Digital payment token service providers are required to put in place robust controls to detect and deter the flow of illicit funds through Singapore's financial system.
Such controls include the need for financial institutions to identify and know their customers (including beneficial owners), to conduct regular account reviews, and to monitor and report any suspicious transaction.
The AML/CFT requirements for digital payment token service providers can be found in this notice, which include the following:
Risk assessment and risk mitigation.
Customer due diligence.
Reliance on third parties.
Correspondent accounts and wire transfers.
Suspicious transaction reporting.
Internal policies, compliance, audit and training.
The Payment Services (PS) Act is a forward looking and flexible framework for the regulation of payment systems and payment service providers in Singapore. It provides for regulatory certainty and consumer safeguards, while encouraging innovation and growth of payment services and FinTech. Parliament passed the PS Act...