, of 2 or more persons, and isused by any of those persons for the initiationof a payment order or the execution of apayment transaction, or both; and(b) includes a bank account, debit card, credit card or
charge card;

25

30“payment order” means an instruction to a payment service
provider requesting for the execution of a paymenttransaction;“payment service” means any service that is specified in Part 1of the First Schedule, but excludes any service that is
specified in Part 2 of that Schedule;“payment service provider” means any person that provides a
payment service;15“payment service user” means any person that uses a payment
service in the capacity of a payer or a payee, or of both;“payment system” means a funds transfer system or othersystem that facilitates the circulation of money, and includes
any instruments and procedures that relate to the system;

5“payment transaction” means the placing, transfer or withdrawalof money, whether for the purpose of paying for goods orservices or for any other purpose, and regardless of whether
the intended recipient of the money is entitled to the money;“permanent place of business”, in relation to a licensee, or an
operator or a settlement institution of a designated payment
system, means each fixed location in Singapore used by thelicensee, operator or settlement institution for carrying on its
business, regardless whether the business is carried on within
a single building or at a single business address;“place of business”, in relation to a licensee, or an operator or asettlement institution of a designated payment system, means
any location (including a kiosk that can be moved from one
location to another) in Singapore used by the licensee,
operator or settlement institution for carrying on its business;

10

15

20

“public authority” means —(a) the Government, including any ministry, department
or agency of the Government, or an Organ of State; or(b) any body established or constituted by or under apublic Act to perform or discharge any public
function;25“registered office” means a registered office maintained under
section 142(1) or 370(1) of the Companies Act;“regulated financial institution” means a person that carries on abusiness, the conduct of which is regulated or authorised by
the Authority or, if it is carried on in Singapore, would be
regulated or authorised by the Authority;“relevant payment system” means any of the following payment
systems:3016(a) a payment system operated by a major payment
institution;(b) a payment system operated by an exempt payment
service provider;5(c) a payment system operated by a person exempt under
section 100 from having in force a licence;(d) a designated payment system;“settlement institution” means a person that provides facilities
for —

10

(a) the participants of a payment system to hold funds;
and(b) the settling of transactions between the participants;“share” has the meaning given by section 4(1) of the Companies
Act and includes an interest in a share;

15“Singapore operator” means an operator that is incorporated in
Singapore;“Singapore settlement institution” means a settlement institutionthat is incorporated in Singapore;“specified e-money” means any e-money that has been issued —2025(a) to any person whom the issuer of the e-money has
determined, according to such criteria as the
Authority may specify by notice in writing, to beresident in Singapore; or(b) in Singapore to a person whom the issuer of thee-money has not determined, according to such
criteria as the Authority may specify by notice inwriting, to be resident outside Singapore;“standard payment institution” means a person that has in force a
standard payment institution licence granted under section 6;30“treasury share” has the meaning given by section 4(1) of theCompanies Act;

17

“unique identifier” means a combination of letters, numbers or
symbols used by a payment service user to identify
unambiguously either or both of the following for the
purposes of a payment transaction:(a) any payment service user that is a party to thepayment transaction;

5(b) any payment account;“voting share” has the meaning given by section 4(1) of theCompanies Act.
(2) In this Act, unless the context otherwise requires —10(a) a person has an interest in a share if —(i) the person has or is treated as having an interest inthat share under section 7(1A), (1B), (2), (6) and (7)to (10) of the Companies Act; or(ii) the person has any legal or equitable interest in thatshare, except an interest that is to be disregarded
under section 7(9) of the Companies Act;(b) a reference to the control of a percentage of the votes in a
corporation (being a licensee or an operator of a designatedpayment system) is a reference to the control, whether
direct or indirect, of that percentage of the total number ofvotes that might be cast in a general meeting of thecorporation;

1520(c) a person (A) is an associate of another person (B) if —(i) A is the spouse, a parent, remoter lineal ancestor or
step-parent, a son, daughter, remoter issue, stepson
or stepdaughter, or a brother or sister, of B;(ii) A is a body corporate that is, or a majority of thedirectors of which are, accustomed or under anobligation, whether formal or informal, to act inaccordance with the directions, instructions or
wishes of B;

25

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18

(iii) A is a person that is accustomed or under anobligation, whether formal or informal, to act inaccordance with the directions, instructions or
wishes of B;
5(iv) A is a subsidiary of B;(v) A is a body corporate in which B, whether alone or
together with other associates of B as described in
sub-paragraphs (ii), (iii) and (iv), is in a position tocontrol 20% or more of the votes in A; or

10

15

20

(vi) A is a person with whom B has an agreement or
arrangement (whether oral or in writing and whether
express or implied) to act together with respect to theacquisition, holding or disposal of shares or otherinterests in, or with respect to the exercise of theirvotes in relation to, the corporation (being a licensee
or an operator of a designated payment system)
mentioned in the definition of “5% controller”, “12%controller” or “20% controller”;(d) a person has a substantial shareholding in a corporationif —(i) the person has an interest in one or more voting
shares (excluding treasury shares) in the corporation;
and

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30

(ii) the total votes attached to that share, or those shares,
is at least 5% of the total votes attached to all thevoting shares (excluding treasury shares) in thecorporation; and(e) a person has a substantial shareholding in a corporation,
the share capital of which is divided into 2 or more classesof shares, if —(i) the person has an interest in one or more voting
shares (excluding treasury shares) included in one ofthose classes; and19(ii) the total votes attached to that share, or those shares,
is at least 5% of the total votes attached to all thevoting shares (excluding treasury shares) included inthat class.
(3) In any case where the functions of the operator or settlement
institution of a payment system are assumed by or shared among 2 ormore operators or settlement institutions, a reference in this Act to theoperator or settlement institution is a reference to each such operator
or settlement institution.

5(4) For the purposes of sections 5(2) and 13(13) and paragraph 2(i)of the First Schedule, a payment service, or the provision of apayment service, is incidental to any other business carried on by aperson, if the payment service —10(a) is carried on, offered or provided by that person to support
that other business; and15(b) is provided by that person in connection with the carrying
on of that other business.
Application of Act
3.—(1) Subject to subsection (2), this Act does not apply to any
public authority.

20(2) The Minister may by order declare that a public authority is one
to which this Act applies.
Appointment of assistants
4.—(1) Subject to subsection (2), the Authority may appoint any
person to exercise any of its powers or perform any of its functions or
duties under this Act, either generally or in any particular case,
except —(a) the power of appointment conferred by this subsection; and(b) the power to make subsidiary legislation.

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20

(2) The Authority may, by notification in the Gazette, appoint one
or more of its officers to exercise the power, under a provision of thisAct specified in the Second Schedule, to grant an exemption to aparticular person, or to revoke any such exemption.
5(3) Any person appointed under subsection (1) or officer appointed
under subsection (2) is taken to be a public servant for the purposes of
the Penal Code (Cap. 224).
PART 2LICENSING OF PAYMENT SERVICE PROVIDERS

10

Division 1 — Licensing of payment service providers
Licensing of payment service providers
5.—(1) A person must not carry on a business of providing any typeof payment service in Singapore, unless the person —15(a) has in force a licence that entitles the person to carry on abusiness of providing that type of payment service; or(b) is an exempt payment service provider in respect of thattype of payment service.

20(2) For the purposes of subsection (1), where a person provides any
type of payment service while the person carries on any business(called in this subsection the primary business) —(a) the person is presumed to carry on a secondary business ofproviding that type of payment service, regardless whether
the provision of that type of payment service is related orincidental to the primary business; and2530(b) the presumption in paragraph (a) is not rebutted by proof
that the provision of that type of payment service is related
or incidental, or is both related and incidental, to theprimary business.
(3) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction —21(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,
to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.

5

10

Application for licence
6.—(1) A person that wishes to carry on a business of providing any
type of payment service may apply to the Authority, in such form andmanner as the Authority may require, for the appropriate licence
under this section.

15(2) The types of licences that may be applied for undersubsection (1) are as follows:(a) a money-changing licence;(b) a standard payment institution licence;(c) a major payment institution licence.
(3) A person must have in force a money-changing licence to beentitled to carry on a business of providing a money-changing
service, unless the person has in force a standard payment institution
licence or major payment institution licence that entitles the person tocarry on a business of providing that service.

2025(4) A person must have in force a standard payment institution
licence or a major payment institution licence to be entitled to carryon a business of —(a) providing one of the following payment services:(i) an account issuance service;(ii) a domestic money transfer service;(iii) a cross-border money transfer service;

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22

(iv) a merchant acquisition service;(v) an e-money issuance service;(vi) a digital payment token service; or(b) providing 2 or more of the following payment services:
5(i) an account issuance service;(ii) a domestic money transfer service;(iii) a cross-border money transfer service;(iv) a merchant acquisition service;(v) an e-money issuance service;

10(vi) a digital payment token service;(vii) a money-changing service.
(5) Despite subsection (4), a licensee must have in force a major
payment institution licence if —(a) both of the following apply:

15(i) the licensee carries on a business of providing one ormore of the following payment services:(A) an account issuance service (other than an
e-money account issuance service);(B) a domestic money transfer service;20(C) a cross-border money transfer service;(D) a merchant acquisition service;(E) a digital payment token service;

25(ii) the average, over a calendar year, of the total value ofall payment transactions that are accepted, processedor executed by the licensee in one month exceeds —(A) $3 million (or its equivalent in a foreign
currency), for any one of those payment
services; or23(B) $6 million (or its equivalent in a foreign
currency), for 2 or more of those payment
services;(b) both of the following apply:(i) the licensee carries on a business of providing an
e-money account issuance service;

5(ii) the sum of the following amounts exceeds $5 million(or its equivalent in a foreign currency):(A) the average, over a calendar year, of the total
value in one day of all e-money that is stored inany payment account issued by the licensee toa person whom the licensee has determined,
according to such criteria as the Authority may
specify by notice in writing, to be resident in
Singapore;(B) the average, over a calendar year, of the total
value in one day of all e-money that is issued in
Singapore, and is stored in any payment
account issued by the licensee to any person
whom the licensee has not determined,
according to such criteria as the Authority
may specify by notice in writing, to be resident
outside Singapore; or

10

15

20

(c) both of the following apply:(i) the licensee carries on a business of providing an
e-money issuance service;(ii) the average, over a calendar year, of the total value in
one day of all specified e-money that is issued by thelicensee exceeds $5 million (or its equivalent in aforeign currency).
(6) Where any licensee mentioned in subsection (5)(a)(i), (b)(i) or(c)(i) does not have in force a major payment institution licence on
the relevant date —

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(a) that licensee must, within the prescribed period, apply
under section 7(1) to change that licensee’s licence to amajor payment institution licence; and(b) subsection (5) does not apply to that licensee —5(i) during the prescribedparagraph (a); andperiodmentionedin(ii) if that licensee complies with paragraph (a), until thedate on which the application mentioned in thatparagraph —10(A) is withdrawn by the licensee; or(B) is approved or refused by the Authority.
(7) Upon receiving an application under subsection (1), theAuthority may —15(a) grant a licence to the applicant, in respect of one or moretypes of payment services, with or without conditions; or(b) refuse to grant a licence.
(8) Where an applicant has applied for a money-changing licence,
the Authority must not grant the licence to the applicant unless —20(a) the applicant has a permanent place of business, or aregistered office in Singapore;(b) the Authority —(i) is satisfied that the applicant is a fit and proper
person under the Guidelines on Fit and Proper
Criteria;

25(ii) is satisfied as to the financial condition of theapplicant;(iii) is satisfied that the public interest will be served by
the granting of the licence; and30(iv) is satisfied that the applicant meets such other criteria
for the grant of the licence as the Authority considers
relevant; and25(c) the application is accompanied by —(i) such information as the Authority may require; and(ii) a non-refundable application fee of a prescribedamount that is payable in such manner as the
Authority may specify.

5(9) Where an applicant has applied for a standard payment
institution licence or major payment institution licence, theAuthority must not grant the licence to the applicant unless —(a) the applicant is a company, or is a corporation formed orincorporated outside Singapore;

10(b) the applicant has a permanent place of business, or aregistered office in Singapore;(c) an executive director of the applicant —(i) is a citizen or permanent resident of Singapore; or(ii) if the applicant satisfies such conditions as may beprescribed, belongs to a prescribed class of persons;

15(d) the applicant satisfies such financial requirements as may
be prescribed;(e) the Authority —(i) is satisfied that the applicant is a fit and proper
person under the Guidelines on Fit and Proper
Criteria;

20(ii) is satisfied as to the financial condition of theapplicant;(iii) is satisfied that the public interest will be served by
the granting of the licence; and25(iv) is satisfied that the applicant meets such other criteria
for the grant of the licence as the Authority considers
relevant;(f) the applicant satisfies such operational requirements as the
Authority may specify; and

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(g) the application is accompanied by —(i) such information as the Authority may require; and5(ii) a non-refundable application fee of a prescribedamount that is payable in such manner as the
Authority may specify.
(10) The Authority may at any time add to, vary or revoke any of
the conditions of a licence imposed under subsection (7)(a) or thissubsection.

10(11) The Authority must not refuse an application undersubsection (1) without giving the applicant an opportunity to beheard.
(12) Every standard payment institution and every major payment
institution must, while its licence is in force, satisfy —(a) such financial requirements as may be prescribed; and15(b) such operational requirements and other requirements as
the Authority may specify by notice in writing.
(13) A standard payment institution or major payment institutionthat fails to comply with any requirement mentioned insubsection (12) must immediately notify the Authority of the failure.

20(14) Where a standard payment institution or major payment
institution fails to comply with any requirement undersubsection (12) —(a) the Authority may, by notice in writing to that institution,
do either or both of the following:

25(i) restrict or suspend the operations of that institution;(ii) give such directions to that institution as the
Authority considers appropriate; and(b) that institution must comply with that notice.

30(15) A licensee that contravenes subsection (5) shall be guilty of an
offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding27

3 years or to both and, in the case of a continuing offence,
to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.
(16) A licensee that, without reasonable cause, contravenes
subsection (12), or fails to comply with any condition imposed by
the Authority under subsection (7)(a) or (10), shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

5

10

15

(17) In this section —“e-money account issuance service” means an account issuanceservice where each payment account issued stores e-money;“relevant date” means —(a) in relation to a licensee mentioned insubsection (5)(a)(i), the date on which
subsection (5)(a)(ii) first applies to that licensee;(b) in relation to a licensee mentioned insubsection (5)(b)(i), the date on which
subsection (5)(b)(ii) first applies to that licensee; or2025(c) in relation to a licensee mentioned insubsection (5)(c)(i), the date on which
subsection (5)(c)(ii) first applies to that licensee.
Variation or change of licence
7.—(1) A licensee may apply to the Authority, in the form andmanner prescribed, for any of the following things:(a) a variation of the licensee’s standard payment institution
licence or major payment institution licence by changing

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the types of payment services that the licence entitles thelicensee to carry on a business of providing;5(b) a change of the licensee’s money-changing licence to a
standard payment institution licence or a major payment
institution licence;(c) a change of the licensee’s standard payment institution
licence to a money-changing licence or a major payment
institution licence;

10(d) a change of the licensee’s major payment institution
licence to a money-changing licence or a standard
payment institution licence.
(2) The Authority may require an applicant to provide the Authority
with such information or documents in relation to the application as
the Authority considers necessary.

1520(3) An application under subsection (1) must be accompanied by anon-refundable application fee of the prescribed amount that is
payable in such manner as the Authority may specify by notice inwriting.
(4) The Authority may approve an application under subsection (1)subject to such conditions or restrictions as the Authority thinks fit, or
may refuse the application.
(5) The Authority must not refuse an application undersubsection (1) without giving the applicant an opportunity to beheard.

25

Holding out as licensee, etc.
8.—(1) A person —30(a) must not hold the person out as carrying on a business ofproviding any type of payment service, unless the person isa licensee that is entitled to carry on a business of providingthat type of payment service, an exempt payment service
provider in respect of that type of payment service, or aperson exempt under section 100 in respect of that type of
payment service; and29(b) must not hold the person out as a licensee, unless the
person has in force a licence.
(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,
to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or

510(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.
Prohibition against solicitation

15

9.—(1) A person (other than a licensee or an exempt payment
service provider), whether in Singapore or elsewhere, must not,whether by that person or through any other person in Singapore orelsewhere, do any of the following things:(a) offer to provide, or issue any advertisement containing any
offer to provide, to the public in Singapore or any sectionof the public in Singapore, any type of payment service,
whether in Singapore or elsewhere;(b) make an offer or invitation, or issue any advertisement
containing any offer or invitation, to the public in
Singapore or any section of the public in Singapore, toenter into any agreement relating to the provision by any
person of any type of payment service, whether in
Singapore or elsewhere.
(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,

20

25

30

30

to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or
5

10

15

20

(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.
(3) A person in Singapore (whether or not a licensee or an exempt
payment service provider) must not, on behalf of a person outside
Singapore that is not a licensee and is not an exempt payment service
provider, do any of the following things:(a) offer to provide, or issue any advertisement containing any
offer to provide, to the public in Singapore or any sectionof the public in Singapore, any type of payment service,
whether in Singapore or elsewhere;(b) make an offer or invitation, or issue any advertisement
containing any offer or invitation, to the public in
Singapore or any section of the public in Singapore, toenter into any agreement relating to the provision by any
person of any type of payment service, whether in
Singapore or elsewhere.
(4) A person that contravenes subsection (3) shall be guilty of an
offence and shall be liable on conviction —

25

30

35

(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,
to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.
(5) For the purposes of subsections (1) and (3), in determining
whether an offer, invitation or advertisement is made or issued to the31public in Singapore or any section of the public in Singapore, a person
must have regard to such considerations as the Authority may
prescribe.
(6) A person whose business is to publish, or to arrange for the
publication, of advertisements (called in this subsection the
publisher) shall not be guilty of an offence under subsection (2) or(4) if the publisher proves that —5(a) the publisher received the advertisement for publication in
the ordinary course of the publisher’s business;(b) the matters contained in the advertisement were not,wholly or in part, devised or selected by the publisher or by
any person under the publisher’s direction or control; and(c) the publisher did not know and had no reason for believingthat the publication of the advertisement would constitutean offence.

10

15

Annual fees of licensees
10.—(1) A licensee must pay to the Authority a prescribed annual
fee in such manner as the Authority may specify by notice in writing.
(2) The Authority may prescribe different annual fees for different
classes of licensees, depending on the type and number of payment
services that a licensee in such a class is entitled to carry on a businessof providing, the volume of transactions accepted, processed or
executed by a licensee in such a class, and all other factors which the
Authority may consider relevant.
(3) The Authority may, where the Authority considers it to beappropriate in a particular case, waive, refund or remit the whole or
any part of any annual fee paid or payable to the Authority.

20

25

Lapsing, surrender, revocation or suspension of licence
11.—(1) A licence lapses —(a) if the licensee (being an entity) is wound up or otherwise
dissolved, whether in Singapore or elsewhere;

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(b) if the licensee (being an individual) dies, becomes mentally
incapacitated or is adjudicated a bankrupt; or(c) upon the occurrence of such other event as may beprescribed.
5(2) The Authority may revoke a licence if —(a) it appears to the Authority that any of the following
persons is not a fit and proper person under the Guidelines
on Fit and Proper Criteria:(i) the licensee;

10(ii) any officer or employee of the licensee;(iii) where the licensee is a partnership or limited liability
partnership, any partner of that partnership or limited
liability partnership;

15(iv) where the licensee is a corporation, any 5%controller, 12% controller, 20% controller orindirect controller of the licensee;(b) it appears to the Authority that either of the following is notsatisfactory:(i) the financial standing of the licensee;

2025(ii) the manner in which the licensee’s business is being
conducted;(c) the licensee has contravened, or continues to contravene,
any provision of this Act, or has failed, or continues to fail,
to comply with any condition or restriction imposed, or any
notice in writing issued, by the Authority under this Act;(d) the licensee has failed, or continues to fail, to comply withany notice in writing issued by the Authority under the
Monetary Authority of Singapore Act;30(e) it appears to the Authority that the licensee has failed, or
continues to fail, to comply with any of the licensee’s
obligations under or arising from —(i) this Act; or33(ii) any notice in writing issued by the Authority under
this Act;(f) the licensee has provided to the Authority any informationor document required under this Act that is false or
misleading in a material particular;

5(g) it appears to the Authority that any of the following
persons has not performed that person’s duties under thisAct honestly or fairly:(i) the licensee;(ii) any officer or employee of the licensee;

10(iii) where the licensee is a partnership or limited liability
partnership, any partner of that partnership or limited
liability partnership;(h) it appears to the Authority that it would be contrary to the
public interest for the licensee to continue its operations;

15(i) the licensee fails to pay the annual fee mentioned in
section 10(1);(j) the licensee fails or ceases to carry on a business ofproviding any type of payment service that the licensee isentitled to carry on a business of providing;

20(k) the licensee fails or ceases to have an executive director
who —(i) is a citizen or permanent resident of Singapore; or(ii) belongs to the prescribed class of persons mentioned
in section 6(9)(c)(ii); or25(l) if any executive director of the licensee belongs to theprescribed
classof
persons
mentionedin
section 6(9)(c)(ii), the licensee does not or ceases tosatisfy any condition mentioned in section 6(9)(c)(ii).
(3) The Authority may, if the Authority considers it desirable to do
so —

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(a) suspend the licence of a licensee for a specified period,
instead of revoking the licence under subsection (2); and(b) at any time —(i) extend the suspension for a specified period; or5(ii) cancel the suspension.
(4) Except as provided in subsection (5), the Authority must not
revoke a licence under subsection (2) or suspend a licence undersubsection (3), without giving the licensee an opportunity to be heard.

10(5) The Authority may revoke or suspend a licence of a licensee,
without giving the licensee an opportunity to be heard, in any of thefollowing circumstances:(a) the licensee (being an entity) is in the course of being
wound up or otherwise dissolved, whether in Singapore orelsewhere;

15

20

25

(b) a receiver, a receiver and manager, a judicial manager or anequivalent person has been appointed, whether in
Singapore or elsewhere, for or in respect of any propertyof the licensee;(c) any of the following persons has been convicted, whether
in Singapore or elsewhere, of an offence involving fraud or
dishonesty, or of an offence the conviction for which
involves a finding that the person convicted had acted
fraudulently or dishonestly, whether the applicable offence
is committed before, on or after the date of commencementof this paragraph:(i) the licensee;(ii) where the licensee is a partnership or limited liability
partnership, any partner of that partnership or limited
liability partnership;30(iii) where the licensee is a corporation, any director, 5%
controller, 12% controller, 20% controller or indirectcontroller of the licensee.

35(6) A licensee whose licence has lapsed, or is revoked orsuspended, must cease to carry on the business of providing any
type of payment service from the date the licence lapses, or the
revocation or suspension takes effect, as the case may be.
(7) Despite the lapsing or revocation of a licence granted to aperson, unless the Authority otherwise directs, sections 16, 37, 72, 73
and 74 continue to apply in relation to the person in respect of mattersthat occurred before the lapsing or revocation of the licence.
(8) A person that contravenes subsection (6) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.
(9) A licensee may surrender the licensee’s licence by submitting to
the Authority a written notice of surrender, in such form as may be
specified by the Authority by notice in writing.

5

10

15

(10) Any surrender, lapsing, revocation or suspension of a person’s
licence —(a) does not avoid or affect any agreement, transaction or
arrangement relating to the person’s business of providing
any payment service that is entered into by the person,
whether the agreement, transaction or arrangement wasentered into before or after the surrender, lapsing,revocation, or suspension (as the case may be) of thelicence; and2025(b) does not affect any right, obligation or liability arisingunder any such agreement, transaction or arrangement.
Appeals to Minister12.—(1) Any person that is aggrieved —(a) by the refusal of the Authority to grant a licence to theperson; or

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(b) by the revocation or suspension of the person’s licence by
the Authority,

5

may, within 30 days after having been informed by the Authority of
the refusal, revocation or suspension, appeal in writing to the
Minister, whose decision is final.
Exempt payment service providers
13.—(1) Subject to subsection (8), the following persons are
exempt from the requirement to have in force a licence to carry on
a business of providing any payment service:

10(a) a bank licensed under the Banking Act;(b) a merchant bank approved as a financial institution under
the Monetary Authority of Singapore Act;(c) a finance company licensed under the Finance Companies
Act;

15

(d) a person licensed to carry on the business of issuing credit
cards or charge cards in Singapore under section 57B of the
Banking Act;(e) any other person or class of persons that may be prescribed.

20

25

30

(2) Subject to the provisions of this Act, sections 15 to 19, 20(2), (4)and (5), 23 and 24 and Division 5 of this Part apply, with thenecessary modifications, to an exempt payment service provider
mentioned in subsection (1)(a), (b), (c) or (d) in respect of its businessof providing any relevant payment service, as if the exempt payment
service provider were a licensee.
(3) The Authority may, on the application of an exempt payment
service provider, exempt the exempt payment service provider fromcomplying with any of the provisions mentioned in subsection (2).
(4) The Authority may prescribe the provisions of this Act that
apply to an exempt payment service provider mentioned insubsection (1)(e).
(5) An exemption granted under subsection (3) need not be
published in the Gazette.

37(6) The Authority may prescribe, or specify by notice in writing, theconditions or restrictions that may be imposed on an exempt payment
service provider in respect of the carrying on of a business ofproviding any type of payment service.
(7) The Authority may at any time, by notice in writing, add to, varyor revoke any of the conditions or restrictions imposed by notice inwriting under subsection (6) or this subsection.
(8) The Authority may by notification in the Gazette declare that aperson mentioned in subsection (1) ceases to be exempt under that
subsection, or may withdraw an exemption granted to a person undersubsection (3), if —510(a) the person contravenes any provision of this Act, or fails tocomply with any condition or restriction imposed on the
person under subsection (6) or (7); or(b) the Authority considers it necessary in the public interest.

15(9) Where the Authority makes a declaration or withdraws an
exemption under subsection (8), the Authority need not give theaffected person an opportunity to be heard.
(10) A person that is aggrieved by a decision of the Authority tomake a declaration or withdraw an exemption under subsection (8) in
respect of the person may, within 30 days after the date of thedecision, appeal in writing to the Minister, whose decision is final.

20(11) A declaration or withdrawal of an exemption undersubsection (8) in respect of a person —(a) does not avoid or affect any agreement, transaction or
arrangement, relating to any payment service provided by
the person, whether the agreement, transaction or
arrangement was entered into before or after the makingof the declaration or the withdrawal of the exemption; and25(b) does not affect any right, obligation or liability arisingunder any agreement, transaction or arrangement
mentioned in paragraph (a).

30(12) An exempt payment service provider that contravenes any
condition or restriction imposed under subsection (6) or (7) shall be

38

guilty of an offence and shall be liable on conviction to a fine notexceeding $250,000 and, in the case of a continuing offence, to afurther fine not exceeding $25,000 for every day or part of a day
during which the offence continues after conviction.
5(13) In this section, “relevant payment service” —(a) in relation to an exempt payment service provider
mentioned in subsection (1)(a), means any of thefollowing payment services:

10(i) an account issuance service that is not solely
incidental to the conduct of any deposit-taking
business or banking business;(ii) a domestic money transfer service that is not solely
incidental to the conduct of any deposit-taking
business or banking business;

15(iii) an e-money issuance service;(iv) a digital payment token service;(b) in relation to an exempt payment service provider
mentioned in subsection (1)(b), means any of thefollowing payment services:

2025(i) an account issuance service that is not solely
incidental to the conduct of the business ofreceiving money on current or deposit account, or
the making of advances to customers;(ii) a domestic money transfer service that is not solely
incidental to the conduct of the business of receiving
money on current or deposit account, or the makingof advances to customers;(iii) an e-money issuance service;(iv) a digital payment token service;30(c) in relation to an exempt payment service provider
mentioned in subsection (1)(c), means any of thefollowing payment services:

39(i) an account issuance service that is not solely
incidental to the conduct of financing business;(ii) a domestic money transfer service that is not solely
incidental to the conduct of financing business;(iii) an e-money issuance service;

5(iv) a digital payment token service; and(d) in relation to an exempt payment service provider
mentioned in subsection (1)(d), means any of thefollowing payment services:(i) an account issuance service that is not solely
incidental to the business of issuing credit cards or
charge cards under the Banking Act;(ii) a domestic money transfer service that is not solely
incidental to the business of issuing credit cards or
charge cards under the Banking Act;

1015(iii) a cross-border money transfer service;(iv) a merchant acquisition service;(v) an e-money issuance service;(vi) a digital payment token service;(vii) a money-changing service.

20

Division 2 — Conduct of businessSubdivision (1) — General
Place of business or registered office of licensee
14.—(1) A licensee must not carry on a business of providing any
type of payment service unless the licensee has —25(a) a permanent place of business; or(b) a registered office in Singapore.
(2) A licensee must appoint at least one person to be present, onsuch days and at such hours as the Authority may specify by notice inwriting, at the licensee’s permanent place of business or registered

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office to address any queries or complaints from any payment service
user that uses any payment service provided by the licensee or is acustomer of the licensee.
510(3) A licensee must keep, or cause to be kept, at the licensee’s
permanent place of business or registered office, books of all thelicensee’s transactions in relation to any payment service provided by
the licensee.
(4) A licensee must notify the Authority of any change in theaddress of any of the following places within 7 days after the date ofthat change:(a) the licensee’s permanent place of business or registeredoffice in Singapore;(b) every other place of business of the licensee.

15

20

25

(5) Except with the approval of the Authority under subsection (6),a licensee must not carry on a business of providing any
money-changing service or cross-border money transfer service atany place of business other than the licensee’s permanent place ofbusiness mentioned in subsection (1).
(6) Where a licensee wishes to carry on a business of providing any
money-changing service or cross-border money transfer service atany place of business other than the licensee’s permanent place ofbusiness mentioned in subsection (1) —(a) the licensee must, before carrying on any such business atthat other place of business, apply in writing to the
Authority for approval to do so; and(b) the Authority may give its approval for the licensee tocarry on that business at that other place of business,
subject to such conditions as the Authority thinks fit.

30(7) The Authority may at any time add to, vary or revoke any
condition imposed under subsection (6) or this subsection.
(8) The Authority may revoke its approval under subsection (6) if
the licensee breaches any condition imposed on the licensee undersubsection (6) or (7).

41(9) A licensee that contravenes subsection (1), (2), (3) or (5) shallbe guilty of an offence and shall be liable on conviction to a fine notexceeding $100,000 and, in the case of a continuing offence, to afurther fine not exceeding $10,000 for every day or part of a day
during which the offence continues after conviction.

5(10) A licensee that contravenes subsection (4) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$2,000.
Obligation of licensee to notify Authority of certain events
15.—(1) A licensee must notify the Authority of the occurrence of
any of the following events as soon as practicable after that
occurrence:

10(a) any civil or criminal proceeding instituted against thelicensee, whether in Singapore or elsewhere;(b) any event (including an irregularity in the operations of thelicensee) that materially impedes or impairs the operationsof the licensee;(c) the licensee being or becoming, or being likely to become,insolvent or unable to meet any of the licensee’s financial,statutory, contractual or other obligations;1520(d) any disciplinary action taken against the licensee by any
regulatory authority (other than the Authority), whether in
Singapore or elsewhere;(e) any significant change to the regulatory requirements
imposed on the licensee by any regulatory authority (otherthan the Authority), whether in Singapore or elsewhere;

25(f) any other event that the Authority may prescribe or specify
by notice in writing.
(2) A licensee must notify the Authority of the occurrence of any of
the following events within 14 days after the date of that occurrence:(a) any change of a director or the chief executive officer ofthe licensee, except where the licensee is required under

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section 34 to obtain the Authority’s approval to appoint thedirector or chief executive officer;(b) any other event that the Authority may prescribe or specify
by notice in writing.
5(3) A person that contravenes subsection (1) or (2) shall be guilty of
an offence and shall be liable on conviction to a fine not exceeding$250,000.
Obligation of licensee to provide information to Authority

1015

16.—(1) Subject to subsection (4), the Authority may, by notice inwriting, require any licensee, or any person acting on behalf of alicensee, to provide to the Authority, within such period as the
Authority may specify in the notice, all such information relating to
the licensee’s business of providing any payment service as the
Authority may specify in the notice.
(2) Without limiting subsection (1), the Authority may, in the noticeunder that subsection, require any person mentioned in that
subsection to provide —(a) information relating to any of the following matters:(i) the operations of the licensee;

20(ii) the pricing of, or any other form of consideration for,any payment service offered or provided by thelicensee; and(b) such other information as the Authority may require for the
purposes of this Act.

