Monetary Authority of Singapore presents consultation paper for amendments in Payment Services Act 2019

Monetary Authority of Singapore presents consultation paper for amendments in Payment Services Act 2019

The Monetary Authority of Singapore (MAS) published a consultation paper to amend the Payment Services Act 2019. On 8th May, the MAS presented a consultation paper related to making amendments in anti-money laundering and countering finance terrorism (AML/CFL), and amendments in digital payment tokens (DPT). 

According to reports, the amendments will be open for discussion till 8th June and will take suggestions on mentioned topics like DPT, AML/CFL. The existing act will be amended to come up with additional fields relating to the newly scoped payment services. Additionally, the collected data would be used to augment our surveillance of the payment services. Under the proposed legislation, there’ll be data extension in data collection requirements like breakdowns in the numbers of customers, transaction value, and volume. The acquired data will help the MAS to keep a check on the anonymous nature of digital payment tokens (DPT).  

There’s also a proposed amendment in the anonymity-enhancing technologies because they pose a greater risk of money laundering and terror funding risks. To enhance the monitoring of digital payment tokens it’s necessary to bring up a comprehensive data collection policy. Also, the MAS is keen to protect the privacy of customers so that the collection of data doesn’t breach their privacy. Under the New Payments Services 2023 Regulations, the Monetary Authority of Singapore has decided to grant a six-month exemption from the date of commencement of the act. 

The country has been very active in the adoption of the digital payment system. In November 2022, MAS collaborated with the New York Innovation Centre (NYIC) of the Federal Reserve Bank of New York to cooperate in wholesale central bank digital currency (wCBDC). The future of the wCBDC for cross-border wholesale payments is being eagerly tested by regulators. Following its framework, NYIC and MAS will use wCBDCs as settlement assets in cross-border currency exchange transactions.

Also, in July 2022, the Monetary Authority of Singapore (MAS) informed parliament that the central bank of Singapore intends to impose additional restrictions on crypto trade. According to a report, more than 60% of people in the country want to invest in digital assets and to control this sector it’s very important to bring a comprehensive policy on digital payment systems. 

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