MAS invites feedback on proposal to update rules on e-payments

THE Monetary Authority of Singapore (MAS) is asking for feedback on the proposal to update rules on e-payments.

It released a consultation paper on Thursday on proposed changes to the payments regulatory framework and establishment of a National Payments Council.

Singapore's payment regulations currently cut across two pieces of legislation: the Payment Systems (Oversight) Act and the Money-Changing and Remittance Businesses Act, which govern stored value and remittances respectively.

With technological advances and the advent of fintech, the lines between payments and remittance are blurring; new payment providers are emerging and some do not fit neatly into these categories, MAS said.

It proposes to bring these regulations under a single framework that will provide for the licensing, regulation and supervision of all payment services, including stored value facility holders, remittance companies, and virtual currency intermediaries.

Last week, MAS managing director Ravi Menon announced a vision of Singapore moving to an e-payments society and updating the rules to boost consumer protection. A National Payments Council would also be set up to coordinate key initiatives, he added.

The proposed framework aims to strengthen standards of consumer protection, anti-money laundering, and cybersecurity related to payment activities, while facilitating innovation and system interoperability, MAS said.

The National Payments Council is to coordinate key initiatives such as promoting interoperability and adopting common standards. The council will draw its members from among users and providers of payment solutions, and foster collaboration among stakeholders to promote and drive industry payment solutions, it said.

The public consultation will last from Aug 25, 2016, to Oct 31, 2016.

A copy of the public consultation paper is available on the MAS website.