25

(3) Subject to subsection (4) —(a) a requirement imposed by the Authority under this section
has effect despite any obligation as to secrecy or otherrestrictions upon the disclosure of information imposed byany rule of law or contract; and30(b) a person that complies with a requirement imposed by the
Authority under this section is not to be treated as being inbreach of any restriction on the disclosure of theinformation imposed by any rule of law or contract.

43(4) Nothing in this section requires a person to disclose any
information subject to legal privilege.
(5) A person that fails to comply with a notice under subsection (1)shall be guilty of an offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding $12,500
or to imprisonment for a term not exceeding 12 months or
to both and, in the case of a continuing offence, to a further
fine not exceeding $1,250 for every day or part of a day
during which the offence continues after conviction; or

5(b) in any other case, to a fine not exceeding $25,000 and, inthe case of a continuing offence, to a further fine notexceeding $2,500 for every day or part of a day during
which the offence continues after conviction.

10

Obligation of licensee to submit periodic reports
17.—(1) A licensee must submit to the Authority such reports orreturns relating to the licensee’s business in such form, manner andfrequency as the Authority may specify by notice in writing.
(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

15

20

Prohibition against use of unlicensed agent
18.—(1) A licensee must not provide any type of payment service
in Singapore through an agent, unless —25(a) the agent has in force a licence that entitles the agent tocarry on a business of providing that type of payment
service; or(b) the agent is an exempt payment service provider in respectof that type of payment service.
(2) A licensee that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine not

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exceeding $10,000 for every day or part of a day during which theoffence continues after conviction.
Prohibition against exchanging e-money withdrawn frompayment account for Singapore currency
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19.—(1) Where any matter mentioned in subsection (2)(a), (b) or(c) applies, a licensee that carries on a business of providing any
account issuance service must not do any of the following things:(a) allow any payment service user to whom the licensee has
issued any payment account, or provided any service
relating to any operation required for operating a payment
account, to withdraw e-money from that payment account,and to exchange the e-money withdrawn for Singapore
currency, at any of the licensee’s places of business;(b) enter into any agreement or arrangement (whether oral orin writing and whether express or implied) with any entitythat is incorporated, formed or registered in Singapore orthat carries on any business in Singapore, being anagreement or arrangement that would allow any payment
service user to whom the licensee has issued any payment
account, or provided any service relating to any operation
required for operating a payment account, to withdraw
e-money from that payment account, and to exchange thee-money withdrawn for Singapore currency, in Singapore.
(2) For the purposes of subsection (1), the matters are as follows:

2530(a) the licensee has determined, according to such criteria as
the Authority may specify by notice in writing, that thepayment service user is resident in Singapore;(b) the issuer of the e-money contained in the payment accounthas determined, according to such criteria as the Authority
may specify by notice in writing, that the payment service
user is resident in Singapore;(c) the e-money contained in the payment account is issued in
Singapore, and both of the following apply:

45(i) the licensee has not determined, according to such
criteria as the Authority may specify by notice inwriting, that the payment service user is resident
outside Singapore;(ii) the issuer of the e-money has not determined,
according to such criteria as the Authority may
specify by notice in writing, that the payment service
user is resident outside Singapore.
(3) A licensee that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$250,000 and, in the case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during which theoffence continues after conviction.
(4) Despite subsection (1), a licensee that carries on a business ofproviding an account issuance service may allow a payment service
user to whom the licensee has issued any payment account, or
provided any service relating to any operation required for operating
a payment account, to withdraw e-money from that payment account,and to exchange the e-money withdrawn for Singapore currency, on
the termination of the use of that payment account by that payment
service user.

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(5) In this section, “Singapore currency” means currency notes andcoins that are legal tender in Singapore.
Prohibition from carrying on certain businesses
20.—(1) A licensee must not carry on a business of granting any
credit facility to any individual in Singapore.

25(2) A licensee that is entitled to and does carry on a business ofproviding an e-money issuance service —(a) must not lend any customer money; and(b) must not use any customer money, or any interest earnedon any customer money, to finance wholly or to any
material extent any activity of any business carried on by
the licensee.

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5

(3) A licensee that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

10(4) A licensee that contravenes subsection (2) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$250,000 and, in the case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during which theoffence continues after conviction.
(5) In this section —“credit facility” means —15(a) any advance, loan or other facility that is granted by alicensee to a customer who is an individual, and thatgives the customer access to any funds or financial
guarantee provided by the licensee; or(b) any other liability that is incurred by a licensee on
behalf of a customer who is an individual;

20“customer money” means any money received in Singapore by alicensee from a person in Singapore, in exchange for which
the licensee issues any e-money, but does not include any of
the following:(a) any money paid to the licensee to reduce the amountowed to the licensee by that person;

2530(b) any money that is repaid by the licensee to that
person;(c) any money which is paid to the licensee, or which thelicensee has informed that person will be used, todefray any fee or charge imposed by the licensee forproviding any payment service to that person;(d) any money that is paid to, and received by, a recipientin accordance with the instructions of that person;(e) any money paid to any other person that is entitled tothe money.

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Application of section 14 of Currency Act
21. Section 14 of the Currency Act (Cap. 69) does not apply to theissue of e-money.
Subdivision (2) — Major payment institutions
Security
22.—(1) Every major payment institution must maintain with the
Authority security of a prescribed amount (or its equivalent in aforeign currency), for the due performance of the obligations of the
major payment institution to every payment service user who is acustomer of the major payment institution.

510(2) The security mentioned in subsection (1) must be —(a) in the form of a cash deposit;(b) in the form of a bank guarantee that satisfies suchrequirements as the Authority may specify by notice inwriting; or15(c) in such other form as the Authority may, in any particularcase, allow.
(3) Where a major payment institution has surrendered its licence,or the licence of a major payment institution has lapsed or has been
revoked, the Authority may enforce the security mentioned insubsection (1) to the extent required to pay any sums outstanding andclaimed by payment service users who are customers of the major
payment institution.
(4) To avoid doubt, where the security mentioned in subsection (1)is provided in the form of a bank guarantee, the Authority may call on
the bank guarantee for the purposes of subsection (3), even though a
closure certificate required under subsection (7) has not been
submitted to the Authority.
(5) Where a major payment institution has surrendered its licence,or the licence of a major payment institution has lapsed or has been
revoked, the Authority must release the security mentioned insubsection (1), or the remainder of that security, to the major payment
institution, upon the Authority —

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(a) being satisfied that there is no outstanding claim by any
payment service user who is a customer of the major
payment institution; and5(b) receiving thesubsection (7).

closurecertificate

requiredunder(6) Any security provided by a major payment institution under thissection —(a) is not liable to be attached, sequestered or levied upon foror in respect of any debt or claim whatsoever; and
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(b) if the major payment institution is declared insolvent or iswound up by an order of the court — is deemed not to form
part of the property of the major payment institution.
(7) A major payment institution must within 45 days, or such longer
period as the Authority may allow, after the date on which the licenceof the major payment institution is surrendered, lapses or is revoked,
submit to the Authority a closure certificate issued by the auditors ofthe major payment institution confirming that —(a) all moneys received from payment service users who are
customers of the major payment institution have been
received by the intended recipients of those moneys; and(b) adequate provision has been made to meet any unforeseen
liabilities in respect of every business of the major payment
institution that its major payment institution licence
entitles it to carry on.

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Safeguarding of money received from customer
23.—(1) Subsection (2) applies to every major payment institutionthat carries on a business of providing any of the following payment
services:(a) a domestic money transfer service;30(b) a cross-border money transfer service;(c) a merchant acquisition service;(d) any other payment service that may be prescribed.

49(2) A major payment institution mentioned in subsection (1) mustensure that no later than the next business day after any relevantmoney is received from, or on account of, a customer, the whole orsuch part, as may be prescribed, of the relevant money, is safeguarded
in one of the following manners:

5(a) by an undertaking, from a safeguarding institution, to be
fully liable to the customer for the relevant money;(b) by a guarantee given by a safeguarding institution for theamount of the relevant money;(c) by depositing the relevant money in a trust accountmaintained with a safeguarding institution;

10(d) in such other manner as may be prescribed.
(3) Subsection (4) applies to every major payment institution thatcarries on a business of providing either of the following payment
services:15(a) an e-money issuance service;(b) any other payment service that may be prescribed.
(4) A major payment institution mentioned in subsection (3) mustensure that from the time any relevant money is received from, or on
account of, a customer, the whole or such part, as may be prescribed,of the relevant money is safeguarded in one of the following manners:

20(a) by an undertaking, from a safeguarding institution, to be
fully liable to the customer for the relevant money;(b) by a guarantee given by a safeguarding institution for theamount of the relevant money;

25(c) by depositing the relevant money in a trust accountmaintained with a safeguarding institution;(d) in such other manner as may be prescribed.
(5) The Authority may make regulations under section 103 toprovide for all or any of the following matters:(a) any matter concerning the safeguarding of relevant money
under subsection (2) or (4) by any safeguarding institution;

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(b) any matter concerning the depositing of relevant money ina trust account mentioned in subsection (2)(c) or (4)(c),including —5(i) any matter concerning the trust governing theaccount;(ii) the extent (if any) to which the relevant money may
be commingled with any other money;

10(iii) the manner in which the relevant money must betreated and dealt with, despite any other written law,on the occurrence of either or both of the following:(A) any event affecting the ability of the major
payment institution to perform its obligations,such as in the event of the insolvency of the
major payment institution;

1520(B) any event affecting the ability of thesafeguarding institution to perform its
obligations, such as in the event of theinsolvency of the safeguarding institution; and(iv) the circumstances (if any) in which a major payment
institution may withdraw money from the account;(c) any matter concerning the safeguarding of relevant money
in any manner mentioned in subsection (2)(d) or (4)(d),including —2530(i) the extent (if any) to which a major payment
institution may commingle the relevant moneywith any other money;(ii) the manner in which the relevant money must betreated and dealt with, despite any other written law,on the occurrence of any event affecting the ability ofthe major payment institution to perform its
obligations, such as in the event of the insolvencyof the major payment institution; and51(iii) where the relevant money is safeguarded by being
deposited in an account (other than a trust accountmentioned in subsection (2)(c) or (4)(c)), thecircumstances (if any) in which the major payment
institution may withdraw any money from that
account;(d) the obligations of a major payment institution to record andmaintain a separate book entry for each customer, in
relation to that customer’s relevant money and, whereapplicable, e-money;510(e) the obligations of a safeguarding institution that must be
set out in a contract between a major payment institution
and the safeguarding institution;(f) the form of acknowledgment that a major payment
institution must obtain from a safeguarding institution;

15(g) the information that a major payment institution must
provide to a safeguarding institution, including the date ortime by which any relevant money must be safeguarded;(h) the manner in which a major payment institution conducts
its dealings with a customer for the purposes ofsafeguarding the customer’s relevant money, including
the disclosure of any information to the customer;

20(i) any other matters relating to this section.
(6) Despite any other written law, where subsection (2)(b) or (4)(b)applies, the proceeds of the guarantee are payable, in the event of theinsolvency of the major payment institution, into a separate trust
account held by the major payment institution, which —(a) must be designated in such a way as to show that it is anaccount held for the purpose of safeguarding the relevantmoney in accordance with this section; and(b) must be used only for holding such proceeds on trust foreach customer that had provided the relevant money to themajor payment institution.

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(7) All moneys deposited in an account mentioned
subsection (2)(c), (4)(c), (5)(b) or (c)(iii) or (6) —in(a) cannot be used for the payment of the debts of the major
payment institution; and510(b) are not liable to be taken in execution under an order or aprocess of any court.
(8) The Authority may, on the application of any person, by noticein writing grant approval, subject to such conditions as the Authority
may specify in the notice, to any major payment institution tosafeguard any relevant money in 2 or more of the manners mentioned
in subsection (2)(a) to (d) or (4)(a) to (d).
(9) A major payment institution must notify the Authority, in suchform or manner as the Authority may specify by notice in writing,
of —

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(a) the manner mentioned in subsection (2)(a) to (d) or (4)(a)to (d) that the major payment institution has chosen tosafeguard the relevant money;(b) the name of the safeguarding institution (if any) that will
safeguard the relevant money in the manner mentioned inparagraph (a); and(c) any change to the manner mentioned in paragraph (a) thatthe major payment institution has chosen to safeguard therelevant money.

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30(10) Where the major payment institution mentioned insubsection (2) or (4) is any of the following financial institutions,the major payment institution must not concurrently be thesafeguarding institution mentioned in paragraph (a) or (b) of theapplicable subsection in relation to the relevant money received by
the major payment institution under the applicable subsection:(a) a bank licensed under the Banking Act;(b) a merchant bank approved as a financial institution under
the Monetary Authority of Singapore Act;(c) a finance company licensed under the Finance Companies
Act;

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(d) any other financial institution that may be prescribed.
(11) A major payment institution that contravenes subsection (2),(4), (9) or (10), or fails to comply with any condition imposed undersubsection (8), shall be guilty of an offence and shall be liable onconviction to a fine not exceeding $250,000 and, in the case of acontinuing offence, to a further fine not exceeding $25,000 for every
day or part of a day during which the offence continues afterconviction.
(12) This section applies, with the necessary modifications, to any
licensee (other than a major payment institution) that may beprescribed, and for the purposes of such application, any reference inthis section to a major payment institution is to be read as a reference
to the prescribed licensee.
(13) Where any digital payment token service is prescribed for the
purposes of subsection (1)(d) or (3)(b), any reference in this section toe-money or specified e-money is to be read as including a reference todigital payment tokens.

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(14) In this section —“business day” means any day other than a Saturday, Sunday,
public holiday or bank holiday;

20“relevant money” —(a) means any money —(i) that is received by a major payment institution
from, or on account of, a customer in respect ofthe provision of one or more of the payment
services mentioned in subsections (1)(a) to (d)and (3)(a) and (b); and25(ii) that the major payment institution —(A) where subsections (1) and (2) apply —continues to hold at the end of eachbusiness day; or(B) where subsections (3) and (4) apply —has held at any time, and has issued
specified e-money in exchange for; but

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(b) does not include all of the following:(i) any money paid to the major payment
institution to reduce the amount owed to themajor payment institution by that customer;
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(ii) any money that is repaid by the major payment
institution to that customer;(iii) any money which is paid to the major payment
institution, or which the major payment
institution has informed that customer will be
used, to defray any fee or charge imposed by
the major payment institution for providing any
payment service to that customer;(iv) where subsection (1)(a) or (c) or (3)(a) applies,
any money that is paid to, and received by, arecipient in accordance with the instructions ofthat customer to the major payment institution;(v) where subsection (1)(b) applies, any moneythat is paid to a recipient in accordance with the
instructions of that customer to the major
payment institution, whether or not therecipient has received that money;(vi) any money paid to any other person that isentitled to the money;“safeguarding institution” means —25(a) in the case of subsections (2)(a) and (4)(a) —(i) a bank in Singapore; or(ii) any other financial institution that may beprescribed for this sub-paragraph;(b) in the case of subsections (2)(b) and (4)(b) —30(i) a bank in Singapore; or(ii) any other financial institution that may beprescribed for this sub-paragraph;

55(c) in the case of subsections (2)(c) and (4)(c), a personthat the trust account mentioned in subsection (2)(c)or (4)(c) (as the case may be) is maintained with,being a person that satisfies such criteria as may beprescribed;

5(d) in any case where any relevant money is safeguardedin such manner as may be prescribed for the purposesof subsection (2)(d) or (4)(d), a person safeguarding
the relevant money in that manner, being a personthat satisfies such criteria as may be prescribed; or

10(e) in any other case, any bank in Singapore or financial
institution mentioned in paragraph (a) or (b) or any
person mentioned in paragraph (c) or (d).
Restrictions on personal payment account that contains
e-money

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24.—(1) A major payment institution that carries on a business ofproviding an account issuance service must —(a) ensure that the currency equivalent of the e-money
contained in a personal payment account issued by the
major payment institution to a payment service user does
not exceed the prescribed amount (or its equivalent in aforeign currency);(b) ensure that the total currency equivalent of the e-moneytransferred 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 a personal deposit
account that is either in the name of or designated by thatpayment service user, does not exceed the prescribedamount (or its equivalent in a foreign currency); and(c) if the major payment institution issues 2 or more personal
payment accounts to any payment service user, ensurethat —

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(i) the total currency equivalent of the e-money
contained in all personal payment accounts issued
by the major payment institution to that payment
service user does not exceed the prescribed amount(or its equivalent in a foreign currency); and(ii) the total currency equivalent of the e-moneytransferred in any period of one year, from all
personal payment accounts issued by the major
payment institution to that payment service user,
other than to any personal deposit account that iseither in the name of or designated by that payment
service user, does not exceed the prescribed amount(or its equivalent in a foreign currency).

15(2) In computing the total currency equivalent of the e-money
mentioned in subsection (1)(c)(i), a major payment institution may
exclude —20(a) the currency equivalent of any e-money contained in any
small personal payment account issued by the major
payment institution to a payment service user, if that small
personal payment account does not have the same uniquecustomer identifier as any other personal payment accountissued by the major payment institution to that payment
service user;

25(b) the currency equivalent of any e-money contained in any
bearer payment account issued by the major payment
institution to that payment service user; and30(c) the currency equivalent of any e-money contained in any
other payment account, of such type as may be prescribed,
issued by the major payment institution to that payment
service user.
(3) In computing the total currency equivalent mentioned insubsection (1)(c)(ii) of the e-money transferred, a major payment
institution —57(a) must include the currency equivalent of the e-moneytransferred during each transfer from each personal
payment account issued to a payment service user; but(b) despite paragraph (a), may exclude —(i) the currency equivalent of any e-money transferredduring a transfer from a small personal payment
account issued to a payment service user, if that
small personal payment account does not have thesame unique customer identifier as any otherpersonal payment account issued by the major
payment institution to that payment service user;(ii) the currency equivalent of any e-money transferredduring a transfer from any bearer payment accountissued by the major payment institution to thatpayment service user; and

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(iii) the currency equivalent of any e-money transferredduring a transfer from any other payment account, ofsuch type as may be prescribed, issued by the major
payment institution to that payment service user.
(4) A major payment institution that contravenes subsection (1)shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $250,000 and, in the case of a continuing offence, to afurther fine not exceeding $25,000 for every day or part of a day
during which the offence continues after conviction.
(5) In this section —20

25“bearer payment account” means a payment account the title towhich passes upon delivery of the medium associated withthat payment account;“currency equivalent”, in relation to e-money, means the valueof the e-money in the currency that the e-money isdenominated in or pegged to;“personal deposit account” means a deposit account held with abank in Singapore that is used as a means of executing
payment transactions other than in the course of business;

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“personal payment account” means a payment account issued toa payment service user —(a) that is used as a means of executing paymenttransactions other than in the course of business; and5(b) to which any of the following applies:

10(i) the major payment institution that issued thepayment account has determined, according tosuch criteria as the Authority may specify bynotice in writing, that the payment service user
is resident in Singapore;

15(ii) the issuer of the e-money contained in thepayment account has determined, according tosuch criteria as the Authority may specify bynotice in writing, that the payment service user
is resident in Singapore;(iii) the e-money contained in the payment accountis issued in Singapore, and both of thefollowing apply:

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(A) the major payment institution that issued
the payment account has not determined,
according to such criteria as the Authority
may specify by notice in writing, that thepayment service user is resident outside
Singapore;(B) the issuer of the e-money contained in thepayment account has not determined,
according to such criteria as the
Authority may specify by notice inwriting, that the payment service user isresident outside Singapore;“small personal payment account” means a personal payment
account containing e-money the currency equivalent of
which does not exceed $1,000 (or its equivalent in aforeign currency);

59“unique customer identifier” means any of the following unique
identifiers that may be provided by a payment service user toa major payment institution at any time to facilitate the issue
of a personal payment account by the major payment
institution to the payment service user:

5(a) a national registration identity card number;(b) a foreign identification number;(c) a passport number;(d) an email address;(e) a mobile phone number;

10(f) any other unique identifier that may be prescribed.
Powers of Authority to ensure interoperability between
payment accounts and payment system
25.—(1) The Authority may, by notice in writing, direct a payment
service provider (being a major payment institution, an exempt
payment service provider or a person exempt under section 100) to doeither or both of the following in order to ensure interoperability
between any payment account or class of payment accounts issued by
the payment service provider and a payment system:(a) to be a participant of the payment system, on such terms
and conditions as the Authority may consider appropriate;

1520(b) to enter into an arrangement with the operator of thepayment system.
(2) In considering whether to issue a notice in writing undersubsection (1), the Authority must have regard to the following
matters:

25(a) whether ensuring interoperability between those payment
accounts and that payment system would be in the interestsof the public;(b) the interests of the current participants and operator of thatpayment system;

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(c) the interests of persons who, in the future, may be required,or may desire, to be participants of the payment system;(d) such other matters as the Authority may consider to be
relevant.
5Powers of Authority to ensure interoperability between
payment systems

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26.—(1) The Authority may, by notice in writing, direct a payment
service provider (being a major payment institution, an exempt
payment service provider or a person exempt under section 100) that
operates a payment system to adopt any common standard, on suchterms and conditions as the Authority may consider appropriate, inorder to ensure interoperability between different payment systems
operated by different payment service providers.

15(2) In considering whether to issue a notice in writing undersubsection (1), the Authority must have regard to the following
matters:(a) whether ensuring interoperability between different
payment systems would be in the interests of the public;

20(b) the interests of every payment service provider that will bedirected to adopt the common standard;(c) the interests of persons who, in the future, may be required,or may desire, to adopt the common standard;(d) such other matters as the Authority may consider to be
relevant.

25(3) In this section, “common standard” means any technicalstandard or set of technical standards, containing characteristics or
specifications for accepting a payment order or processing a paymenttransaction on a payment system, that the Authority may specify bynotice in writing.

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Division 3 — Control of controllers of licensees
Application and interpretation of this Division27.—(1) This Division applies to —(a) every individual, whether or not resident in Singapore andwhether or not a citizen of Singapore; and5(b) every entity.
(2) In this Division, unless the context otherwise requires, anyreference to a licensee is a reference to a licensee incorporated in
Singapore.
Control of shareholding in licensee

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28.—(1) A person must not become a 20% controller of a licensee
without first applying for and obtaining the approval of the Authority
under subsection (2).
(2) The Authority may approve an application made by any person
under subsection (1) if the Authority is satisfied that —15(a) having regard to the likely influence of the person, thelicensee will or will continue to conduct its businessprudently and comply with the provisions of this Act andany other written law administered by the Authority;(b) the person is, under the Guidelines on Fit and Proper
Criteria, a fit and proper person to be a 20% controller ofthe licensee; and20(c) it is in the public interest to do so.
(3) An approval under subsection (2) may be granted to any person
subject to such conditions as the Authority may impose, including but
not limited to —25(a) any condition restricting the person’s disposal or further
acquisition of shares or voting power in the licensee; and(b) any condition restricting the person’s exercise of voting
power in the licensee.
(4) The Authority may at any time add to, vary or revoke any
condition that is imposed under subsection (3) or this subsection.

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(5) Any condition imposed under subsection (3) or (4) has effectdespite any provision of the Companies Act or anything contained in
the constitution of the licensee.
5(6) Where the Authority refuses an application made by any person
under subsection (1), the person must, within such period as the
Authority may specify by notice in writing, take such steps (as soon
as practicable after the refusal) as are necessary to cease to be a 20%
controller of the licensee.
Objection to existing control of licensee

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29.—(1) The Authority may serve a written notice of objection on
any person that is, or is required to obtain or has obtained the
Authority’s approval under section 28(2) to become, a 20% controller
of a licensee, if the Authority is satisfied that —(a) any condition for approval under section 28(2) imposed on
the person under section 28(3) or (4) has not been complied
with;(b) it is not, or is no longer, in the public interest to allow theperson to continue to be a 20% controller of the licensee;

20(c) the person has provided any false or misleading
information or document in connection with anapplication under section 28(1);(d) the person is no longer a fit and proper person under the
Guidelines on Fit and Proper Criteria;

2530(e) having regard to the likely influence of the person, thelicensee is no longer likely to conduct its businessprudently or to comply with the provisions of this Act; or(f) the Authority would not have been satisfied as to any of thematters specified in section 28(2) had the Authority beenaware, at that time, of circumstances relevant to theperson’s application under section 28(1).
(2) Before serving a written notice of objection undersubsection (1), the Authority must, unless the Authority decides
that it is not practicable or desirable to do so —63(a) notify the person of the Authority’s intention to serve thewritten notice of objection; and(b) specify a date by which the person may make written
representations with regard to the proposed written noticeof objection.

5(3) The Authority must consider any written representations that
the Authority receives before the date mentioned in subsection (2)(b),for the purpose of determining whether to issue a written notice ofobjection.
(4) The Authority must, in any written notice of objection, specify areasonable period within which the person that has been served thewritten notice of objection must —10(a) cease to be a 20% controller of the licensee; or(b) comply with such direction as the Authority may makeunder section 30.

15(5) A person that has been served a written notice of objection mustcomply with that notice.
Power of Authority to issue directions for this Division30.—(1) If the Authority is satisfied that a person has contravened
section 28(1) or (6) or has failed to comply with any condition
imposed under section 28(3) or (4), or if the Authority has served awritten notice of objection under section 29, the Authority may, by
notice in writing —(a) direct the transfer or disposal of all or any of the shares in
the licensee held by the person or any of the person’s
associates (called in this section the specified shares)
within such time or subject to such conditions as the
Authority considers appropriate;(b) restrict the transfer or disposal of all or any of the specified
shares; or(c) make such other direction as the Authority considers
appropriate.

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5

(2) Where the Authority has issued any direction undersubsection (1)(a) or imposed any restriction undersubsection (1)(b), until a transfer or disposal is effected inaccordance with the direction or until the restriction on the transfer
or disposal is removed, as the case may be —(a) no voting rights may be exercised in respect of thespecified shares, unless the Authority expressly permits
such rights to be exercised;

1015(b) no shares of the licensee may be issued or offered (whether
by way of rights, bonus or otherwise) in respect of thespecified shares, unless the Authority expressly permits
such issue or offer; and(c) except in a liquidation of the licensee, no payment may bemade by the licensee of any amount (whether by way ofdividends or otherwise) in respect of the specified shares,
unless the Authority expressly authorises such payment.
(3) Subsection (2) has effect despite any provision of theCompanies Act or anything contained in the constitution of thelicensee.

20

25

30

(4) Any issue or offer of shares in contravention ofsubsection (2)(b) is void, and a person to whom a direction has
been issued under subsection (1)(a) or on whom a restriction has been
imposed under subsection (1)(b) must immediately return thoseshares to the licensee, upon which the licensee must return to theperson any payment received from the person in respect of thoseshares.
(5) Any payment made by a licensee in contravention ofsubsection (2)(c) is void, and a person to whom a direction has
been issued under subsection (1)(a) or on whom a restriction has been
imposed under subsection (1)(b) must immediately return thepayment the person has received to the licensee.

65Power of Authority to obtain information relating to this
Division31.—(1) The Authority may, by notice in writing, direct a licensee
to obtain from any of its shareholders, and to provide to the Authority,
any information relating to the shareholder that the Authority may
require for either or both of the following purposes:(a) ascertaining or investigating into the control
shareholding or voting power in the licensee;

5of(b) exercising any power or function under section 28, 29, 30,
32 or 100.

10(2) Without limiting subsection (1), the notice in subsection (1)may require the licensee to obtain and provide the following
information:(a) whether the shareholder has an interest in any share in thelicensee as beneficial owner or as trustee;

15(b) if the shareholder holds the interest in the share as trustee,
to indicate as far as that shareholder is able to —(i) the person for whom that shareholder holds theinterest (either by name or by other particulars
sufficient to enable that person to be identified); and20(ii) the nature of that person’s interest.
(3) The Authority may, by notice in writing, require any
shareholder (X) of a licensee, or any person (Y) that appears frominformation provided to the Authority under subsection (1) or thissubsection to have an interest in any share in the licensee, to provide
to the Authority any information relating to X or Y (as the case maybe) that the Authority may require for either or both of the following
purposes:(a) ascertaining or investigating into the control
shareholding or voting power in the licensee;

25of(b) exercising any power or function under section 28, 29, 30,
32 or 100.

30

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(4) Without limiting subsection (3), the notice in subsection (3)may require X or Y to provide the following information:(a) whether X or Y holds the interest as beneficial owner or astrustee;5(b) if X or Y holds the interest as trustee, to indicate as far as X
or Y can —(i) the person (Z) for whom X or Y holds the interest(either by name or by other particulars sufficient toenable Z to be identified); and10(ii) the nature of Z’s interest;(c) whether any share or any voting right attached to the shareis the subject of an agreement or arrangement described in
section 2(2)(c)(vi), and if so, to give particulars of theagreement or arrangement and the parties to it.

15

Offences, penalties and defences
32.—(1) A person that —(a) contravenes section 28(1) or (6) or 29(5) or does any act incontravention of section 30(2);(b) fails to comply with —20(i) any notice in writing issued under section 30(1) or
31(1) or (3); or(ii) any condition imposed under section 28(3) or (4); or25(c) in purported compliance with a notice in writing issued
under section 31(1) or (3), knowingly or recklessly
provides any information or document that is false or
misleading in a material particular,
shall be guilty of an offence.
(2) A person convicted of an offence under subsection (1) shall be
liable on conviction —30(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,

67

to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.
(3) Where a person is charged with an offence in respect of acontravention of section 28(1) or (6), it is a defence for the person toprove that —510(a) the person was not aware that the person had contravened
section 28(1) or (6), as the case may be; and(b) within 14 days after becoming aware of the contravention,
the person —(i) notified the Authority of the contravention; and15(ii) within such time as may be determined by the
Authority, took such action in relation to the person’s
shareholding or control of the voting power in thelicensee as the Authority may direct.
(4) Where a person is charged with an offence in respect of acontravention of section 28(1), it is also a defence for the person toprove that, even though the person was aware of the contravention —(a) the contravention occurred as a result of an increase in theshareholding as described in section 2(2)(a) of, or in thevoting power controlled by, any of the person’s associates
described in section 2(2)(c)(i);2025(b) the person had no agreement or arrangement (whether oral
or in writing and whether express or implied) with thatassociate —(i) with respect to the acquisition, holding or disposal ofshares or other interests in the licensee; or(ii) under which the person and that associate act
together in exercising their voting power in
relation to the licensee; and

30

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(c) within 14 days after the date of the contravention, theperson —(i) notified the Authority of the contravention; and510(ii) within such time as may be determined by the
Authority, took such action in relation to the person’s
shareholding or control of the voting power in thelicensee as the Authority may direct.
(5) Except as provided in subsections (3) and (4), it is not a defence
for a person charged with an offence in respect of a contravention ofsection 28(1) or (6) to prove that the person did not intend to, or did
not knowingly, contravene that provision.
Appeals to Minister

15

33. Any person that is aggrieved by a decision of the Authority
under section 28, 29 or 30 may, within 30 days after receiving thedecision of the Authority, appeal in writing to the Minister, whose
decision is final.
Division 4 — Control of officers of licensees
Approval of chief executive officer, director or partner oflicensee20

34.—(1) Subject to subsection (4) —(a) a licensee incorporated in Singapore must not appoint an
individual as its chief executive officer or director;

25(b) a licensee incorporated outside Singapore must not appoint
an individual as its chief executive officer, or its director,
directly responsible for the whole or any part of thelicensee’s business in Singapore;(c) a licensee that is a partnership or limited liability
partnership formed in Singapore must not appoint an
individual as its partner; and30(d) a licensee that is a partnership or limited liability
partnership formed outside Singapore must not appoint

69

an individual as its partner directly responsible for thewhole or any part of the licensee’s business in Singapore,
unless the licensee has applied for and obtained the approval of the
Authority under subsection (3)(b).
(2) An application under subsection (1) must be made in the form
and manner prescribed.

