Wirecard Complies with MAS Directions to Keep Customer Funds in Banks in Singapore
The Monetary Authority of Singapore (MAS) has announced that Wirecard entities in Singapore have complied with MAS’ directions to hold customers’ funds in segregated accounts with banks in Singapore.
The MAS said in a press release that it is closely monitoring the operations of Wirecard.
Wirecard’s primary business activities in Singapore are to process payments for merchants and help companies issue pre-paid cards. Wirecard has informed MAS that it is assessing its ability to continue providing its services in Singapore in light of the filing for insolvency in Germany by its parent company Wirecard AG.
Credit card payments at merchants using Wirecard’s services, as well as usage of pre-paid cards issued by Wirecard, will be affected if it ceases operations in the City-State.
MAS has said that it has informed Wirecard of their expectations that they promptly notify customers in advance of any disruption to their services. There are alternative payment service providers available to merchants. Other forms of e-payments such as NETS, PayNow and SGQR continue to be available, said the regulator.
In the press release, MAS stated that Wirecard entities operating in Singapore are not currently licensed by the regulator; MAS points to the grace period outlined in the Payment Services Act 2019, which offers a grace period ranging from 6 months to a year for entities providing certain regulated payment services to apply for the relevant licence.
During this grace period, such entities may provide the regulated payment service without a licence and MAS may issue directions to such entities.