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Singapore stored value facility (SVF) licence

Updated time: Jul 31, 2018 , 15:32 (UTC+08:00)

Overview and regulations

A stored value facility (SVF) is a form of prepaid electronic cash or card that can be used within the system of the SVF issuer. The SVF issuer is known as the holder of the stored value. Some electronic SVFs are also known as e-money. Usage of SVFs usually does not require personal identification numbers (PINs) or signatures. The Payment Systems (Oversight) Act (PS(O)A) and its related regulations govern the issuance and management of SVFs.

An SVF may be a single-purpose scheme or a multi-purpose one. A single-purpose SVF is an SVF that is, or is intended to be, used for payment only of goods or services, or of both goods and services, provided by the holder of that stored value facility. Note that single-purpose SVFs are exempt from certain sections of the PS(O)A.

When the stored value outstanding in a multi-purpose SVF scheme exceeds a prescribed threshold limit set in the PS(O)A, the SVF is regarded as a widely accepted SVF (WA SVFs). Currently, the threshold limit stands at SG$30 million. The approval of the Monetary Authority of Singapore (MAS) is required for the continued operation of this type of SVF scheme. The PS(O)A defines WA SVFs as a stored value facility:

  • in which the stored value is held by an approved holder; and
  • in respect of which an approved bank has undertaken to be fully liable for the stored value.

In the event that an SVF becomes a relevant SVF, the holder is also required to comply with the PSOA-N02: Notice to Holders of Stored Value Facilities on Prevention of Money Laundering and Countering the Financing of Terrorism. The definition of a relevant SVF can be found within this notice. This notice, issued in November 2007, requires holders to implement “know-your-client” measures to establish and verify the identity of users.

Users, operators and issuers of SVFs

For users or consumers of SVFs, a MoneySense article is available to provide an overview of SVFs. Please see the link below, “Introduction to Stored Value Facilities: Making sense of stored value facilities used to pay for goods or services rendered”.

Operators of SVFs and holders of stored value may wish to refer to the Monetary Authority of Singapore (MAS) guidelines on stored value facilities. These guidelines promulgate best practices that that SVF holders are encouraged to adopt for their schemes.

Time frame: Offshore Company Corp can help you get an SVF licence within 5-10 working days.