5(3) Without affecting any other matter that the Authority may
consider relevant, the Authority may —(a) in determining whether to grant its approval underparagraph (b), have regard to such criteria as the
Authority may specify by notice in writing to thelicensee; and10(b) approve or refuse the application.
(4) Where a licensee has obtained the approval of the Authority
under subsection (3)(b) to appoint an individual as the licensee’s chief
executive officer or director, the individual may, without the approvalof the Authority, be re-appointed as chief executive officer or director(as the case may be) of the licensee immediately upon the expiry of
the individual’s term of appointment.
(5) Subject to subsection (6), the Authority must not refuse alicensee’s application under subsection (1) without giving thelicensee an opportunity to be heard.
(6) The Authority may refuse an application under subsection (1)for the Authority’s approval under subsection (3)(b) of an individual
without giving the licensee an opportunity to be heard, in any of thefollowing circumstances:(a) the individual has been convicted, whether in Singapore orelsewhere, of any of the following offences, whether theoffence is committed before, on or after the date ofcommencement of this paragraph:(i) an offence involving fraud or dishonesty;(ii) an offence the conviction for which involves afinding that the individual had acted fraudulently or
dishonestly;

15

20

25

30

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(iii) an offence that is specified in the Third Schedule to
the Registration of Criminals Act (Cap. 268);(b) the individual is an undischarged bankrupt, whether in
Singapore or elsewhere;
5

10

15

(c) the individual has had execution against the individual inrespect of a judgment debt returned unsatisfied in whole orin part;(d) the individual has, whether in Singapore or elsewhere,
entered into a compromise or scheme of arrangement with
the individual’s creditors, being a compromise or schemeof arrangement that is still in operation;(e) the individual has in force against the individual aprohibition order under section 59 of the Financial
Advisers Act (Cap. 110), section 35V of the Insurance
Act (Cap. 142) or section 101A of the Securities andFutures Act (Cap. 289);(f) the individual has been a director of, or directly concernedin the management of, a regulated financial institution,
whether in Singapore or elsewhere —

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25

30

(i) that is being or has been wound up by a court; or(ii) the approval, authorisation, designation, recognition,
registration or licence of which has been withdrawn,
cancelled or revoked by the Authority or, in the caseof a regulated financial institution in a foreigncountry or territory, by the financial regulatory
authority in that foreign country or territory.
(7) Where the Authority refuses an application under subsection (1)for the Authority’s approval under subsection (3)(b), the Authority
need not give the individual who was proposed to be appointed an
opportunity to be heard.
(8) A licensee that, without reasonable excuse, contravenes
subsection (1) shall be guilty of an offence and shall be liable onconviction to a fine not exceeding $100,000.

71(9) In this section, “chief executive officer”, in relation to a licensee
incorporated outside Singapore, includes a person (however
designated) who —(a) is in the direct employment of, or acting for or byarrangement with, the licensee; and5(b) is directly responsible for the management and conduct of
the whole or any part of the licensee’s business in
Singapore.
Removal of chief executive officer, director or partner oflicensee35.—(1) Despite the provisions of any other written law, where theAuthority is satisfied that an individual appointed as chief executive
officer, director or partner of a licensee incorporated or formed in
Singapore is not a fit and proper person to act as such chief executive
officer, director or partner, the Authority may, by notice in writing,direct the licensee to remove the individual, within such period as the
Authority may specify in the notice —1015(a) from employment with the licensee;(b) as director of the licensee; or(c) as partner of the licensee.

20(2) Without affecting any other matter that the Authority may
consider relevant, in assessing whether to direct the licensee toremove an individual under subsection (1), the Authority may
consider whether the individual —(a) has been convicted, whether in Singapore or elsewhere, of
any of the following offences, whether the offence iscommitted before, on or after the date of commencementof this paragraph:25(i) an offence involving fraud or dishonesty;(ii) an offence the conviction for which involves afinding that the individual had acted fraudulently or
dishonestly;

30

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(iii) an offence that is specified in the Third Schedule to
the Registration of Criminals Act;(b) is an undischarged bankrupt, whether in Singapore orelsewhere;510(c) has had execution against the individual in respect of ajudgment debt returned unsatisfied in whole or in part;(d) has, whether in Singapore or elsewhere, entered into acompromise or scheme of arrangement with theindividual’s creditors, being a compromise or scheme ofarrangement that is still in operation;(e) has in force against the individual a prohibition order under
section 59 of the Financial Advisers Act, section 35Vof the
Insurance Act or section 101A of the Securities andFutures Act;15(f) has been a director of, or directly concerned in the
management of, a regulated financial institution, whether
in Singapore or elsewhere —(i) that is being or has been wound up by a court; or

20

25

30

(ii) the approval, authorisation, designation, recognition,
registration or licence of which has been withdrawn,
cancelled or revoked by the Authority or, in the caseof a regulated financial institution in a foreigncountry or territory, by the financial regulatory
authority in that foreign country or territory;(g) has wilfully contravened, or wilfully caused the licensee tocontravene, any provision of this Act;(h) has, without reasonable excuse, failed to secure thecompliance of the licensee with this Act, the Monetary
Authority of Singapore Act or any of the written laws set
out in the Schedule to that Act;(i) has failed to discharge any of the duties of the individual’s
office or employment; or(j) needs to be removed in the public interest.

73(3) Subject to subsection (4), before directing a licensee
incorporated or formed in Singapore to remove an individual undersubsection (1), the Authority must give both the licensee and theindividual an opportunity to be heard.
(4) The Authority may direct a licensee incorporated or formed in
Singapore to remove an individual under subsection (1) on any of thefollowing grounds without giving the licensee or the individual an
opportunity to be heard:(a) the individual is an undischarged bankrupt, whether in
Singapore or elsewhere;510(b) the individual has been convicted, whether in Singapore orelsewhere, of an offence, whether committed before, on orafter the date of commencement of this paragraph —(i) involving fraud or dishonesty, or the conviction forwhich involves a finding that the individual had
acted fraudulently or dishonestly; and15(ii) punishable with imprisonment for a term of at least
3 months.
(5) Without affecting the Authority’s power to impose conditions
under section 6(7)(a) or (10), the Authority may at any time, by noticein writing to a licensee incorporated or formed in Singapore, impose
or vary a condition requiring the licensee to notify the Authority of
any change to any particulars (such as residence in Singapore orelsewhere, or nature of appointment) of its chief executive officer,
director or partner that may be specified in the notice.

2025(6) A licensee incorporated or formed in Singapore that, without
reasonable excuse —(a) fails to comply with a notice in writing undersubsection (1); or(b) contravenes any condition imposed under subsection (5),shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $100,000.
(7) No criminal or civil liability shall be incurred by a licensee, or
any person acting on behalf of the licensee, in respect of anything

30

74

done (including any statement made) or omitted to be done withreasonable care and in good faith in the discharge or purported
discharge of the obligations of the licensee under this section.
Appeals to Minister
5

10

36.—(1) A licensee incorporated or formed in Singapore that isaggrieved by a decision of the Authority under section 34(3)(b) may,within 30 days after receiving the decision of the Authority, appeal inwriting to the Minister, whose decision is final.
(2) A licensee incorporated or formed in Singapore, or any chief
executive officer, director or partner of that licensee, that is aggrievedby a notice in writing of the Authority under section 35(1) may,within 30 days after receiving the notice, appeal in writing to the
Minister, whose decision is final.
Division 5 — Audit of licensees

15

Auditing
37.—(1) Despite the provisions of the Companies Act, alicensee —(a) must, on an annual basis and at its own expense, appoint anauditor; and20(b) if for any reason its auditor ceases to be its auditor, appoint
another auditor as soon as practicable after such cessation.
(2) The Authority may appoint an auditor for a licensee —(a) if the licensee fails to appoint an auditor; or25(b) if the Authority considers it desirable that another auditor
should act with the auditor appointed under subsection (1).
(3) The Authority may at any time fix the remuneration to be paidby a licensee to an auditor appointed by the Authority undersubsection (2) for the licensee.

30(4) The duties of an auditor appointed under subsection (1) or (2)are as follows:

75(a) to carry out, for the year in respect of which the auditor isappointed, an audit of the accounts of the licensee;(b) to carry out an audit of the transactions in relation to thepayment services provided by the licensee, in particular, inrespect of the licensee’s observance of the provisions of
this Act and any of the requirements imposed under any
other written law administered by the Authority;(c) to submit a report of the audit to the Authority in such form
as may be prescribed and within such time as the Authority
may allow;

510(d) to make a report —(i) in the case of a licensee incorporated in Singapore,on the financial statements or consolidated financial
statements of the licensee in accordance withsection 207 of the Companies Act; or(ii) in the case of a licensee incorporated outside
Singapore, on the latest annual balance sheet andprofit and loss account of the licensee, together withany notes on that balance sheet and profit and loss
account, showing the assets and liabilities and profit
or loss arising out of the operations of the licensee in
Singapore, that complies with section 207 of theCompanies Act.
(5) The Authority may, by notice in writing to an auditor, impose allor any of the following duties on the auditor in addition to those
provided under subsection (4), and the auditor must carry out theduties so imposed:

15

20

25

(a) a duty to submit such additional information in relation to
the audit as the Authority considers necessary;(b) a duty to enlarge or extend the scope of the audit of thelicensee’s business and affairs;(c) a duty to carry out any other examination, or establish any
procedure, in relation to the audit in any particular case;

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(d) a duty to submit a report on any of the matters mentioned inparagraphs (b) and (c).
(6) The licensee must remunerate the auditor in respect of —5(a) any remuneration the Authority has fixed undersubsection (3); and(b) the discharge of all or any of the additional duties of theauditor imposed under subsection (5).

10(7) Despite any other provision of this Act or the provisions of theCompanies Act, the Authority may, if the Authority is not satisfied
with the performance of any duty by the auditor of a licensee, at any
time direct the licensee to —(a) remove the auditor; and(b) appoint another auditor.

15

20

25

(8) The auditor’s report made under subsection (4)(d) must be
attached to the balance sheet and the profit and loss account, thefinancial statements or the consolidated financial statements (as thecase may be) of the licensee, and a copy of the report, together withany report under subsection (5)(d), must be submitted in writing to
the Authority.
(9) If an auditor, in the course of performing the auditor’s duties, issatisfied that any of the following matters has occurred, the auditor
must immediately report that matter to the Authority:(a) there has been a serious breach or non-observance of theprovisions of this Act or any of the requirements imposed
under any other written law administered by the Authority;(b) a criminal offence involving fraud or dishonesty has beencommitted;(c) losses have been incurred that reduce the capital of thelicensee by at least 50%;30(d) there is any irregularity that has or may have a material
effect on the accounts of the licensee, including any
irregularity that had caused a major disruption to the77provision of any type of payment service to the customersof the licensee;(e) the auditor is unable to confirm that the claims of creditorsof the licensee are still covered by the assets of thelicensee.

5(10) Where an auditor or employee of the auditor discloses in goodfaith to the Authority —(a) the auditor’s or employee’s knowledge or suspicion of anyof the matters mentioned in subsection (9); or(b) any information or other matter on which that knowledge
or suspicion is based,10

the disclosure is not a breach of any restriction upon the disclosure
imposed by any law, contract or rules of professional conduct, and theauditor or employee is not liable for any loss arising out of thedisclosure or any act or omission in consequence of the disclosure.

15(11) A licensee that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

20(12) An auditor that contravenes subsection (5) or (9) shall be guiltyof an offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

25

Powers of auditor appointed by Authority
38.—(1) An auditor appointed by the Authority under section 37(2)may, for the purpose of carrying out an examination or audit —(a) examine, on oath or affirmation, any officer or employee ofthe licensee or any other auditor of the licensee;(b) require any officer or employee of the licensee, or any
other auditor of the licensee, to produce any books held by

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or on behalf of the licensee relating to the licensee’s
business;

5(c) make copies of or take extracts from, or retain possessionof, any books mentioned in paragraph (b) for such period
as may be necessary to enable those books to be inspected;(d) employ such persons as the auditor considers necessary toassist the auditor in carrying out the examination or audit;
and10(e) authorise in writing any person employed by the auditor todo, in relation to the examination or audit, any act or thingthat the auditor could do as an auditor under thissubsection, other than the examination of a person onoath or affirmation.
(2) An individual who, without reasonable excuse —15(a) refuses or fails to answer any question put to theindividual; or(b) fails to comply with any request made to the individual,

20

by an auditor appointed under section 37(2) or a person authorised
under subsection (1)(e), shall be guilty of an offence and shall be
liable on conviction to a fine not exceeding $12,500 or to
imprisonment for a term not exceeding 12 months or to both.
Restriction on auditor’s and employee’s right to communicate
certain matters

25

39.—(1) Except as may be necessary for the carrying into effect ofthe provisions of this Act or so far as may be required for the purposesof any legal proceedings, whether civil or criminal —(a) an auditor appointed under section 37(1) or (2); or(b) any employee of such auditor,

30

must not disclose any information that comes to the auditor’s or
employee’s knowledge in the course of performing the auditor’s or
employee’s duties, to any person other than the Authority or, in thecase of an employee of such auditor, the auditor.

79(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction —(a) in the case of the auditor, to a fine not exceeding $25,000;or(b) in the case of the employee, to a fine not exceeding$12,500.

5

Offence to destroy, conceal, alter, etc., records
40.—(1) An individual who, with intent to prevent, delay or
obstruct the carrying out of any examination or audit under section 37
or 38 —

10(a) destroys, conceals or alters any book relating to thebusiness of a licensee; or(b) sends, or conspires with any other person to send, out ofSingapore any book or asset of any description belonging
to, in the possession of or under the control of the licensee,

15

shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $50,000 or to imprisonment for a term not exceeding
2 years or to both.
(2) If, in any proceedings for an offence under subsection (1), it isproved that the individual charged with the offence —20(a) destroyed, concealed or altered any book mentioned insubsection (1)(a); or(b) sent, or conspired to send, out of Singapore any book orasset mentioned in subsection (1)(b),the onus of proving that, in so doing, the individual did not act withintent to prevent, delay or obstruct the carrying out of an examination
or audit under section 37 or 38 lies on the individual.

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PART 3
PAYMENT SYSTEMSDivision 1 — Information gathering powers over payment systems
Provision of information to Authority
510

41.—(1) The Authority may, by notice in the form and mannerprescribed, require any of the following persons to provide to the
Authority, within a reasonable period specified in the notice, suchinformation relating to a payment system as the Authority may
require:(a) any participant of the payment system;(b) any operator of the payment system, or any person acting
on behalf of the operator;(c) any settlement institution of the payment system.

15(2) Without limiting subsection (1), the Authority may in a noticeissued under that subsection require any person mentioned inparagraph (a), (b) or (c) of that subsection to provide, whether inthe form of a return to be provided on a periodic basis or otherwise —(a) information relating to —(i) the operation of the payment system; and20(ii) the pricing of, or other form of consideration for, theservices offered by the payment system;(b) information relating to the participation or other
involvement of that person in the payment system; and25(c) such other information as the Authority may require for the
purposes of this Act.
(3) Subject to subsection (5), any person to whom a notice is issued
under subsection (1) must comply with the notice.

30(4) A person that contravenes subsection (3) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$100,000 or to imprisonment for a term not exceeding 2 years or toboth and, in the case of a continuing offence, to a further fine not81

exceeding $10,000 for every day or part of a day during which theoffence continues after conviction.
(5) A person to whom a notice is issued under subsection (1) is not
obliged to disclose any information that the person is prohibited by
any written law from disclosing.

5

Division 2 — Designation of payment systems
Power of Authority to designate payment systems
42.—(1) The Authority may, by order in the Gazette, designate apayment system as a designated payment system for the purposes ofthis Act, if the Authority is satisfied that any of the following
considerations applies:

10(a) a disruption in the operations of the payment system
could —
(i) trigger, cause or transmit further disruption toparticipants of the payment system;

15(ii) trigger or cause systemic disruption to the financial
system of Singapore; or(iii) affect public confidence in the payment systems ofSingapore or the financial system of Singapore;(b) the payment system is widely used in Singapore or theoperations of the payment system may have an impact on
the operations of one or more other payment systems in
Singapore, and the designation is necessary to ensure
efficiency or competitiveness in any of the services
provided by the operator of the payment system;

2025(c) the designation is otherwise in the interests of the public.
(2) Any order made under subsection (1) —(a) must —(i) if the Authority is satisfied of any consideration insubsection (1)(a)(i), (ii) or (iii) or (c) — identify theoperator and the settlement institution of thedesignated payment system; or

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(ii) if the Authority is satisfied of the consideration insubsection (1)(b) —5(A) state that the payment system is designatedbecause the Authority is satisfied of theconsideration in subsection (1)(b); and(B) identify the operator of the designated payment
system; and(b) continues to have effect until the order is withdrawn by the
Authority.

1015(3) Any operator or settlement institution of a payment system thatis aggrieved by a decision of the Authority to designate the payment
system as a designated payment system may, within 30 days after thedate on which the order designating the payment system is publishedin the Gazette, appeal in writing to the Minister, whose decision is
final.
(4) Despite the lodging of an appeal under subsection (3), thedesignation by the Authority under this section continues to haveeffect pending the decision of the Minister.

20(5) The Minister may, when deciding an appeal undersubsection (3), direct the Authority to withdraw the designation of
the payment system as a designated payment system, and the
direction takes effect from the date of the Minister’s decision.
Prohibition against holding out as designated payment system

25

30

43.—(1) A person must not hold the person out as the operator or
settlement institution of a designated payment system unless thepayment system has been designated by the Authority under
section 42.
(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$250,000 or to imprisonment for a term not exceeding 3 years or toboth and, in the case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during which theoffence continues after conviction.

83

Power of Authority to impose conditions or restrictions
44.—(1) The Authority may, by notice in writing, impose on aparticipant, an operator or a settlement institution of a designatedpayment system such conditions or restrictions as the Authority
thinks fit.

5(2) The Authority may, at any time, by notice in writing to aparticipant, an operator or a settlement institution of the designatedpayment system, vary any condition or restriction.
(3) Without limiting subsection (1) or (2), the conditions or
restrictions that the Authority may impose include conditions or
restrictions relating to any of the following matters:

10(a) the activities that the operator or settlement institution of
the designated payment system may undertake;(b) the standards to be maintained by the operator or
settlement institution of the designated payment system;

15(c) the requirement for the operator or settlement institution of
the designated payment system to operate as a corporation.
(4) A participant, operator or settlement institution of a designatedpayment system that fails to comply with any condition or restriction
imposed under subsection (1) or (2) shall be guilty of an offence andshall be liable on conviction to a fine not exceeding $100,000 and, inthe 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.
Withdrawal of designation of payment system

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25

45.—(1) The Authority may, by order in the Gazette, withdraw thedesignation of any designated payment system at any time if the
Authority is of the opinion that the applicable consideration insection 42(1)(a)(i), (ii) or (iii), (b) or (c) is no longer valid or satisfied.
(2) The Authority must not withdraw the designation of any
designated payment system without giving the operator and thesettlement institution of that designated payment system an
opportunity to be heard.

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Exemptions applicable to operator, settlement institution or
participant of payment system designated to ensure efficiency
or competitiveness
5

10

46.—(1) Section 50, Divisions 4 to 8 of this Part, and Part 5 do not
apply to an operator of a designated payment system that isdesignated only because the Authority is satisfied of theconsideration in section 42(1)(b).
(2) Sections 44, 102 and 103, Divisions 3 to 8 of this Part, andParts 4 and 5 do not apply to a settlement institution of a designatedpayment system that is designated only because the Authority issatisfied of the consideration in section 42(1)(b).
(3) Division 4 of this Part does not apply to a participant of adesignated payment system that is designated only because theAuthority is satisfied of the consideration in section 42(1)(b).

15

Division 3 — Obligations of operators and settlement institutions ofdesignated payment systems
Obligation of operator or settlement institution to have place ofbusiness or registered office

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47.—(1) An operator of a designated payment system, and asettlement institution of a designated payment system, must, withinsuch period, after the date on which the order under section 42(1)designating that payment system is published in the Gazette, as the
Authority may specify by notice in writing, establish a permanent
place of business or a registered office in Singapore.
(2) The operator or settlement institution must appoint a person to
be present, on such days and at such hours as the Authority may
specify by notice in writing, at the permanent place of business orregistered office of the operator or settlement institution, to address
any queries or complaints from any customer of the operator or
settlement institution.
(3) The operator or settlement institution must keep, or cause to be
kept, at the permanent place of business or registered office of theoperator or settlement institution, books of all the transactions of the85

operator or settlement institution in relation to the designatedpayment system.
(4) The operator or settlement institution must notify the Authorityof any change in the address of any of the following places withinsuch period, after the date of that change, as the Authority may
specify by notice in writing:

5(a) the permanent place of business or registered office inSingapore of the operator or settlement institution;(b) every other place of business of the operator or settlement
institution.

10(5) A person that contravenes subsection (1), (2) or (3) shall be
guilty of an offence and shall be liable on conviction to a fine notexceeding $100,000 and, in the case of a continuing offence, to afurther fine not exceeding $10,000 for every day or part of a day
during which the offence continues after conviction.

15(6) A person that contravenes subsection (4) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$2,000.
Obligation of operator or settlement institution to notify
Authority of certain events

20

48.—(1) An operator of a designated payment system, and asettlement institution of a designated payment system, must notify the
Authority of the occurrence of any of the following events as soon aspracticable after that occurrence:(a) an intention to make a material change to the nature of theoperating rules, settlement procedures or activities of thedesignated payment system;(b) an event or irregularity that impedes or prevents access to,or impairs the usual operations of, the designated payment
system or its settlement operations;(c) any material function of the operator or settlement
institution that is outsourced;

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(d) any civil or criminal proceeding instituted against theoperator or settlement institution, whether in Singapore orelsewhere;510(e) the operator or settlement institution being or becoming, orbeing likely to become, insolvent or unable to meet any of
the financial, statutory, contractual or other obligations of
the operator or settlement institution;(f) any disciplinary action taken against the operator or
settlement institution by any regulatory authority (otherthan the Authority), whether in Singapore or elsewhere;(g) any significant change to the regulatory requirements
imposed on the operator or settlement institution by any
regulatory authority (other than the Authority), whether in
Singapore or elsewhere;15(h) any other event that the Authority may prescribe or specify
by notice in writing.

20(2) An operator of a designated payment system, and a settlement
institution of a designated payment system, must notify the Authorityof the occurrence of any of the following events within 14 days after
the date of that occurrence:

25(a) any change of a director or the chief executive officer ofthe operator or settlement institution, except where theoperator is required under section 65 to obtain the
Authority’s approval to appoint the director or chief
executive officer;(b) any other event that the Authority may prescribe or specify
by notice in writing.

30(3) A person that contravenes subsection (1) or (2) shall be guilty of
an offence and shall be liable on conviction to a fine not exceeding$250,000.
Obligation of operator to submit periodic reports
49.—(1) An operator of a designated payment system must submit
to the Authority such reports or returns in the form, manner andfrequency prescribed.

87(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$250,000 and, in the case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during which theoffence continues after conviction.

5

Obligation of operator to notify Authority of businesses andacquisition of corporations
50.—(1) An operator of a designated payment system must notify
the Authority of the occurrence of any of the following events as soon
as practicable after the occurrence of that event:

10(a) the carrying on of any business by the operator otherthan —(i) the business of operating a payment system;(ii) a business incidental to operating a payment system;or15(iii) such business or class of businesses as the Authority
may prescribe;(b) the acquisition by the operator of a substantial
shareholding in a corporation that does not carry on —(i) the business of operating a payment system;

20(ii) a business incidental to operating a payment system;or(iii) such business or class of businesses as the Authority
may prescribe.
(2) An operator of a designated payment system must, within
2 months after the date of the designation of the payment system,
notify the Authority of its substantial shareholding in a corporationthat does not carry on —25(a) the business of operating a payment system;(b) a business incidental to operating a payment system; or(c) such business or class of businesses as the Authority may
prescribe.

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(3) The Authority may, at any time after receiving a notification
mentioned in subsection (1) or (2), by notice in writing direct theoperator of the designated payment system —5(a) where the notification relates to a matter mentioned insubsection (1)(a) —(i) to cease carrying on the firstmentioned business insubsection (1)(a); or10(ii) to carry on the firstmentioned business insubsection (1)(a) subject to such conditions or
restrictions as the Authority may impose, if the
Authority is of the opinion that this is necessary forany of the purposes mentioned in section 102(1); or(b) where the notification relates to a matter mentioned insubsection (1)(b) or (2) —15

20(i) to dispose of the shareholding mentioned insubsection (1)(b) or (2); or(ii) to exercise the operator’s rights relating to suchshareholding subject to such conditions or
restrictions as the Authority may impose, if the
Authority is of the opinion that this is necessary forany of the purposes mentioned in section 102(1).
(4) An operator of a designated payment system, to whom the
Authority has issued a notice in writing under subsection (3), mustcomply with the directions contained in the notice.

2530(5) A person that contravenes subsection (1), (2) or (4) shall be
guilty of an offence and shall be liable on conviction to a fine notexceeding $250,000 and, in the case of a continuing offence, to afurther fine not exceeding $25,000 for every day or part of a day
during which the offence continues after conviction.
Division 4 — Access regime
Power of Authority to impose access regime
51.—(1) The Authority may, by order in the Gazette, impose an
access regime in respect of a relevant payment system on one or more89of the following persons or classes of persons, on such terms andconditions as the Authority may consider appropriate:(a) a participant or class of participants of that payment
system;(b) an operator, or a class of operators, of that payment system;

5(c) a settlement institution or class of settlement institutions ofthat payment system;(d) any other person or class of persons that determines accessto that payment system.
(2) In considering whether to impose an access regime undersubsection (1) in respect of a relevant payment system, the Authority
must have regard to the following matters:

10(a) whether the imposition of that access regime would be in
the interests of the public;(b) the interests of the current participants, operator andsettlement institution of that payment system;

15(c) the interests of persons who, in the future, may require ordesire access to that payment system;(d) such other matters as the Authority may consider to be
relevant.

20(3) The Authority, in imposing an access regime undersubsection (1), must ensure that the access regime is fair and notdiscriminatory.
Variation of access regime
52.—(1) The Authority may, by order in the Gazette, vary an accessregime that has been imposed under section 51 in respect of a relevant
payment system, on such terms and conditions as the Authority may
consider appropriate.
(2) In considering whether to vary under subsection (1) an accessregime in respect of a relevant payment system, the Authority musthave regard to the following matters:

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(a) whether the variation of that access regime would be in theinterests of the public;(b) the interests of the current participants, operator andsettlement institution of that payment system;
5(c) the interests of persons who, in the future, may require ordesire access to that payment system;(d) such other matters as the Authority may consider to be
relevant.
Cessation and revocation of access regime

10

53.—(1) An access regime in respect of a relevant payment systemceases to be in force if —(a) the order imposing or varying the access regime under
section 51(1) or 52(1) (as the case may be) provides for an
expiry date, and that date is reached;

15(b) the Authority revokes
subsection (2); ortheaccessregimeunder(c) the payment system concerned ceases to exist or operate,or ceases to be a relevant payment system.
20(2) The Authority may, by order in the Gazette, revoke an accessregime if the Authority considers it appropriate to do so.
(3) In considering whether to revoke under subsection (2) an accessregime in respect of a relevant payment system, the Authority musthave regard to the following matters:

25(a) whether the revocation of that access regime would be in
the interests of the public;(b) the interests of the current participants, operator andsettlement institution of that payment system;(c) the interests of persons who, in the future, may require ordesire access to that payment system;

30(d) such other matters as the Authority may consider to be
relevant.

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Right to apply to High Court in respect of access regime54.—(1) If a person has been denied access to a payment system byany participant, operator, settlement institution or other person that
determines access to the payment system, in contravention of a termor condition of the access regime imposed under section 51(1) or
52(1), the person denied access may apply to the High Court for an
order under subsection (3).
(2) An applicant for an order under subsection (1) must give to the
Authority a written notice of the application together with a copy of
the application, and the Authority may apply to the High Court to bejoined as a party to the proceedings.
(3) If the High Court is satisfied that any participant, operator,
settlement institution or other person that determines access to apayment system has contravened a term or condition of the accessregime, the High Court may —

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15

(a) order that participant, operator, settlement institution orother person to comply with that term or condition of theaccess regime;(b) order that participant, operator, settlement institution orother person to compensate any person that has suffered
loss or damage as a result of the contravention; or

20(c) make such other order as the High Court thinks fit.
(4) The High Court may, on an application by any person that has asufficient interest or on its own motion, discharge or vary any ordermade under this section, but must not discharge or vary that orderunless the Authority has a reasonable opportunity to makerepresentations to the High Court.

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Division 5 — Voluntary transfer of business
Interpretation of this Division
55. In this Division, unless the context otherwise requires —“business” includes affairs, property, right, obligation andliability;

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“Court” means the High Court or a Judge of that Court;“debenture” has the meaning given by section 4(1) of theCompanies Act;
5

“property” includes property, right and power of every
description;“Registrar of Companies” means the Registrar of Companies
appointed under the Companies Act and includes any Deputy
or Assistant Registrar of Companies appointed under that
Act;

10

15

“transferee” means a person that is carrying on, or that intends tocarry on, in Singapore the usual business of an operator or asettlement institution of a designated payment system, towhich the whole or any part of a transferor’s business is, is to
be or is proposed to be transferred under section 56(1);“transferor” means an operator or a settlement institution of adesignated payment system the whole or any part of thebusiness of which is, is to be, or is proposed to be transferredunder section 56(1).
Voluntary transfer of business

20

56.—(1) A transferor may transfer the whole or any part of its
business (including any business that is not the usual business of an
operator or a settlement institution of a designated payment system)
to a transferee, if —(a) the Authority has consented to the transfer;

25(b) the transfer involves the whole or any part of the businessof the transferor that is the usual business of an operator ora settlement institution of a designated payment system;and(c) the Court has approved the transfer.

30(2) Subsection (1) does not apply to the transfer, by an operator or asettlement institution of a designated payment system, of the whole or
any part of the business of that operator or settlement institution under
any other law.

93(3) The Authority may consent to a transfer under subsection (1)(a)if the Authority is satisfied that —(a) the transferee is a fit and proper person under the
Guidelines on Fit and Proper Criteria; and(b) the transferee will conduct the business of the transferor
prudently and comply with the provisions of this Act.
(4) The Authority may at any time appoint one or more persons toperform an independent assessment of, and provide a report on, theproposed transfer of a transferor’s business (or any part of thatbusiness) under subsection (1).

