The Singapore Payment Services Act 2019 (PSA) was issued by the Singaporean government as a "forward-looking and flexible framework for the regulation of payment systems and payment service providers in Singapore." Replacing the former Payment Systems Oversight Act and Money-Changing and Remittance Businesses Act, the PSA "provides for regulatory certainty and consumer safeguards, while encouraging innovation and growth of payment services and fintech."
In addition, Notice PS-N01 (Prevention of Money Laundering and Countering the Financing of Terrorism—Specified Payment Services), which was issued by the Monetary Authority of Singapore (MAS) in conformity with the PSA, introduces various risk management measures for digital payment systems and regulated payment service providers (including Stripe) 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 PS-N01, Stripe is making certain changes to the user onboarding process and has introduced the following measures designated payment systems that apply to both new and current users:
- Usage survey
- Enhanced identity verification
- 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 the Stripe account is primarily being used for. In order to determine this information, we are rolling out a usage survey with a few questions designed to help us know more about your Stripe account, specifically, whether your account is used to accept certain types of payments (like donations) or is used for crowdfunding or to provide financial services.
Answers to these questions about your payment account will help us determine the appropriate level of information we’d need to collect and verify from you.
Enhanced identity verification
Consumer protection provisions under the PSA and Notice PS-N01 require Stripe to implement an enhanced identity verification process for certain users. To remain in compliance with this requirement, Stripe may ask you to verify yourself via Singapore Myinfo (using your Singpass app) or provide a valid form of ID with a photo of yourself captured by Stripe—using the camera on your computer or mobile device.
Collection of additional KYC information
In order to comply with the PSA and Notice PS-N01, Stripe may be required to collect additional information from you, e.g., your nationality, details about 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 request information that we need in order to comply with the applicable regulations.
If verification remains uncompleted, provisions under PSA and Notice PS-N01 require Stripe to:
- Pause charge processing and payouts to bank accounts if user verification remains uncompleted 30 business days after the terms of the Stripe SSA have been accepted.
- Terminate and permanently close the Stripe payment account if verification remains uncompleted 120 business days after the terms of the Stripe SSA have been accepted.
If you wish to use Stripe’s payment system again, you will need to create a new Stripe account.
Stripe’s payment service provider is designed to help our users stay up-to-date on new features or changing regulations—including the new requirements introduced by the PSA and MAS Notice PS-N01. If you have any questions, please let us know.