Money Changer License in Singapore
Singapore, being a tourist hub and an international financial center, has a relatively secure and safe environment for the money changers to conduct or continue their business. There are specific requirements for setting up money changing business in Singapore. These requirements are required to be followed by the person applying for Money Changer License in Singapore.
Money changing in Singapore involves the selling and buying of foreign currency notes. Money changing may be conducted under a partnership, sole proprietorship, or company. There was around 382 Money Changer License in Singapore as in the year 2014.
What is a Money Changer License in Singapore?
The currency world offers a lot of profit-making and interesting employment opportunities, one of them being the ‘money changing businesses. The global market inspires a crucial position for money exchange. With the rise in international travel, such business is growing to facilitate easy buying and selling of goods across borders. Thus, there is no denying that money changing business is growing and increasing.
Being a popular tourist hub and an international financial center, Singapore has a huge potential for money changers to conduct their business.
Laws regulating services like the money-changing business are concerned with two things:
- Anti-money laundering
- Countering the financing of terrorism
What is the Monetary Authority of Singapore?
Monetary Authority of Singapore or MAS is the governing authority for the currency exchange sector in Singapore. Such business can be conducted through a sole proprietorship, partnership, or company structure. The governing rules shall depend on the type of business (like only currency exchange, or combined with remittance).
What is the eligibility criterion for MAS for Money Changer License in Singapore?
While scanning the application for a Money Changer License in Singapore, certain conditions are prescribed.
The conditions to be followed are:
- The character of the applicant, if it is an individual and if is an entity, then of its management;
- The financial health of the applicant, track record and financial performance in previous years;
- The shareholding structure and ownership of the applicant entity.
This implies that if the applicant is:
- A sole proprietor then he is required to be a citizen of Singapore; or
- An LLP or a partnership, the majority of its partners, should be citizens of Singapore.
- A company, then a minimum of 51% of the equity shareholdings, should be controlled and owned by a citizen of Singapore as well as the majority of the board of directors, should be citizens of Singapore.
- A foreign company that is primarily engaged in money-changing or a Singapore incorporated wholly-owned subsidiary of a foreign bank, then the complete details of the character of its parent company.
- The qualifications and experience of the applicant with respect to operating a money-changing business
- The applicant should be able to satisfy the Monetary Authority of Singapore or MAS that he is a fit and proper to be licensed, if a sole proprietor, and if is an entity, then the same for its management.
- An appropriate and strong business model and plan.
- Assurance that the public interest shall be served after the license is granted.
- In addition to the above, the Monetary Authority of Singapore or MAS has the freedom to consider every application on its own merits and consider other factors as may be appropriate.
What is the capital requirement for Money Changer License in Singapore?
The capital requirement for Money Changer License in Singapore is as follows:
- To start a currency exchange business in Singapore, the minimum start-up capital requirement is S$100,000.
- The fee is divided into two categories: application fees and license fees.
- In the case of a new application, the application fee for a Money Changer License in Singapore is $200.
- For the first place of business, the fee is $1300.
- For every additional place of business, the fee is $1000.
- This fee can be remitted either through interned fund transfer and direct deposit or account transfer over bank counters.
What is the Procedure for applying for the Money Changer License in Singapore?
Along with carefully conforming to the guidelines, rules, and criteria set by the Monetary Authority of Singapore or MAS, the prospective applicants have to submit the form with required documents.
In the form, complete details of the applicant are required to be submitted with a declaration form attached to it.
The documents that are to be submitted include the following:
- Documents demonstrating the qualification, identity, the experience of sole-proprietor, partners, or directors in money-changing or remittance business, which are:
a) Latest Curriculum Vitae;
b) Last 3 years CPF contribution statements;
c) Copy of ID or passport;
d) Copy of educational certificates and transcripts; and
e) Individual insolvency search results.
- Copy of Proof of incorporation of business;
- Copy of the educational certificates, transcripts, and Curriculum Vitae or CV of the majority shareholder;
- The last 3 years audited financial statements of the applicant firm or company, where applicable;
- Business plan as per the Money-changing and Remittance Businesses Act and the relevant notifications of the MAS or Monetary Authority of Singapore. This includes details of business model, clientele, type of currencies to be traded, sources of foreign currencies, determination of exchange rates, wholesale or retail business, etc;
- Anti-Money Laundering and Countering the Financing of Terrorism Policy & Procedures; and
- The additional document may be required, which depends on a case-to-case basis.
To run an effective Money Changer License Business in Singapore, it is very important that a strong plan is made and is executed in a proper manner. Money Changer Business is a lucrative business opportunity with high yielding results if operated in an appropriate manner.
Thus, it is important that one must seek assistance from experts while preparing the business model, obtaining the license, and for further compliance processes.
For any further details regarding the Money Changer License in Singapore, contact us at Enterslice.
What is the validity of the Money Changer License in Singapore?
The validity of the Money Changer Licence in Singapore is valid until either:
- The Money Changer Licence is revoked by the Monetary Authority of Singapore.
- The Money Changer Licence lapses in accordance with Section 11(1) of the Payment Services Act and Regulation 10 of the Payment Services or PS Regulations.
- The licensee of the Money Changer License surrenders his/her license.
What are the benefits of the Money Changer License in Singapore?
The benefits of the Money Changer License in Singapore:
Competitive Exchange Rates
The applicant should be assured that he/she is getting one of the most competitive exchange rates across Singapore. The rates should consistently beat the traditional Money Changer rates in the whole territory of Singapore.
The applicant should lock in the exchange rates by booking the same online. The applicant no longer needs to be disappointed after travelling more than 30 minutes across Singapore only to have the money changer rates to be changed.
The Money Changer License services are available online, and booking can be made online. The applicant can collect their currencies at their own convenience.
The applicant is having the option of making cashless payments online. This will help teh applicant avoid disputes.
How Can We Help
Our team at Enterslice is a one-stop solution if you are planning to obtain a Money Changer License in Singapore. We ensure smooth implementation of your assistance and work in international registration and include the procurement of a Money Changer License in Singapore.
We follow these simple steps for the effective execution of your order with us at Enterslice:
STEP 1: Once you post your inquiry, we understand your requirement through a one on one discussion with our professionals and suggest you the most appropriate service package offered by us. We will look for the best possible solutions for your questions and assist you in the best possible ways. Based on the discussion, we will generate your order.
STEP 2: Once the order is created, you will be required to make the required payment along with all the necessary documentation. The amount of payment will include our services fees as well as the relevant government fees. And the list of all the required documents will be provided to you by our professionals.
You can make the payment through any of the following modes:
- Bank Transfer- NEFT or IMPS
- M Swipe (Credit or Debit Card)
- Paytm or Razor pay
STEP 3: Once the payment is made, and all the required documents will be reviewed by our service professionals. You will be informed during all steps in the process.