5

10(5) The remuneration and expenses of any person appointed undersubsection (4) must be paid by the transferor and the transferee jointly
and severally.
(6) The Authority must serve a copy of any report provided undersubsection (4) on the transferor and the transferee.

15(7) The Authority may require a person to provide, within the
period and in the manner specified by the Authority, any informationor document that the Authority may reasonably require for thedischarge of the Authority’s duties or functions, or the exercise of the
Authority’s powers, under this section and section 57.

20(8) A person that —(a) without reasonable excuse, fails to comply with any
requirement under subsection (7); or(b) in purported compliance with any requirement undersubsection (7), knowingly or recklessly provides any
information or document that is false or misleading in amaterial particular,
shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence, to a further
fine not exceeding $12,500 for every day or part of a day during
which the offence continues after conviction.
(9) Where a person claims, before providing the Authority with any
information or document that the person is required to provide under

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subsection (7), that the information or document might tend toincriminate the person, the information or document is not admissiblein evidence against the person in criminal proceedings other thanproceedings under subsection (8).
5Approval of transfer
57.—(1) A transferor must apply to the Court for its approval of thetransfer of the whole or any part of the business of the transferor to thetransferee under section 56(1).
(2) Before making an application under subsection (1) —1015(a) the transferor must lodge with the Authority a reportsetting out such details of the transfer and provide suchsupporting documents as the Authority may specify bynotice in writing;(b) the transferor must obtain the consent of the Authority
under section 56(1)(a);(c) the transferor and the transferee must, if they intend toserve on their respective customers a summary of thetransfer, obtain the Authority’s approval of the summary;

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(d) the transferor must, at least 15 days before the application
is made but not earlier than one month after the reportmentioned in paragraph (a) is lodged with the Authority,
publish in the Gazette, and in such newspaper ornewspapers as the Authority may determine, a notice ofthe transferor’s intention to make the application andcontaining such other particulars as may be prescribed;(e) the transferor and the transferee must keep at theirrespective offices in Singapore, for inspection by any
person that may be affected by the transfer, a copy of thereport mentioned in paragraph (a) for a period of 15 days
after the publication of the notice mentioned inparagraph (d) in the Gazette; and(f) unless the Court directs otherwise, the transferor and thetransferee must serve on their respective customers
affected by the transfer, at least 15 days before the95application is made, a copy of the report mentioned inparagraph (a) or a summary of the transfer approved by the
Authority under paragraph (c).
(3) The Authority and any person that, in the opinion of the Court,
is likely to be affected by the transfer —5(a) has the right to appear before and be heard by the Court inany proceedings relating to the transfer; and(b) may make any application to the Court in relation to thetransfer.
(4) The Court must not approve the transfer if the Authority has notconsented under section 56(1)(a) to the transfer.

10(5) The Court may, after taking into consideration the views, if any,of the Authority on the transfer —(a) approve the transfer without modification or subject to any
modification agreed to by the transferor and the transferee;or15(b) refuse to approve the transfer.
(6) If the transferee is not identified under section 42(2) as theoperator or settlement institution of the designated payment system,
the Court may approve the transfer on terms that the transfer is to takeeffect only in the event of the transferee being so identified.

20(7) The Court may by the order approving the transfer or by any
subsequent order provide for all or any of the following matters:(a) the transfer to the transferee of the whole or any part of thebusiness of the transferor;

25(b) the allotment or appropriation by the transferee of any
share, debenture, policy or other interest in the transferee
which under the transfer is to be allotted or appropriated by
the transferee to or for any person;(c) the continuation by (or against) the transferee of any legal
proceedings pending by (or against) the transferor;(d) the dissolution, without winding up, of the transferor;

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(e) the provisions to be made for persons affected by thetransfer;

5(f) such incidental, consequential and supplementary matters
as are, in the opinion of the Court, necessary to secure thatthe transfer is fully effective.
(8) Any order under subsection (7) may —(a) provide for the transfer of any business, whether or not thetransferor otherwise has the capacity to effect the transfer
in question;

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15

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(b) make provision in relation to any property which is held by
the transferor as trustee; and(c) make provision as to any future or contingent right or
liability of the transferor, including provision as to theconstruction of any instrument under which any such rightor liability may arise.
(9) Subject to subsection (10), where an order made undersubsection (7) provides for the transfer to the transferee of thewhole or any part of the transferor’s business, then by virtue of theorder the business (or part of the business) of the transferor specified
in the order must be transferred to and vest in the transferee, free inthe case of any particular property (if the order so directs) from any
charge which by virtue of the transfer is to cease to have effect.
(10) No order under subsection (7) has any effect or operation intransferring or otherwise vesting land in Singapore until theappropriate entries are made with respect to the transfer or vestingof that land by the appropriate authority.
(11) If any business specified in an order under subsection (7) isgoverned by the law of any foreign country or territory, the Court mayorder the transferor to take all necessary steps for securing that thetransfer of the business to the transferee is fully effective under thelaw of that country or territory.
(12) Where an order is made under this section, the transferor andthe transferee must each lodge within 7 days after the order ismade —

97(a) a copy of the order with the Registrar of Companies andwith the Authority; and(b) where the order relates to land in Singapore, an office copyof the order with the appropriate authority concerned withthe registration or recording of dealings in that land.
(13) A transferor or transferee that contravenes subsection (12), andevery officer of the transferor or transferee (as the case may be) who
fails to take all reasonable steps to secure compliance by thetransferor or transferee (as the case may be) with that subsection,
shall each be guilty of an offence and shall each be liable onconviction to a fine not exceeding $2,000 and, in the case of acontinuing offence, to a further fine not exceeding $200 for every dayor part of a day during which the offence continues after conviction.
Division 6 — Control of controllers of operators of designatedpayment systems

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Application and interpretation of this Division
58.—(1) This Division applies to —(a) every individual, whether or not resident in Singapore andwhether or not a citizen of Singapore; and(b) every entity.

20(2) In this Division, unless the context otherwise requires —(a) any reference to an operator is a reference to an operator ofa designated payment system; and(b) any reference to a Singapore operator is a reference to a
Singapore operator of a designated payment system.

25

Control of shareholding in operator
59.—(1) A person must not become —(a) a 5% controller;(b) a 12% controller;(c) a 20% controller; or

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(d) an indirect controller,of an operator without first applying for and obtaining the approval of
the Authority under subsection (3).
510(2) A person must not enter into any agreement or arrangement(whether oral or in writing and whether express or implied) to act
together with any other person with respect to the acquisition, holding
or disposal of, or the exercise of rights in relation to, their interests invoting shares of an aggregate of 5% or more of the total votes
attached to all voting shares in an operator, without first applying forand obtaining the approval of the Authority under subsection (3).
(3) The Authority may approve an application made by any person
under subsection (1) or (2) if the Authority is satisfied that —15(a) having regard to the likely influence of the person, theoperator will or will continue to conduct its businessprudently and comply with the provisions of this Act;20(b) in the case of an application made under subsection (1), theperson is, under the Guidelines on Fit and Proper Criteria, a
fit and proper person to be a 5% controller, a 12%
controller, a 20% controller or an indirect controller (as thecase may be) of the operator;(c) in the case of an application made under subsection (2), theperson is, under the Guidelines on Fit and Proper Criteria, a
fit and proper person to be a party to the agreement or
arrangement; and25(d) it is in the public interest to do so.
(4) An approval under subsection (3) may be granted to any person
subject to such conditions as the Authority may impose, including but
not limited to —30(a) any condition restricting the person’s disposal or further
acquisition of shares or voting power in the operator; and(b) any condition restricting the person’s exercise of voting
power in the operator.
(5) The Authority may at any time add to, vary or revoke any
condition that is imposed under subsection (4) or this subsection.

99(6) Any condition imposed under subsection (4) or (5) has effectdespite any provision of the Companies Act or anything contained in
the constitution of the operator.
(7) Where the Authority refuses an application made by any person
under subsection (1) or (2), the person must, within such period as the
Authority may specify by notice in writing, take such steps (as soon
as practicable after the refusal) as are necessary —(a) in the case of an application under subsection (1) for
approval to be a 5% controller or a 12% controller of an
operator, to cease to be a 5% controller or a 12% controller(as the case may be) of the operator;(b) in the case of an application under subsection (1) for
approval to be a 20% controller or an indirect controller ofan operator, to cease to be a 20% controller or an indirectcontroller (as the case may be) of the operator; or

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(c) in the case of an application made under subsection (2), tocease to be a party to the agreement or arrangement.
Objection to existing control of operator
60.—(1) The Authority may serve a written notice of objection on
any person that is a 5% controller, a 12% controller, a 20% controller
or an indirect controller of an operator, or is required to obtain or has
obtained the Authority’s approval under section 59(3) of an
application made under section 59(1) or (2), if the Authority issatisfied that —(a) any condition for that approval imposed on the person
under section 59(4) or (5) has not been complied with;

20

25(b) it is no longer in the public interest to allow the person tocontinue to be —(i) a 5% controller, a 12% controller, a 20% controller oran indirect controller (as the case may be) of theoperator; or(ii) in the case of an approval of an application under
section 59(2) — a party to the agreement or
arrangement described in section 59(2);

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(c) the person has provided any false or misleading
information or document in connection with anapplication under section 59(1) or (2);5(d) the person is no longer a fit and proper person under the
Guidelines on Fit and Proper Criteria;(e) having regard to the likely influence of the person, theoperator is no longer likely to conduct its businessprudently or to comply with the provisions of this Act; or

1015(f) the Authority would not have been satisfied as to any of thematters specified in section 59(3) had the Authority beenaware, at that time, of circumstances relevant to theperson’s application under section 59(1) or (2).
(2) Before serving a written notice of objection undersubsection (1), the Authority must, unless the Authority decides
that it is not practicable or desirable to do so —(a) notify the person of the Authority’s intention to serve thewritten notice of objection; and20(b) specify a date by which the person may make written
representations with regard to the proposed written noticeof objection.
(3) The Authority must consider any written representations that
the Authority receives before the date mentioned in subsection (2)(b),for the purpose of determining whether to issue a written notice ofobjection.

2530(4) The Authority must, in any written notice of objection, specify areasonable period within which the person that has been served thewritten notice of objection must —(a) cease to be a 5% controller, a 12% controller, a
20% controller or an indirect controller (as the case maybe) of the operator;(b) if the person had made an application under
section 59(2) — take such steps as are necessary tocease to be a party to the agreement or arrangement
described in section 59(2); or101(c) comply with such direction as the Authority may makeunder section 61.
(5) A person that has been served with a written notice of objection
must comply with that notice.
Power of Authority to issue directions for this Division

5

61.—(1) If the Authority is satisfied that a person has contravened
section 59(1), (2) or (7) or has failed to comply with any condition
imposed under section 59(4) or (5), or if the Authority has served awritten notice of objection under section 60, the Authority may, by
notice in writing —10(a) direct the transfer or disposal of all or any of the shares in
the operator held by the person or any of the person’s
associates (called in this section the specified shares)
within such time or subject to such conditions as the
Authority considers appropriate;15(b) restrict the transfer or disposal of all or any of the specified
shares; or(c) make such other direction as the Authority considers
appropriate.
(2) Where the Authority has issued any direction undersubsection (1)(a) or imposed any restriction undersubsection (1)(b), until a transfer or disposal is effected inaccordance with the direction or until the restriction on the transfer
or disposal is removed, as the case may be —20(a) no voting rights may be exercised in respect of thespecified shares, unless the Authority expressly permits
such rights to be exercised;

25(b) no shares of the operator may be issued or offered (whether
by way of rights, bonus or otherwise) in respect of thespecified shares, unless the Authority expressly permits
such issue or offer; and(c) except in a liquidation of the operator, no payment may bemade by the operator of any amount (whether by way of

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dividends or otherwise) in respect of the specified shares,
unless the Authority expressly authorises such payment.

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15

(3) Subsection (2) has effect despite any provision of theCompanies Act or anything contained in the constitution of theoperator.
(4) Any issue or offer of shares in contravention ofsubsection (2)(b) is void, and a person to whom a direction has
been issued under subsection (1)(a) or on whom a restriction has been
imposed under subsection (1)(b) must immediately return thoseshares to the operator, upon which the operator must return to theperson any payment received from the person in respect of thoseshares.
(5) Any payment made by an operator in contravention ofsubsection (2)(c) is void, and a person to whom a direction has
been issued under subsection (1)(a) or on whom a restriction has been
imposed under subsection (1)(b) must immediately return thepayment the person has received to the operator.
Power of Authority to obtain information relating to this
Division

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62.—(1) The Authority may, by notice in writing, direct an operator
to obtain from any of its shareholders, and to provide to the Authority,
any information relating to the shareholder that the Authority may
require for either or both of the following purposes:(a) ascertaining or investigating into the control
shareholding or voting power in the operator;of(b) exercising any power or function under section 59, 60, 61,
63 or 100.

30(2) Without limiting subsection (1), the notice in subsection (1)may require the operator to obtain and provide the following
information:(a) whether the shareholder has an interest in any share in theoperator as beneficial owner or as trustee;(b) if the shareholder holds the interest in the share as trustee,
to indicate as far as that shareholder is able to —103(i) the person for whom that shareholder holds theinterest (either by name or by other particulars
sufficient to enable that person to be identified); and(ii) the nature of that person’s interest.
(3) The Authority may, by notice in writing, require any
shareholder (X) of an operator, or any person (Y) that appears frominformation provided to the Authority under subsection (1) or thissubsection to have an interest in any share in the operator, to provide
to the Authority any information relating to X or Y (as the case maybe) that the Authority may require for either or both of the following
purposes:(a) ascertaining or investigating into the control
shareholding or voting power in the operator;

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of

(b) exercising any power or function under section 59, 60, 61,
63 or 100.

15(4) Without limiting subsection (3), the notice in subsection (3)may require X or Y to provide the following information:(a) whether X or Y holds the interest as beneficial owner or astrustee;(b) if X or Y holds the interest as trustee, to indicate as far as X
or Y can —20(i) the person (Z) for whom X or Y holds the interest(either by name or by other particulars sufficient toenable Z to be identified); and(ii) the nature of Z’s interest;25(c) whether any share or any voting right attached to the shareis the subject of an agreement or arrangement described in
section 2(2)(c)(vi) or 59(2), and if so, to give particulars of
the agreement or arrangement and the parties to it.
Offences, penalties and defences
63.—(1) A person that contravenes section 59(1)(a) or (b), (2) or(7)(a) or (c) shall be guilty of an offence and shall be liable onconviction —

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5

(a) in the case of an individual, to a fine not exceeding$125,000 and, in the case of a continuing offence, to afurther fine not exceeding $12,500 for every day or part ofa day during which the offence continues after conviction;or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.

10(2) A person that —(a) contravenes section 59(1)(c) or (d) or (7)(b) or 60(5) ordoes any act in contravention of section 61(2);(b) fails to comply with —15(i) any notice in writing issued under section 61(1) or
62(1) or (3); or(ii) any condition imposed under section 59(4) or (5); or20(c) in purported compliance with a notice in writing issued
under section 62(1) or (3), knowingly or recklessly
provides any information or document that is false or
misleading in a material particular,
shall be guilty of an offence.
(3) A person convicted of an offence under subsection (2) shall be
liable on conviction —2530(a) in the case of an individual, to a fine not exceeding$125,000 or to imprisonment for a term not exceeding
3 years or to both and, in the case of a continuing offence,
to a further fine not exceeding $12,500 for every day orpart of a day during which the offence continues afterconviction; or(b) in any other case, to a fine not exceeding $250,000 and, inthe case of a continuing offence, to a further fine notexceeding $25,000 for every day or part of a day during
which the offence continues after conviction.

105(4) Where a person is charged with an offence in respect of acontravention of section 59(1), (2) or (7) in relation to an operator, it
is a defence for the person to prove that —(a) the person was not aware that the person had contravened
section 59(1), (2) or (7), as the case may be; and5(b) within 14 days after becoming aware of the contravention,
the person —(i) notified the Authority of the contravention; and(ii) within such time as may be determined by the
Authority, took such action in relation to the person’s
shareholding or control of the voting power in theoperator as the Authority may direct.
(5) Where a person is charged with an offence in respect of acontravention of section 59(1) in relation to an operator, it is also adefence for the person to prove that, even though the person wasaware of the contravention —(a) the contravention occurred as a result of an increase in theshareholding as described in section 2(2)(a) of, or in thevoting power controlled by, any of the person’s associates
described in section 2(2)(c)(i);

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(b) the person had no agreement or arrangement (whether oral
or in writing and whether express or implied) with thatassociate —(i) with respect to the acquisition, holding or disposal ofshares or other interests in the operator; or25(ii) under which the person and that associate act
together in exercising their voting power in
relation to the operator; and(c) within 14 days after the date of the contravention, theperson —(i) notified the Authority of the contravention; and(ii) within such time as may be determined by the
Authority, took such action in relation to the person’s

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shareholding or control of the voting power in theoperator as the Authority may direct.

5(6) Except as provided in subsections (4) and (5), it is not a defence
for a person charged with an offence in respect of a contravention ofsection 59(1), (2) or (7) to prove that the person did not intend to, or
did not knowingly, contravene that provision.
Appeals to Minister

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64. Any person that is aggrieved by a decision of the Authority
under section 59, 60 or 61 may, within 30 days after receiving thedecision of the Authority, appeal in writing to the Minister, whose
decision is final.
Division 7 — Control of officers of operators and settlement
institutions of designated payment systems
Approval of chief executive officer or director of operator

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65.—(1) Subject to subsection (4) —(a) a Singapore operator of a designated payment system must
not appoint an individual as its chief executive officer ordirector; and20(b) any other operator of a designated payment system must
not appoint an individual as its chief executive officer, or
director, directly responsible for the whole or any part ofthat operator’s business in Singapore,
unless that operator has applied for and obtained the approval of the
Authority under subsection (3)(b).

25(2) An application under subsection (1) must be made in the form
and manner prescribed.
(3) Without affecting any other matter that the Authority may
consider relevant, the Authority may —30(a) in determining whether to grant its approval underparagraph (b), have regard to such criteria as may beprescribed; and(b) approve or refuse the application.

107(4) Where an operator has obtained the approval of the Authority
under subsection (3)(b) to appoint an individual as the operator’schief executive officer or director, the individual may, without theapproval of the Authority, be re-appointed as chief executive officer
or director (as the case may be) of the operator immediately upon the
expiry of the individual’s term of appointment.

5(5) Subject to subsection (6), the Authority must not refuse anapplication for approval of an individual under subsection (1) without
giving the operator an opportunity to be heard.
(6) The Authority may refuse an application under subsection (1)for the Authority’s approval under subsection (3)(b) of an individual
without giving the operator an opportunity to be heard, in any of thefollowing circumstances:(a) the individual has been convicted, whether in Singapore orelsewhere, of any of the following offences, whether theoffence is committed before, on or after the date ofcommencement of this paragraph:

1015(i) an offence involving fraud or dishonesty;(ii) an offence the conviction for which involves afinding that the individual had acted fraudulently or
dishonestly;

20(iii) an offence that is specified in the Third Schedule to
the Registration of Criminals Act;(b) the individual is an undischarged bankrupt, whether in
Singapore or elsewhere;

25(c) the individual has had execution against the individual inrespect of a judgment debt returned unsatisfied in whole orin part;(d) the individual has, whether in Singapore or elsewhere,
entered into a compromise or scheme of arrangement with
the individual’s creditors, being a compromise or schemeof arrangement that is still in operation;(e) the individual has in force against the individual aprohibition order under section 59 of the Financial

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Advisers Act, section 35V of the Insurance Act or
section 101A of the Securities and Futures Act;5(f) the individual has been a director of, or directly concernedin the management of, a regulated financial institution,
whether in Singapore or elsewhere —(i) that is being or has been wound up by a court; or1015(ii) the approval, authorisation, designation, recognition,
registration or licence of which has been withdrawn,
cancelled or revoked by the Authority or, in the caseof a regulated financial institution in a foreigncountry or territory, by the financial regulatory
authority in that foreign country or territory.
(7) Where the Authority refuses an application under subsection (1)for the Authority’s approval under subsection (3)(b), the Authority
need not give the individual who was proposed to be appointed an
opportunity to be heard.
(8) An operator of a designated payment system must, as soon aspracticable, give written notice to the Authority of the resignation or
removal of the chief executive officer or any director of the operator.

2025(9) An operator that, without reasonable excuse, contravenes
subsection (1) shall be guilty of an offence and shall be liable onconviction to a fine not exceeding $250,000.
(10) In this section, “chief executive officer”, in relation to an
operator mentioned in subsection (1)(b), includes a person (however
designated) who —(a) is in the direct employment of, or acting for or byarrangement with, the operator; and30(b) is directly responsible for the management and conduct of
the whole or any part of the operator’s business in
Singapore.

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Removal of executive officer or director of operator or
settlement institution
66.—(1) Despite the provisions of any other written law —(a) where the Authority is satisfied that an individual
appointed as an executive officer of an operator or asettlement institution of a designated payment system is
not a fit and proper person to act as such executive officer,
the Authority may, by notice in writing, direct that operator
or settlement institution to remove that individual, withinsuch period as the Authority may specify in the notice,from employment with that operator or settlement
institution; and(b) where the Authority is satisfied that an individual
appointed as a director of a Singapore operator or a
Singapore settlement institution of a designated payment
system is not a fit and proper person to act as such director,
the Authority may, by notice in writing, direct that operator
or settlement institution to remove that individual, withinsuch period as the Authority may specify in the notice, as
director of that operator or settlement institution.

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(2) Without affecting any other matter that the Authority may
consider relevant, in assessing whether to direct any operator or
settlement institution to remove an individual under subsection (1)(a)or (b), the Authority may consider whether the individual —(a) has been convicted, whether in Singapore or elsewhere, of
any of the following offences, whether the offence iscommitted before, on or after the date of commencementof this paragraph:25(i) an offence involving fraud or dishonesty;(ii) an offence the conviction for which involves afinding that the individual had acted fraudulently or
dishonestly;(iii) an offence that is specified in the Third Schedule to
the Registration of Criminals Act;

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(b) is an undischarged bankrupt, whether in Singapore orelsewhere;(c) has had execution against the individual in respect of ajudgment debt returned unsatisfied in whole or in part;
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(d) has, whether in Singapore or elsewhere, entered into acompromise or scheme of arrangement with theindividual’s creditors, being a compromise or scheme ofarrangement that is still in operation;(e) has in force against the individual a prohibition order under
section 59 of the Financial Advisers Act, section 35Vof the
Insurance Act or section 101A of the Securities andFutures Act;(f) has been a director of, or directly concerned in the
management of, a regulated financial institution, whether
in Singapore or elsewhere —(i) that is being or has been wound up by a court; or2025(ii) the approval, authorisation, designation, recognition,
registration or licence of which has been withdrawn,
cancelled or revoked by the Authority or, in the caseof a regulated financial institution in a foreigncountry or territory, by the financial regulatory
authority in that foreign country or territory;(g) has wilfully contravened or wilfully caused the operator or
settlement institution to contravene any provision of thisAct;(h) has, without reasonable excuse, failed to secure thecompliance of the operator or settlement institution withthis Act, the Monetary Authority of Singapore Act or anyof the written laws set out in the Schedule to that Act;30(i) has failed to discharge any of the duties of the individual’s
office or employment; or(j) needs to be removed in the public interest.
(3) Subject to subsection (4), before directing an operator or asettlement institution to remove an individual under subsection (1),111

the Authority must give both the operator or settlement institution,and the individual, an opportunity to be heard.
(4) The Authority may direct an operator or a settlement institution
to remove an individual under subsection (1) on any of the following
grounds without giving the operator or settlement institution, or theindividual, an opportunity to be heard:

5(a) the individual is an undischarged bankrupt, whether in
Singapore or elsewhere;(b) the individual has been convicted, whether in Singapore orelsewhere, of an offence, whether committed before, on orafter the date of commencement of this Act —10(i) involving fraud or dishonesty, or the conviction forwhich involves a finding that the individual had
acted fraudulently or dishonestly; and(ii) punishable with imprisonment for a term of at least
3 months.
(5) Without affecting the Authority’s power to impose conditions
under section 44, the Authority may at any time, by notice in writing
to an operator or a settlement institution, impose or vary a condition
requiring the operator or settlement institution to notify the Authorityof any change to any particulars (such as residence in Singapore orelsewhere, or nature of appointment) of its executive officer ordirector that may be specified in the notice.
(6) An operator or a settlement institution that, without reasonableexcuse —

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(a) fails to comply with a notice in writing undersubsection (1); or(b) contravenes any condition imposed under subsection (5),shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $100,000.
(7) No criminal or civil liability shall be incurred by an operator or asettlement institution of a designated payment system, or any person
acting on behalf of the operator or settlement institution, in respect ofanything done (including any statement made) or omitted to be done

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with reasonable care and in good faith in the discharge or purported
discharge of the obligations of the operator or settlement institution
under this section.
Appeals to Minister
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67.—(1) An operator of a designated payment system that isaggrieved by a decision of the Authority under section 65(3)(b) may,within 30 days after receiving the decision of the Authority, appeal inwriting to the Minister, whose decision is final.
(2) An operator or a settlement institution, or any executive officer
or director of an operator or a settlement institution, that is aggrievedby a notice in writing of the Authority under section 66(1) may,within 30 days after receiving the notice, appeal in writing to the
Minister, whose decision is final.
Division 8 — Audit of operators and settlement institutions ofdesignated payment systems
Auditing
68.—(1) Despite the provisions of the Companies Act, an operator
or a settlement institution of a designated payment system must —20(a) on an annual basis and at its own expense, appoint anauditor; and(b) if for any reason its auditor ceases to be its auditor, appoint
another auditor as soon as practicable after such cessation.
(2) The Authority may appoint an auditor for an operator or asettlement institution of a designated payment system —25(a) if the operator or settlement institution fails to appoint anauditor; or(b) if the Authority considers it desirable that another auditor
should act with the auditor appointed under subsection (1).

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(3) The Authority may at any time fix the remuneration to be paidby an operator or a settlement institution of a designated payment
system to an auditor appointed by the Authority under subsection (2)for the operator or settlement institution.

113(4) The duties of an auditor appointed under subsection (1) or (2)for an operator or a settlement institution of a designated payment
system are as follows:(a) to carry out, for the year in respect of which the auditor isappointed, an audit of the accounts of the operator or
settlement institution;

5(b) to make a report —(i) if the operator or settlement institution is a Singapore
operator or Singapore settlement institution, on thefinancial statements or consolidated financial
statements of the operator or settlement institutionin accordance with section 207 of theCompanies Act; or(ii) if the operator or settlement institution isincorporated outside Singapore, on the latest
annual balance sheet and profit and loss account of
the operator or settlement institution, together withany notes on that balance sheet and profit and loss
account, showing the assets and liabilities and profit
or loss arising out of the operations of the operator or
settlement institution in Singapore, that complies
with section 207 of the Companies Act.
(5) The Authority may, by notice in writing to an auditor appointed
under subsection (1) or (2) for an operator or a settlement institutionof a designated payment system, impose all or any of the following
duties on the auditor in addition to those provided undersubsection (4), and the auditor must carry out the duties so imposed:

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(a) a duty to submit such additional information in relation to
the audit as the Authority considers necessary;(b) a duty to enlarge or extend the scope of the audit of thebusiness and affairs of the operator or settlement
institution;(c) a duty to carry out any other examination, or establish any
procedure, in relation to the audit in any particular case;

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(d) a duty to submit a report on any of the matters mentioned inparagraphs (b) and (c).

5(6) An operator or a settlement institution of a designated payment
system must remunerate an auditor appointed under subsection (1) or(2) for the operator or settlement institution in respect of —(a) any remuneration the Authority has fixed undersubsection (3); and(b) the discharge of all or any of the additional duties of theauditor imposed under subsection (5).

1015(7) Despite any other provision of this Act or the provisions of theCompanies Act, the Authority may, if the Authority is not satisfied
with the performance of any duty by the auditor of an operator or asettlement institution of a designated payment system, at any time
direct the operator or settlement institution to —(a) remove the auditor; and(b) appoint another auditor.

2025(8) The auditor’s report made under subsection (4)(b) must be
attached to the balance sheet and the profit and loss account, thefinancial statements or the consolidated financial statements (as thecase may be) of the operator or settlement institution, and a copy of
the report, together with any report under subsection (5)(d), must be
submitted in writing to the Authority.
(9) If an auditor, in the course of performing the auditor’s duties, issatisfied that any of the following matters has occurred, the auditor
must immediately report that matter to the Authority:(a) there has been a serious breach or non-observance of theprovisions of this Act;(b) a criminal offence involving fraud or dishonesty has beencommitted;

30(c) losses have been incurred that reduce the capital of theoperator or settlement institution by at least 50%;(d) there is any irregularity that has or may have a material
effect on the accounts of the operator or settlement

115

institution, including any irregularity that affects or
jeopardises, or may affect or jeopardise, the interests ofthe participants of the designated payment system;(e) the auditor is unable to confirm that the claims of creditorsof the operator or settlement institution are still covered by
the assets of the operator or settlement institution.

5(10) Where an auditor or employee of the auditor discloses in goodfaith to the Authority —(a) the auditor’s or employee’s knowledge or suspicion of anyof the matters mentioned in subsection (9); or

10(b) any information or other matter on which that knowledge
or suspicion is based,
the disclosure is not a breach of any restriction upon the disclosure
imposed by any law, contract or rules of professional conduct, and theauditor or employee is not liable for any loss arising out of thedisclosure or any act or omission in consequence of the disclosure.
(11) An operator or a settlement institution of a designated payment
system that contravenes subsection (1) shall be guilty of an offence
and shall be liable on conviction to a fine not exceeding $100,000
and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.
(12) An auditor that contravenes subsection (5) or (9) shall be guiltyof an offence and shall be liable on conviction to a fine not exceeding$100,000 and, in the case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during which theoffence continues after conviction.

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Powers of auditor appointed by Authority
69.—(1) An auditor appointed by the Authority under section 68(2)for an operator or a settlement institution of a designated payment
system may, for the purpose of carrying out an examination or
audit —30

116(a) examine, on oath or affirmation, any officer or employee ofthe operator or settlement institution, or any other auditorof the operator or settlement institution;
510(b) require any officer or employee of the operator or
settlement institution, or any other auditor of theoperator or settlement institution, to produce any books
held by or on behalf of the operator or settlement
institution relating to the business of the operator or
settlement institution;(c) make copies of or take extracts from, or retain possessionof, any books mentioned in paragraph (b) for such period
as may be necessary to enable those books to be inspected;

15(d) employ such persons as the auditor considers necessary toassist the auditor in carrying out the examination or audit;
and20(e) authorise in writing any person employed by the auditor todo, in relation to the examination or audit, any act or thingthat the auditor could do as an auditor under thissubsection, other than the examination of a person onoath or affirmation.
(2) An individual who, without reasonable excuse —(a) refuses or fails to answer any question put to theindividual; or(b) fails to comply with any request made to the individual,

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by an auditor appointed under section 68(2) or a person authorised
under subsection (1)(e), shall be guilty of an offence and shall be
liable on conviction to a fine not exceeding $12,500 or to
imprisonment for a term not exceeding 12 months or to both.
Restriction on auditor’s and employee’s right to communicate
certain matters70.—(1) Except as may be necessary for the carrying into effect ofthe provisions of this Act or so far as may be required for the purposesof any legal proceedings, whether civil or criminal —117(a) an auditor appointed under section 68(1) or (2); or(b) any employee of such auditor,
must not disclose any information that comes to the auditor’s or
employee’s knowledge in the course of performing the auditor’s or
employee’s duties, to any person other than the Authority, or in thecase of an employee of such auditor, the auditor.

