The Monetary Authority of Singapore (MAS) has imposed fines totaling S$960,000 on five licensed payment service providers for breaches related to anti-money laundering and countering the financing of terrorism (AML/CFT) regulations. These enforcement actions are part of MAS’s ongoing efforts to strengthen compliance standards in the rapidly growing payment services sector.
The firms penalized are Remsea, Arcade Plaza Traders (APT), J-Dee Remittance Services, Mobile Community Tech (MCT), and OxPay SG, a subsidiary of OxPay Financial. Each company was found to have failed in areas critical to customer due diligence and transactional transparency.
Among the primary violations were the failure to conduct proper customer due diligence, including not collecting key identification details such as residential addresses and beneficiary information. Additionally, some firms did not include required information about the originator and beneficiary in cross-border wire transfers, compromising traceability of funds—a core requirement under AML/CFT frameworks.
Remsea was fined S$280,000 for lapses that occurred between August 2020 and August 2023. The company failed to obtain full customer details and omitted necessary information in multiple wire transfers.
Arcade Plaza Traders (APT) received a penalty of S$260,000 for non-compliance between March 2020 and August 2023. The breaches involved similar failures in transaction monitoring and data collection.
J-Dee Remittance Services was fined S$170,000 for violations between July 2022 and August 2023, primarily for insufficient customer risk assessments and incomplete transaction data.
Mobile Community Tech (MCT) faced a penalty of S$140,000 for issues identified between September 2021 and July 2023, including weak controls in documenting and verifying customer profiles.
OxPay SG, operating under OxPay Financial, was fined S$110,000 for violations from May 2021 to November 2022. The company acknowledged the lapses and clarified that they were not the result of fraudulent intent but rather procedural weaknesses. It has committed to improving its AML/CFT framework and ensuring future compliance.
All five firms have since taken corrective actions and are implementing remediation plans under MAS’s supervision. MAS has indicated it will continue to monitor these firms closely and expects full adherence to regulatory standards moving forward.
In addition to these enforcement actions, MAS plans to release an industry guidance paper aimed at helping payment service providers understand common shortcomings and meet supervisory expectations. The paper will offer practical guidance on risk identification, due diligence, and reporting obligations.
This enforcement move reinforces MAS’s firm stance on maintaining the integrity of Singapore’s financial ecosystem, especially as digital and cross-border payments continue to expand.
