PSP License Proposal
- a22162
- Apr 26
- 8 min read
PSP License Proposal Guidance
Bestar Proposal for Payment Service Provider Licence Application to the Monetary Authority of Singapore (MAS)
Here's an example of Bestar Consulting proposal, specializing in regulatory compliance for fintech firms in Singapore.
[Bestar Consulting Letterhead]
April 26, 2025
Acme Payments Pte. Ltd.
123 Fintech Avenue, Singapore 01234
Attention: Mr. John Tan, Chief Executive Officer
Subject: Proposal for Acme Payments Pte. Ltd.'s Payment Service Provider Licence Application to the Monetary Authority of Singapore (MAS)
Dear Mr. Tan,
1. Introduction: Partnering with Bestar Consulting for Your MAS PSP Licence
Bestar Consulting is a leading regulatory compliance firm based in Singapore, specializing in guiding fintech companies through the complexities of the Monetary Authority of Singapore (MAS) regulatory framework. Our team comprises seasoned professionals with extensive experience in payment services, anti-money laundering and counter-terrorism financing (AML/CFT), technology risk management, and regulatory compliance. We have a proven track record of successfully assisting numerous clients in obtaining and maintaining various MAS licences, including Payment Service Provider (PSP) licences.
We understand that Acme Payments Pte. Ltd. is seeking a [Specify Licence Type: e.g., Major Payment Institution Licence] to offer [Specify Intended Payment Services: e.g., cross-border money transfer and merchant acquisition services] in Singapore. We are impressed with Acme Payments' [Mention something specific you admire about their business model or vision, if known]. Bestar Consulting is confident that our deep understanding of the PS Act 2019, relevant MAS Notices and Guidelines, and our tailored approach will significantly enhance the efficiency and success of your licence application.
2. Understanding Acme Payments Pte. Ltd.'s Needs and Objectives
Based on our initial discussions, we understand that Acme Payments aims to:
Obtain a [Specify Licence Type] licence from MAS to legally operate your intended payment services in Singapore.
Establish robust and compliant operational frameworks from the outset.
Minimize potential delays and challenges in the licensing process.
Build a strong foundation for sustainable growth and regulatory adherence.
We recognize the critical importance of a well-prepared and comprehensive licence application to meet MAS's stringent requirements, particularly concerning:
Fit and Proper Criteria: Demonstrating the suitability of your key personnel.
Base Capital Requirements: Meeting the financial soundness standards for your chosen licence type.
AML/CFT Obligations: Establishing robust policies, procedures, and controls to prevent financial crime, in line with PSN01 and PSN02.
Technology Risk Management: Implementing sound cybersecurity measures and adhering to PSN06 guidelines.
Conduct of Business: Ensuring fair and transparent dealings with customers, as outlined in PSN07.
Business Plan and Operational Flow: Clearly articulating your business model, operational processes, and risk mitigation strategies.
3. Bestar Consulting's Proposed Services: A Comprehensive Partnership
Bestar Consulting offers a comprehensive suite of services designed to support Acme Payments throughout the entire PSP licence application process and beyond:
3.1. Initial Consultation and Regulatory Strategy:
In-depth review of Acme Payments' business model and intended payment services.
Detailed explanation of the specific requirements for the [Specify Licence Type] licence.
Development of a tailored regulatory strategy and roadmap for the licence application process.
Guidance on the necessary documentation and information required by MAS.
3.2. Application Documentation Preparation and Review:
Assistance in preparing the Licence Application Form (Form 1) accurately and comprehensively.
Development and review of key supporting documents, including:
Detailed Business Plan: Articulating your business strategy, target market, revenue model, and financial projections.
AML/CFT Policies and Procedures: Crafting a robust framework aligned with MAS regulations, including KYC/CDD, transaction monitoring, and suspicious transaction reporting.
Risk Management Framework: Identifying, assessing, and mitigating key operational, financial, and regulatory risks.
Technology Risk Management Framework: Developing policies and procedures to ensure the security and resilience of your IT systems, in line with MAS guidelines on cyber hygiene.
Outsourcing Arrangements (if applicable): Reviewing and advising on agreements with third-party service providers.
Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP).
Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) Procedures.
Programme for Compliance with Notice on Conduct (PSN07).
Ensuring all documentation is consistent, accurate, and addresses MAS's specific requirements.
3.3. Liaison with MAS:
Acting as a primary point of contact with MAS throughout the application process.
Assisting in responding to MAS queries and requests for additional information.
Facilitating communication and ensuring timely submission of all required documentation.
3.4. Fit and Proper Assessment Support:
Guidance on the information required for the fit and proper assessment of your directors, CEO, and substantial shareholders.
Review of relevant documentation to ensure compliance with MAS's criteria.
3.5. Base Capital Requirement Guidance:
Advising on the specific base capital requirements for the [Specify Licence Type] licence.