5(2) A person that contravenes subsection (1) shall be guilty of an
offence and shall be liable on conviction —(a) in the case of the auditor, to a fine not exceeding $25,000;or10(b) in the case of the employee, to a fine not exceeding$12,500.
Offence to destroy, conceal, alter, etc., records
71.—(1) An individual who, with intent to prevent, delay or
obstruct the carrying out of any examination or audit under section 68
or 69 —

15(a) destroys, conceals or alters any book relating to thebusiness of an operator or a settlement institution of adesignated payment system; or(b) sends, or conspires with any other person to send, out ofSingapore any book or asset of any description belonging
to, in the possession of or under the control of the operator
or settlement institution,
shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $50,000 or to imprisonment for a term not exceeding
2 years or to both.

2025(2) If, in any proceedings for an offence under subsection (1), it isproved that the individual charged with the offence —(a) destroyed, concealed or altered any book mentioned insubsection (1)(a); or

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(b) sent, or conspired to send, out of Singapore any book orasset mentioned in subsection (1)(b),5

the onus of proving that, in so doing, the individual did not act withintent to prevent, delay or obstruct the carrying out of an examination
or audit under section 68 or 69 lies on the individual.
PART 4
INSPECTION AND INVESTIGATIONS
Inspection by Authority

1072.—(1) The Authority may from time to time inspect, underconditions of secrecy, the books of any of the following persons:(a) a licensee;(b) an exempt payment service provider;(c) an operator of a designated payment system;(d) a settlement institution of a designated payment system;

15(e) a participant of a designated payment system;(f) a person exempt under section 100.
(2) For the purposes of an inspection under this section —2025(a) a person mentioned in subsection (1) in possession of theperson’s books must produce those books to the Authority
and give such information or facilities as the Authority
may require;(b) a person mentioned in subsection (1) must procure anyother person that is in possession of the firstmentioned
person’s books to produce those books to the Authority andgive such information or facilities as the Authority may
require; and(c) the Authority may —(i) make copies of, or take possession of, any suchbooks;

119(ii) use, or permit the use of, any such books for the
purposes of any proceedings under this Act; and(iii) subject to subsection (4), retain possession of any
such books for so long as is necessary —(A) for the purposes of exercising a power
conferred by this section;

5(B) for a decision to be made on whether or notproceedings should be commenced under thisAct in relation to such books; or(C) for such proceedings to be commenced andcarried on.

10(3) A person is not entitled, as against the Authority, to claim a lienon any of the books, but such a lien is not otherwise prejudiced.
(4) While the books are in the possession of the Authority, theAuthority —15(a) must permit another person to inspect at all reasonable
times such (if any) of the books as the other person would
be entitled to inspect if they were not in the possession of
the Authority; and(b) may permit another person to inspect any of the books.

20(5) The Authority may require a person that produced any book to
the Authority to explain, to the best of the person’s knowledge andbelief, any matter about the compilation of the book or to which thebook relates.
(6) A person that fails, without reasonable excuse, to comply withsubsection (2)(a) or (b) or a requirement of the Authority undersubsection (5) shall be guilty of an offence and shall be liable onconviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth 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; or

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(b) in any other case, to a fine not exceeding $100,000 and, inthe case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during
which the offence continues after conviction.
5

Investigation by Authority
73.—(1) The Authority may conduct such investigation as it
considers necessary or expedient for any of the following purposes:(a) to determine whether —

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(i) a licensee, an exempt payment service provider, or aperson exempt under section 100 is carrying on its
business in a manner likely to be detrimental to theinterests of its customers;(ii) a licensee, an exempt payment service provider, or aperson exempt under section 100 is conducting its
business of providing any payment service in aproper manner;(iii) an operator of a designated payment system, or alicensee that is the operator of a payment system, isoperating the payment system in a manner likely to
be detrimental to the interests of its customers or of
the participants of the payment system;(iv) an operator of a designated payment system, or alicensee that is the operator of a payment system, isoperating the payment system in a proper manner;

2530(v) a settlement institution of a designated payment
system, or a licensee that is a settlement institution ofa payment system, is carrying on its business as asettlement institution in a manner likely to be
detrimental to the interests of the participants ofthe payment system;(vi) a settlement institution of a designated payment
system, or a licensee that is a settlement institution ofa payment system, is conducting its business as asettlement institution in a proper manner; or121(vii) a participant of a designated payment system, or alicensee that is a participant of a payment system, iscarrying on its business as such participant in amanner likely to be detrimental to the interests of theother participants of the payment system;

5(b) to investigate any alleged or suspected offence orcontravention of any provision of this Act;(c) to ensure compliance with this Act or any notice in writing
issued by the Authority under this Act.
(2) For the purposes of subsection (1) —10(a) the Authority may, by notice in writing, require any person
to provide information or to produce books relating to any
matter under investigation, and that person must
immediately comply with that requirement;(b) the Authority may make copies of, or take possession of,any such books;

15(c) the Authority may use, or permit the use of, any such books
for the purposes of any proceedings under this Act; and(d) subject to subsection (4), the Authority may retain
possession of any such books for so long as is necessary —20(i) for the purposes of exercising a power conferred bythis section;(ii) for a decision to be made on whether or notproceedings should be commenced under this Act
in relation to such books; or25(iii) for such proceedings to be commenced and carriedon.
(3) A person is not entitled, as against the Authority, to claim a lienon any of the books, but such a lien is not otherwise prejudiced.
(4) While the books are in the possession of the Authority, theAuthority —(a) must permit another person to inspect at all reasonable
times such (if any) of the books as the other person would

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be entitled to inspect if they were not in the possession of
the Authority; and(b) may permit another person to inspect any of the books.
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(5) The Authority may require a person that produced any book to
the Authority to explain, to the best of the person’s knowledge andbelief, any matter about the compilation of the book or to which thebook relates.
(6) The Authority may exercise any of its powers for the purposesof conducting an investigation under this section despite theprovisions of any prescribed written law (or any requirement
imposed under the prescribed written law) or any rule of law.
(7) A requirement imposed by the Authority in the exercise of its
powers under this section has effect despite any obligation as tosecrecy or other restrictions upon the disclosure of information
imposed by any prescribed written law (or any requirement imposed
under the prescribed written law), rule of law, contract or rule ofprofessional conduct.
(8) A person that complies with a requirement imposed by the
Authority in the exercise of its powers under this section is not to betreated as being in breach of any restriction on the disclosure of theinformation imposed by any prescribed written law (or any
requirement imposed under the prescribed written law), rule of law,
contract or rule of professional conduct.
(9) No civil or criminal proceedings shall lie against any personfor —(a) providing information or producing books to the Authority,
if the person provided the information or produced thebooks in good faith in compliance with a requirement
imposed by the Authority under this section; or30(b) doing or omitting to do any act, if the person did or omitted
to do the act in good faith and as a result of complying witha requirement imposed by the Authority under this section.
(10) A person that fails, without reasonable excuse, to comply withsubsection (2)(a) or a requirement of the Authority under123

subsection (5) shall be guilty of an offence and shall be liable onconviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth 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; or(b) in any other case, to a fine not exceeding $100,000 and, inthe case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during
which the offence continues after conviction.

510(11) In this section, “prescribed written law” means this Act, or anyof the following Acts, and any subsidiary legislation made under thisAct or those Acts:(a) Banking Act;

15(b) Credit Bureau Act 2016 (Act 27 of 2016);(c) Deposit Insurance and Policy Owners’ Protection Schemes
Act (Cap. 77B);(d) Finance Companies Act;(e) Financial Advisers Act;20(f) Financial Holding Companies Act 2013 (Act 13 of 2013);(g) Insurance Act;(h) Monetary Authority of Singapore Act;(i) Securities and Futures Act;(j) Trust Companies Act (Cap. 336);(k) such other Act as the Authority may prescribe.

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Confidentiality of inspection and investigation reports
74.—(1) Subject to subsection (2), where the Authority has —(a) produced a written report —5(i) upon an inspection under section 72 of the books of aperson (being a licensee, an exempt payment service
provider, an operator, a settlement institution or aparticipant of a designated payment system, or aperson exempt under section 100); or(ii) in respect of any investigation under section 73; and10(b) provided the report to the person whose books were
inspected or the person under investigation (each called inthis section the subject),the report must not be disclosed to any person by the subject, or any of
the subject’s officers or auditors.

15(2) The report mentioned in subsection (1) may be disclosed —(a) by the subject to the subject’s officer or auditor solely inconnection with the performance of the duties of the officer
or auditor in the subject;20(b) by any officer or auditor of the subject to any other officer
or auditor of the subject, solely in connection with theperformance of their duties in the subject; or(c) to such other person as the Authority may approve inwriting.

2530(3) In granting written approval for any disclosure undersubsection (2)(c), the Authority may impose such conditions or
restrictions as the Authority thinks fit on the subject, any of thesubject’s officers or auditors, or the person to whom disclosure isapproved, and the subject, officer or auditor, or the person to whom
disclosure is approved, must comply with the condition or restriction.
(4) The obligations of an officer or auditor mentioned insubsections (1) and (3) continue after the termination or cessationof the officer’s or auditor’s employment with or appointment by the
subject.

125(5) A person that contravenes subsection (1) or (3) shall be guilty of
an offence and shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth; or5(b) in any other case, to a fine not exceeding $100,000.
(6) A person to whom the report is disclosed and that knows or has
reasonable grounds for believing, at the time of the disclosure, thatthe report was disclosed to the person in contravention ofsubsection (1) shall be guilty of an offence, unless the person
proves that —10(a) the disclosure was made contrary to the person’s desire;(b) where the disclosure was made in any written form, theperson has, as soon as practicable after receiving the report,
surrendered or taken all reasonable steps to surrender thereport and all copies of the report to the Authority; and(c) where the disclosure was made in an electronic form, theperson has, as soon as practicable after receiving the report,taken all reasonable steps to ensure that all electronic
copies of the report have been deleted and that the reportand all copies of the report in other forms have beensurrendered to the Authority.

1520(7) A person convicted of an offence under subsection (6) shall be
liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth; or25(b) in any other case, to a fine not exceeding $100,000.
Self-incrimination
75.—(1) A person is not excused from disclosing information to the
Authority pursuant to a requirement made of the person under thisPart on the grounds that the disclosure of the information might tend
to incriminate the person.

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5

(2) Where a person claims, before making a statement disclosing
information that the person is required to disclose by suchrequirement, that the statement might tend to incriminate theperson, that statement is not admissible in evidence against theperson in criminal proceedings other than proceedings for an offence
under section 94(3).
Savings for advocates and solicitors
76.—(1) Nothing in this Part —10(a) compels an advocate and solicitor to disclose or produce
any privileged communication, or a document or othermaterial containing any privileged communication, madeby or to the advocate and solicitor in that capacity; or

15(b) authorises the taking of any such document or othermaterial that is in the possession of the advocate andsolicitor.

20(2) An advocate and solicitor who refuses to disclose theinformation or produce the document or other material mentioned
in subsection (1) must nevertheless give the name and address (ifknown to the advocate and solicitor) of the person to whom, or by oron behalf of whom, that privileged communication was made.
(3) An advocate and solicitor who contravenes subsection (2) shallbe guilty of an offence.
PART 5EMERGENCY POWERS

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Interpretation of this Part
77. In this Part, unless the context otherwise requires —“business” includes affairs and property;“emergency” means —30(a) any situation that prevents a designated payment
system from carrying out its functions;

127(b) any situation in which, in the opinion of the
Authority, the operations of a designated payment
system are carried on in a manner likely to be
detrimental to the interests of the participants of thedesignated payment system; or5(c) any undesirable situation or practice that, in theopinion of the Authority, constitutes an emergency;“office-holder”, in relation to a payment entity, means any
person acting as the liquidator, provisional liquidator,
receiver, receiver and manager, judicial manager or anequivalent person of that payment entity;

10“payment entity” means any of the following entities:(a) a licensee;(b) a person that is granted a licence under section 57B of
the Banking Act to carry on the business of issuing
credit cards or charge cards in Singapore;15(c) an operator of a designated payment system;(d) a settlement institution of a designated payment
system;“relevant business”, in relation to a payment entity, means any
business of that payment entity —20(a) in relation to which a statutory adviser has been
appointed under section 78(2)(b);(b) in relation to which a statutory manager has been
appointed under section 78(2)(c); or25(c) that the Authority has assumed control of under
section 78(2)(c);“statutory adviser” means a statutory adviser appointed under
section 78(2)(b);“statutory manager” means a statutory manager appointed under
section 78(2)(c).

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Action by Authority if payment entity unable to meet
obligations, etc.

578.—(1) The Authority may exercise one or more of the powers
specified in subsection (2) as appears to the Authority to be necessary,
where —(a) a payment entity informs the Authority that the payment
entity is or is likely to become insolvent, is or is likely to
become unable to meet the payment entity’s obligations, or
has suspended or is about to suspend payments;

10(b) a payment entity is insolvent, becomes unable to meet thepayment entity’s obligations, or suspends payments;(c) the Authority is of the opinion that the payment entity —15(i) is or is likely to become insolvent, is or is likely to
become unable to meet the payment entity’s
obligations, or has suspended or is about tosuspend payments; or(ii) has contravened any of the provisions of this Act; or(d) the Authority considers it in the public interest to do so.

20(2) For the purposes of subsection (1), the Authority may exercise
any of the following powers:(a) require the payment entity to immediately take any action,or to do or not to do any act, in relation to the business ofthe payment entity, that the Authority may consider
necessary;

25(b) appoint one or more persons as statutory adviser, on suchterms as the Authority may specify by notice in writing, toadvise the payment entity on the proper management ofsuch business of the payment entity as the Authority may
determine;30(c) assume control of and manage such business of thepayment entity as the Authority may determine, or
appoint one or more persons as statutory manager to do
so on such terms as the Authority may specify by notice inwriting.

129(3) Where the Authority appoints 2 or more persons as statutory
manager of a payment entity, the Authority must specify, in the termsof the appointment, which of the duties, functions and powers of thestatutory manager —(a) may be discharged or exercised by those persons jointly
and severally;

5(b) must be discharged or exercised by those persons jointly;
and(c) must be discharged or exercised by a specified person(being one of those persons).

10(4) Where the Authority has exercised any power undersubsection (2), the Authority may, at any time and without
affecting the Authority’s powers under section 11(2) or (3), do one
or more of the following:(a) vary or revoke any requirement of, any appointment madeby, or any action taken by the Authority undersubsection (2) in the exercise of such power, on suchterms as the Authority may specify by notice in writing;

15(b) exercise any of the powers under subsection (2);(c) add to, vary or revoke any term the Authority has specified
under this section.
(5) A statutory manager or statutory adviser incurs no liability foranything done (including any statement made) or omitted to be donewith reasonable care and in good faith in the course of or inconnection with —2025(a) the exercise or purported exercise of any power under thisAct;(b) the performance or purported performance of any function
or duty under this Act; or(c) the compliance or purported compliance with this Act.

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Emergency powers of Authority applicable to designatedpayment systems

579.—(1) Without affecting section 78, where the Authority hasreason to believe that an emergency exists, or thinks that it isnecessary or expedient in the interests of the public or a section of the
public to so act, the Authority may exercise one or more of thefollowing powers:

10(a) by notice in writing, direct an operator or a settlement
institution of a designated payment system to take suchaction as the Authority considers necessary to maintain or
restore the safe and efficient operation of the designatedpayment system;

15(b) apply to the High Court for the winding up or bankruptcy(as the case may be) of an operator or a settlement
institution of a designated payment system;(c) require an operator of a designated payment system tocease operation of the designated payment system.

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(2) Without limiting subsection (1)(a), the actions that the
Authority may direct an operator or a settlement institution of adesignated payment system to take include modifying or suspending
any of the rules of the designated payment system.
(3) The Authority may modify or cancel any action taken by it
under subsection (1), and in so modifying or cancelling any suchaction, the Authority may impose such conditions as it thinks fit,
subject to which the modification or cancellation has effect.
(4) An operator or a settlement institution of a designated payment
system that fails to comply with any notice in writing issued undersubsection (1)(a) shall be guilty of an offence and shall be liable onconviction to a fine not exceeding $100,000 and, in the case of acontinuing offence, to a further fine not exceeding $10,000 for every
day or part of a day during which the offence continues afterconviction.

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Assumption of control
80.—(1) Upon assuming control of any business of a payment
entity under section 78(2)(c), the Authority or statutory manager (asthe case may be) must take custody or control of the relevant businessof the payment entity.

5(2) During the period when the Authority or statutory manager is incontrol of the relevant business of a payment entity, the Authority or
statutory manager —(a) must manage the relevant business in the name of and on
behalf of the payment entity; and10(b) is treated as an agent of the payment entity.
(3) In managing the relevant business of a payment entity, theAuthority or statutory manager has all the duties, powers andfunctions of the members of the board of directors of the payment
entity (collectively and individually) under —15(a) this Act;(b) the Companies Act; and(c) the constitution of the payment entity,
including powers of delegation, in relation to the relevant business ofthe payment entity.

20(4) Despite subsection (3), the Authority or statutory manager is not
required to call any meeting of the payment entity under theCompanies Act or the constitution of the payment entity.
(5) Despite any written law or rule of law —(a) upon the Authority or statutory manager assuming control
of any business of a payment entity under section 78(2)(c),any appointment of an individual as chief executive officer
or director of the payment entity that was in force
immediately before the assumption of control is treatedas revoked, unless the Authority gives the Authority’s
approval, by written notification to the individual and thepayment entity, for the individual to remain in theappointment; and

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5

10

15

(b) during the period when the Authority or statutory manager
is in control of the relevant business of the payment entity,
an individual must not be appointed as chief executive
officer or director of the payment entity, except with theapproval of the Authority.
(6) Where the Authority has given its approval under subsection (5)for an individual to remain in the appointment of, or to be appointed
as, chief executive officer or director of a payment entity, theAuthority may at any time, by written notification to the individual,
revoke the Authority’s approval, and that appointment is treated as
revoked on the date specified in the notification.
(7) Despite any written law or rule of law, if any individual, whose
appointment as chief executive officer or director of a payment entity
is revoked under subsection (5) or (6), acts or purports to act as chief
executive officer or director of the payment entity during the period
when the Authority or statutory manager is in control of the relevantbusiness of the payment entity under section 78(2)(c) —(a) the act or purported act of the individual is invalid and of
no effect; and2025(b) the individual shall be guilty of an offence.
(8) Despite any written law or rule of law, if any individual, who isappointed as chief executive officer or director of a payment entity incontravention of subsection (5), acts or purports to act as chief
executive officer or director of the payment entity during the period
when the Authority or statutory manager is in control of the relevantbusiness of the payment entity under section 78(2)(c) —(a) the act or purported act of the individual is invalid and of
no effect; and(b) the individual shall be guilty of an offence.

30(9) During the period when the Authority or statutory manager is incontrol of the relevant business of a payment entity —(a) if there is any conflict or inconsistency between —(i) a direction or decision given by the Authority or
statutory manager (including a direction or decision

133

given to a person or body of persons mentioned in
sub-paragraph (ii)); and(ii) a direction or decision given by any chief executive
officer, director, member, executive officer,
employee, agent or office-holder of the payment
entity, by the board of directors of the payment entity,
or by any trustee for the payment entity,
the direction or decision mentioned in sub-paragraph (i)prevails over the direction or decision mentioned in
sub-paragraph (ii) to the extent of the conflict orinconsistency; and(b) a person must not exercise any voting or other rightattached to any share in the payment entity in any mannerthat may defeat or interfere with any duty, power orfunction of the Authority or statutory manager, and any
such exercise or purported exercise of that right is invalid
and of no effect.
(10) An individual who is guilty of an offence under subsection (7)or (8) shall be liable on conviction to a fine not exceeding $125,000 or
to imprisonment for a term not exceeding 3 years or to both and, in thecase of a continuing offence, to a further fine not exceeding $12,500
for every day or part of a day during which the offence continues afterconviction.

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20

Other provisions concerning control
81.—(1) The Authority must cease to be in control of the relevantbusiness of a payment entity when the Authority is satisfied that thereasons for the Authority’s assumption of control of the relevantbusiness have ceased to exist.
(2) A statutory manager is deemed to have assumed control of therelevant business of a payment entity on the date of the statutory
manager’s appointment as a statutory manager.
(3) Without limiting section 78(4)(a), the Authority may at any
time revoke the appointment of a statutory manager in relation to therelevant business of a payment entity —

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(a) if the Authority is satisfied that the reasons for theappointment have ceased to exist; or(b) on any other ground.
5(4) The statutory manager ceases to be in control of the relevantbusiness of the payment entity upon the revocation of the statutory
manager’s appointment under subsection (3) or section 78(4)(a).
(5) The Authority must publish in the Gazette the date, and suchother particulars as the Authority thinks fit, of —10(a) the Authority’s assumption of control of the relevantbusiness of a payment entity;(b) the cessation of the Authority’s control of the relevantbusiness of a payment entity;(c) the appointment of a statutory manager in relation to therelevant business of a payment entity; and15(d) the revocation of a statutory manager’s appointment inrelation to the relevant business of a payment entity.
Responsibilities of directors, officers, etc., of payment entity
82.—(1) During the period when the Authority or statutory
manager is in control of the relevant business of a payment entity —

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(a) a relevant person must provide to the Authority or statutory
manager, within such time and in such manner as the
Authority or statutory manager may specify, suchinformation as the Authority or statutory manager may
require to discharge the duties or functions, or exercise thepowers, of the Authority or statutory manager in relation to
the payment entity; and(b) the High Court may, on an application by the Authority or
statutory manager, direct any relevant person to pay,deliver, convey, surrender or transfer to the Authority or
statutory manager, within such period as the High Court
may specify, any property or book of the payment entitythat —

135(i) forms part of or relates to the business of the payment
entity; and(ii) is in the relevant person’s possession or control.
(2) A person that —(a) without reasonable excuse, fails to comply withsubsection (1)(a); or

5(b) in purported compliance with subsection (1)(a), knowingly
or recklessly provides any information or document that isfalse or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a finenot 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.
(3) In this section, “relevant person” means a current or former
chief executive officer, director, executive officer, employee, agent,banker, auditor or office-holder of, or trustee for, the payment entity
mentioned in subsection (1).
Remuneration and expenses of Authority and others in certain
cases

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20

83. The Authority may at any time fix the remuneration and
expenses to be paid by a payment entity —(a) to a statutory adviser or statutory manager appointed inrelation to the payment entity, whether or not theappointment has been revoked; and(b) where the Authority has assumed control of the relevantbusiness of a payment entity, to the Authority and any
person appointed by the Authority under section 4 inrelation to the Authority’s assumption of control of therelevant business, whether or not the Authority has ceased
to be in control of the relevant business.

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PART 6ASSISTANCE TO FOREIGN REGULATORY AUTHORITIESInterpretation of this Part
84. In this Part, unless the context otherwise requires —510“enforce” means enforce through criminal or administrative
proceedings;“enforcement”, in relation to a regulatory authority, means thetaking of any action to enforce a law or regulatory
requirement against a specified person, being a law or
regulatory requirement that relates to the payment systems or
payment services of the foreign country of the regulatory
authority concerned;“foreign country” means a country or territory other thanSingapore;

15

20“investigation”, in relation to a regulatory authority, means aninvestigation to determine if a specified person has
contravened or is contravening a law or regulatory
requirement, being a law or regulatory requirement that
relates to the payment systems or payment services of theforeign country of the regulatory authority concerned;“material” includes any information, book, document or otherrecord in any form whatsoever, and any container or article
relating to that information, book, document or record;25“prescribed written law” means this Act, or any of the following
Acts, and any subsidiary legislation made under this Act orthose Acts:(a) Banking Act;(b) Finance Companies Act;(c) Financial Advisers Act;30(d) Financial Holding Companies Act 2013;(e) Insurance Act;(f) Monetary Authority of Singapore Act;137(g) Securities and Futures Act;(h) such other Act as the Authority may prescribe;“regulatory authority”, in relation to a foreign country, means anauthority of the foreign country exercising any function that
corresponds to a regulatory function of the Authority under
this Act;

5“supervision”, in relation to a regulatory authority, means thetaking of any action for or in connection with the supervisionof —(a) a licensee that is regulated by the regulatory
authority;

10(b) an operator, a settlement institution or a participant,of a designated payment system, that is regulated by
the regulatory authority; or(c) any other person regulated by the regulatory
authority.

15

Conditions for provision of assistance85.—(1) The Authority may provide the assistance mentioned in
section 87 to a regulatory authority of a foreign country if the
Authority is satisfied that all of the following conditions are fulfilled:

20(a) the assistance is intended to enable the regulatory
authority, or any other authority of the foreign country,
to carry out the supervision, investigation or enforcement;(b) the regulatory authority has given a written undertaking
that any material or copy of material obtained pursuant to
its request will not be used for any purpose other than apurpose that is specified in the request and approved by the
Authority;(c) the regulatory authority has given a written undertaking
not to disclose to a third party (other than a designated third
party of the foreign country in accordance withparagraph (d)) any material received pursuant to the

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request, unless the regulatory authority is compelled to do
so by the law or a court of the foreign country;

510(d) the regulatory authority has given a written undertaking toobtain the prior consent of the Authority before disclosing
any material received pursuant to the request to a
designated third party, and to make such disclosure onlyin accordance with such conditions as may be imposed by
the Authority;(e) the material requested is of sufficient importance to thecarrying out of the supervision, investigation or
enforcement to which the request relates, and cannot
reasonably be obtained by any other means;(f) the matter to which the request relates is of sufficientgravity;15(g) the rendering of assistance will not be contrary to the
public interest.
(2) In subsection (1)(c) and (d), “designated third party”, in relation
to a foreign country, means —20(a) any person or body responsible for supervising theregulatory authority in question;(b) any authority of the foreign country responsible forcarrying out the supervision, investigation or
enforcement in question; or25(c) any authority of the foreign country exercising a functionthat corresponds to a regulatory function of the Authority
under this Act.
Other factors to consider for provision of assistance30

86. In deciding whether to grant a request for assistance mentioned
in section 87 from a regulatory authority of a foreign country, theAuthority may also have regard to the following:(a) whether the act or omission that is alleged to constitute thecontravention of the law or regulatory requirement to139which the request relates would, if it had occurred in
Singapore, have constituted an offence under this Act;(b) whether the regulatory authority has given or is willing togive an undertaking to the Authority to comply with afuture request by the Authority to the regulatory authority
for similar assistance;(c) whether the regulatory authority has given or is willing togive an undertaking to the Authority to contribute towards
the costs of providing the assistance that the regulatory
authority has requested.

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Assistance that may be rendered
87.—(1) Despite any provision of or requirement under any
prescribed written law, or any rule of law, the Authority or any
person authorised by the Authority may, in relation to a request by aregulatory authority of a foreign country for assistance —15(a) transmit to the regulatory authority any material in thepossession of the Authority that is requested by theregulatory authority or a copy of that material;(b) order any person to provide to the Authority any material
that is requested by the regulatory authority or a copy ofthat material, and transmit the material or copy to theregulatory authority;(c) order any person to transmit directly to the regulatory
authority any material that is requested by the regulatory
authority or a copy of that material;

2025(d) order any person to make an oral statement to the Authority
on any information requested by the regulatory authority,
record such statement, and transmit the recorded statement
to the regulatory authority; or(e) request any ministry, Government department or statutory
authority to provide to the Authority any material that isrequested by the regulatory authority or a copy of thatmaterial, and transmit the material or copy to theregulatory authority.

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(2) The assistance mentioned in subsection (1)(c) may only berendered if the material sought is to enable the regulatory authority tocarry out an investigation or enforcement.
5

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20

(3) An order under subsection (1)(b), (c) or (d) has effect despite
any obligations as to secrecy or other restrictions upon the disclosureof information imposed by any provision of or requirement under any
prescribed written law, rule of law, contract or rule of professional
conduct.
(4) Nothing in this section compels an advocate and solicitor toprovide or transmit any material or copy of material that contains, orto disclose, any privileged communication made by or to the advocateand solicitor in that capacity.
(5) An advocate and solicitor who refuses to provide or transmit
any material or copy of material that contains, or to disclose, anyprivileged communication is nevertheless obliged to give the nameand address (if known to the advocate and solicitor) of the person towhom, or by or on behalf of whom, the privileged communication
was made.
(6) A person is not excused from making an oral statement pursuant
to an order made under subsection (1)(d) on the ground that thestatement might tend to incriminate the person.
Offences under this Part88.—(1) A person that —25(a) without reasonable excuse, refuses or fails to comply withan order under section 87(1)(b), (c) or (d);30(b) in purported compliance with an order made under
section 87(1)(b) or (c), provides to the Authority ortransmits to a regulatory authority any material or copyof material known to the person to be false or misleading ina material particular; or(c) in purported compliance with an order made under
section 87(1)(d), makes a statement to the Authority thatis false or misleading in a material particular,
shall be guilty of an offence.

141(2) A person that is guilty of an offence under subsection (1)(a)shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth 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; or(b) in any other case, to a fine not exceeding $100,000 and, inthe case of a continuing offence, to a further fine notexceeding $10,000 for every day or part of a day during
which the offence continues after conviction.

510(3) A person that is guilty of an offence under subsection (1)(b) or(c) shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth; or15(b) in any other case, to a fine not exceeding $100,000.
Immunities
89.—(1) No civil or criminal proceedings, other than proceedings
for an offence under section 88, shall lie against any person for —(a) providing to the Authority or transmitting any material or
copy of material to the Authority or a regulatory authorityof a foreign country, if that person had provided ortransmitted that material or copy in good faith incompliance with an order made under section 87(1)(b)or (c);

2025(b) making a statement to the Authority in good faith and incompliance with an order made under section 87(1)(d); or(c) doing or omitting to do any act, if that person had done oromitted to do the act in good faith and as a result ofcomplying with an order made under section 87(1)(b), (c)or (d).

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(2) A person that complies with an order made under
section 87(1)(b), (c) or (d) is not to be treated as being in breach of
any restriction upon the disclosure of information or thing imposedby any provision of or requirement under any prescribed written law,rule of law, contract or rule of professional conduct.
PART 7
OFFENCES
Offences by corporations

10

90.—(1) Where, in a proceeding for an offence under this Act, it isnecessary to prove the state of mind of a corporation in relation to aparticular conduct, evidence that —(a) an officer, employee or agent of the corporation engaged inthat conduct within the scope of his or her actual orapparent authority; and15(b) the officer, employee or agent had that state of mind,
is evidence that the corporation had that state of mind.
(2) Where a corporation commits an offence under this Act, aperson —(a) who is —20(i) an officer of the corporation; or(ii) an individual involved in the management of thecorporation and in a position to influence the conductof the corporation in relation to the commission of
the offence; and25(b) who —(i) consented or connived, or conspired with others, toeffect the commission of the offence;

30(ii) is in any other way, whether by act or omission,
knowingly concerned in, or is party to, thecommission of the offence by the corporation; or143(iii) knew or ought reasonably to have known that theoffence by the corporation (or an offence of the sametype) would be or is being committed, and failed totake all reasonable steps to prevent or stop thecommission of that offence,5

shall be guilty of the same offence as is the corporation, and shall be
liable on conviction to be punished accordingly.
(3) A person mentioned in subsection (2) may rely on a defence thatwould be available to the corporation if it were charged with theoffence with which the person is charged and, in doing so, the person
bears the same burden of proof that the corporation would bear.

