The Monetary Authority of Singapore (MAS) has imposed a total of S$960,000 in composition penalties on five licensed Major Payment Institutions (MPIs) for breaching anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.
The enforcement action follows MAS examinations that found the firms lacked adequate AML/CFT controls, leading to multiple violations of MAS Notice PSN01, which sets out requirements for specified payment services.
Remsea received the largest fine of S$280,000 for breaches between August 2020 and August 2023, including failing to obtain customer residential addresses, check for beneficial ownership, verify representatives’ authority, and include required information in cross-border wire transfers.
Arcade Plaza Traders (APT) was fined S$260,000 for failing to screen customers and related parties for money laundering and terrorism financing risks, and for omitting originator details in wire transfer instructions.
J-Dee Remittance Services (J-Dee) was penalised S$170,000 for similar failures to screen customers and related parties during July 2022 to August 2023.
Mobile Community Tech (MTC) was fined S$140,000 for failing to verify customer identities, representatives’ authority, and beneficiary information in transfers between September 2021 and July 2023.
OxPay SG was issued a S$110,000 penalty for not checking for beneficial owners and failing to conduct necessary screenings before processing cross-border transfers between May 2021 and November 2022.
MAS said these failures exposed the firms to risks of being misused for financial crime and weakened transparency in fund transfers.
It emphasised the need for financial institutions’ senior management to ensure proper oversight and effective implementation of AML/CFT controls.
All five institutions have submitted remediation plans and MAS said it will monitor their progress.
The regulator also plans to release an information paper highlighting common issues and expectations identified during its recent supervisory reviews.
Featured image: Edited by Fintech News Singapore, based on image by pvproductions via Freepik
