§ 13 — Exempt payment service providers

13.—(1) Subject to subsection (8), the following persons are exempt from the requirement to have in force a licence to carry on a business of providing any payment service:(a)

a bank licensed under the Banking Act 1970;

(b)

a merchant bank licensed under the Banking Act 1970;

(c)

a finance company licensed under the Finance Companies Act 1967;

(d)

a person licensed to carry on the business of issuing credit cards or charge cards in Singapore under section 57B of the Banking Act 1970;

(e)

any other person or class of persons that may be prescribed.[1/2020]

(2) Subject to the provisions of this Act, sections 15 to 19, 20(2), (4) and (5), 23 and 24 and Division 5 of this Part apply, with the necessary modifications, to an exempt payment service provider mentioned in subsection (1)(a), (b), (c) or (d) in respect of its business of providing any relevant payment service, as if the exempt payment service provider were a licensee.

(3) The Authority may, on the application of an exempt payment service provider, exempt the exempt payment service provider from complying with any of the provisions mentioned in subsection (2).

(4) The Authority may prescribe the provisions of this Act that apply to an exempt payment service provider mentioned in subsection (1)(e).

(5) An exemption granted under subsection (3) need not be published in the Gazette.

(6) The Authority may prescribe, or specify by written notice, the conditions or restrictions that may be imposed on an exempt payment service provider in respect of the carrying on of a business of providing any type of payment service.

(7) The Authority may at any time, by written notice, add to, vary or revoke any of the conditions or restrictions imposed by written notice under subsection (6) or this subsection.

(8) The Authority may by notification in the Gazette declare that a person mentioned in subsection (1) ceases to be exempt under that subsection, or may withdraw an exemption granted to a person under subsection (3), if —(a)

the person contravenes any provision of this Act, or fails to comply with any condition or restriction imposed on the person under subsection (6) or (7); or

(b)

the Authority considers it necessary in the public interest.

(9) Where the Authority makes a declaration or withdraws an exemption under subsection (8), the Authority need not give the affected person an opportunity to be heard.

(10) A person that is aggrieved by a decision of the Authority to make a declaration or withdraw an exemption under subsection (8) in respect of the person may, within 30 days after the date of the decision, appeal in writing to the Minister, whose decision is final.

(11) A declaration or withdrawal of an exemption under subsection (8) in respect of a person —(a)

does not avoid or affect any agreement, transaction or arrangement, relating to any payment service provided by the person, whether the agreement, transaction or arrangement was entered into before or after the making of the declaration or the withdrawal of the exemption; and

(b)

does not affect any right, obligation or liability arising under any agreement, transaction or arrangement mentioned in paragraph (a).

(12) An exempt payment service provider that contravenes any condition or restriction imposed under subsection (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.

(13) In this section, “relevant payment service” —(a)

in relation to an exempt payment service provider mentioned in subsection (1)(a), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of any deposit‑taking business or banking business;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of any deposit‑taking business or banking business;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service;

(b)

in relation to an exempt payment service provider mentioned in subsection (1)(b), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of the business of receiving money on current or deposit account, or the making of advances to customers;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of the business of receiving money on current or deposit account, or the making of advances to customers;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service;

(c)

in relation to an exempt payment service provider mentioned in subsection (1)(c), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of financing business;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of financing business;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service; and

(d)

in relation to an exempt payment service provider mentioned in subsection (1)(d), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the business of issuing credit cards or charge cards under the Banking Act 1970;

(ii)

a domestic money transfer service that is not solely incidental to the business of issuing credit cards or charge cards under the Banking Act 1970;

(iii)

a cross‑border money transfer service;

(iv)

a merchant acquisition service;

(v)

an e-money issuance service;

(vi)

a digital payment token service;

(vii)

a money‑changing service.

—(1) Subject to subsection (8), the following persons are exempt from the requirement to have in force a licence to carry on a business of providing any payment service:(a)

a bank licensed under the Banking Act 1970;

(b)

a merchant bank licensed under the Banking Act 1970;

(c)

a finance company licensed under the Finance Companies Act 1967;

(d)

a person licensed to carry on the business of issuing credit cards or charge cards in Singapore under section 57B of the Banking Act 1970;

(e)

any other person or class of persons that may be prescribed.[1/2020]

(2) Subject to the provisions of this Act, sections 15 to 19, 20(2), (4) and (5), 23 and 24 and Division 5 of this Part apply, with the necessary modifications, to an exempt payment service provider mentioned in subsection (1)(a), (b), (c) or (d) in respect of its business of providing any relevant payment service, as if the exempt payment service provider were a licensee.

(3) The Authority may, on the application of an exempt payment service provider, exempt the exempt payment service provider from complying with any of the provisions mentioned in subsection (2).

(4) The Authority may prescribe the provisions of this Act that apply to an exempt payment service provider mentioned in subsection (1)(e).

(5) An exemption granted under subsection (3) need not be published in the Gazette.

(6) The Authority may prescribe, or specify by written notice, the conditions or restrictions that may be imposed on an exempt payment service provider in respect of the carrying on of a business of providing any type of payment service.

(7) The Authority may at any time, by written notice, add to, vary or revoke any of the conditions or restrictions imposed by written notice under subsection (6) or this subsection.

(8) The Authority may by notification in the Gazette declare that a person mentioned in subsection (1) ceases to be exempt under that subsection, or may withdraw an exemption granted to a person under subsection (3), if —(a)

the person contravenes any provision of this Act, or fails to comply with any condition or restriction imposed on the person under subsection (6) or (7); or

(b)

the Authority considers it necessary in the public interest.

(9) Where the Authority makes a declaration or withdraws an exemption under subsection (8), the Authority need not give the affected person an opportunity to be heard.

(10) A person that is aggrieved by a decision of the Authority to make a declaration or withdraw an exemption under subsection (8) in respect of the person may, within 30 days after the date of the decision, appeal in writing to the Minister, whose decision is final.

(11) A declaration or withdrawal of an exemption under subsection (8) in respect of a person —(a)

does not avoid or affect any agreement, transaction or arrangement, relating to any payment service provided by the person, whether the agreement, transaction or arrangement was entered into before or after the making of the declaration or the withdrawal of the exemption; and

(b)

does not affect any right, obligation or liability arising under any agreement, transaction or arrangement mentioned in paragraph (a).

(12) An exempt payment service provider that contravenes any condition or restriction imposed under subsection (6) or (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.

(13) In this section, “relevant payment service” —(a)

in relation to an exempt payment service provider mentioned in subsection (1)(a), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of any deposit‑taking business or banking business;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of any deposit‑taking business or banking business;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service;

(b)

in relation to an exempt payment service provider mentioned in subsection (1)(b), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of the business of receiving money on current or deposit account, or the making of advances to customers;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of the business of receiving money on current or deposit account, or the making of advances to customers;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service;

(c)

in relation to an exempt payment service provider mentioned in subsection (1)(c), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the conduct of financing business;

(ii)

a domestic money transfer service that is not solely incidental to the conduct of financing business;

(iii)

an e‑money issuance service;

(iv)

a digital payment token service; and

(d)

in relation to an exempt payment service provider mentioned in subsection (1)(d), means any of the following payment services:(i)

an account issuance service that is not solely incidental to the business of issuing credit cards or charge cards under the Banking Act 1970;

(ii)

a domestic money transfer service that is not solely incidental to the business of issuing credit cards or charge cards under the Banking Act 1970;

(iii)

a cross‑border money transfer service;

(iv)

a merchant acquisition service;

(v)

an e-money issuance service;

(vi)

a digital payment token service;

(vii)

a money‑changing service.