10(4) To avoid doubt, this section does not affect the application of —(a) Chapters V and VA of the Penal Code; or(b) the Evidence Act (Cap. 97) or any other law or practice
regarding the admissibility of evidence.

15(5) To avoid doubt, subsection (2) also does not affect the liabilityof the corporation for an offence under this Act, and applies whether
or not the corporation is convicted of the offence.
(6) In this section —“corporation” includes a limited liability partnership within themeaning of section 2(1) of the Limited Liability Partnerships
Act;“officer”, in relation to a corporation, means any director,
partner, chief executive, manager, secretary or other similar
officer of the corporation, and includes —2025(a) any person purporting to act in any such capacity; and(b) for a corporation whose affairs are managed by its
members, any of those members as if the member
were a director of the corporation;“state of mind” of a person includes —(a) the knowledge, intention, opinion, belief or purposeof the person; and

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(b) the person’s reasons for the intention, opinion, belief
or purpose.
Offences by unincorporated associations or partnerships
5

91.—(1) Where, in a proceeding for an offence under this Act, it isnecessary to prove the state of mind of an unincorporated association
or a partnership in relation to a particular conduct, evidence that —(a) an employee or agent of the unincorporated association or
partnership engaged in that conduct within the scope of hisor her actual or apparent authority; and10(b) the employee or agent had that state of mind,
is evidence that the unincorporated association or partnership had thatstate of mind.
(2) Where an unincorporated association or a partnership commits
an offence under this Act, a person —15(a) who is —(i) an officer of the unincorporated association or amember of its governing body;(ii) a partner in the partnership; or2025(iii) an individual involved in the management of theunincorporated association or partnership and in aposition to influence the conduct of theunincorporated association or partnership (as thecase may be) in relation to the commission of theoffence; and(b) who —(i) consented or connived, or conspired with others, toeffect the commission of the offence;

30(ii) is in any other way, whether by act or omission,
knowingly concerned in, or is party to, thecommission of the offence by the unincorporated
association or partnership; or145(iii) knew or ought reasonably to have known that theoffence by the unincorporated association or
partnership (or an offence of the same type) would
be or is being committed, and failed to take allreasonable steps to prevent or stop the commission ofthat offence,5

shall be guilty of the same offence as is the unincorporated
association or partnership (as the case may be), and shall be liable
on conviction to be punished accordingly.
(3) A person mentioned in subsection (2) may rely on a defence thatwould be available to the unincorporated association or partnership if
it were charged with the offence with which the person is charged
and, in doing so, the person bears the same burden of proof that theunincorporated association or partnership would bear.
(4) To avoid doubt, this section does not affect the application of —1015(a) Chapters V and VA of the Penal Code; or(b) the Evidence Act or any other law or practice regarding theadmissibility of evidence.
(5) To avoid doubt, subsection (2) also does not affect the liabilityof an unincorporated association or a partnership for an offence under
this Act, and applies whether or not the unincorporated association or
partnership is convicted of the offence.

20(6) In this section —“officer”, in relation to an unincorporated association (other thana partnership), means the president, the secretary, or any
member of the committee of the unincorporated association,and includes —(a) any person holding a position analogous to that ofpresident, secretary or member of a committee of theunincorporated association; and(b) any person purporting to act in any such capacity;“partner” includes a person purporting to act as a partner;

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“state of mind” of a person includes —(a) the knowledge, intention, opinion, belief or purposeof the person; and5(b) the person’s reasons for the intention, opinion, belief
or purpose.
Offences by officers

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92.—(1) An officer of a relevant entity, whose duty is or includes
ensuring that the relevant entity complies with a provision of this Act,
who fails to take all reasonable steps to secure such compliance, shallbe guilty of an offence and shall be liable on conviction to a fine notexceeding $50,000 or to imprisonment for a term not exceeding
2 years or to both.
(2) An officer of a relevant entity, whose duty is or includes
submitting information to the Authority or any other person under
this Act, who fails to take all reasonable steps to ensure the accuracy
and correctness of any information so submitted, shall be guilty of an
offence and shall be liable on conviction to a fine not exceeding$50,000 or to imprisonment for a term not exceeding 2 years or toboth.
(3) In any proceedings against an officer under subsection (1) or(2), it is a defence for the officer to prove that he or she had reasonablegrounds for believing that —(a) another individual was charged with the duty of —25(i) securing compliance with the requirements of thisAct; or(ii) ensuring that the information submitted was
accurate,as the case may be; and30(b) that individual was competent, and in a position, todischarge that duty.
(4) An officer is not to be sentenced to imprisonment for any
offence under subsection (1) or (2) unless, in the opinion of the court,
the officer committed the offence wilfully.

147(5) In this section, “relevant entity” means an entity that is —(a) a licensee; or(b) an operator, a settlement institution, or a participant, of apayment system.
Falsification of records by officers, etc.

593.—(1) An officer, auditor, employee or agent of a relevant entity
who —(a) wilfully makes, or causes to be made, a false entry in any
book, or in any report, slip, document or statement of thebusiness, affairs, transactions, conditions or assets of therelevant entity;

10(b) wilfully omits to make an entry in any book, or in any
report, slip, document or statement of the business, affairs,
transactions, conditions or assets of the relevant entity, or
wilfully causes any such entry to be omitted; or15(c) wilfully alters, extracts, conceals or destroys an entry inany book, or in any report, slip, document or statement of
the business, affairs, transactions, conditions or assets of
the relevant entity, or wilfully causes any such entry to bealtered, extracted, concealed or destroyed,

20

shall be guilty of an offence and shall be liable on conviction to a finenot exceeding $125,000 or to imprisonment for a term not exceeding
3 years or to both.
(2) In this section —“officer” includes a person purporting to act in the capacity of an
officer;

25“relevant entity” means an entity that is —(a) a licensee; or(b) an operator, a settlement institution, or a participant,of a payment system.

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General duty to use reasonable care not to provide false
information to Authority

594.—(1) An individual who provides the Authority with any
information under or for the purposes of any provision of this Act
must use reasonable care to ensure that the information is not false or
misleading in any material particular.
(2) An individual who —(a) signs any document lodged with the Authority; or

10(b) lodges with the Authority any document by electronicmeans using any identification or identifying code,
password or other authentication method or procedureassigned to the individual by the Authority,
must use reasonable care to ensure that the document is not false or
misleading in any material particular.

15(3) An individual who contravenes subsection (1) or (2) shall be
guilty of an offence and shall be liable on conviction to a fine notexceeding $50,000 or to imprisonment for a term not exceeding
2 years or to both.
General penalty

20

95. A person guilty of an offence under this Act for which no
penalty is expressly provided shall be liable on conviction —(a) in the case of an individual, to a fine not exceeding$50,000; or(b) in any other case, to a fine not exceeding $100,000.

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Composition of offences

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96.—(1) The Authority may, in its discretion, compound any
offence under this Act that is prescribed as a compoundable offence
by collecting from a person reasonably suspected of having
committed the offence a sum of money not exceeding half of theamount of the maximum fine prescribed for that offence.

149(2) The Authority may, in its discretion, compound any offence
under this Act (including an offence under a provision that has been
repealed) that —(a) was compoundable under this section when the offence
was committed; but

5(b) has ceased to be so compoundable,by collecting from a person reasonably suspected of having
committed the offence a sum of money not exceeding half of theamount of the maximum fine prescribed for that offence at the time itwas committed.

10(3) Despite section 108(a), the Authority may, in its discretion,
compound any offence under the Money-changing and RemittanceBusinesses Act (Cap. 187) (including an offence under a provisionthat has been repealed) that —(a) was compoundable under section 29 of that Act when theoffence was committed; but

15(b) has ceased to be so compoundable,by collecting from a person reasonably suspected of having
committed the offence a sum of money not exceeding half of theamount of the maximum fine prescribed for that offence at the time itwas committed.
(4) Despite section 108(b), the Authority may, in its discretion,
compound any offence under the Payment Systems (Oversight)
Act (Cap. 222A) (including an offence under a provision that has
been repealed) that —2025(a) was compoundable under section 50 of that Act when theoffence was committed; but(b) has ceased to be so compoundable,by collecting from a person reasonably suspected of having
committed the offence a sum of money not exceeding half of theamount of the maximum fine prescribed for that offence at the time itwas committed.

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(5) On payment of the sum of money mentioned in subsection (1),(2), (3) or (4), no further proceedings may be taken against that
person in respect of the offence.
5(6) All sums collected by the Authority under subsection (1), (2),(3) or (4) must be paid into the Consolidated Fund.
PART 8MISCELLANEOUS
Jurisdiction of court

10

97. Despite any provision to the contrary in the Criminal Procedure
Code (Cap. 68), a District Court has jurisdiction to try any offence
under this Act and has power to impose the full penalty or punishment
in respect of any offence under this Act.
Opportunity to be heard

15

98. Where this Act provides for a person to be given an opportunity
to be heard by the Authority, the Authority may prescribe the mannerin which the person is to be given such opportunity to be heard.
Power of court to make certain orders
99.—(1) Where, on an application of the Authority, it appears to thecourt that a person —20(a) has committed an offence under this Act; or(b) is about to do an act that, if done, would be an offence
under this Act,the court may (without prejudice to any other order it may make)make one or more of the orders under subsection (2).

25(2) The orders mentioned in subsection (1) are —(a) in the case of a persistent or continuing contravention of aprovision of this Act, an order restraining a person from —(i) carrying on a business of providing one or moretypes of payment services;

151(ii) carrying on the business of an operator of a payment
system;(iii) carrying on the business of a settlement institution ofa payment system;(iv) holding itself out as a licensee; or5(v) holding itself out as an operator, or a settlement
institution, of a designated payment system;(b) for the purpose of securing compliance with any ordermade under this section, an order directing a person to door refrain from doing any specified act; or10(c) any ancillary order the court considers to be desirable as aresult of making any other order under this section.
(3) The court may, before making an order under subsection (2),direct that notice of the application be given to such person as it thinks
fit or that notice of the application be published in such manner as it
thinks fit, or both.

15(4) A person that, without reasonable excuse, contravenes an ordermade under subsection (2) shall be guilty of an offence and shall be
liable on conviction —(a) in the case of an individual, to a fine not exceeding $50,000
or to imprisonment for a term not exceeding 2 years or toboth; or20(b) in any other case, to a fine not exceeding $100,000.
(5) Subject to subsection (6), subsection (4) does not affect thepowers of the court in relation to the punishment of contempt of court.

25(6) A person cannot be punished for contempt of court in respect ofany contravention of an order made under subsection (2), for which
the person has been convicted of an offence under subsection (4).
(7) A person cannot be convicted of an offence under subsection (4)in respect of any contravention of an order made under subsection (2)that has been punished as a contempt of court.
(8) The court may rescind, vary or discharge, or suspend theoperation of, an order made by the court under this section.

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General exemption
100.—(1) The Authority may, by regulations, exempt any of thefollowing from all or any of the provisions of this Act, subject to suchconditions as may be prescribed:
5(a) any person or class of persons;(b) any payment service or class of payment services;(c) any payment system or class of payment systems;(d) any payment account or class of payment accounts;

10(e) any shares or interests in shares, or class or description ofshares or interests in shares;(f) any other thing or class or description of things.

15(2) Where the Authority, by regulations made under subsection (1),exempts any person or class of persons from section 20(1) and (3), theconditions that may be prescribed under subsection (1) include thefollowing conditions:(a) a condition relating to the operations or activities of the
exempt person, or of any person in the exempt class of
persons;

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(b) a condition relating to the criteria that must be satisfied inorder for the exempt person, or any person in the exempt
class of persons, to grant any credit facility (within themeaning given by section 20(5)) to any individual in
Singapore;(c) a condition relating to the standards to be maintained by
the exempt person, or by any person in the exempt class of
persons, when carrying on a business of granting any suchcredit facility to any individual in Singapore;(d) a condition relating to the duties to be undertaken by the
exempt person, or by any person in the exempt class of
persons, when doing any of the following things:(i) granting any such credit facility to any individual in
Singapore;

153(ii) offering to grant, or issuing any advertisement
containing any offer to grant, any such credit
facility to any individual in Singapore;(iii) making an offer or invitation, or issuing any
advertisement containing any offer or invitation, to
any individual in Singapore to enter into any
agreement relating to the granting of any suchcredit facility to that individual;(e) a condition relating to the maintenance by the exempt
person, or by any person in the exempt class of persons, of
a licence, under any other written law, that allows that
person to carry on a business of granting any credit facility
to any individual in Singapore.
(3) Where the Authority, by regulations made under subsection (1),exempts any person or class of persons from section 28 or 59, theconditions that may be prescribed under subsection (1) include thefollowing conditions:(a) a condition restricting the disposal or further acquisition,by that person or class of persons, of any shares or voting
power in —

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(i) a licensee incorporated in Singapore (in the case ofan exemption from section 28); or(ii) an operator of a designated payment system (in thecase of an exemption from section 59);(b) a condition restricting the exercise, by that person or classof persons, of any voting power in —25(i) a licensee incorporated in Singapore (in the case ofan exemption from section 28); or(ii) an operator of a designated payment system (in thecase of an exemption from section 59).
(4) The Authority may, if the Authority considers it appropriate to
do so in the circumstances of the case, on the application of any
person, exempt the person from —(a) all or any of the provisions of this Act; or

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(b) all or any of the requirements imposed by the Authority
under this Act.
(5) An exemption under subsection (4) —5(a) may be granted by notice in writing subject to suchconditions as the Authority may specify in that notice;(b) need not be published in the Gazette; and(c) may be revoked at any time by the Authority.
(6) The Authority may at any time add to, vary or revoke any
condition imposed under this section.

10(7) A person shall be guilty of an offence if the person contravenes
any condition —(a) prescribed under subsection (1);(b) specified by the Authority under subsection (5)(a); or(c) added or varied under subsection (6).

15

Codes, guidelines, etc., by Authority

20

101.—(1) The Authority may issue, and in its discretion publish by
notification in the Gazette or in any other manner the Authority
considers appropriate, such codes, guidelines, policy statements,
practice notes and no-action letters as the Authority considers
appropriate for providing guidance —(a) in furtherance of the Authority’s regulatory objectives;(b) in relation to any matter relating to any of the Authority’sfunctions under this Act; or25(c) in relation to the operation of any of the provisions of thisAct.
(2) The Authority may, at any time, amend or revoke the whole or
any part of any code, guideline, policy statement, practice note or
no-action letter issued under this section.
(3) Where amendments are made under subsection (2) —30(a) the other provisions of this section apply, with thenecessary modifications, to such amendments as they

155

apply to the code, guideline, policy statement, practice noteor no-action letter; and(b) any reference in this Act or any other written law to thecode, guideline, policy statement, practice note or
no-action letter, however expressed, is (unless thecontext otherwise requires) a reference to the code,
guideline, policy statement, practice note or no-action
letter as so amended.
(4) Any failure by a person to comply with any provision of a code,
guideline, policy statement or practice note issued under this section
to the person does not of itself render that person liable to criminal
proceedings, but any such failure may, in any proceedings, whether
civil or criminal, be relied upon by any party to the proceedings as
tending to establish or negate any liability that is in question in theproceedings.

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(5) The issue by the Authority of a no-action letter does not of itself
prevent the institution of any proceedings against any person for thecontravention of any provision of this Act.
(6) Any code, guideline, policy statement or practice note issued
under this section may be of general or specific application, and may
specify that different provisions of such code, guideline, policy
statement or practice note apply to different circumstances or provide
for different cases or classes of cases.
(7) To avoid doubt, any code, guideline, policy statement, practicenote or no-action letter issued under this section is not to be treated as
subsidiary legislation.
(8) In this section, “no-action letter” means a letter written by the
Authority to a person to the effect that, if the facts are as represented
by the person, the Authority will not institute proceedings against theperson in respect of a particular state of affairs or particular conduct.
Power of Authority to issue notice in writing
102.—(1) The Authority may, if it thinks it necessary or expedientfor the effective administration of this Act, for the protection of
consumers or in the interest of the public or a section of the public, for

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5

ensuring the integrity and proper management of a designatedpayment system, or for ensuring the integrity of the e-money stored ina payment account, issue to any of the following persons or classes of
persons a notice in writing, either of a general or a specific nature, tocomply with such requirements as the Authority may specify in thenotice:(a) any licensee or class of licensees;(b) any operator, or class of operators, of a relevant payment
system;10(c) any settlement institution, or class of settlement
institutions, of a relevant payment system;(d) any participant, or class of participants, of a relevant
payment system;

15(e) any person, or class of persons, that determines access to arelevant payment system;(f) any exempt payment service provider or class of exempt
payment service providers;(g) any person, or class of persons, exempt under section 100;20(h) any person that contravenes, has contravened, or is likely
to contravene, any provision of this Act.
(2) Without limiting subsection (1), a notice may be issued —(a) with respect to —2530(i) the activities that may be carried out by a licensee, an
exempt payment service provider, or a person
exempt under section 100, in relation to its business;(ii) the standards, framework, policies and proceduresfor the prudent management of risks (including
information technology risks) by a licensee, an
exempt payment service provider or a person
exempt under section 100, or by an operator or asettlement institution of a designated payment
system;

157(iii) the financial soundness, financial management andstability of a licensee, an exempt payment service
provider or a person exempt under section 100, or ofan operator, a settlement institution or a participantof a designated payment system;

5(iv) the standards to be maintained by a licensee, an
exempt payment service provider, or a person
exempt under section 100, in the conduct of its
business;(v) the arrangement and conditions that are to apply if alicensee, an exempt payment service provider or aperson exempt under section 100, or an operator, asettlement institution or a participant of a designatedpayment system, appoints any person as anindependent contractor to carry out any of thefunctions and duties of the licensee, exempt
payment service provider, person exempt under
section 100, operator, settlement institution or
participant, as the case may be;10(vi) the type, form, manner and frequency of returns andother information to be submitted to the Authority;

20(vii) the preparation and publication of reports on theperformance of a licensee, an exempt payment
service provider or a person exempt under
section 100, or of an operator, a settlement
institution or a participant of a designated payment
system;(viii) the remuneration of an auditor appointed under thisAct and the costs of an audit carried out under thisAct;(ix) any measures to be taken by any of the following
persons or classes of persons to address any
discriminatory measure practised by one or moreof those persons or classes of persons:

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(A) any operator, or class of operators, of a relevant
payment system;

5(B) any settlement institution, or class of
settlement institutions, of a relevant payment
system;(C) any participant, or class of participants, of a
relevant payment system;(D) any person, or class of persons, that determines
access to a relevant payment system;

10(x) the appointment of a person approved by the
Authority —(A) to advise an operator, a settlement institution ora participant of a designated payment systemon the proper conduct of its business; or

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35

(B) to advise a class of participants of a designatedpayment system on the proper conduct of thebusiness of a participant in that class ofparticipants;(xi) the collection by or on behalf of the Authority of
information from a licensee, an exempt payment
service provider or a person exempt under
section 100, or from an operator, a settlement
institution or a participant of a designated payment
system, in relation to the conduct of its business at
such intervals or on such occasions as may be set out
in the notice;(xii) the manner in which a licensee, an exempt payment
service provider or a person exempt under
section 100, or an operator, a settlement institution
or a participant of a designated payment system,
deals with its customers, and any conflicts ofinterests between the licensee, exempt payment
service provider, person exempt under section 100,
operator, settlement institution or participant (as thecase may be) and its customers;

159(xiii) the duties of a licensee, an exempt payment service
provider, or a person exempt under section 100, to its
customers in the operation of payment accounts
maintained for those customers (including duties inrelation to the foreign exchange rate to be applied,
where the currency for which the licensee, exempt
payment service provider or person exempt under
section 100 maintains a payment account for acustomer is different from the currency received for
payment into that payment account);(xiv) the duties of a licensee, an exempt payment service
provider, or a person exempt under section 100, to its
customers in relation to the safeguarding of money
under section 23 (including duties in relation to theforeign exchange rate to be applied, where thecurrency in which the money is safeguarded isdifferent from the currency received by the licensee,
exempt payment service provider or person exempt
under section 100 from, or on account of, acustomer);(xv) the display or exhibition by a licensee, an exempt
payment service provider, or a person exempt under
section 100, of such cautionary statements as the
Authority thinks fit in a conspicuous place at every
place of business of the licensee, exempt payment
service provider or person exempt under section 100;and(xvi) the provision by a licensee, an exempt payment
service provider, or a person exempt under
section 100, of cautionary statements in writing to
the customers of the licensee, exempt payment
service provider or person exempt under section 100;

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(b) to require any person that contravenes, has contravened, or
is likely to contravene, any provision of this Act —(i) to comply with, or to cease contravening, thatprovision;

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(ii) to take any action necessary to enable the person to
conduct the person’s business in accordance withsound principles; and5(iii) where the person is a company, to remove any of its
directors; and(c) for any other purpose specified in this Act.
(3) It is not necessary to publish any notice in writing issued undersubsection (1) in the Gazette.

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(4) The Authority may at any time vary, rescind or revoke any
notice issued under subsection (1).
(5) A person that fails to comply with any requirement specified ina notice issued under subsection (1) shall (if the failure to comply
with that requirement is not an offence under any other provision ofthis Act) be guilty of an offence and shall be liable on conviction to afine 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.
(6) In this section, “discriminatory measure” means any measurethat is, or is likely to be, not equally disadvantageous or advantageous
to all participants of the relevant payment system, in that themeasure —(a) prejudices or benefits one or more of those participants to agreater extent than the other participants; or25(b) prejudices or benefits one or more of those participants
without affecting the other participants.
Power of Authority to make regulations

30

103.—(1) The Authority may make regulations prescribing mattersrequired or permitted by this Act to be prescribed, or necessary or
convenient to be prescribed for carrying out or giving effect to thisAct.
(2) Without limiting subsection (1), the Authority may makeregulations for or with respect to —161(a) the fees to be paid in respect of any matter or thing required
for the purposes of this Act, and the refund or remission of
the whole or any part of any such fees;(b) the granting, variation, change, lapsing, surrender,
revocation or suspension of a licence, and all incidental
matters;5(c) the cessation of the provision of a payment service by alicensee, an exempt payment service provider or a person
exempt under section 100, and all incidental matters;(d) the activities that may be carried out by an operator, asettlement institution or a participant of a designatedpayment system, in relation to its business;(e) the standards to be maintained by an operator, a settlement
institution or a participant of a designated payment systemin the conduct of its business;

1015(f) any measures to be taken by an operator, a settlement
institution, or a participant or class of participants, of adesignated payment system in relation to its business;(g) the standards, framework, policies and procedures forbusiness continuity management (including for ensuring
the availability of a designated payment system by the
maintenance of a backup system) by an operator or asettlement institution of a designated payment system;(h) the corporate governance of a licensee, an exempt payment
service provider or a person exempt under section 100, orof an operator or a settlement institution of a designatedpayment system;

2025(i) prescribing the offences that may be compounded;(j) prescribing the procedure —(i) for the use of the electronic service mentioned in
section 106; and(ii) in circumstances where there is a breakdown or aninterruption of the electronic service;

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(k) the imposition, variation or revocation of an access regime;(l) the acquisition or holding of shares or any other interest in
an operator of a designated payment system;
5(m) the acquisition or holding of shares or any other interest by
an operator of a designated payment system in any otherentity;(n) different requirements for the audit of accounts in relation
to different designated payment systems;

10(o) the responsibilities of an operator or a settlement
institution of a designated payment system in relation to
the audit of its accounts;

15(p) the procedures applicable in the event of a default in any
payment obligations facilitated by a designated payment
system, including the suspension and re-admission of any
participants of the designated payment system; and20(q) the determination, for the purposes of this Act, of theequivalent in foreign currency of a Singapore dollar
amount, including the exchange rate and time at which
the amount of foreign currency is to be translated toSingapore currency.
(3) Except as otherwise expressly provided in this Act, regulations
made under this Act —(a) may be of general or specific application;

25(b) may contain such saving and transitional provisions as the
Authority may consider necessary or expedient;(c) may provide that a contravention of any specified
provision of the regulations shall be an offence; and(d) may provide —30(i) in the case of an individual, for penalties notexceeding a fine of $50,000 or imprisonment for aterm not exceeding 2 years or both for each offence
and, in the case of a continuing offence, a further
penalty not exceeding a fine of $5,000 for every day

163

or part of a day during which the offence continues
after conviction; and(ii) in any other case, for penalties not exceeding a fineof $100,000 and, in the case of a continuing offence,a further penalty not exceeding a fine of $10,000 for
every day or part of a day during which the offence
continues after conviction.

5

Publication of certain information
104.—(1) The Authority may, from time to time, prepare andpublish —10(a) consolidated statements aggregating any information
provided under this Act; or(b) for statistical purposes, statements that relate to or are
derived from any information provided under this Act inrespect of —15(i) a payment system, being the only payment system in
its class; or(ii) a payment service provided by a licensee, being theonly payment service in its class.
(2) The Authority may, from time to time and in such form or
manner as the Authority considers appropriate, publish suchinformation as the Authority may consider necessary or expedientto publish in the public interest, including information relating to allor any of the following:

20(a) the lapsing, surrender, revocation or suspension of thelicence of any person under section 11;25(b) the acceptance by any person of an offer to compound an
offence under section 96;(c) the revocation or withdrawal of any exemption granted
under this Act;(d) the conviction of any person for any offence under this
Act;

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(e) any other action taken by the Authority against any person
under this Act.
Service of documents
5105.—(1) A document that is permitted or required by this Act to beserved on a person may be served as described in this section.
(2) A document permitted or required by this Act to be served on an
individual may be served —(a) by giving it to the individual personally;

1015(b) by sending it by prepaid registered post to the address
specified by the individual for the service of documents or,
if no address is so specified, the individual’s residential
address or business address;(c) by leaving it at the individual’s residential address with anadult apparently resident there, or at the individual’sbusiness address with an adult apparently employed there;(d) by affixing a copy of the document in a conspicuous placeat the individual’s residential address or business address;

20(e) by sending it by fax to the fax number last known to theperson giving or serving the document as the fax number
for the service of documents on the individual; or(f) by sending it by email to the individual’s last email
address.

25(3) A document permitted or required by this Act to be served on apartnership (other than a limited liability partnership) may beserved —(a) by giving it to any partner or other like officer of thepartnership;(b) by leaving it at, or by sending it by prepaid registered post
to, the business address of the partnership;

30(c) by sending it by fax to the fax number used at the businessaddress of the partnership; or165(d) by sending it by email to the last email address of thepartnership.
(4) A document permitted or required by this Act to be served on abody corporate (including a limited liability partnership) or anunincorporated association may be served —5(a) by giving it to the secretary or other similar officer of the
body corporate or unincorporated association, or to the
manager of the limited liability partnership;(b) by leaving it at, or by sending it by prepaid registered post
to, the registered office or principal office of the body
corporate or unincorporated association;

10(c) by sending it by fax to the fax number used at the registeredoffice or principal office of the body corporate orunincorporated association; or(d) by sending it by email to the last email address of the body
corporate or unincorporated association.

15(5) Service of a document under subsection (2), (3) or (4) takes
effect —(a) if the document is sent by fax and a notification of
successful transmission is received, on the day oftransmission;

20(b) if the document is sent by prepaid registered post, 2 days
after the day the document was posted (even if it is returned
undelivered); or(c) if the document is sent by email, at the time the email
becomes capable of being retrieved by the person to whom
the document is sent.

25(6) A document may be served on a person under this Act by email
only with that person’s prior written consent.
(7) This section does not apply to documents to be served inproceedings in court.

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(8) In this section —“business address” means —5(a) in the case of an individual, the individual’s usual orlast known place of business, or place of
employment, in Singapore; or(b) in the case of a partnership (other than a limited
liability partnership), the principal or last known
place of business in Singapore of the partnership;

10“document” includes a notice permitted or required by this Act
to be served;“last email address” means —15(a) the last email address given, by the addressee
concerned to the person giving or serving the
document, as the email address for the service of
documents under this Act; or(b) the last email address of the addressee concerned
known to the person giving or serving the document;“residential address” means an individual’s usual or last known
place of residence in Singapore.

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Electronic service
106.—(1) The Authority may provide an electronic service for theservice of any document that is required or authorised by this Act tobe served on any person.

25(2) For the purposes of the electronic service, the Authority may
assign to any person —(a) an authentication code; and(b) an account with the electronic service.
(3) Despite section 105, where a person has given consent for any
document to be served on the person through the electronic service —30(a) the Authority may serve the document on that person bytransmitting an electronic record of the document to that
person’s account with the electronic service; and167(b) the document is treated as having been served at the time
when an electronic record of the document enters the
person’s account with the electronic service.
(4) In this section —“account with the electronic service”, in relation to any person,means a computer account within the electronic service thatis assigned by the Authority to the person for the storage andretrieval of electronic records relating to the person;“authentication code”, in relation to any person, means an
identification or identifying code, a password or any otherauthentication method or procedure that is assigned to theperson for the purposes of identifying and authenticating theaccess to and use of the electronic service by the person;

510“document” includes a notice and an order;“electronic record” has the meaning given by section 2(1) of theElectronic Transactions Act (Cap. 88).

15

Amendment of Schedules
107.—(1) The Minister may from time to time, by order in theGazette, amend, add to or vary the First or Second Schedule.
(2) The Minister may, in any order made under subsection (1),make such incidental, consequential or supplementary provisions as
may be necessary or expedient.

20(3) Any order made under subsection (1) must be presented to
Parliament as soon as possible after publication in the Gazette.
Repeal108. The following Acts are repealed:(a) the Money-changing and Remittance Businesses Act;(b) the Payment Systems (Oversight) Act.

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PART 9CONSEQUENTIAL AND RELATED AMENDMENTSTO OTHER ACTS
Amendment of Central Provident Fund Act
5109. The Third Schedule to the Central Provident Fund Act(Cap. 36, 2013 Ed.) is amended —(a) by deleting item 24; and(b) by inserting, immediately after item 27, the following item:“27A. Payment Services Act 2019.”.

