Recently, Alibaba’s international platform obtained provisional approval from the Monetary Authority of Singapore (MAS) to obtain the Major Payment Institution (MPI) license in Singapore. What is the MPI license?The Singapore MPI license, or Major Payment Institution (MPI) license, is a financial license issued by the Monetary Authority of Singapore (MAS). The MPI license is a high-level payment institution license applicable to handling higher transaction volumes and more complex payment transactions, possessing more authority and professionalism than ordinary payment institution licenses.After obtaining the MPI license, a range of payment services including account opening, local remittances, cross-border remittances, currency exchange, etc., can be provided locally in Singapore.Requirements for Applying for the Singapore MPI Payment License
A company must be registered in Singapore first.
Provide company name, scope of business, identity cards, passports of directors and shareholders, application forms, etc.
The company must also submit relevant documents such as its business overview, financial statements, anti-money laundering compliance plan, etc.
Capital requirements: MPI license SGD 250,000, actual processing requires at least SGD 1 million, funds must be deposited in the account six months in advance.
Employ at least 3 Singaporean employees to serve as CEO, executive director, and compliance officer.
Establish a permanent business premises or registered office in Singapore.
Have a local secretary.
MPI License Application Process
Prepare application materials: including company registration certificate, shareholder information, company articles of association, business plan, risk management and compliance policies, etc.
Submit application materials: submit application materials to MAS and pay the corresponding application fees.
MAS review: MAS will review the application materials and conduct due diligence, including the company’s financial condition, qualifications and experience of employees, risk management, and compliance capabilities, etc.
License approval: If MAS deems that the company meets the requirements of the MPI license, it will issue the MPI license to the applicant.
Benefits of Applying for the MPI License
Enhance professional qualifications: The MPI license is the standard for the media industry in Singapore. Holding an MPI license can prove that one possesses certain professional qualifications and skills. This not only enhances one’s professional qualifications but also increases competitiveness within the industry.
Increase employment opportunities: Holding an MPI license can increase employment opportunities within the media industry. In Singapore, many media companies require employees to hold an MPI license to take on certain positions. If you have an MPI license, you can more easily find an ideal job.
Increase salary levels: Holding an MPI license can increase one’s salary level within the media industry. In Singapore, many media companies determine salary levels based on employees’ professional qualifications and skills. If you have an MPI license, you can receive higher salaries.
Enhance company credibility: If you are the owner of a media company, you can require employees to hold an MPI license to take on certain positions. This can enhance the credibility of the company and make clients trust your company more.
Expand business scope: Holding an MPI license can expand one’s business scope. In Singapore, many media companies require partners to hold an MPI license to collaborate. If you have an MPI license, you can expand your business scope and collaborate with more partners.
Companies applying for the MPI license need to meet high requirements and standards, so the time and cost of applying for the MPI license are relatively high. In addition, the regulatory requirements for the MPI license are strict, and companies need to have sound risk management and compliance control mechanisms to ensure the safety and stability of their business operations. It can be said that not all companies are suitable for applying, and companies that do not meet the relevant qualifications may consider applying for the Standard Payment Institution (SPI) license.
