§ 19 — Prohibition against exchanging e‑money withdrawn from payment account for Singapore currency

19.—(1) Where any matter mentioned in subsection (2)(a), (b) or (c) applies, a licensee that carries on a business of providing any account issuance service must not do any of the following things:(a)

allow any payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, at any of the licensee’s places of business;

(b)

enter into any agreement or arrangement (whether oral or in writing and whether express or implied) with any entity that is incorporated, formed or registered in Singapore or that carries on any business in Singapore, being an agreement or arrangement that would allow any payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, in Singapore.

(2) For the purposes of subsection (1), the matters are as follows:(a)

the licensee has determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident in Singapore;

(b)

the issuer of the e‑money contained in the payment account has determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident in Singapore;

(c)

the e‑money contained in the payment account is issued in Singapore, and both of the following apply:(i)

the licensee has not determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident outside Singapore;

(ii)

the issuer of the e‑money has not determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident outside Singapore.

(3) A licensee that contravenes subsection (1) 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.

(4) Despite subsection (1), a licensee that carries on a business of providing an account issuance service may allow a payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, on the termination of the use of that payment account by that payment service user.

(5) In this section, “Singapore currency” means currency notes and coins that are legal tender in Singapore.

—(1) Where any matter mentioned in subsection (2)(a), (b) or (c) applies, a licensee that carries on a business of providing any account issuance service must not do any of the following things:(a)

allow any payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, at any of the licensee’s places of business;

(b)

enter into any agreement or arrangement (whether oral or in writing and whether express or implied) with any entity that is incorporated, formed or registered in Singapore or that carries on any business in Singapore, being an agreement or arrangement that would allow any payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, in Singapore.

(2) For the purposes of subsection (1), the matters are as follows:(a)

the licensee has determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident in Singapore;

(b)

the issuer of the e‑money contained in the payment account has determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident in Singapore;

(c)

the e‑money contained in the payment account is issued in Singapore, and both of the following apply:(i)

the licensee has not determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident outside Singapore;

(ii)

the issuer of the e‑money has not determined, according to such criteria as the Authority may specify by written notice, that the payment service user is resident outside Singapore.

(3) A licensee that contravenes subsection (1) 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.

(4) Despite subsection (1), a licensee that carries on a business of providing an account issuance service may allow a payment service user to whom the licensee has issued any payment account, or provided any service relating to any operation required for operating a payment account, to withdraw e‑money from that payment account, and to exchange the e‑money withdrawn for Singapore currency, on the termination of the use of that payment account by that payment service user.

(5) In this section, “Singapore currency” means currency notes and coins that are legal tender in Singapore.