Monetary Auth of Singapore Regulation of licensed payment platforms
MAS said that they ensure that licensed payment platforms comply with anti-money laundering and terrorism financing operations and have risk management practices. However, MAS does not regulate these platforms for "safety and soundness".

I am puzzled by this stand by MAS.

Surely, the key duty of a regulator is to ensure that the platforms are operated safely and soundly?

For example, the platform should not use customers' deposits to pay their operating expenses or to invest the deposits in risky investments?

While the regulator cannot ensure that the investments are totally safe, it should carry out regular audits and inspections to ensure that the platforms comply with their internal standards (which they announce to their customers) and to regulatory controls .

Tan Kin Lian
 

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