REPUBLIC OF SINGAPORE
Published by Authority
|NO. 7]||Friday, March 3||[2006|
The following Act was passed by Parliament on 16th January 2006 and assented to by the President on 6th February 2006:—
Payment Systems (Oversight) Act 2006
(No. 1 of 2006)
S R NATHAN,
6th February 2006.
Date of Commencement: 23rd June 2006
An Act to provide for the oversight of payment systems and stored value facilities, to make related amendments to the Banking Act (Chapter 19 of the 2003 Revised Edition) and to make consequential amendments to the Companies Act (Chapter 50 of the 1994 Revised Edition) and the Road Traffic Act (Chapter 276 of the 2004 Revised Edition), and for matters connected therewith.
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:
1. This Act may be cited as the Payment Systems (Oversight) Act 2006 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
—(1) In this Act, unless the context otherwise requires —
“access”, in relation to a designated payment system, means the entitlement or eligibility of a person to become a participant in the payment system, on a commercial basis on terms that are fair and reasonable;
“access regime”, in relation to a designated payment system, means an access regime imposed by the Authority under section 15 and that is in force;
“approved bank” means a bank in Singapore that is approved by the Authority under section 35(1) as an approved bank in respect of a stored value facility;
“approved holder” means a holder that is approved by the Authority under section 35(1) as an approved holder in respect of a stored value facility;
“Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act (Cap. 186);
“book” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in any electronic form or otherwise;
“chief executive officer”, in relation to the operator of a designated payment system, means any person by whatever name described, who is —
in the direct employment of, or acting for or by arrangement with, the operator of the designated payment system; and
principally responsible for the management and conduct of the business of the operator in Singapore;
“corporation” has the same meaning as in section 4(1) of the Companies Act (Cap. 50);
“designated payment system” means a payment system that is designated by the Authority under section 7 to be a designated payment system for the purposes of this Act;
“director” has the same meaning as in section 4(1) of the Companies Act;
“holder”, in relation to a stored value facility, means the person who holds the stored value and makes payment for goods or services referred to in the definition of “stored value facility” ;
“operator”, in relation to a payment system, means a person who operates the payment system;
“participant”, in relation to a payment system, means any person who is recognised in the rules of the payment system or otherwise recognised as being eligible to settle payments through the payment system with other participants;
“payment system” means a funds transfer system or other system that facilitates the circulation of money, and includes any instruments and procedures that relate to the system;
“settlement institution” means a person who provides facilities for —
the participants of a payment system to hold funds; and
the settling of transactions between the participants;
“share” has the same meaning as in section 4(1) of the Companies Act;
“statutory corporation” means any body corporate established by or under written law to perform or discharge any public function;
“stored value”, in relation to a stored value facility, means the sum of money that —
has been paid in advance for goods or services intended to be purchased through the use of the stored value facility;
is available for use from time to time for making payment under the terms and conditions applying to the stored value facility; and
is held by the holder of the stored value facility;
“stored value facility” means —
a facility (other than cash), whether in physical or electronic form, which is purchased or otherwise acquired by a person (referred to in this Act as the user) to be used as a means of making payment for goods or services up to the amount of the stored value that is available for use under the terms and conditions applying to the facility, and payment for the goods or services is made by the holder of the stored value in respect of the facility (rather than by the user); or
all the facilities referred to in paragraph (a) provided under the same terms and conditions;
“substantial shareholder” has the same meaning as in Division 4 of Part IV of the Companies Act (Cap. 50);
“widely accepted stored value facility” means 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.
(2) In any case where the functions of —
the operator or settlement institution of a payment system are assumed by or shared among more than one operator or settlement institution, a reference in this Act to the operator or settlement institution shall be read as a reference to each of such operators or settlement institutions; and
the holder of a stored value facility are assumed by or shared among more than one holder, a reference in this Act to the holder shall be read as a reference to each of such holders.
(3) In this Act —
a reference to a facility includes a reference to a right to use a facility;
a reference to the purchase of a facility includes a reference to the payment of an amount of money for a right to use a facility; and
a reference to a payment system includes a reference to a system that operates a stored value facility.
—(1) Parts III and IV shall not apply to the Authority in its capacity as —
an operator; or
a settlement institution,
of any payment system.