Major Payment Institution License Services Singapore

What are the activities that fall under the Fintech Major Payment Institution License?

All the payment services in Singapore are subject to the Payment of Services Act. Here are some of the activities that fall under this sector, and anyone who undertakes these operations must get a payment institution license.

• Domestic money transfer operation MPI License Singapore
• Payment account’s management MPI License Singapore
• Issuance of e-money MPI License Singapore
• Cryptocurrency MPI License Singapore
• Money-changing operations MPI License Singapore

Singapore Fintech: Fintech Major Payment Institution License Service

Fintech refers to the process of running financial operations using technological solutions. It is a broad sector that features several categories where various sectors require different permits. One of the most popular sectors is the Fintech Major Payment Institution License. This permit is quite similar to the Standard Payment Institution license in its requirements and operation. However, the significant difference is that the Major Payment Institution (MPI) License has no limit. Also, it has stricter compliance requirements, and the minimum base capital requirement is higher.

Key Features of the Major Payment Institution (MPI) License in Singapore

The Major payment institution license is different from the standard payment institution license since it has no particular threshold that it has to follow. However, any payment services that don’t fall under Standard falls under the MPI license. The three limitations for SPI license include:

At most, S$3 million of monthly transactions in exception of money-changing payment services and the e-money issuance service
Monthly transactions of at most S$6 million when dealing with two or more services in exception of the money-changing and e-money issuance category
S$5 million outstanding e-money daily

When you are dealing with the Payment Institution license, consider the features above. If your enterprise doesn’t match any of the above conditions, you need to acquire the Major Payment Institution license to run your business effectively.

How to Apply for a Major Payment Institution License

The global fintech hub status of Singapore necessitates digital payment service companies to acquire a Major Payment Institution (MPI) License from the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA). Firms aiming to offer payment services beyond specified thresholds must obtain the Major Payment Institution License which Monetary Authority of Singapore issues. Application Process:
1. Preparation Phase
Complete your work by preparing every PSA mandated document along with the required papers. All necessary documentation such as business plan documentation along with AML/CFT policies and compliance framework and key personnel details must be included.

2. Pre-application Consultation (Optional)
Complex business models require a meeting with MAS which provides guidance to help you with your application.

3. File the application through the MAS Go portal.
The application process takes place through MAS Go portal services. Include all supporting documents. The application fees for licenses start between S$1,000 and extend up to S$8,000 based on the specific services requested.

4. Assessment and Review
The assessment of your application will be conducted by MAS after examining financial strength alongside risk management alongside compliance readiness. This may take several months.

5. License Approval
After a successful evaluation process you will obtain the MPI license together with its established conditions. A medical service provider must continuously meet their requirements under MAS regulations.

What are the Requirements ?

When applying for the Fintech Major Payment Institutions Lincese applicants should take care of the following issues

Fit and Proper Requirement

Entrepreneurs who want to apply for the Major Payment Institutions license must ensure that their business and all key team individuals satisfy the MAS 'Fit and Proper ' Criteria. The company must have a good overall reputation, especially in its approach to financial fraud.

Staff Requirement

Key individuals in the company must have adequate and impeccable experience in relevant fields and Education to match. MAS uses this criterion to test the competence of the staff and their ability to provide excellent services.

Minimum Base Capital

The applicant must ensure that the Fintech Company meets the minimum base capital requirements of S$250,000. The company should also maintain a standard amount of money in its reserves which can deal with potential losses.

Permanent Physical Office

Every company applying for the MPI license must have a registered office with all relevant records. It must be an operational office with at least one person working, whose primary role would be to address customer complaints and answer inquiries about the company and its operations..

Financial Security Deposit

As an essential feature applicable under the M P I License, an applicant must provide security through money. Suppose your business remittance service is S$6 million or less, the security amount is S$100,000 if the remittance service is more, then the standard security guarantee is S$200,000.

Compliance Program

Every M I P License applicant must adhere to a compliance program and ensure arrangements that match their operations' intensity and nature are provided. The responsibility of this rests on the shoulders of the company's key individuals even if the operatives of the program are other staff.

Technology Risk Management

MAS provides TRM guidelines on their website, which are accessible to all. These policies refer to Fintech's ability to comply with risk management guidelines given by MAS. However, this requirement is not mandatory during the application process; instead, it becomes a must-fulfill feature after getting your license.

