§ 6 — Application for licence

6.—(1) A person that wishes to carry on a business of providing any type of payment service may apply to the Authority, in such form and manner as the Authority may require, for the appropriate licence under this section.(2) The types of licences that may be applied for under subsection (1) are as follows:(a)

a money‑changing licence;

(b)

a standard payment institution licence;

(c)

a major payment institution licence.

(3) A person must have in force a money‑changing licence to be entitled to carry on a business of providing a money‑changing service, unless the person has in force a standard payment institution licence or major payment institution licence that entitles the person to carry on a business of providing that service.

(4) A person must have in force a standard payment institution licence or a major payment institution licence to be entitled to carry on a business of —(a)

providing one of the following payment services:(i)

an account issuance service;

(ii)

a domestic money transfer service;

(iii)

a cross‑border money transfer service;

(iv)

a merchant acquisition service;

(v)

an e‑money issuance service;

(vi)

a digital payment token service; or

(b)

providing 2 or more of the following payment services:(i)

an account issuance service;

(ii)

a domestic money transfer service;

(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.

(5) Despite subsection (4), a licensee must have in force a major payment institution licence if —(a)

both of the following apply:(i)

the licensee carries on a business of providing one or more of the following payment services:(A)

an account issuance service (other than an e‑money account issuance service);

(B)

a domestic money transfer service;

(C)

a cross‑border money transfer service;

(D)

a merchant acquisition service;

(E)

a digital payment token service;

(ii)

the average, over a calendar year, of the total value of all payment transactions that are accepted, processed or executed by the licensee in one month exceeds —(A)

$3 million (or its equivalent in a foreign currency), for any one of those payment services; or

(B)

$6 million (or its equivalent in a foreign currency), for 2 or more of those payment services;

(b)

both of the following apply:(i)

the licensee carries on a business of providing an e‑money account issuance service;

(ii)

the sum of the following amounts exceeds $5 million (or its equivalent in a foreign currency):(A)

the average, over a calendar year, of the total value in one day of all e‑money that is stored in any payment account issued by the licensee to a person whom the licensee has determined, according to such criteria as the Authority may specify by written notice, to be resident in Singapore;

(B)

the average, over a calendar year, of the total value in one day of all e‑money that is issued in Singapore, and is stored in any payment account issued by the licensee to any person whom the licensee has not determined, according to such criteria as the Authority may specify by written notice, to be resident outside Singapore; or

(c)

both of the following apply:(i)

the licensee carries on a business of providing an e‑money issuance service;

(ii)

the average, over a calendar year, of the total value in one day of all specified e‑money that is issued by the licensee exceeds $5 million (or its equivalent in a foreign currency).

(6) Where any licensee mentioned in subsection (5)(a)(i), (b)(i) or (c)(i) does not have in force a major payment institution licence on the relevant date —(a)

that licensee must, within the prescribed period, apply under section 7(1) to change that licensee’s licence to a major payment institution licence; and

(b)

subsection (5) does not apply to that licensee —(i)

during the prescribed period mentioned in paragraph (a); and

(ii)

if that licensee complies with paragraph (a), until the date on which the application mentioned in that paragraph —(A)

is withdrawn by the licensee; or

(B)

is approved or refused by the Authority.

(7) Upon receiving an application under subsection (1), the Authority may —(a)

grant a licence to the applicant, in respect of one or more types of payment services, with or without conditions; or

(b)

refuse to grant a licence.

(8) Where an applicant has applied for a money‑changing licence, the Authority must not grant the licence to the applicant unless —(a)

the applicant has a permanent place of business, or a registered office in Singapore;

(b)

the Authority —(i)

is satisfied that the applicant is a fit and proper person under the Guidelines on Fit and Proper Criteria;

(ii)

is satisfied as to the financial condition of the applicant;

(iii)

is satisfied that the public interest will be served by the granting of the licence; and

(iv)

is satisfied that the applicant meets such other criteria for the grant of the licence as the Authority considers relevant; and

(c)

the application is accompanied by —(i)

such information as the Authority may require; and

(ii)

a non‑refundable application fee of a prescribed amount that is payable in such manner as the Authority may specify.

