On 25 September 2024, the Monetary Authority of Singapore (“MAS“) published the revised Notice PSN11 – Notice on Restrictions in Relation to the Provision of Cross-Border Money Transfer Services to Persons in the People’s Republic of China (“Revised Notice PSN11“).
The Revised Notice PSN11 continues the requirement for licensees providing cross-border money transfer services (“Remittance Companies“) in Singapore to suspend the use of channels that are not specifically permitted when transmitting money to persons in the People’s Republic of China (“PRC“) from customers who are individuals (“Suspension“).
By way of background, on 5 August 2024, MAS published a Consultation Paper on Proposed Measures in Relation to the Provision of Cross-Border Money Transfer Services to the PRC (“Consultation“). This Consultation followed from MAS’ imposition of the Suspension via MAS Notice PSN11 – Notice on Temporary Restrictions in Relation to the Provision of Cross-Border Money Transfer Services to the People’s Republic of China (“Notice PSN11“). Notice PSN11 was implemented from 1 January 2024 to 31 March 2024, and subsequently extended to 30 September 2024. It listed the categories of specified entities that may by used by Remittance Companies in Singapore, such as banks or operators of a card payment system.
In the Consultation, MAS proposed to:
- extend the Suspension until further notice; and
- expand the scope of Notice PSN11 to all customers of the Remittance Companies. Under the then current Notice PSN11, the Suspension only applies to customers who are individuals, excluding non-individuals such as corporates and legal persons.
On 25 September 2024, MAS issued its response to feedback received from the Consultation. In view of the feedback received:
- MAS has extended the Suspension until further notice. MAS maintains the view that the suspension of non-specified channels for remittances to the PRC will continue to minimise the risk to consumers of beneficiaries’ bank accounts in which the monies was deposited subsequently being frozen or the monies forfeited by PRC law enforcement agencies.
- MAS will not expand the scope of the Suspension to all customers of the remittance companies and will continue to review the proposal. MAS reiterated that all remitters face similar risk of monies potentially frozen by agencies in the PRC. However, participants to the Consultation highlighted operational challenges such as an increase in operating costs for businesses that trade with the PRC, which might lead to an overall increase in the price of consumer goods imported from the PRC. As such, MAS will for now continue to limit the Suspension to individual customers (including sole proprietorships) sending monies to the PRC. MAS will keep the proposal to extend the suspension to corporates and non-individuals under review and further engage relevant industry participants.
The Revised Notice PSN11 took effect on 1 October 2024.
Click on the following links for more information (available on the MAS website at www.mas.gov.sg):
- Notice PSN11 – Notice on Restrictions in Relation to the Provision of Cross-Border Money Transfer Services to Persons in the People’s Republic of China (with effect from 1 October 2024)
- Response to Feedback Received on Proposed Measures in Relation to the Provision of Cross-Border Money Transfer Services to the People’s Republic of China
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