The Payment Services Act 2019 (PSA) was issued by the Singapore government as a forward-looking and flexible framework for the regulation of payment systems and payment service providers in Singapore, like Stripe, by replacing the former Payment Systems Oversight Act and the Money- Changing and Remittance Businesses Act. The Act provides for regulatory certainty and consumer safeguards, while encouraging innovation and growth of payment services and FinTech.
The PSA, and Notice PS-N01 (Prevention Of Money Laundering And Countering The Financing Of Terrorism – Holders Of Payment Services Licence (Specified Payment Services)) – which was issued by the Monetary Authority of Singapore (MAS) pursuant to the PSA – introduces various risk management measures for payment systems and payment service providers across various areas like User Protection, Anti Money Laundering/ Countering the Financing of Terrorism (AML/CFT), Interoperability and Information Technology.
What this means for Stripe users
In order to comply with the AML/CFT measures mandated by the PSA and Notice PSN01, Stripe is making certain changes to the user onboarding process and has introduced various measures, applicable to both new and current users, namely:
- Usage Survey;
- Enhanced Identity verification ; and
- Collection of additional Know-Your-Customer (KYC) information
As per the PSA and Notice PS-N01, Stripe is required to introduce a tiered KYC approach with varying levels of KYC information that Stripe needs to collect and verify from users.
The level of KYC depends, among other things, on the purpose of the Stripe account, i.e. what your Stripe account is primarily being used for. In order to determine what information Stripe needs to collect from you, we are rolling out a usage survey with a few questions designed to help us know more about your Stripe account, and specifically, whether your account is used to accept certain types of payments like donations, or used for crowdfunding, or to provide financial services.
Answers to these questions will help us determine the appropriate level of information we’d need to collect and verify from you.
Enhanced Identity Verification
Provisions under PSA and Notice PS-N01 require Stripe to implement an enhanced identity verification process for certain users. In order to comply with this requirement, Stripe may ask you to verify yourself via Singapore MyInfo (using your Singpass app) or by providing Stripe a valid ID document and a picture of yourself captured by Stripe in real time using a camera on your computer or a mobile device.
Collection of additional (KYC) information
In order to comply with PSA and Notice PS-N01, Stripe may be required to collect additional information from you, for e.g., your nationality, details of your company’s directors, etc. The extent of additional information Stripe is required to collect depends, among other things, on the primary usage of your Stripe account, and we would only ask for information that we need in order to comply with the applicable regulations.
Stripe’s platform is designed to help our users stay up-to-date with new features or changing regulations. We hope this guide has helped you to understand the new requirements introduced by the Payment Services Act (and the MAS’ implementation plan) and how Stripe users can stay compliant. If you have any questions, please let us know.