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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.
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.
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:
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.
When applying for the Fintech Major Payment Institutions Lincese applicants should take care of the following issues
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.
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..
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.
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.
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.
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.
Before applying for the Major Payment Institution License, 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, it may take some more time to review and process your application in case of challenging issues.
With professionals like our time, you undergo a smooth application process where our team ensures that your form is complete and well-defined.
Licensee has 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 services must pay license fees of S$5000.
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.
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.
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.
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.
Maintain ongoing compliance with the license requirements and engage in open and transparent communication with the MAS to ensure continued compliance.
The MPI license doesn't have a threshold on deposit holding hence every payment service provider that doesn't fall under the features of the SPI is under the MPI license.
The two Payment institution licenses are similar in their requirements and nature of the operation
The application process is challenging; hence, the task is difficult, especially without the knowledge and experience in the relevant field. But with professionals like us assisting you, this process is simple and takes up less time.
Any financial enterprise that undertakes payment services and doesn't fall under the standard payment license requires this license
Yes. This license is a must-have permit for all financial businesses providing payment services that don't fall under the SPI license
Businesses that offer payment services must have the MPI license; otherwise, they may face harsh punishments such as banishment, imprisonment, and heavy fines.