Regulatory Alerts2003-06-30
Added
Setting Up of Additional Outlets to Provide Remittance and Money-Changing Services
The Monetary Authority of Singapore issued this circular to clarify the regulatory framework for banks seeking to establish additional outlets dedicated solely to remittance and money-changing services. Banks must apply for approval under section 12 of the Banking Act, where the Monetary Authority of Singapore may impose conditions such as restricting accounts to outward remittances. Approved outlets are classified as limited purpose branches, allowing banks to exceed existing place-of-business restrictions while adhering to licence fees specified in the Banking (Licence Fees) Notification.
Date: 30 June 2003 Cir. No. BD 15/2003 To Chief Executive Officers of All Banks Dear Sir/Madam SETTING UP OF ADDITIONAL OUTLETS TO PROVIDE REMITTANCE AND MONEY-CHANGING SERVICES MAS has received enquiries from banks on the setting up of additional outlets to provide remittance and money-changing services. 2 Banks may apply to MAS under section 12 of the Banking Act to set up additional outlets to provide remittance and money-changing services only. In granting its approval, MAS may impose conditions which it deems necessary, and in this connection, may permit the maintenance of accounts solely for outward remittances. 3 Where MAS has granted approval for the setting-up of such an outlet, the outlet will be treated as a limited purpose branch. Where a bank is currently limited to a certain number of places of business, that restriction may be lifted to this extent. In this connection, MAS has on 27 Jun 2003 gazetted a new Banking (Licence Fees) Notification, which is available on the MAS website. The licence fees stipulated in the notification shall apply to such limited purpose branches. Yours faithfully JOHN PALMER DEPUTY MANAGING DIRECTOR PRUDENTIAL SUPERVISION Last modified on 19/3/2007