MAS (Monetary Authority of Singapore) has recently introduced a new set of rules and guidelines for digital payment service providers. The authority was concerned about digital coins’ potential impact on the economy and the risks associated with them.
On Jan 28, Singapore’s Central Bank issued a framework for the regulation related to payment service providers (Payment Service Act). However, the authority wasn’t convinced with the framework and believed that a lot of potential risks such as -money laundering and terrorism financing could still affect the industry.
On Dec 5, MAS
issued a notice related to money laundering and Countering the Financing of
Terrorism. The notice provided detailed AML/CFT requirements for digital
payment token service providers. The notice also included risk assessment and
risk mitigation, suspicious transaction reporting, reliance on third parties,
correspondent accounts and wire transfers, customer due diligence, record
keeping, and internal policies.
A new 73-page set of guidelines, which was issued on 16th March by MAS for crypto service payment providers, recognize the potential risk associated with all digital payment service providers and urge them to have robust mechanisms to detect illicit activities and must fulfill the requirements of AML/CFT duties.
Source - COINTELEGRAPH
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