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Amendment of Companies Act
110. The Companies Act (Cap. 50, 2006 Ed.) is amended —15(a) by deleting the words “section 12A of the Money-changing
and Remittance Businesses Act (Cap. 187), section 22 of
the Payment Systems (Oversight) Act (Cap. 222A)” in
section 145(6)(b) and substituting the words “section 35 or
66 of the Payment Services Act 2019”;(b) by deleting paragraph (d) of section 377(14);(c) by deleting paragraphs (n) and (o) of section 377(14) andsubstituting the following paragraphs:

2025“(n) an operator of a payment systemdesignated under section 42 of the
Payment Services Act 2019;(o) a person that has in force a licence granted
under section 6 of the Payment Services
Act 2019 that entitles the person to carry on
a business of providing one or more of thefollowing payment services:(i) a cross-borderservice;

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money

transfer(ii) a domestic money transfer service;(iii) an e-money issuance service;

169(iv) a merchant acquisition service.”; and(d) by deleting sub-paragraph (i) of paragraph 2(a) of the
Fourteenth Schedule.
Amendment of Credit Bureau Act 2016111. Section 49(11) of the Credit Bureau Act 2016 (Act 27 of 2016)is amended by deleting paragraphs (g) and (h) and substituting thefollowing paragraph:5“(g) Payment Services Act 2019;”.
Amendment of Financial Advisers Act
112. Section 2(1) of the Financial Advisers Act (Cap. 110,2007 Ed.) is amended by deleting paragraph (e) of the definition of“prescribed written law” and substituting the following paragraph:10“(e) Payment Services Act 2019;”.
Amendment of Financial Holding Companies Act 2013113. Section 53 of the Financial Holding Companies Act 2013
(Act 13 of 2013) is amended by deleting paragraph (f) of thedefinition of “prescribed written law” and substituting the following
paragraph:15“(f) Payment Services Act 2019;”.
Amendment of Insolvency, Restructuring and Dissolution Act
2018

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114. Section 250(7) of the Insolvency, Restructuring andDissolution Act 2018 (Act 40 of 2018) is amended —(a) by deleting paragraph (d) of the definition of “relevant
company”; and(b) by deleting paragraphs (n) and (o) of the definition of“relevant company” and substituting the following
paragraphs:

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“(n) an operator of a payment systemdesignated under section 42 of the
Payment Services Act 2019;510(o) a person that has in force a licence granted
under section 6 of the Payment Services
Act 2019 that entitles the person to carry on
a business of providing one or more of thefollowing payment services:(i) a cross-borderservice;moneytransfer(ii) a domestic money transfer service;(iii) an e-money issuance service;(iv) a merchant acquisition service.”.
Amendment of Insurance Act
15115. Section 49A of the Insurance Act (Cap. 142, 2002 Ed.) isamended by deleting paragraph (e) of the definition of “prescribed
written law” and substituting the following paragraph:“(e) Payment Services Act 2019;”.
Amendment of Limited Liability Partnerships Act

20116. The Sixth Schedule to the Limited Liability Partnerships Act(Cap. 163A, 2006 Ed.) is amended by deleting sub-paragraph (i) of
paragraph 2(a).
Amendment of Monetary Authority of Singapore Act

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117. The Monetary Authority of Singapore Act (Cap. 186,
1999 Ed.) is amended —(a) by deleting paragraph (d) of section 27A(6) andsubstituting the following paragraph:“(d) a person granted a licence under the
Payment Services Act 2019;”;30(b) by deleting paragraph (ka) of section 27A(6);171(c) by deleting the definition of “designated payment system”
in section 82 and substituting the following definition:“ “designated payment system” has the same
meaning as in section 2(1) of the Payment
Services Act 2019;”;5(d) by deleting the definitions of “operator” and “settlement
institution” in section 82 and substituting the following
definitions:“ “operator” and “settlement institution” have thesame meanings as in section 2(1) of the
Payment Services Act 2019;”;10(e) by deleting paragraphs (g) and (h) of the definition of“prescribed written law” in section 86 and substituting thefollowing paragraph:“(g) the Payment Services Act 2019;”;15(f) by deleting the words “Payment Systems (Oversight) Act(Cap. 222A)” in paragraph (b) of the definition of“participant” in section 98 and substituting the words“Payment Services Act 2019”;(g) by deleting the words “Payment Systems (Oversight) Act”
in the definition of “payment system operator” insection 98 and substituting the words “Payment Services
Act 2019”;(h) by deleting paragraphs (i) and (j) of the definition of“prescribed written law” in section 152(1) and substituting
the following paragraph:2025“(i) the Payment Services Act 2019;”;(i) by deleting item 16 of the Schedule; and(j) by deleting item 18 of the Schedule and substituting thefollowing item:“18. Payment Services Act 2019”.

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Amendment of Remote Gambling Act 2014
118. Section 3(1) of the Remote Gambling Act 2014 (Act 34 of2014) is amended by deleting paragraphs (c) and (d) of the definitionof “financial institution” and substituting the following paragraph:5“(c) any operator of a designated payment system under
the Payment Services Act 2019; or”.
Amendment of Securities and Futures Act

10119. Section 2(1) of the Securities and Futures Act (Cap. 289,
2006 Ed.) is amended by deleting paragraph (f) of the definition of“prescribed written law” and substituting the following paragraph:“(f) Payment Services Act 2019;”.
Amendment of Small Claims Tribunals Act

15

20120. Paragraph 2 of the Schedule to the Small Claims Tribunals Act(Cap. 308, 1998 Ed.) (as in force on the date of commencement ofsection 20 of the Small Claims Tribunals (Amendment) Act 2018
(Act 33 of 2018)) is amended by deleting the words “holding a valid
money-changer’s licence under the Money-changing and RemittanceBusinesses Act (Cap. 187)” and substituting the words “who has inforce a licence under the Payment Services Act 2019 that entitles the
person to carry on a business of providing a money-changing
service”.
PART 10SAVING AND TRANSITIONAL PROVISIONSInterpretation of this Part25

121. In this Part, unless the context otherwise requires —“appointed day” means the date of commencement ofsection 108;
“approved bank” and “approved holder” have the meanings
given by section 2(1) of the PSOA;173“MCRBA” means the Money-changing and RemittanceBusinesses Act as in force immediately before theappointed day;“money-changer’s licence” has the meaning given by
section 2(1) of the MCRBA;

5“PSOA” means the Payment Systems (Oversight) Act as inforce immediately before the appointed day;“remittance licence” has the meaning given by section 2(1) of
the MCRBA;“stored value facility” has the meaning given by section 2(1) of
the PSOA.

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Saving and transitional provisions for holders of licences under
MCRBA and approved holders of stored value facilities under
PSOA
122.—(1) Any person that, immediately before the appointed day,is a holder of a remittance licence, but is not also a holder of amoney-changer’s licence or an approved holder of a stored value
facility —(a) is deemed to have been granted, on the appointed day, amajor payment institution licence under section 6(7) that
entitles that person to carry on a business of providing across-border money transfer service; and(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
cross-border money transfer service provided by that
person.

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(2) Any person that, immediately before the appointed day, is aholder of a money-changer’s licence but is not also a holder of aremittance licence or an approved holder of a stored value facility —(a) is deemed to have been granted, on the appointed day, amoney-changing licence under section 6(7); and

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(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
money-changing service provided by that person.
5

10

15

(3) Any person that, immediately before the appointed day, is anapproved holder of a stored value facility, but is not also a holder of aremittance licence or a money-changer’s licence, is deemed to havebeen granted, on the appointed day, a major payment institution
licence under section 6(7) that entitles that person to carry on abusiness of providing an e-money issuance service.
(4) Any person that, immediately before the appointed day, is aholder of both a remittance licence and a money-changer’s licence —(a) is deemed to have been granted, on the appointed day, amajor payment institution licence under section 6(7) that
entitles that person to carry on a business of providing bothof the following services:(i) a cross-border money transfer service;(ii) a money-changing service; and20(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
cross-border money transfer service and any
money-changing service provided by that person.
(5) Any person that, immediately before the appointed day, is both aholder of a remittance licence and an approved holder of a stored
value facility —25(a) is deemed to have been granted, on the appointed day, amajor payment institution licence under section 6(7) that
entitles that person to carry on a business of providing bothof the following services:(i) a cross-border money transfer service;

30(ii) an e-money issuance service; and(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
cross-border money transfer service provided by that
person.

175(6) Any person that, immediately before the appointed day, is both aholder of a money-changer’s licence and an approved holder of astored value facility —(a) is deemed to have been granted, on the appointed day, amajor payment institution licence under section 6(7) that
entitles that person to carry on a business of providing bothof the following services:

5(i) a money-changing service;(ii) an e-money issuance service; and(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
money-changing service provided by that person.
(7) Any person that, immediately before the appointed day, is aholder of both a remittance licence and a money-changer’s licenceand an approved holder of a stored value facility —1015(a) is deemed to have been granted, on the appointed day, amajor payment institution licence under section 6(7) that
entitles that person to carry on a business of providing allof the following services:(i) a cross-border money transfer service;

20(ii) a money-changing service;(iii) an e-money issuance service; and(b) is exempt from section 23 for a period of 12 months
beginning on the appointed day in respect of any
cross-border money transfer service and any
money-changing service provided by that person.
(8) Every condition or restriction imposed under the MCRBA or
the PSOA to which a person mentioned in subsection (1), (2), (3), (4),(5), (6) or (7) is subject, immediately before the appointed day, as aholder of a remittance licence or a money-changer’s licence or as an
approved holder of a stored value facility, is deemed, on the appointed
day, to be a condition or restriction to which that person is subject as
the holder of a licence deemed to have been granted to that person
under the applicable subsection.

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5

10

(9) Any individual who, immediately before the appointed day, is achief executive officer, director or partner of a person mentioned insubsection (1), (2), (3), (4), (5), (6) or (7) is deemed, on the appointed
day, to have been appointed as chief executive officer, director or
partner (as the case may be) of that person with the approval of the
Authority under section 34(3)(b).
(10) Any approval granted, and any condition imposed, under
section 11(3) of the MCRBA that remains in force immediately
before the appointed day is deemed, on the appointed day, to be an
approval granted, and a condition imposed, under section 14(6).
Saving and transitional provisions for persons granted
exemptions under MCRBA or PSOA

15

20

123.—(1) Any person that, immediately before the appointed day,was exempt under section 31(3) of the MCRBA from the requirement
to hold a remittance licence is deemed, on the appointed day, to be
exempt under section 100(4) from sections 5(1) and 6(4) and (5) in
respect of any business of providing any cross-border money transfer
service carried on by that person.
(2) Any person that, immediately before the appointed day, wasexempt under section 31(3) of the MCRBA from the requirement tohold a money-changer’s licence is deemed, on the appointed day, tobe exempt under section 100(4) from sections 5(1) and 6(3), (4) and(5) in respect of any business of providing any money-changing
service carried on by that person.

30(3) Any person that, immediately before the appointed day, wasexempt under section 53(2) of the PSOA from section 33(1) of the
PSOA is deemed, on the appointed day, to be exempt under
section 100(4) from sections 5(1) and 6(4) and (5) in respect ofany business of providing any e-money issuance service carried on bythat person.

35(4) Any person that, immediately before the appointed day, wasexempt under section 53(2) of the PSOA from section 31 of the
PSOA is deemed, on the appointed day, to be exempt under
section 100(4) from section 9 in respect of any advertisement, offer
or invitation mentioned in section 9 relating to the provision by that

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person of an e-money issuance service, an account issuance service,or both of those services.
(5) Every condition or restriction imposed under the MCRBA or
the PSOA to which a person mentioned in subsection (1), (2), (3) or(4) is subject, immediately before the appointed day —5(a) as a person exempt under section 31(3) of the MCRBA
from the requirement to hold a remittance licence or amoney-changer’s licence; or(b) as a person exempt under section 53(2) of the PSOA fromsection 31 or 33(1) of the PSOA,

10

is deemed, on the appointed day, to be a condition or restriction towhich that person is subject as a person exempt under section 100(4).
Pending applications for licences and renewals under MCRBA
and pending applications for certain approvals under PSOA
124.—(1) Any application for a renewal of a remittance licence ormoney-changer’s licence that is pending, immediately before theappointed day, is deemed to have been withdrawn on the appointed
day, and the Authority must refund any fee paid for that application to
the applicant.

15(2) Any application for any of the following licences and approvals
that is pending, immediately before the appointed day, is deemed tohave been withdrawn on the appointed day, and the Authority mustrefund any fee paid for that application to the applicant:20(a) a remittance licence or money-changer’s licence;(b) approval as an approved holder of a stored value facility;

25(c) approval as an approved bank in respect of a stored value
facility.
Saving and transitional provisions for designated payment
systems
125.—(1) Any payment system that, immediately before theappointed day, is a designated payment system under section 7(1)

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of the PSOA is deemed, on the appointed day, to be a designatedpayment system under section 42(1).

5(2) Any condition or restriction to which a person is subject,
immediately before the appointed day, in the person’s capacity as an
operator, a settlement institution or a participant of a designatedpayment system under the PSOA, is deemed, on the appointed day, tobe a condition or restriction to which that person is subject under thisAct, only to the extent that the condition or restriction is consistent
with the provisions of this Act.

15(3) Any individual who, immediately before the appointed day, is achief executive officer or director of an operator of a designatedpayment system under the PSOA is deemed, on the appointed day, tohave been appointed as chief executive officer or director (as the casemay be) of that operator with the approval of the Authority under
section 65(3)(b) of this Act.

20(4) Any approval mentioned in section 23(1) of the PSOA thatremains in force immediately before the appointed day is deemed, on
the appointed day, to be an approval under section 59(3) of an
application under section 59(1) to be a 5% controller of an operator ofa designated payment system.

10

25

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35

(5) Any approval mentioned in section 23(2) of the PSOA (for a
person to become a 12% controller of an operator of a designatedpayment system) that remains in force immediately before theappointed day is deemed, on the appointed day, to be an approval
under section 59(3) of an application under section 59(1) to be a
12% controller of an operator of a designated payment system.
(6) Any approval mentioned in section 23(2) of the PSOA (for a
person to become a 20% controller of an operator of a designatedpayment system) that remains in force immediately before theappointed day is deemed, on the appointed day, to be an approval
under section 59(3) of an application under section 59(1) to be a
20% controller of an operator of a designated payment system.
(7) Any condition or restriction imposed under section 24 of the
PSOA for an approval mentioned in section 23(1) or (2) of the PSOA
is deemed, on the appointed day, to be a condition or restriction

179

imposed under section 59(4) for the corresponding approval under
section 59(3).
Other saving and transitional provisions
126. For a period of 2 years after the date of commencement of any
provision of this Act, the Minister may, by regulations, prescribe such
additional provisions of a saving or transitional nature consequent to
the enactment of that provision as the Minister may consider
necessary or expedient.

5

FIRST SCHEDULE
Sections 2 and 107

10

1. Except where Part 2 of this Schedule provides otherwise, each of thefollowing services is a payment service for the purposes of this Act:

15

PAYMENT SERVICESPART 1SERVICES THAT ARE PAYMENT SERVICES(a) an account issuance service;(b) a domestic money transfer service;(c) a cross-border money transfer service;(d) a merchant acquisition service;(e) an e-money issuance service;20(f) a digital payment token service;(g) a money-changing service.
PART 2SERVICES THAT ARE NOT PAYMENT SERVICES
2. Despite Part 1 of this Schedule, the following services are not payment
services for the purposes of this Act:(a) the service of executing a payment transaction on behalf of the payer or
the payee, if performed by a commercial agent authorised to negotiate
or conclude the sale or purchase of goods or services on behalf of thepayer or the payee, as the case may be;

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FIRST SCHEDULE — continued(b) the service of executing a payment transaction based on any of thefollowing documents, each being a document drawn on a person with aview to placing money at the disposal of the payee:
5(i) any cheque, cashier’s order, drawing voucher, dividend
warrant, demand draft, remittance receipt, traveller’s chequeor gift cheque;(ii) any paper postal order;

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20

(c) the service of executing any payment transaction within a payment
system or securities settlement system between any 2 or moreparticipants of the system (each being a payment service provider,settlement agent, central counterparty, clearing house, central bank or
any other participant of the system);(d) the service of executing any payment transaction between 2 or more
persons (each being a payment services provider, an agent of thatpayment service provider, or a branch of that payment service
provider), each of which acts for its own account in the paymenttransaction, in any case where the service is provided by one of those
persons;(e) the service of executing payment transactions (including both
domestic money transfers and cross-border money transfers)
between 2 or more related corporations, in any case where thepayment transaction —(i) is not executed through a payment service provider; or25(ii) is executed through a payment service provider that is one ofthose related corporations;(f) the service of transporting currency, including the collection,
processing and delivery of the currency, where the provision of theservice is carried on as a business;

3035(g) the service of collecting and delivering currency, where no fee iscollected for the service, and the service is provided as a not-for-profit
or charitable activity;(h) any service, including (but not limited to) any of the following
services, provided by any technical service provider that supports theprovision of any payment service, but does not at any time enter intopossession of any money under that payment service:(i) the service of processing and storing data;

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FIRST SCHEDULE — continued(ii) any information technology security, trust or privacy protection
service;(iii) any data and entity authentication service;(iv) any information technology service;5(v) the service of providing a communication network;(vi) the service of providing and maintaining any terminal or device
used for any payment service;(i) any payment service mentioned in Part 1 of this Schedule that isprovided by any person licensed, approved, registered or regulated, or
exempt from being licensed, approved, registered or regulated, under
any of the following Acts, in any case where the payment service issolely incidental to or necessary solely for that person to carry on that
person’s business in any regulated activity for which that person is solicensed, approved, registered, regulated or exempt from being
licensed, approved, registered or regulated:

1015(i) Financial Advisers Act (Cap. 110);(ii) Insurance Act (Cap. 142);(iii) Securities and Futures Act (Cap. 289);(iv) Trust Companies Act (Cap. 336);

20(j) any payment service mentioned in Part 1 of this Schedule that isprovided by any person in respect only of any limited purposee-money;(k) any service of dealing in, or facilitating the exchange of, any central
bank digital payment token, carried out by a central bank or financial
institution;

25(l) any service of dealing in, or facilitating the exchange of, any limited
purpose digital payment token.
PART 3
INTERPRETATION
3. In this Schedule, unless the context otherwise requires —“account issuance service” means any of the following services:(a) the service of issuing a payment account to any person in
Singapore;

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FIRST SCHEDULE — continued(b) any service relating to any operation required for operating apayment account, including —510(i) any service (other than a domestic money transfer
service or a cross-border money transfer service) thatenables money to be placed in a payment account; or(ii) any service (other than a domestic money transfer
service or a cross-border money transfer service) thatenables money to be withdrawn from a payment
account;“associated company”, in relation to an issuer of electronically stored
monetary value, means a company at least 20%, but not more than 50%, of
the shares of which are held by the issuer, or by the issuer and its
subsidiaries (if any);

15

20“central bank digital payment token” means any digital payment token that isissued by a central bank, or by any entity authorised by a central bank toissue a digital payment token on behalf of the central bank;“commercial agent” means any person that carries on a business of acting as
an authorised agent for another person, for the purposes of negotiating or
concluding the sale or purchase of goods or services on behalf of that otherperson;“cross-border money transfer service” means either of the following
services:

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35

(a) any service of accepting money in Singapore, whether as
principal or agent, for the purpose of transmitting, or arranging
for the transmission of, the money to any person outside
Singapore (other than any such service that the Authority may
prescribe);(b) any service of receiving any money from outside Singapore for,or arranging for the receipt of any money from outside
Singapore by, any person in Singapore (other than any suchservice that the Authority may prescribe), whether as principal
or as agent;“direct debit” means the act of debiting a payer’s payment account pursuant
to a payment transaction initiated by a payee with the consent of the payer,
regardless whether the payment order is given by the payee to the payee’s
payment service provider or to the payer’s payment service provider;“dealing in”, in relation to any digital payment token, means the buying or
selling of that digital payment token in exchange for any money or any

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FIRST SCHEDULE — continued
other digital payment token (whether of the same or a different type), butdoes not include any of the following:(a) facilitating the exchange of digital payment tokens;(b) accepting any digital payment token as a means of payment forthe provision of goods or services;5(c) using any digital payment token as a means of payment for theprovision of goods or services;“digital payment token exchange” —(a) means a place, or a facility (whether electronic or otherwise),
where —(i) offers or invitations to buy or sell any digital payment
token in exchange for any money or any other digital
payment token (whether of the same or a differenttype), are regularly made on a centralised basis;(ii) those offers or invitations are intended, or may
reasonably be expected, to result (whether directly or
indirectly) in the acceptance of those offers or in themaking of offers to buy or sell digital payment tokens
in exchange for money or other digital payment tokens(whether of the same or a different type), as the casemay be; and(iii) the person making any such offer or invitation, and theperson accepting that offer or making an offer in
response to that invitation, are different persons; but

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(b) does not include a place or facility (whether electronic orotherwise) that is used exclusively by one person to do only
either or both of the following things:(i) to make offers or invitations to buy or sell any digital
payment token in exchange for any money, or any
digital payment token (whether of the same or adifferent type);(ii) to accept any offer to buy or sell any digital payment
token in exchange for any money, or any digital
payment token (whether of the same or a differenttype);

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FIRST SCHEDULE — continued“digital payment token service” means any of the following services:(a) any service of dealing in digital payment tokens (other than any
such service that the Authority may prescribe);
510(b) any service of facilitating the exchange of digital payment
tokens (other than any such service that the Authority may
prescribe);“domestic money transfer service” means the service of accepting money forthe purpose of executing, or arranging for the execution of, any of thefollowing payment transactions, each of which is between a payer in
Singapore and a payee in Singapore, in any case where neither the payer
nor the payee is a financial institution:(a) a payment transaction executed from, by way of or through apayment account;

15(b) a direct debit (including a one-off direct debit) through apayment account;(c) a credit transfer (including a standing order) through a payment
account;

20(d) accepting any money from any person for transfer to thepayment account of a different person;“e-money issuance service” means the service of issuing e-money to any
person for the purpose of allowing a person to make payment transactions;

25

30

35

“facilitating the exchange of”, in relation to any type of digital payment
token, means establishing or operating a digital payment token exchange
for that type of digital payment token, in a case where the person that
establishes or operates that digital payment token exchange, for the
purposes of an offer or invitation (made or to be made on that digital
payment token exchange) to buy or sell that type of digital payment token
in exchange for any money or any digital payment token (whether of thattype or a different type), comes into possession of any money or any
digital payment token, whether at the time that offer or invitation is madeor otherwise;“facilitating the exchange of digital payment tokens” means establishing or
operating a digital payment token exchange, in a case where the personthat establishes or operates that digital payment token exchange, for the
purposes of an offer or invitation (made or to be made on that digital
payment token exchange) to buy or sell any digital payment token in
exchange for any money or any digital payment token (whether of thesame or a different type), comes into possession of any money or any

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FIRST SCHEDULE — continued
digital payment token, whether at the time that offer or invitation is madeor otherwise;“financial institution” means any person that —(a) is licensed, approved, registered or regulated, or is exempt frombeing licensed, approved, registered or regulated, by the
Authority under any written law; or(b) is licensed, approved, registered or regulated, or is exempt frombeing licensed, approved, registered or regulated, under any law
administered by an authority in a foreign country (the functionsof which correspond to the functions of the Authority in
Singapore) to carry on any financial activity in that country;

5

10“financial product” means any product or service that is provided by afinancial institution;“franchise” means a written agreement or arrangement between 2 or more
persons by which —(a) a party (called in this definition the franchisor) to the agreement
or arrangement authorises or permits another party (called inthis definition the franchisee) to the agreement or arrangement,
or a person associated with the franchisee, to engage in thebusiness of offering, selling or distributing goods or services in
Singapore under a plan or system controlled by the franchisor ora person associated with the franchisor;(b) the business carried on by the franchisee or person associatedwith the franchisee (as the case may be) is capable of being
identified by the public as associated with a trade mark orservice mark, logo, symbol or name identifying, commonly
connected with or controlled by the franchisor or person
associated with the franchisor, as the case may be;

15

20

25

(c) the franchisor or person associated with the franchisor (as thecase may be) exerts, or has authority to exert, a significant
degree of control over the method or manner of operation of thebusiness of the franchisee or person associated with thefranchisee, as the case may be;30(d) the franchisee or person associated with the franchisee (as thecase may be) is required under the agreement or arrangement tomake payment, or give some other form of consideration, to thefranchisor or person associated with the franchisor, as the casemay be; and

35

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FIRST SCHEDULE — continued5(e) the franchisor or person associated with the franchisor (as thecase may be) agrees to communicate to the franchisee or person
associated with the franchisee (as the case may be) knowledge,
experience, expertise, know-how, trade secrets or otherinformation, whether or not the knowledge, experience,expertise, know-how or information is proprietary or
confidential;“in-game asset” means any digital representation of value that —10(a) is purchased or otherwise acquired by a person (called in thisdefinition the game player);(b) is not denominated in any currency;(c) is issued as part of an online game; and15(d) is used by the game player to pay or in exchange for virtual
objects or services in the online game;“limited network of providers of goods or services”, in relation to any
electronically stored monetary value that is accepted by a member of the
network as payment or part payment for goods or services, means any of
the following groups of entities:

20(a) a group of entities consisting only of all parties to a franchise, of
which the issuer of the electronically stored monetary value is aparty;

25(b) a group of entities consisting only of the issuer of theelectronically stored monetary value and all of its related
corporations;

30(c) where any securities or securities-based derivatives contracts of
the issuer of the electronically stored monetary value are listedon the Mainboard of Singapore Exchange Limited, a group ofentities consisting only of that issuer and all of its associatedcompanies;“limited purpose digital payment token” means any non-monetary customer
loyalty or reward point, any in-game asset, or any similar digital
representation of value that —35(a) cannot be returned to its issuer, transferred or sold in exchange
for money; and187

FIRST SCHEDULE — continued(b) may only be used —(i) in the case of a non-monetary customer loyalty or
reward point — for the payment or part payment of, orin exchange for, goods or services, or both, provided by
its issuer or any merchant specified by its issuer; or(ii) in the case of an in-game asset — for the payment of, orin exchange for, virtual objects or virtual services
within an online game, or any similar thing within, thatis part of, or in relation to, an online game;

5

10“limited purpose e-money” means any of the following types ofelectronically stored monetary value:(a) any electronically stored monetary value that is, or is intended
to be, used only in Singapore for any of the following purposes:(i) the payment or part payment of goods or services (orboth) provided by the issuer of the electronically stored
monetary value;(ii) the payment or part payment of goods or services (orboth) provided by any member of a limited network ofproviders of goods or services, being a network thathas a commercial arrangement with the issuer of theelectronically stored monetary value for every memberof the network to accept the electronically stored
monetary value as payment or part payment for goods
or services (or both) provided by the member;(iii) the payment or part payment of goods or services (orboth) provided by any person within any one or more
physical premises owned, operated or managed by theissuer of the electronically stored monetary value, or
any related corporation or associated company of thatissuer, in a case where all of the following conditions
are satisfied:(A) the user of the electronically stored monetary
value is not contractually entitled to receive any
refund of any unused portion of theelectronically stored monetary value in any
currency;(B) if the electronically stored monetary value
exceeds $100 (or its equivalent in a foreign

15

20

25

30

35

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FIRST SCHEDULE — continued

5

currency), any unused portion of theelectronically stored monetary value cannot
be refunded to the user of the electronicallystored monetary value in any currency, unlessthe issuer identifies and verifies the identity ofthat user;

10(C) the electronically stored monetary value cannot
be withdrawn by the user of the electronicallystored monetary value, from any payment
account maintained for that user, in exchange
for any currency;

15(D) the amount of electronically stored monetary
value contained in any payment accountmaintained for the electronically stored
monetary value cannot exceed $1,000 (or its
equivalent in a foreign currency);(b) any electronically stored monetary value that is, or is intended
to be, used only in Singapore in a case where —2025(i) all of the electronically stored monetary value is issued
by a public authority; or(ii) a public authority has undertaken to be fully liable forthe value of all of the electronically stored monetary
value issued by the issuer of the electronically stored
monetary value, in the event of any default by theissuer in honouring a valid payment made using theelectronically stored monetary value;(c) any electronically stored monetary value, that —(i) is denominated in any currency;

30(ii) is issued as part of a scheme, the dominant purpose ofwhich is to promote the purchase of goods, or the useof services, provided by the issuer of the electronicallystored monetary value or any merchant specified bythat issuer;

35(iii) is issued to a user of the electronically stored monetary
value upon the purchase of goods, or the use ofservices, provided by the issuer of the electronicallystored monetary value or any merchant specified bythat issuer;

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FIRST SCHEDULE — continued(iv) is used for the payment or part payment of goods orservices (or both) provided by the issuer of theelectronically stored monetary value or any merchantspecified by that issuer;

5(v) is not part of a financial product;(vi) cannot be withdrawn by the user of the electronicallystored monetary value, from any payment accountmaintained for that user, in exchange for currency; and(vii) if the electronically stored monetary value exceeds$100 (or its equivalent in a foreign currency), cannot
be refunded to the user of the electronically stored
monetary value in any currency, unless the issuer of theelectronically stored monetary value identifies andverifies the identity of that user;“merchant acquisition service” means any service of accepting andprocessing a payment transaction for a merchant under a contract
between the provider of the service and the merchant, which results ina transfer of money to the merchant pursuant to the payment transaction,
regardless whether the provider of the service comes into possession ofany money in respect of the payment transaction, in a case where —

10

15

20

(a) the merchant carries on business in Singapore, or isincorporated, formed or registered in Singapore; or(b) the contract between the provider of the service and themerchant is entered into in Singapore;25“money-changing service” means the service of buying or selling foreign
currency notes;“non-monetary customer loyalty or reward point” means any digital
representation of value, by whatever name called, that satisfies all of
the following conditions:

30(a) it is not denominated in any currency;(b) it is issued as part of a scheme, the dominant purpose of which isto promote the purchase of goods, or the use of services,
provided by its issuer or any merchant specified by its issuer;(c) it is issued to a person upon the purchase of goods, or the use ofservices, provided by its issuer or any merchant specified by its
issuer;35

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FIRST SCHEDULE — continued(d) it is used for the payment or part payment of, or in exchange for,goods or services (or both) provided by its issuer or any
merchant specified by its issuer;5(e) it is not part of a financial product;“related corporation” has the meaning given by section 4(1) of theCompanies Act (Cap. 50).
4. For the purposes of this Schedule —10(a) a person is deemed to provide a cross-border money transfer service ifthat person offers —(i) to transmit money in Singapore on behalf of a person in
Singapore to a person outside Singapore;

15(ii) to arrange in Singapore for money in Singapore to betransmitted from a person in Singapore to a person outside
Singapore;(iii) to receive money in Singapore on behalf of a person in
Singapore from a person outside Singapore; or(iv) to arrange in Singapore for money to be received in Singapore
by a person in Singapore from a person outside Singapore; and20(b) a person is deemed to provide a money-changing service if the person
offers to buy or sell foreign currency notes.

