The Monetary Authority of Singapore (MAS) has fined five Major Payment Institutions (MPIs) a total of S$960,000 (US$710,400) for violations of anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.

The penalties follow examinations of the firms’ compliance with MAS’s AML/CFT standards.

Remsea Pte Ltd received a S$280,000 (US$207,200) penalty for breaches occurring from August 2020 to August 2023.

Violations included failing to collect customers’ residential addresses, verify beneficial ownership, and ensure wire transfer originator information was included in cross-border payment instructions.

Arcade Plaza Traders Pte Ltd was fined S$260,000 (US$204,000) for breaches between March 2020 and August 2023.

These included failures to screen customers for money laundering risks and to include wire transfer originator information.

J-Dee Remittance Services Pte Ltd incurred a S$170,000 (US$170,000) penalty for not screening customers against relevant risk information from July 2022 to August 2023.

Mobile Community Tech Pte Ltd was fined S$140,000 (US$110,159) for similar lapses, including failure to verify customer identities and provide wire transfer beneficiary details, with breaches occurring from September 2021 to July 2023.

OxPay SG Pte Ltd faced a S$110,000 (US$86,450) penalty for violations between May 2021 and November 2022.

🔗 Source: Monetary Authority of Singapore

🧠 Food for thought

1️⃣ Singapore’s expanding enforcement scope reflects global payment sector vulnerabilities

This action against five payment institutions marks a notable shift in MAS’s enforcement pattern that has historically targeted larger banks.

For context, previous significant MAS penalties included S$5.2 million against Standard Chartered Bank and S$2.6 million against DBS Bank for AML breaches 12.

The focus on payment institutions aligns with growing regulatory concern worldwide about money transfer services as potential conduits for illicit funds, particularly as these sectors experience rapid growth with innovative technologies.

Cross-border money transfer services are especially vulnerable to AML/CFT breaches as they often handle high volumes of international transactions that can be exploited by bad actors.