(9) Where an applicant has applied for a standard payment institution licence or major payment institution licence, the Authority must not grant the licence to the applicant unless —(a)

the applicant is a company, or is a corporation formed or incorporated outside Singapore;

(b)

the applicant has a permanent place of business, or a registered office in Singapore;

(c)

an executive director of the applicant —(i)

is a citizen or permanent resident of Singapore; or

(ii)

if the applicant satisfies such conditions as may be prescribed, belongs to a prescribed class of persons;

(d)

the applicant satisfies such financial requirements as may be prescribed;

(e)

the Authority —(i)

is satisfied that the applicant is a fit and proper person under the Guidelines on Fit and Proper Criteria;

(ii)

is satisfied as to the financial condition of the applicant;

(iii)

is satisfied that the public interest will be served by the granting of the licence; and

(iv)

is satisfied that the applicant meets such other criteria for the grant of the licence as the Authority considers relevant;

(f)

the applicant satisfies such operational requirements as the Authority may specify; and

(g)

the application is accompanied by —(i)

such information as the Authority may require; and

(ii)

a non‑refundable application fee of a prescribed amount that is payable in such manner as the Authority may specify.

(10) The Authority may at any time add to, vary or revoke any of the conditions of a licence imposed under subsection (7)(a) or this subsection.

(11) The Authority must not refuse an application under subsection (1) without giving the applicant an opportunity to be heard.

(12) Every standard payment institution and every major payment institution must, while its licence is in force, satisfy —(a)

such financial requirements as may be prescribed; and

(b)

such operational requirements and other requirements as the Authority may specify by written notice.

(13) A standard payment institution or major payment institution that fails to comply with any requirement mentioned in subsection (12) must immediately notify the Authority of the failure.

(14) Where a standard payment institution or major payment institution fails to comply with any requirement under subsection (12) —(a)

the Authority may, by written notice to that institution, do either or both of the following:(i)

restrict or suspend the operations of that institution;

(ii)

give such directions to that institution as the Authority considers appropriate; and

(b)

that institution must comply with that notice.

(15) A licensee that contravenes subsection (5) shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or

(b)

in any other case, 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.

(16) A licensee that, without reasonable cause, contravenes subsection (12), or fails to comply with any condition imposed by the Authority under subsection (7)(a) or (10), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.

(17) In this section —“e‑money account issuance service” means an account issuance service where each payment account issued stores e‑money;

“relevant date” means —(a)

in relation to a licensee mentioned in subsection (5)(a)(i), the date on which subsection (5)(a)(ii) first applies to that licensee;

(b)

in relation to a licensee mentioned in subsection (5)(b)(i), the date on which subsection (5)(b)(ii) first applies to that licensee; or

(c)

in relation to a licensee mentioned in subsection (5)(c)(i), the date on which subsection (5)(c)(ii) first applies to that licensee.

—(1) A person that wishes to carry on a business of providing any type of payment service may apply to the Authority, in such form and manner as the Authority may require, for the appropriate licence under this section.

(2) The types of licences that may be applied for under subsection (1) are as follows:(a)

a money‑changing licence;

(b)

a standard payment institution licence;

(c)

a major payment institution licence.

(3) A person must have in force a money‑changing licence to be entitled to carry on a business of providing a money‑changing service, unless the person has in force a standard payment institution licence or major payment institution licence that entitles the person to carry on a business of providing that service.

(4) A person must have in force a standard payment institution licence or a major payment institution licence to be entitled to carry on a business of —(a)

providing one of the following payment services:(i)

an account issuance service;

(ii)

a domestic money transfer service;

(iii)

a cross‑border money transfer service;

(iv)

a merchant acquisition service;

(v)

an e‑money issuance service;

(vi)

a digital payment token service; or

(b)

providing 2 or more of the following payment services:(i)

an account issuance service;

(ii)

a domestic money transfer service;

(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.

(5) Despite subsection (4), a licensee must have in force a major payment institution licence if —(a)

both of the following apply:(i)

the licensee carries on a business of providing one or more of the following payment services:(A)

an account issuance service (other than an e‑money account issuance service);

(B)

a domestic money transfer service;

(C)

a cross‑border money transfer service;

(D)

a merchant acquisition service;

(E)

a digital payment token service;

(ii)

the average, over a calendar year, of the total value of all payment transactions that are accepted, processed or executed by the licensee in one month exceeds —(A)

$3 million (or its equivalent in a foreign currency), for any one of those payment services; or

(B)

$6 million (or its equivalent in a foreign currency), for 2 or more of those payment services;

(b)

both of the following apply:(i)

the licensee carries on a business of providing an e‑money account issuance service;

(ii)

the sum of the following amounts exceeds $5 million (or its equivalent in a foreign currency):(A)

the average, over a calendar year, of the total value in one day of all e‑money that is stored in any payment account issued by the licensee to a person whom the licensee has determined, according to such criteria as the Authority may specify by written notice, to be resident in Singapore;

(B)

the average, over a calendar year, of the total value in one day of all e‑money that is issued in Singapore, and is stored in any payment account issued by the licensee to any person whom the licensee has not determined, according to such criteria as the Authority may specify by written notice, to be resident outside Singapore; or

(c)

both of the following apply:(i)

the licensee carries on a business of providing an e‑money issuance service;

(ii)

the average, over a calendar year, of the total value in one day of all specified e‑money that is issued by the licensee exceeds $5 million (or its equivalent in a foreign currency).

