PSP license in Singapore

Published:
April 14, 2023
district reflection bay commercial financial

Singapore is a popular destination for businesses looking to operate in Asia, including those in the Payment service provider license. In order to operate as a PSP in Singapore, a business-company must acquire a PSP license from the Monetary Authority of Singapore (MAS). This license is required under the Payment Services Act (PSA) of Singapore, which came into effect in January 2020.

The PSP license is a permission issued by the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA) of country. The PSA is a comprehensive regulatory framework that aims to provide a clear and consistent adjustment framework for remittance favors providers in the country.

Requirements for PSP license

In order to obtain a PSP license in Singapore, a firm must meet certain demands. These demands vary depending on the type of payment favors the company wishes to offer. The MAS distinguishes between three differ categories of payment favors:

  • Account issuance services
  • Domestic money transfer favors
  • Cross-border money transfer favors

The requirements for payment service providers are slightly different, but in general, a company must meet the following demands:

  • Incorporation: The company must be incorporated in the country as a private limited corporation.
  • Shareholders: The company must have at leastwise sharer who is a country resident.
  • Directors: The firm must have at least two managers who are Singapore residents.
  • Capital: The firm must have a minimum paid-up fund of S$100,000.
  • Compliance: The firm must have a robust conformity structure in place, including policies and procedures for anti-money laundering (AML) and countering the financing of terrorism (CFT).

Advantages of acquiring a Payment transfer license in Singapore

  • Access to a large and growing market: Singapore is a hub for biz in Asia, with a population of over 5.5 million people and a highly developed economy. By obtaining a PSP license in the country, a firm can access a large and growing market of consumers who are increasingly using digital payment services.
  • Stable regulatory environment: country is known for its stable political environment and well-developed adjustment framework. The MAS is responsible for regulating the financial favors production in the country, and has a reputation for being strict but fair. This provides a level of stability and predictability for PSP firms operating in the country.
  • Access to a talented workforce: the country has a highly educated and skilled workforce, with a strong focus on innovation and technology. By operating in country , PSP companies can access a pool of talented professionals who can help drive innovation and growth in the industry.
  • Easy access to other markets: the state has a well-developed transport and communication infrastructure, which makes it easy to access other markets in Asia and beyond. This can be particularly beneficial for PSP firms that offer cross-border remittance services.

Once a business-company has obtained a PSP permission, they are required to follow a range of ongoing adjustment demands. These include reporting demands, ongoing compliance monitoring, and regular audits.

Documents that you need to prepare

When applying for a PSP permission in a country, companies must submit a number of papers to the Monetary Authority of the country(MAS). The specific papers required may vary depending on the type of remittance favors the company wishes to supply , but generally the following documents are needed:

  • Incorporation documents: This includes the company’s certificate of incorporation, memorandum and articles of association, and biz profile.
  • Shareholder Information: Contains information about all shareholders, including their names, addresses and shareholdings.
  • Information about directors: This includes information about all directors, including their names, addresses and identity documents.
  • Financial statements: includes audited financial statements of the company for the last two years, as well as projected financial statements for the next three years.
  • A business plan. It contains a detailed business plan that describes the company’s operations, management structure and development strategies.
  • Compliance Concept: This includes the company’s anti-money laundering (AML) and anti-terrorist financing (FT) policies and procedures.
  • Due Diligence Documents: This includes due diligence documents on all material shareholders, directors and key employees, as well as any third party service suppliers.
  • IT System Documentation: This includes documentation of the company’s IT systems and security measures, including disaster recovery plans.
  • Other relevant papers: This may include any other relevant papers that relate to the type of payment favors that the company wishes to supply.

It is important for business-companies to ensure that all papers are accurate, complete and up-to-date, as any discrepancies or inaccuracies can delay the request process. In addition, firms should ensure that they have a robust conformity system in place, including anti-money laundering and anti-terrorist financing policies and procedures, as these are key areas of focus for MAS.

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