Major Payment Institution Licence
The Major Payment Institution Licence is issued by the Monetary Authority of Singapore (MAS) for businesses providing payment services exceeding specified thresholds under the Payment Services Act. Validity is agency-confirmed, with processing times available on the MAS website.
- Processing time
- available on the agency's website
- Issuing authority
- MONETARY AUTHORITY OF SINGAPORE (MAS)
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Who needs the Major Payment Institution Licence
This licence applies to Singapore businesses registered under the following SSIC industry codes:
What's involved in getting the Major Payment Institution Licence
The scope of the application — what must be in place, how the agency reviews, and where applications typically stall.
What this licence allows the business to do
The Major Payment Institution Licence enables businesses in Singapore to provide a range of payment services without being limited by the specified transaction thresholds. This includes services such as electronic money issuance, payment processing, and other financial transactions that facilitate commerce.
What must be in place before the licence can be granted
Before the licence can be granted, the business must meet specific criteria set by the Monetary Authority of Singapore (MAS). This includes having a robust compliance framework, risk management policies, and adequate financial resources to support the payment services offered. Additionally, the business must demonstrate operational capabilities and technology infrastructure that align with regulatory standards.
How the agency reviews and decides
The MAS conducts a thorough review of the application, assessing the business's compliance with the Payment Services Act. This includes evaluating the proposed business model, financial health, and the ability to manage risks associated with payment services. The agency may also conduct interviews or request additional information to ensure that all regulatory requirements are met.
Common reasons applications stall
Applications for the Major Payment Institution Licence can stall for several reasons. Common issues include insufficient documentation demonstrating compliance with regulatory requirements, inadequate risk management frameworks, or failure to meet the financial thresholds outlined in the Payment Services Act. Additionally, if the business's operational plans do not align with the regulatory expectations, this can lead to delays or rejections.
Major Payment Institution Licence FAQ
Do I need this licence to start operating?
If your business intends to provide payment services that exceed the specified thresholds under the Payment Services Act, obtaining the Major Payment Institution Licence is essential. Without it, your operations may be deemed illegal, leading to potential penalties.
What can my business do once licensed?
Once licensed as a Major Payment Institution, your business can offer a variety of payment services without being restricted by the transaction thresholds that apply to standard payment institutions. This includes services like electronic money issuance and payment processing.
What happens if I operate without it?
Operating without the Major Payment Institution Licence can result in significant legal repercussions, including fines and the potential shutdown of your business operations. Compliance with the Payment Services Act is crucial for legal operation in Singapore.
How does this fit relative to incorporating my company?
Obtaining the Major Payment Institution Licence is a separate process from incorporating your company. It is advisable to have your business structure in place before applying for the licence, as the agency will review your operational capabilities and compliance framework.
What's the most common reason applications get rejected?
The most common reasons for rejection include inadequate documentation demonstrating compliance with regulatory requirements and insufficient risk management frameworks. Ensuring that all necessary information is provided and aligns with MAS expectations can help mitigate this risk.
Can a foreign-owned company hold this licence?
Yes, foreign-owned companies can apply for the Major Payment Institution Licence in Singapore. However, they must meet all regulatory requirements and demonstrate their ability to comply with the Payment Services Act.
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Other MAS licences
Application for Bank Representative Office
The Application for Bank Representative Office is required by the Monetary Authority of Singapore (MAS) for foreign banks wishing to establish a liaison office in Singapore. This office can conduct market research and feasibility studies but cannot engage in any business transactions. Validity is agency-confirmed, with processing times available on the MAS website.
Approved Clearing House (ACH) or Recognised Clearing House (RCH)
The Approved Clearing House (ACH) or Recognised Clearing House (RCH) licence is issued by the Monetary Authority of Singapore (MAS) for companies wishing to operate a clearing facility under the Securities and Futures Act 2001. Validity is confirmed by the agency, with processing times available on the MAS website.
Approved Exchange (AE) or Recognised Market Operator (RMO)
The Approved Exchange (AE) or Recognised Market Operator (RMO) licence is issued by the Monetary Authority of Singapore (MAS) for entities operating as exchanges or market operators. The validity is confirmed by the agency, and processing times can be found on the MAS website.
Capital Markets Services Licence
The Capital Markets Services Licence is issued by the Monetary Authority of Singapore (MAS) for businesses engaging in regulated activities such as dealing in securities, fund management, and providing custodial services. Validity is agency-confirmed, with processing times available on the MAS website.
Financial Adviser's Licence
The Financial Adviser's Licence is required by the Monetary Authority of Singapore (MAS) for companies wishing to conduct regulated activities under the Financial Advisers Act 2001 (FAA). The validity period is confirmed by the agency, and processing time details can be found on the MAS website.
Insurer and Insurance Broker Licence
The Insurer and Insurance Broker Licence is required by the Monetary Authority of Singapore (MAS) for entities engaging in insurance activities, including insurers and insurance brokers. The validity period is confirmed by the agency, and processing times can be found on the MAS website.