(6) Where any licensee mentioned in subsection (5)(a)(i), (b)(i) or (c)(i) does not have in force a major payment institution licence on the relevant date —(a)

that licensee must, within the prescribed period, apply under section 7(1) to change that licensee’s licence to a major payment institution licence; and

(b)

subsection (5) does not apply to that licensee —(i)

during the prescribed period mentioned in paragraph (a); and

(ii)

if that licensee complies with paragraph (a), until the date on which the application mentioned in that paragraph —(A)

is withdrawn by the licensee; or

(B)

is approved or refused by the Authority.

(7) Upon receiving an application under subsection (1), the Authority may —(a)

grant a licence to the applicant, in respect of one or more types of payment services, with or without conditions; or

(b)

refuse to grant a licence.

(8) Where an applicant has applied for a money‑changing licence, the Authority must not grant the licence to the applicant unless —(a)

the applicant has a permanent place of business, or a registered office in Singapore;

(b)

the Authority —(i)

is satisfied that the applicant is a fit and proper person under the Guidelines on Fit and Proper Criteria;

(ii)

is satisfied as to the financial condition of the applicant;

(iii)

is satisfied that the public interest will be served by the granting of the licence; and

(iv)

is satisfied that the applicant meets such other criteria for the grant of the licence as the Authority considers relevant; and

(c)

the application is accompanied by —(i)

such information as the Authority may require; and

(ii)

a non‑refundable application fee of a prescribed amount that is payable in such manner as the Authority may specify.

(9) Where an applicant has applied for a standard payment institution licence or major payment institution licence, the Authority must not grant the licence to the applicant unless —(a)

the applicant is a company, or is a corporation formed or incorporated outside Singapore;

(b)

the applicant has a permanent place of business, or a registered office in Singapore;

(c)

an executive director of the applicant —(i)

is a citizen or permanent resident of Singapore; or

(ii)

if the applicant satisfies such conditions as may be prescribed, belongs to a prescribed class of persons;

(d)

the applicant satisfies such financial requirements as may be prescribed;

(e)

the Authority —(i)

is satisfied that the applicant is a fit and proper person under the Guidelines on Fit and Proper Criteria;

(ii)

is satisfied as to the financial condition of the applicant;

(iii)

is satisfied that the public interest will be served by the granting of the licence; and

(iv)

is satisfied that the applicant meets such other criteria for the grant of the licence as the Authority considers relevant;

(f)

the applicant satisfies such operational requirements as the Authority may specify; and

(g)

the application is accompanied by —(i)

such information as the Authority may require; and

(ii)

a non‑refundable application fee of a prescribed amount that is payable in such manner as the Authority may specify.

(10) The Authority may at any time add to, vary or revoke any of the conditions of a licence imposed under subsection (7)(a) or this subsection.

(11) The Authority must not refuse an application under subsection (1) without giving the applicant an opportunity to be heard.

(12) Every standard payment institution and every major payment institution must, while its licence is in force, satisfy —(a)

such financial requirements as may be prescribed; and

(b)

such operational requirements and other requirements as the Authority may specify by written notice.

(13) A standard payment institution or major payment institution that fails to comply with any requirement mentioned in subsection (12) must immediately notify the Authority of the failure.

(14) Where a standard payment institution or major payment institution fails to comply with any requirement under subsection (12) —(a)

the Authority may, by written notice to that institution, do either or both of the following:(i)

restrict or suspend the operations of that institution;

(ii)

give such directions to that institution as the Authority considers appropriate; and

(b)

that institution must comply with that notice.

(15) A licensee that contravenes subsection (5) shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or

(b)

in any other case, 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.

(16) A licensee that, without reasonable cause, contravenes subsection (12), or fails to comply with any condition imposed by the Authority under subsection (7)(a) or (10), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.

(17) In this section —“e‑money account issuance service” means an account issuance service where each payment account issued stores e‑money;

“relevant date” means —(a)

in relation to a licensee mentioned in subsection (5)(a)(i), the date on which subsection (5)(a)(ii) first applies to that licensee;

(b)

in relation to a licensee mentioned in subsection (5)(b)(i), the date on which subsection (5)(b)(ii) first applies to that licensee; or

(c)

in relation to a licensee mentioned in subsection (5)(c)(i), the date on which subsection (5)(c)(ii) first applies to that licensee.