Response to "Can remittance companies lend money" - The Straits Times, 18 January 2019
We thank Mr Billy Lee for his letter “Can remittance companies lend money?” (Straits Times online, 18 January 2019). The Monetary Authority of Singapore (MAS) has been in contact with Mr Lee on his feedback.
Remittance companies are currently licensed under the Money-changing and Remittance Businesses Act (MCRBA). The MCRBA regulates licensees for their money-changing and remittance activities, primarily to mitigate the risks of money-laundering and terrorism financing. In the past year, MAS has been alerted to a remittance licensee offering consumer loans.
It is not the intent of MAS to allow remittance licensees to conduct consumer lending. If licensees wish to do more, they must hold the appropriate licence and be subject to the relevant regulatory measures. We have explained to Mr Lee that when the new Payment Services Bill (PSB) comes into force later this year, licensees under the PSB will be prohibited from conducting consumer lending.
Remittance companies that are currently conducting consumer lending will have to cease such activities by the time they are licensed under the PSB.
Jerome Lee (Mr)
Director (Corporate Communications)
Monetary Authority of Singapore
The Police and MAS have jointly commenced investigations into a 43-year-old woman and 34-year-old man, who are the Director and Compliance Manager of Samlit Moneychanger Pte. Ltd. respectively, for their suspected involvement in Samlit carrying on a business for a fraudulent purpose and suspected failure to comply with various obligations as a licensed payment services provider.
MAS and Bank Negara Malaysia have jointly launched the real-time payment systems linkage between Singapore’s PayNow and Malaysia’s DuitNow.
MAS and Bank Indonesia have jointly launched the cross-border quick response payment linkage between Indonesia and Singapore.