MOF and MAS Launch Process to Digitalise Banker’s Guarantees and Insurance Bonds
Singapore, 2 November 2022… The Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) today launched eGuarantee@Gov, a simple and secure digital process for businesses and individuals to provide a banker’s guarantee or insurance bond (collectively, “guarantee”) to government agencies within a day. It was jointly developed with the Association of Banks in Singapore (ABS)
2. With eGuarantee@Gov, businesses and individuals will no longer need to apply for a paper guarantee from a financial institution (FI), collect it when it is ready, and deliver the guarantee to the government agency, to discharge their contractual or licensing obligations. Businesses and individuals can instead apply for an eGuarantee from over 20 participating FIs through their websites or email for direct submission to 17 government agencies (refer to Annex). More FIs and agencies are scheduled to come onboard eGuarantee@Gov by end 2023.
3. FIs and government agencies will also benefit from this more streamlined and simpler workflow. eGuarantee@Gov employs standardised texts which eliminate the need for each guarantee to undergo legal vetting. The eGuarantees are securely transmitted through the Singapore Customs’ Networked Trade Platform (NTP).
4. Mr Han Neng Hsiu, Deputy Secretary (Development), MOF, said, “eGuarantee@Gov is part of our digitalisation efforts to transform service delivery and reduce transaction costs. Our partnership with the financial industry has enabled us to create value for businesses and individuals.”
5. Mr Marcus Lim, Assistant Managing Director (Banking and Insurance), MAS, said, “This is a win for both financial institutions and their customers. eGuarantee@Gov facilitates greater efficiency in processing guarantees and reduces the operational risks associated with manual paper-based workflows.”
6. Mr Wee Ee Cheong, Chairman, ABS, and CEO of UOB, said, “Banks and our customers will benefit from more streamlined processes and greater efficiency thanks to eGuarantee@Gov. More importantly, we hope that the initiative will lead to greater acceptance of digital guarantees from all parties as we move towards a greener and more sustainable economy. ABS is proud to contribute to the successful launch of eGuarantee@Gov together with the Ministry of Finance, the Monetary Authority of Singapore, and other government agencies.”