SECOND SCHEDULE
Sections 4(2) and 107

SPECIFIED PROVISIONS
25

1. Section 13(3)2. Section 100(4)191

EXPLANATORY STATEMENT
This Bill seeks to provide for the licensing and regulation of payment service
providers, the oversight of payment systems, and connected matters.
The Bill also repeals the Money-changing and Remittance Businesses Act(Cap. 187) and the Payment Systems (Oversight) Act (Cap. 222A), and makes
consequential and related amendments to certain other Acts.
PART 1PRELIMINARYPart 1 (comprising clauses 1 to 4) deals with preliminary matters.
Clause 1 relates to the short title and commencement.
Clause 2 defines certain terms used in the Bill. The clause also explains when aperson has an interest in a share, what constitutes control of a percentage of thevotes in a corporation, when a person is an associate of another person, when aperson has a substantial shareholding in a corporation, and (for certain specified
provisions) when a payment service (or the provision of a payment service) is
incidental to any other business carried on by a person.
Clause 3 provides that the Bill does not apply to any public authority, but
empowers the Minister to declare that a public authority is one to which the Billapplies. Thus, generally, the Bill does not regulate any public authority thatprovides any payment service, or is an operator, a settlement institution or aparticipant of a payment system.
Clause 4 empowers the Monetary Authority of Singapore (the Authority) toappoint any person to exercise any of the Authority’s powers, or perform any of
the Authority’s functions or duties, under the Bill, subject to certain restrictions.
PART 2LICENSING OF PAYMENT SERVICE PROVIDERS
Part 2 (comprising clauses 5 to 40) deals with the licensing and regulation of
payment service providers.
Clause 5(1) prohibits a person from carrying on a business of providing any
type of payment service in Singapore, unless the person has in force a licence that
entitles the person to carry on a business of providing that type of payment service,or is an exempt payment service provider in respect of that type of payment
service. Clause 5(3) makes it an offence to contravene clause 5(1).
Clause 5(2) stipulates that where a person provides any type of payment
service while the person carries on any primary business, the person is presumed

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to carry on a secondary business of providing that type of payment service,
regardless whether the provision of that type of payment service is related orincidental to the primary business. Unless the person is able to rebut thispresumption, the person must have in force an appropriate licence in order toprovide that type of payment service. This statutory presumption is not rebuttedmerely by proof that the provision of that type of payment service is related orincidental, or is both related and incidental, to the primary business. The need forthis presumption has come about by reason of the decision of the High Court in
Chinpo Shipping Co (Pte) Ltd v Public Prosecutor [2017] SGHC 108, whichsuggests that the undertaking of remittances that are purely incidental to a primarybusiness of ship agency and ship chandelling would not have constituted thecarrying on of a remittance business for the purpose of section 6(1) of the
Money-changing and Remittance Businesses Act.
Clause 6 sets out the 3 types of licences that a person can apply for, namely, amoney-changing licence, a standard payment institution licence and a major
payment institution licence, and provides for matters related to an application for,and the grant of, a licence. The clause also prohibits a licensee from carrying on abusiness of providing certain payment services if the total values (e.g. of paymenttransactions or e-money) involved exceed certain thresholds, unless the licensee
has in force a major payment institution licence.
Clause 7 provides for matters related to a variation of a standard payment
institution licence or major payment institution licence (by a change of the types of
payment services that may be provided under the licence), or a change of the typeof licence, held by a licensee.
Clause 8 prohibits a person from holding the person out as carrying on abusiness of providing any type of payment service, unless the person is a licensee,
an exempt payment service provider, or a person exempt under clause 100, in
respect of that type of payment service. The clause also prohibits a person fromholding the person out as a licensee, unless the person has in force a licence.
Clause 9 prohibits a person (other than a licensee or an exempt payment service
provider) from doing certain things. The clause also prohibits a person in
Singapore (whether or not a licensee or an exempt payment service provider) fromdoing certain things on behalf of a person outside Singapore who is not a licensee
and is not an exempt payment service provider. The things that the person isprohibited from doing are as follows:(a) offering to provide (or issuing an advertisement containing an offer toprovide) any payment service to the public, or any section of the
public, in Singapore;(b) making an offer or invitation (or issuing an advertisement containing
an offer or invitation) to the public, or any section of the public, in193

Singapore, to enter into any agreement relating to the provision of any
type of payment service.
Clause 10 requires a licensee to pay a prescribed annual fee to the Authority.
The clause also empowers the Authority to prescribe different annual fees fordifferent classes of licensees, depending on the type and number of payment
services that a licensee is entitled to carry on a business of providing, the volumeof transactions accepted, processed or executed by a licensee, and all other factors
which the Authority may consider relevant.
Clause 11 provides for the surrender of a licence, and sets out thecircumstances in which a licence lapses or may be revoked by the Authority.
The Authority may suspend a licence instead of revoking it, and may extend orcancel the suspension. The clause also sets out the obligations of a licensee on thelapsing, revocation or suspension of a licence.
Clause 12 enables a person aggrieved by the Authority’s refusal to grant alicence to the person, or the revocation or suspension of the person’s licence, toappeal to the Minister.
Clause 13 exempts certain persons (such as banks licensed by the Authority)from the requirement to have in force a licence to carry on a business of providing
any payment service. These persons (called exempt payment service providers)
are required to comply with certain provisions of the Bill, but may apply to the
Authority to be exempt from complying with any of those provisions. The
Authority may prescribe, or specify by notice in writing, the conditions or
restrictions imposed on an exempt payment service provider. The Authority may
by notification in the Gazette declare that a person ceases to be exempt underclause 13(1), or may withdraw an exemption granted to a person underclause 13(3), in certain circumstances. A person that is aggrieved by a decisionof the Authority to make such a declaration in respect of the person, or to withdraw
an exemption granted to the person under clause 13(3), may appeal to the Minister.
Clause 14 requires a licensee to have a permanent place of business or aregistered office in Singapore.
Clause 15 requires a licensee to notify the Authority of the occurrence of
certain events, such as any civil or criminal proceedings instituted against thelicensee (whether in Singapore or elsewhere), and any event (including anirregularity in the operations of the licensee) that materially impedes or impairs
the operations of the licensee.
Clause 16 empowers the Authority to require a licensee to provide to the
Authority information relating to the licensee’s business of providing any payment
service. This is to facilitate the performance of the Authority’s regulatory
function.

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Clause 17 empowers the Authority to require a licensee to submit periodic
reports or returns relating to the licensee’s business to the Authority. This is also tofacilitate the performance of the Authority’s regulatory functions.
Clause 18 prohibits a licensee from providing any type of payment service inSingapore through an agent, unless the agent is licensed to carry on a business ofproviding that type of payment service or is an exempt payment service provider
in respect of that type of payment service.
Clause 19 prohibits a licensee that carries on a business of providing an accountissuance service from doing any of the following things, where certain matters
apply:(a) allowing a payment service user, to whom the licensee has issued any
payment account or provided any service relating to any operation
required for operating a payment account, to withdraw e-money fromthat payment account and to exchange that e-money for Singapore
currency, at the licensee’s place of business;(b) entering into any agreement or arrangement, with any entity
incorporated, formed or registered, or carrying on a business, in
Singapore, that would allow a payment service user, to whom thelicensee has issued any payment account or provided any service
relating to any operation required for operating a payment account, towithdraw e-money from that payment account and to exchange thate-money for Singapore currency, in Singapore.
Clause 20 prohibits a licensee from carrying on a business of granting any
credit facility to any individual in Singapore. The clause also prohibits a licensee
that carries on a business of providing an e-money issuance service from lending
any customer money, or using any customer money (or any interest earned on that
customer money) to finance wholly or to a material extent any activity of any
business carried on by the licensee.
Clause 21 states that section 14 of the Currency Act (Cap. 69) does not apply tothe issue of e-money.
Clause 22 requires a major payment institution to maintain with the Authority
security to ensure that the major payment institution fulfils its obligations to its
customers. The clause empowers the Authority to use the deposit to pay any sums
claimed by the customers of the major payment institution, where the major
payment institution has surrendered its licence, or that licence has lapsed or has
been revoked.
Clause 23 requires every major payment institution that carries on a business ofproviding a domestic money transfer service, a cross-border money transfer
service, a merchant acquisition service or an e-money issuance service tosafeguard, in the manner set out in the clause, the whole or such part (as may be195prescribed) of the money received from, or an account of, a customer. The clausealso provides for the obligations of a major payment institution and a safeguarding
institution in respect of such safeguarding, and for the clause to apply with thenecessary modifications to any licensee, other than a major payment institution,that may be prescribed.
Clause 24 requires a major payment institution that carries on a business ofproviding an account issuance service to ensure that —(a) the currency equivalent of the e-money contained in a personal
payment account issued to a payment service user does not exceed theprescribed amount;(b) the total currency equivalent of the e-money transferred in one year
from a personal payment account issued to a payment service user(other than to a personal deposit account in the name of or designatedby that payment service user) does not exceed the prescribed amount;and(c) if the major payment institution issues 2 or more personal payment
accounts to the same payment service user —(i) the total currency equivalent of the e-money contained in all
personal payment accounts issued to that payment service user
does not exceed the prescribed amount; and(ii) the total currency equivalent of the e-money transferred in one
year from all personal payment accounts issued to that payment
service user (other than to any personal deposit account in thename of or designated by that payment service user) does notexceed the prescribed amount.
Clause 25 empowers the Authority to issue a notice in writing directing apayment service provider (being a major payment institution, an exempt payment
service provider or a person exempt under clause 100) to be a participant of apayment system, or to enter into an arrangement with the operator of the payment
system, to ensure interoperability between payment accounts issued by thepayment service provider and a payment system. The clause also sets out some of
the matters that the Authority must have regard to in considering whether to issue
such a notice in writing.
Clause 26 empowers the Authority to issue a notice in writing directing apayment service provider (being a major payment institution, an exempt payment
service provider or a person exempt under clause 100) that operates a payment
system to adopt any common standard, on such terms and conditions as the
Authority may consider appropriate, in order to ensure interoperability between
different payment systems operated by different payment service providers.
Clause 27 specifies the persons to whom Division 3 of Part 2 applies.

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Clause 28 requires a person to apply for and obtain the Authority’s approval to
become a 20% controller of a licensee.
Clause 29 enables the Authority to serve a written notice of objection on a
person that is, or is required to obtain or has obtained the Authority’s approval to
become, a 20% controller of a licensee. The notice of objection may require theperson to cease to be a 20% controller of a licensee, or to comply with a direction
under clause 30 (relating to the transfer or disposal of shares in the licensee). A
person served with a notice of objection must comply with the notice within thetime specified by the Authority in the notice.
Clause 30 empowers the Authority, in a case where the Authority is satisfied
that a person has contravened certain provisions of, or has failed to comply withany condition under, clause 28, or where the Authority has served a written noticeof objection under clause 29, to do any of the following things by notice in writing:(a) direct the transfer or disposal of all or any of the person’s shares in thelicensee;(b) restrict the transfer or disposal of all or any of those shares;(c) make such other direction as the Authority considers appropriate.
Clause 31 empowers the Authority to direct a licensee, by notice in writing, toprovide to the Authority any information relating to any of the licensee’s
shareholders that the Authority may require for certain regulatory purposes. The
clause also empowers the Authority to direct a shareholder of the licensee, or aperson that appears to have an interest in any share in the licensee, to provide to the
Authority certain information relating to that shareholder or person.
Clause 32 sets out certain offences, penalties and defences applicable toDivision 3 of Part 2.
Clause 33 enables certain persons aggrieved by certain decisions of the
Authority under Division 3 of Part 2 to appeal to the Minister.
Clause 34 requires a licensee to apply for and obtain the Authority’s approval
before appointing an individual as —(a) in the case of a licensee incorporated or formed in Singapore — thechief executive officer, a director or a partner of the licensee; or(b) in the case of a licensee incorporated or formed outside Singapore —the chief executive officer, a director or a partner of the licensee who isdirectly responsible for the whole or any part of the licensee’s businessin Singapore.
Clause 35 empowers the Authority to direct a licensee incorporated or formedin Singapore to remove the chief executive officer, a director or a partner of thelicensee on certain grounds.

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Clause 36 enables certain persons aggrieved by certain decisions of the
Authority under Division 4 of Part 2 to appeal to the Minister.
Clause 37 requires a licensee to appoint an auditor on an annual basis, andprovides for matters concerning the duties and remuneration of an auditor of alicensee. The clause also empowers the Authority —(a) to appoint an auditor for a licensee in certain circumstances;(b) to impose additional duties on an auditor of a licensee; and(c) to require a licensee to replace an auditor of the licensee, if the
Authority is not satisfied with the auditor’s performance of any duty.
Clause 38 sets out the powers that an auditor, who is appointed by the
Authority, may exercise for the purpose of carrying out an examination or audit.
Clause 39 prohibits an auditor of a licensee, and an employee of the auditor,
from disclosing information that comes to the auditor’s or employee’s knowledge
in the course of performing the auditor’s or employee’s duties, except in certain
cases.
Clause 40 criminalises certain acts done with the intention to prevent, delay or
obstruct the carrying out of an examination or audit.
PART 3
PAYMENT SYSTEMSPart 3 (comprising clauses 41 to 71) deals with the oversight of payment
systems, and mainly updates the regulatory regime for payment systems (inparticular, designated payment systems and their operators, settlement institutions
and participants) under the Payment Systems (Oversight) Act.
Clause 41 empowers the Authority to require any participant, operator or
settlement institution of a payment system (or any person acting on behalf of theoperator) to provide to the Authority information relating to the payment system.
Clause 42 empowers the Authority to designate a payment system as adesignated payment system. The clause also sets out the considerations that the
Authority may take into account in deciding whether to designate a payment
system as a designated payment system.
Clause 43 prohibits a person from holding the person out as the operator or
settlement institution of a designated payment system unless the Authority has
designated the payment system as a designated payment system.
Clause 44 empowers the Authority to impose conditions or restrictions on an
operator, a settlement institution or a participant of a designated payment system.

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Clause 45 empowers the Authority to withdraw the designation of a designatedpayment system when the applicable consideration for designating that payment
system is no longer valid or satisfied.
Clause 46 sets out the exemptions applicable to an operator, a settlement
institution or a participant of a payment system that is designated to ensure
efficiency or competitiveness in any of the services provided by the operator of thepayment system.
Clause 47 requires an operator and a settlement institution of a designatedpayment system to establish a permanent place of business or a registered office inSingapore.
Clause 48 requires an operator or a settlement institution of a designatedpayment system to notify the Authority of the occurrence of certain events, such as
an intention to make a material change to the nature of the operating rules,
settlement procedures or activities of the designated payment system, and an eventor irregularity that impedes or prevents access to, or impairs the usual operationsof, the designated payment system or its settlement operations.
Clause 49 requires an operator of a designated payment system to submit to the
Authority periodic reports or returns.
Clause 50 requires an operator of a designated payment system to notify the
Authority of the carrying on by the operator of any business (the firstmentioned
business) other than, or the acquisition by the operator of a substantial
shareholding in a corporation that does not carry on, the business of operating
a payment system, a business incidental to operating a payment system, or aprescribed business or class of businesses. The clause also empowers the
Authority to direct an operator of a designated payment system to cease carrying
on the firstmentioned business, to carry on the firstmentioned business subject tosuch conditions or restrictions as the Authority may impose, to dispose of theoperator’s shareholding in the corporation, or to exercise the operator’s rights
relating to that shareholding subject to such conditions or restrictions as the
Authority may impose.
Clause 51 empowers the Authority to impose an access regime in respect of a
relevant payment system on one or more of the following persons or classes of
persons:(a) a participant or class of participants of that payment system;(b) an operator, or a class of operators, of that payment system;(c) a settlement institution or class of settlement institutions of thatpayment system;(d) any other person or class of persons that determines access to thatpayment system.

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The clause also sets out the matters that the Authority must have regard to inconsidering whether to impose an access regime.
Clause 52 empowers the Authority to vary an access regime, and sets out thematters that the Authority must have regard to in considering whether to vary anaccess regime.
Clause 53 specifies when an access regime ceases to be in force. The clausealso empowers the Authority to revoke an access regime, and sets out the mattersthat the Authority must have regard to in considering whether to revoke an accessregime.
Clause 54 enables a person that has been denied access to a relevant payment
system to apply to the High Court for certain orders.
Clause 55 defines certain terms used in Division 5 of Part 3.
Clauses 56 and 57 provide for certain matters relating to the voluntary transferof the business of an operator or a settlement institution of a designated payment
system. An operator or a settlement institution of a designated payment system
may transfer the whole or part of its business (including any business that is not theusual business of an operator or a settlement institution of a designated payment
system) to a transferee, if (among other things) the Authority has consented to thetransfer, and the High Court has approved the transfer. Clauses 56 and 57 do not
apply to the transfer of any business of an operator or a settlement institution of adesignated payment system under any other law.
Clause 58 specifies the persons to whom Division 6 of Part 3 applies.
Clause 59 requires a person to apply for and obtain the Authority’s approval to
become a 5% controller, a 12% controller, a 20% controller or an indirectcontroller of an operator of a designated payment system, or to enter into anagreement or arrangement described in clause 59(2).
Clause 60 enables the Authority to serve a written notice of objection on a
person that is, or is required to obtain or has obtained the Authority’s approval to
become, a 5% controller, a 12% controller, a 20% controller or an indirectcontroller of an operator of a designated payment system, or is required to obtainor has obtained the Authority’s approval to enter into an agreement or arrangement
described in clause 59(2). The notice of objection may require the person to cease
to be a 5% controller, a 12% controller, a 20% controller or an indirect controller(as the case may be) of the operator, to take steps to cease to be a party to theagreement or arrangement described in clause 59(2), or to comply with a direction
under clause 61 (relating to the transfer or disposal of shares in the operator). A
person served with a notice of objection must comply with the notice within thetime specified by the Authority in the notice.
Clause 61 empowers the Authority, in a case where the Authority is satisfied
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any condition under, clause 59, or where the Authority has served a written noticeof objection under clause 60, to do any of the following things by notice in writing:(a) direct the transfer or disposal of all or any of the person’s shares in theoperator of a designated payment system;(b) restrict the transfer or disposal of all or any of those shares; or(c) make such other direction as the Authority considers appropriate.
Clause 62 empowers the Authority to direct an operator of a designatedpayment system, by notice in writing, to provide to the Authority any information
relating to any of the operator’s shareholders that the Authority may require forcertain regulatory purposes. The clause also empowers the Authority to direct ashareholder of the operator, or a person that appears to have an interest in any
share in the operator, to provide to the Authority certain information relating tothat shareholder or person.
Clause 63 sets out certain offences, penalties and defences applicable toDivision 6 of Part 3.
Clause 64 enables certain persons aggrieved by certain decisions of the
Authority under Division 6 of Part 3 to appeal to the Minister.
Clause 65 requires an operator of a designated payment system to apply for andobtain the approval of the Authority before appointing an individual as —(a) in the case of a Singapore operator of a designated payment system —the chief executive officer or a director of the operator; or(b) in the case of any other operator of a designated payment system — thechief executive officer or a director of the operator who is directly
responsible for the whole or any part of the operator’s business in
Singapore.
Clause 66 empowers the Authority to direct an operator or a settlement
institution of a designated payment system to remove an executive officer or adirector of the operator or settlement institution (as the case may be) on certain
grounds.
Clause 67 enables certain persons aggrieved by certain decisions of the
Authority under Division 7 of Part 3 to appeal to the Minister.
Clause 68 requires an operator or a settlement institution of a designatedpayment system to appoint an auditor on an annual basis, and provides for mattersconcerning the duties and remuneration of an auditor of an operator or a settlement
institution of a designated payment system. The clause also empowers the
Authority —(a) to appoint an auditor for an operator or a settlement institution of adesignated payment system in certain circumstances;

201(b) to impose additional duties on an auditor of an operator or a settlement
institution of a designated payment system; and(c) to require an operator or a settlement institution of a designatedpayment system to replace an auditor of the operator or settlement
institution (as the case may be) if the Authority is not satisfied with theauditor’s performance of any duty.
Clause 69 sets out the powers that an auditor, who is appointed by the
Authority, may exercise for the purpose of carrying out an examination or audit.
Clause 70 prohibits an auditor of an operator or a settlement institution of adesignated payment system, and an employee of the auditor, from disclosing
information that comes to the auditor’s or employee’s knowledge in the course of
performing the auditor’s or employee’s duties, except in certain cases.
Clause 71 criminalises certain acts done with the intention to prevent, delay or
obstruct the carrying out of an examination or audit.
PART 4
INSPECTION AND INVESTIGATIONSPart 4 (comprising clauses 72 to 76) confers certain additional powers ofinspection and investigation on the Authority.
Clause 72 empowers the Authority to inspect, under conditions of secrecy, thebooks of a licensee, an exempt payment service provider, an operator of adesignated payment system, a settlement institution of a designated payment
system, a participant of a designated payment system and a person exempt underclause 100. The clause also sets out the obligations of these persons, and provides
for certain matters relating to inspections carried out by the Authority under theclause.
Clause 73 empowers the Authority to conduct an investigation for certain
purposes. The clause also provides for certain matters relating to investigations
carried out by the Authority under the clause.
Clause 74 provides for the confidentiality, and for restrictions on thedisclosure, of the Authority’s report produced following an inspection by the
Authority under clause 72 or an investigation by the Authority under clause 73.
Clause 75 provides that a person is not excused from disclosing information to
the Authority under Part 4 on the ground that the disclosure of the information
might tend to incriminate the person. However, if the person claims (before
making a statement disclosing the information) that the statement might tend toincriminate the person, that statement is not admissible in evidence against theperson in criminal proceedings other than proceedings for an offence underclause 94(3).

202Clause 76 makes it clear that Part 4 does not require an advocate and solicitor todisclose any privileged communication made by or to the advocate and solicitor inthat capacity. However, the advocate and solicitor must give the name and address(if known to the advocate and solicitor) of the person to whom, or by or on behalfof whom, that privileged communication was made.
PART 5EMERGENCY POWERSPart 5 (comprising clauses 77 to 83) deals with the powers that may be
exercised by the Authority in an emergency.
Clause 77 defines certain terms that are used in Part 5. In particular, the clausedefines an “emergency” as —(a) any situation that prevents a designated payment system from carryingout its functions;(b) any situation in which, in the opinion of the Authority, the operationsof a designated payment system are carried on in a manner likely to be
detrimental to the interests of the participants of the designatedpayment system; or(c) any undesirable situation or practice that, in the opinion of the
Authority, constitutes an emergency.
Clause 78 empowers the Authority to exercise one or more of the following
powers with respect to a payment entity in certain circumstances:(a) require the payment entity to take any action or to do or not to do any
act in relation to its business;(b) appoint a statutory adviser to advise the payment entity on the proper
management of such business of the payment entity as the Authority
may determine;(c) assume control of and manage such business of the payment entity as
the Authority may determine, or appoint a statutory manager to do so.
Clause 79 empowers the Authority to exercise certain powers in relation to a
designated payment system where the Authority has reason to believe that an
emergency exists, or thinks it is necessary or expedient in the interests of the
public or a section of the public.
Clause 80 sets out the powers and obligations of the Authority or a statutory
manager upon assuming control of the relevant business of a payment entity. The
clause also states the effects of such assumption of control on any appointment of
an individual as chief executive officer or director of the payment entity.

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Clause 81 specifies when a statutory manager is deemed to have assumed
control of the relevant business of a payment entity. The clause also specifies thecircumstances in which the Authority must cease, or the statutory manager ceases,
to be in control of the relevant business, and the circumstances in which theappointment of a statutory manager may be revoked.
Clause 82 sets out the obligations of a current or former chief executive officer,
director, executive officer, employee, agent, banker, auditor or office-holder of, or
trustee for, a payment entity, during the period when the Authority or a statutory
manager is in control of the relevant business of the payment entity.
Clause 83 empowers the Authority to fix the remuneration and expenses a
payment entity has to pay to the Authority and any person appointed by the
Authority (where the Authority has assumed control of the relevant business of thepayment entity), a statutory adviser or a statutory manager.
PART 6ASSISTANCE TO FOREIGN REGULATORY AUTHORITIESPart 6 (comprising clauses 84 to 89) deals with the assistance that may berendered by the Authority to foreign regulatory authorities that exercise functions
corresponding to the regulatory functions of the Authority under the Bill.
Clause 84 defines certain terms that are used in Part 6.
Clause 85 sets out the conditions that must be fulfilled before the Authority
may provide assistance under Part 6 at the request of a foreign regulatory
authority. For example —(a) the assistance must be intended for one of several specified purposes;(b) the requesting authority must undertake —(i) not to disclose any acquired material to any person (other thana designated third party);(ii) to obtain the prior consent of the Authority before disclosing
any acquired material to a designated third party; and(iii) to make such disclosure only in accordance with conditions
imposed by the Authority; and(c) the matter to which the request relates is of sufficient gravity.
Clause 86 provides that in considering whether to grant the request, theAuthority may also consider —(a) whether it would be an offence under the Bill if the act or omission towhich the request relates were committed in Singapore; and204(b) whether the requesting authority is willing to extend similar assistanceto the Authority and to contribute towards the costs of assistance.
Clause 87 sets out the types of assistance that may be rendered. These include
the transmission of material in the Authority’s possession to the requesting
authority, and the ordering of a person to provide material or an oral statement to
the Authority for onward transmission to the requesting authority, or to transmit
material directly to the requesting authority.
Clause 88 makes it an offence for a person to do certain acts, namely, refusing
or failing to comply with an order made under clause 87(1)(b), (c) or (d),providing to the Authority or transmitting to the requesting authority any material
or copy of material that the person knows to be false or misleading in a material
particular, or making to the Authority a statement that is false or misleading in amaterial particular.
Clause 89 provides certain immunities to a person that complies with an ordermade under clause 87(1)(b), (c) or (d).
PART 7
OFFENCES
Part 7 (comprising clauses 90 to 96) provides for matters relating to offences
under the Bill.
Clause 90 provides for the circumstances under which certain persons of acorporation assume liability for an offence that the corporation commits under theBill. The clause also states what constitutes evidence that a corporation had aparticular state of mind, where it is necessary to prove the state of mind of thecorporation in a proceeding for an offence under the Bill.
Clause 91 provides for the circumstances under which certain persons of anunincorporated association or a partnership assume liability for an offence that theunincorporated association or partnership commits under the Bill. The clause also
states what constitutes evidence that an unincorporated association or apartnership had a particular state of mind, where it is necessary to prove thestate of mind of the unincorporated association or partnership in a proceeding for
an offence under the Bill.
Clause 92 provides that an officer of a relevant entity (being a licensee, or an
operator, a settlement institution, or a participant, of a payment system) whose
duty is or includes —(a) ensuring that the relevant entity complies with a provision of the Bill;or(b) submitting information to the Authority or any other person under the
Bill,

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commits an offence if the officer fails to take all reasonable steps to ensure suchcompliance or to ensure that the information submitted is accurate and correct, as
the case may be.
Clause 93 makes it an offence for any officer, auditor, employee or agent of a
relevant entity (being a licensee, or an operator, a settlement institution, or aparticipant, of a payment system) to wilfully falsify any book or other document of
the relevant entity, wilfully omit to make an entry in any book or other documentof the relevant entity, or wilfully alter, extract, conceal or destroy an entry in any
book or other document of the relevant entity.
Clause 94 requires an individual who provides the Authority with any
information under the Bill, or signs or lodges any document with the Authority, touse reasonable care to ensure that the information or document is not false or
misleading in any material particular.
Clause 95 prescribes the penalties for offences under the Bill where no penalty
is expressly provided.
Clause 96 empowers the Authority to compound any offence under the Bill, theMoney-changing and Remittance Businesses Act or the Payment Systems(Oversight) Act, that is or was prescribed as a compoundable offence.
PART 8MISCELLANEOUS
Part 8 (comprising clauses 97 to 108) deals with miscellaneous matters.
Clause 97 empowers a District Court to try any offence under the Bill, and to
impose the full penalty or punishment in respect of such offence, despite the
Criminal Procedure Code (Cap. 68).
Clause 98 empowers the Authority to prescribe the manner in which a person is
to be given an opportunity to be heard, where the Bill provides for suchopportunity.
Clause 99 empowers the court, on the application of the Authority, to makecertain orders against a person that has committed or is about to commit an offence
under the Bill. A person that, without reasonable excuse, contravenes an ordermade by the court may be punished either under this provision or for contempt of
court. The provision further makes it clear that if a person is punished under thisprovision, the person cannot be punished again for contempt of court and viceversa. This is to ensure that a person is not punished twice for the same
contravention.
Clause 100 empowers the Authority, on its own initiative, to exempt (subject toconditions), by regulations, from all or any of the provisions of the Bill —206(a) any person or class of persons;(b) any payment service or class of payment services;(c) any payment system or class of payment systems;(d) any payment account or class of payment accounts;(e) any shares or interests in shares or class or description of shares orinterests in shares; and(f) any other thing or class or description of things.
The clause also empowers the Authority to grant certain exemptions by notice inwriting upon a person’s application.
Clause 101 empowers the Authority to issue codes, guidelines, policy
statements, practice notes and no-action letters as it considers necessary forproviding guidance on certain matters. These instruments are not subsidiarylegislation.
Clause 102 empowers the Authority to impose requirements on the following
persons, with respect to certain matters and in certain circumstances, by notice inwriting:(a) any licensee or class of licensees;(b) any operator, or class of operators, of a relevant payment system;(c) any settlement institution, or class of settlement institutions, of a
relevant payment system;(d) any participant, or class of participants, of a relevant payment system;(e) any person, or class of persons, that determines access to a relevant
payment system;(f) any exempt payment service provider or class of exempt payment
service providers;(g) any person, or class of persons, exempt under clause 100;(h) any person that contravenes, has contravened, or is likely tocontravene, any provision of the Bill.
Clause 103 empowers the Authority to make regulations to, among otherthings, prescribe matters required or permitted to be prescribed by the Bill.
Clause 104 empowers the Authority to prepare and publish certain statementsfrom time to time.
Clause 105 makes provision for the service of documents under the Bill.

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Clause 106 provides for the electronic service of documents on any person
under the Bill, where the person has consented to be served documents through the
Authority’s electronic service.
Clause 107 empowers the Minister to amend the First and Second Schedules byorder in the Gazette, and to make such incidental, consequential or supplementaryprovisions (including provisions of a saving or transitional nature consequent to
the enactment of that order) as the Minister may consider necessary or expedient.
Clause 108 repeals the Money-changing and Remittance Businesses Act and
the Payment Systems (Oversight) Act.
PART 9CONSEQUENTIAL AND RELATED AMENDMENTS TO OTHER ACTS
Part 9 (comprising clauses 109 to 120) deals with consequential and related
amendments to other Acts, arising from the replacement of the Money-changing
and Remittance Businesses Act and the Payment Systems (Oversight) Act by theBill.
Clause 109 makes consequential amendments to the Central Provident Fund
Act (Cap. 36).
Clause 110 makes consequential and related amendments to the Companies
Act (Cap. 50).
Clause 111 makes consequential amendments to the Credit Bureau Act 2016
(Act 27 of 2016).
Clause 112 makes a consequential amendment to the Financial Advisers Act(Cap. 110).
Clause 113 makes a consequential amendment to the Financial Holding
Companies Act 2013 (Act 13 of 2013).
Clause 114 makes consequential and related amendments to the Insolvency,
Restructuring and Dissolution Act 2018 (Act 40 of 2018).
Clause 115 makes a consequential amendment to the Insurance Act (Cap. 142).
Clause 116 makes a related amendment to the Limited Liability Partnerships
Act (Cap. 163A).
Clause 117 makes consequential and related amendments to the Monetary
Authority of Singapore Act (Cap. 186).
Clause 118 makes consequential and related amendments to the Remote
Gambling Act 2014 (Act 34 of 2014).
Clause 119 makes a consequential amendment to the Securities and Futures
Act (Cap. 289).

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Clause 120 makes a consequential amendment to the Small Claims Tribunals
Act (Cap. 308).
PART 10SAVING AND TRANSITIONAL PROVISIONSPart 10 (comprising clauses 121 to 126) deals with saving and transitional
provisions to facilitate the replacement of the Money-changing and RemittanceBusinesses Act and the Payment Systems (Oversight) Act by the Bill.
Clause 121 defines certain terms that are used in Part 10.
Clause 122 contains saving and transitional provisions for any person that,
immediately before the date of commencement of clause 108 (the appointed day),is a holder of a remittance licence or a money-changer’s licence under the
Money-changing and Remittance Businesses Act or is an approved holder of astored value facility under the Payment Systems (Oversight) Act.
Clause 123 contains saving and transitional provisions for any person that,
immediately before the appointed day, was granted certain exemptions under the
Money-changing and Remittance Businesses Act or the Payment Systems(Oversight) Act.
Clause 124 provides for the treatment of pending applications for licences andpending applications for renewals under the Money-changing and RemittanceBusinesses Act, and pending applications for certain approvals under the Payment
Systems (Oversight) Act.
Clause 125 provides for savings and transitional provisions for any payment
system that, immediately before the appointed day, is a designated payment
system under the Payment Systems (Oversight) Act.
Clause 126 empowers the Minister to make regulations of a saving andtransitional nature for a limited time.
The First Schedule sets out the services that are payment services, and theservices that are not payment services, for the purposes of the definition of
payment service in clause 2(1). In addition, certain terms defined in clause 2(1)adopt the meanings given by Part 3 of the First Schedule for those terms as used inthat Schedule.
The Second Schedule sets out provisions of the Bill under which an officer ofthe Authority, who is appointed by the Authority under clause 4(2), may grant an
exemption to a particular person, or revoke any such exemption.

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EXPENDITURE OF PUBLIC MONEYThis Bill will not involve the Government in any extra financial expenditure.