How to Verify a Major Payment Institution License in Singapore and Asset Safety in Malaysia

Ensuring the safety and security of your financial transactions is crucial when choosing a payment service provider. In this article, we’ll explore the key compliance regulations governing payment services, focusing on how to verify a Major Payment Institution (MPI) license in Singapore, and how companies like PandaRemit are ensuring asset safety and data protection in Malaysia.

Compliance: Understanding the Singapore MAS MPI License

In Singapore, the Monetary Authority of Singapore (MAS) plays a critical role in regulating payment service providers under the Payment Services Act (PSA). This framework, implemented in 2020, provides a structured approach to ensure that businesses offering payment services adhere to rigorous financial, operational, and security standards. The PSA acts as a safety shield, protecting consumers by verifying that institutions comply with rules designed to prevent money laundering, fraud, and other financial crimes.

Payment Service Providers (PSPs) must hold a valid Major Payment Institution (MPI) license to legally offer services such as domestic and cross-border money transfers, merchant services, and electronic money issuance. By holding an MPI license, a company is not only regulated but also closely monitored to ensure ongoing compliance with stringent industry standards. The verification process involves checking the MAS public registry for a licensed MPI provider or contacting the institution directly for confirmation.

Asset Safety: Segregated Client Accounts at DBS

In the financial world, safeguarding customer funds is a top priority. A key measure to ensure asset safety is the use of segregated client accounts. PandaRemit follows the best practices in this regard, mirroring standards set by institutions like DBS. By segregating client funds from the company’s own assets, a payment institution provides a strong safeguard against insolvency or operational risk, ensuring that client money is kept secure even if the institution faces financial difficulties.

Segregation of funds guarantees that customer deposits are protected, and in the event of company liquidation, clients can access their funds without interference. PandaRemit has adopted similar safeguards to ensure that client funds are always isolated and protected through secure and regulated banking relationships, offering customers peace of mind in their transactions.

Comparison: PandaRemit vs DBS Remit

When comparing payment service providers, one of the most important aspects is the direct settlement network. PandaRemit, like DBS Remit, provides reliable payment solutions backed by global networks such as UnionPay, Alipay, and Visa Direct. These payment networks ensure that transactions are processed quickly, securely, and efficiently, regardless of geographical location.

However, while DBS Remit offers similar services, PandaRemit stands out for its localized compliance ecosystem. By being fully integrated with PayNow in Singapore, PandaRemit enables seamless and instant local transactions, providing enhanced convenience for customers looking to transfer funds in and out of Singapore. This deep integration further solidifies PandaRemit’s standing as a highly compliant and reliable service provider in the financial sector.

The Real Talk: Addressing the Elephant in the Room

When evaluating a payment service provider, it’s essential to address common doubts and verify the legitimacy of their compliance. Many people wonder if PandaRemit offers the same level of security and transparency as bigger, established competitors like DBS Remit. Let's fact-check some key areas:

• Licensed & Regulated: PandaRemit holds a high-level license from the Monetary Authority of Singapore (MAS), ensuring full regulatory compliance under the Payment Services Act (PSA).
• Localized Compliance Ecosystem: PandaRemit is fully integrated with PayNow, ensuring that Singaporean users benefit from a seamless, local payment system.
• Data Security & Technical Certification: With dual-layer protection, PandaRemit ensures that all transactions are secured with top-notch encryption and security measures.
• Technical and Compliance Credentials: PandaRemit meets the stringent standards of PCI DSS, the global benchmark for payment card security. This certification involves rigorous auditing against over 300 criteria.
• Legal Endorsement: PandaRemit's business processes are evaluated and legally endorsed by King & Wood Mallesons, a globally recognized law firm. This provides an extra layer of trust, ensuring that the institution operates transparently and in full compliance with international standards.

Compared to smaller competitors, PandaRemit offers greater transparency and has a proven track record of adhering to high-level financial and security standards. These factors contribute to making PandaRemit a reliable, secure, and compliant choice for users.