Annual audit requirements

Another essential requisite for the Major Payment Institution License application process is to make arrangements to conduct yearly audits of the business as chartered and outlined by the MAS. The selection of the auditor becomes a critical issue as He /she must meet and match the relevant standards that every auditor/employee has to meet under the MAS staff guidelines.

Annual Compliance

If your business runs under any of this category, you must fill monthly, half-yearly, and annual returns to MAS. The process may be challenging, but you can always engage with our team for assistance.

Understanding the Processing Time for Major Payment Institution (MPI) License Application in Singapore

Before applying for the Major Payment Institution License in Singapore, the applicant must prepare the form between four to six weeks. After filling out all the information and filling the application, MAS often takes four months when dealing with complete and well-defined applications. However, complex business models or incomplete applications for this Fintech Payment License in Singapore may experience longer processing times.

Partnering with experienced professionals like us can significantly streamline your MPI License Application in Singapore, ensuring your forms are accurate and well-defined, potentially leading to a more efficient review process by the MAS.

Major Payment Institution (MPI) License Fees in Singapore

Licensee holding a Major Payment Institution (MPI) License in Singapore have to pay a yearly license fee of S$0 and S$1500 for companies under account issuance and money-changing payment services. Companies under all the other MAS Payment Services License categories must pay license fees of S$5000. Understanding these Singapore Payment Institution Licensing fee structures is crucial for financial planning.

Key things to consider after approval of the Major Payment Institution License

After MAS approves your license application, there are some requirements that you must maintain to avoid MAS revoking your license. They include:

1. Anti-money laundering and financial fraud requirements: Every license holder under the Payment Institution Act must fulfill the AML / CFT guidelines. Also, they must report in case of any suspicious activities.

2. Cyber Hygiene Policies: Ensure that your Fintech Company matches the Cyber hygiene rules that MAS has set up under the Cyber Hygiene notice.

3. Business conduct: Every licensee must ensure that their enterprise complies with the Notice of Conduct requirements. Note that the business must follow all the regulations and abide by the prohibitions.

4. Communications: The enterprise must follow the Disclosure regulations and communicate to customers any changes in time.

How we can help

The application process is often a challenge to many people, especially inexperienced applicants, leading to incomplete applications or MAS revoking the license. This fact is what drives many people to seek assistance from professionals like us. We have a team of exceptional individuals who have the experience and knowledge to handle various cases. Partner with us and guarantee your company a fast and excellent application process. Also, we offer follow-up services under this license which you can always enquire about from our staff.

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Major Payment Institution (MPI) License Approval Timeline in Singapore

The time it takes for a major payment institutional license application to be approved in Singapore can vary depending on several factors. Such factors include the completeness of the application, the complexity of the business model, the quality of the supporting documents, and the workload of the Monetary Authority of Singapore during the application.

Additional information : The MAS aims to process standard payment institution (SPI) license applications within 60 business days and major payment institution (MPI) license applications within 120 business days from receipt of the complete application. However, the actual processing time may be longer if additional information or clarification is required, or if the application is subject to more extensive review or assessment.
Changes in regulation : The timeline for approval may be affected by factors outside of the MAS’ control, such as changes in regulations or market conditions that require additional due diligence or review.

To improve the chances of a timely approval, applicants should ensure that their application is complete, accurate, and supported by all the necessary documents. The applicant should also be responsive to any requests for additional information or clarification from the MAS and be prepared to engage in open and transparent communication with the regulator throughout the application process.

How Will You Know if Your Major Payment Institution Have Been Approved?

You will receive an approval letter from the MAS. The approval letter will include details such as the scope of your license, any specific conditions or limitations imposed on the license, and the effective date of the license.

Fees : The approval letter may also include instructions on the next steps, such as the requirement to pay the applicable fees or to submit any outstanding documents or information before the license can be activated.
Guidance : If your application has been rejected, the MAS will give you the reasons for the rejection and provide you with the opportunity to appeal the decision. The MAS will also provide guidance on any steps you can take to address the deficiencies or areas of concern that led to the rejection of the application.

Maintain ongoing compliance with the license requirements and engage in open and transparent communication with the MAS to ensure continued compliance.

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