Circular on Anti-scam measures by Major Payment Institutions Providing Personal Payment Accounts that contain E-money

The Monetary Authority of Singapore’s recent circular, issued on 25 October 2024, sets supervisory expectations on anti-scam measures for Major Payment Institutions (“MPIs”) issuing e-wallets, which provide personal payment accounts, i.e., accounts for individuals in Singapore containing e-money.

Effective 15 December 2023, the stock cap for e-wallets has been raised to SGD 20,000 (from SGD 5,000), and the flow cap to SGD 100,000 (from SGD 30,000). MPIs that have already increased the cap are expected to already have the additional requirement (or should otherwise implement them immediately). MPIs wishing to adopt these higher caps must implement specific anti-scam measures beforehand. For MPIs not adopting the higher caps, MAS recommends progressive implementation of these measures to enhance anti-scam resilience.

Below we list a summary of the key requirements of these anti-scam measures that MPIs need to put in place.

Governance and Accountability

➢ Board of directors and senior management oversight: The board of directors and senior management oversee the implementation of anti-scam measures and must ensure that a framework for responding to scams is in place.
➢ A separate unit to assess scam-related disputes independently

Preventive Measures

➢ Restrictions on sending clickable links, QR codes, or phone numbers through SMS, unless specific criteria are met
➢ 12-hour cooling-off period for e-wallet access on new devices
➢ Additional verification for high-risk activities or transfers above SGD 1,000, with warnings about associated risks

Detective Measures

➢ Real-time outgoing transaction alerts and a default transaction threshold set to SGD 0 to detect potential fraud early
➢ Notifications for high-risk activities and new device logins, with user reminders to verify these actions

Remedial Measures

➢ Continuous reporting channels for users to report unauthorised transactions
➢ “Kill switch” allowing users to block their e-wallet if they suspect unauthorised access

At Ingenia Consultants Pte. Ltd., we support our clients in drafting policies and procedures and designing controls to comply with regulatory requirements.
For any further information, please contact:

Vijay Bharadwaj
Director
Ingenia Consultants Pte. Ltd.
vijay.bharadwaj@ingenia-consultants.com