Regulatory Alerts2025-06-30
Added
MAS Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service
The Monetary Authority of Singapore issued Notice PSN02 to impose anti-money laundering and countering the financing of terrorism requirements on digital payment token service providers. The regulation mandates robust controls including customer due diligence, risk assessment, suspicious transaction reporting, and record keeping to detect illicit fund flows. These requirements apply to standard and major payment institutions and are enforced under the Payment Services Act framework.
Notices
Last Revised Date: 30 June 2025
Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service
Requirements for digital payment token service providers on anti--money laundering (AML) and countering the financing of terrorism (CFT)
AML/CFT
Applies to:
Standard Payment Institution
,
Major Payment Institution
View Notice
Notice PSN02 Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service
(364.5 KB)
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.
Record keeping.
Suspicious transaction reporting.
Internal policies, compliance, audit and training.
30 June 2025
MAS Notice PSN02 (Amendment) dated 30 June 2025 (376.3 KB) takes effect from 1 July 2025.
2 April 2024 MAS Notice PSN02 dated 2 April 2024 (343.8 KB) takes effect from 4 April 2024.
2 April 2024 This MAS Notices PSN01, PSN02 (Cancellation) 2024 (112.4 KB) cancels Notice PSN02 (Amendment) 2022 (329.9 KB) with effect from 4 April 2024.
1 March 2022 Notice PSN02 (Amendment) 2022 (341.6 KB) takes effect.
28 Jun 2021 Notice PSN02 (Amendment) 2021 (577.9 KB) takes effect.
Guidelines for digital payment token service providers on Notice PSN02 for the prevention of money laundering and countering the financing of terrorism
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...