Our Response to MAS' Public Consultation on the Proposed Amendments to the Payment Services Regulations 2019

2023-06-12  •  4 min read

Monetary Authority of Singapore (MAS)
10 Shenton Way
MAS Building
Singapore 079117

1 June 2023

Proposed Amendments to Payment Services Regulations 2019, Notices issued under the Payment Services Act 2019 or MAS Act, and Proposed New Regulations on Exemptions for a Specified Period: P004-2023

Dear Sir/Madam,

Ceffu SG Pte. Ltd. (“Ceffu”) welcomes the opportunity to respond to MAS’s consultation on proposed amendments to the Payment Services Regulations 2019 (“PSR”) and associated consequential amendments.

Ceffu provides custody services to institutional clients operating out of Singapore and intends to apply for a license with the Monetary Authority of Singapore when the relevant regulatory framework comes into force. Since launching our institutional services in 2021, Ceffu has devoted its operational and technological resources to growing a compliant and audited institutional-grade infrastructure that addresses the ever-growing needs of global clients, the likes of large financial services firms, institutional investors, and crypto-native firms.

Ceffu is keen to collaborate with policymakers and regulators globally and in Singapore to contribute to the development of a regulatory framework with consumer protection, market integrity and financial stability at its heart.

We hope you find our response to the consultation helpful and we look forward to discussing our response in further detail.

Thank you for taking the time to engage with us.

Yours faithfully,


Annex A – List of questions as submitted.

Question 1. MAS seeks comments on the exemption proposed and whether the scope of the exemption is suitable for both the affected MPIs and foreign persons. MAS also seeks views on whether other amendments to the PSR are necessary to provide for the newly scoped-in payment services. Please be specific in the proposed amendment and corresponding rationale, if any. 

No comment.

Question 2. MAS seeks comments on the revised scope of application of PSN01 and PSN02 to (a) apply the same AML/CFT requirements in these Notices to all newly scoped-in payment services; and (b) apply wire transfer obligations to the service of arranging for the cross-border wire transfer of funds under PSN01, and to apply value transfer obligations to the service of arranging for the value transfer of one or more DPTs under PSN02. 

We support.

Question 3. MAS seeks comments on the proposed introduction of requirements in respect of (a) group-wide AML/CFT measures in PSN01 and PSN02; and (b) agency requirements in PSN02.

We support. 

Question 4. MAS seeks comments on the proposed introduction of an exclusion in PSN01 for wire transfers that flows from a transaction carried out using a charge card, credit card, debit card, prepaid card, or electronic wallet for the purchase of goods or services, with the exclusion only applicable where both the charge card, credit card, debit card, prepaid card or electronic wallet number and the name of the issuer of such charge card, credit card, debit card, prepaid card or electronic wallet, accompany the transfers. 

No comment.

Question 5. MAS seeks comments on the amendments to PSN04, in particular the reporting requirements relating to the newly scoped-in payment services, as well as the additional breakdowns and reporting on exposure to anonymity-enhancing technologies. MAS also seeks comments on the transition period for PSN04.

We recognise the importance of providing regulators with good quality data that enables them to meet their objectives. However, we would appreciate greater clarity on how to enhance our systems in a way to provide necessary data for the regulator, particularly in areas that are novel or contentious such as anonymity enhancing technology. Depending on the final policy a view will need to be taken, perhaps through a soft-consultation with some respondents, as to whether six-months will be adequate to make the necessary changes to systems. 

Question 6. MAS seeks comments on the amendments to PSN07 and PSN08. MAS also seeks comments on the proposed amendment to PSN07 for money transmission requirement to accord more flexibility to licensees dealing with corporate customers and whether this should be restricted to corporate customers. In addition, MAS seeks comments on the proposed enhancements to the risk disclosure statements under PSN08 to better inform customers of the unregulated status of certain services provided by licensed DPT service providers. 

We support.

Question 7. MAS seeks comments on the timeline for the transitional arrangements for the entities that need to hold or vary a PS Act licence arising from the broadened scope of cross-border money transfer service, domestic money transfer service and DPT service. 15

We support.

Question 8. MAS seeks views on the imposition of additional requirements to accompany application forms submitted by affected persons.

We support the proposal but would appreciate further clarification of the nature and scope of the third-party assessment of AML/CTF, Technology and Safeguarding policies and processes. For example, is it expected that the assessment of compliance will be against specific MAS requirements necessary to achieve compliance with e.g. the PS Act and its associated legislation? Or is the assessment expected to be more generic where the external auditor / independent third party is expected to opine on an applicant’s risk and compliance framework more generally?