Reviewing your capital projections and providing guidance on meeting MAS's requirements.
3.6. Mock Audit Preparation (Optional):
Conducting a mock audit of your policies, procedures, and systems to identify any potential gaps before MAS assessment.
3.7. Post-Licensing Support (Optional):
Assisting with the implementation of your compliance frameworks.
Providing ongoing regulatory updates and guidance.
Conducting periodic compliance reviews and audits.
Delivering AML/CFT and other relevant training to your staff.
4. Methodology and Approach: A Collaborative and Structured Process
Bestar Consulting employs a collaborative and structured approach to ensure a smooth and efficient licence application process:
Phase 1: Initiation and Planning (Weeks 1-2):
Kick-off meeting to align on objectives and timelines.
In-depth review of Acme Payments' business model and documentation.
Development of a detailed project plan with clear responsibilities and milestones.
Phase 2: Documentation Development and Review (Weeks 3-8):
Working closely with Acme Payments' team to develop and refine all required application documents.
Providing expert guidance and feedback to ensure compliance with MAS requirements.
Multiple rounds of internal review to ensure accuracy and completeness.
Phase 3: Application Submission and Liaison (Weeks 9-Ongoing):
Assisting with the electronic submission of the licence application to MAS.
Serving as the primary point of contact for all MAS-related communications.
Promptly addressing any queries or requests for additional information from MAS.
Phase 4: Post-Licensing Support (As Required):
Providing ongoing support for the implementation and maintenance of your compliance framework.
Throughout the engagement, we will maintain open communication, provide regular progress updates, and ensure that Acme Payments is fully informed at every stage.
5. Our Team and Qualifications: Experienced Professionals Dedicated to Your Success
Bestar Consulting's team comprises professionals with deep expertise in the Singaporean financial regulatory landscape:
[Name and Title of Lead Consultant]: [Briefly describe their relevant experience, e.g., "Over 10 years of experience in regulatory compliance for financial institutions in Singapore, including extensive work with PSP licensing."]
[Name and Title of AML/CFT Specialist]: [Briefly describe their relevant experience, e.g., "Certified Anti-Money Laundering Specialist (CAMS) with a strong track record in developing and implementing AML/CFT frameworks compliant with MAS regulations."]
[Name and Title of Technology Risk Consultant]: [Briefly describe their relevant experience, e.g., "Expert in cybersecurity and technology risk management, with experience in implementing MAS's technology risk management guidelines (PSN06)."]
Our team's collective experience and in-depth understanding of MAS's expectations will be invaluable in navigating the complexities of the PSP licence application process.
6. Timeline and Deliverables:
Based on our current understanding, we estimate the following timeline for the key stages of the licence application process:
Phase | Estimated Duration | Key Deliverables |
Phase 1: Initiation and Planning | 1-2 Weeks | Project plan, detailed checklist of required documents, regulatory strategy document. |
Phase 2: Documentation Development & Review | 6-8 Weeks | Draft and final versions of the Business Plan, AML/CFT Policies and Procedures, Risk Management Framework, Technology Risk Management Framework, and other supporting documents. |
Phase 3: Application Submission & Liaison | Ongoing | Submission of the licence application to MAS, responses to MAS queries, ongoing communication and support. |
Please note that the actual timeline for MAS's review and approval process is outside of our control. We will, however, work diligently to ensure a complete and accurate application to minimize potential delays.
7. Fees and Payment Terms:
Our fees for the services outlined above will be structured as follows:
Phase 1: Initiation and Planning: [Fixed Fee Amount]
Phase 2: Documentation Development and Review: [Fixed Fee Amount]
Phase 3: Application Submission and Liaison: [Monthly Retainer Fee Amount]
Optional Services (e.g., Mock Audit, Post-Licensing Support): [Hourly Rate or Project-Based Fee to be Agreed Upon]
A detailed breakdown of our fees will be provided in a separate engagement letter. Our standard payment terms are [Specify Payment Terms, e.g., 50% upon commencement, 30% upon submission of the application, 20% upon initial MAS feedback].
8. Client Testimonials (Optional):
"[Include a brief testimonial from a previous client who successfully obtained a PSP licence with your assistance.]" - [Client Name, Title, Company]
"[Include another brief testimonial highlighting your expertise and professionalism.]" - [Client Name, Title, Company]
9. Conclusion: Your Partner in Regulatory Success
Bestar Consulting is committed to providing Acme Payments Pte. Ltd. with the expert guidance and support necessary to navigate the MAS PSP licence application process successfully. Our deep understanding of the regulatory landscape, our meticulous approach, and our dedicated team make us the ideal partner to help you achieve your licensing objectives and build a strong foundation for your payment services business in Singapore.
We are confident that our comprehensive services will not only streamline the application process but also ensure that Acme Payments establishes robust and compliant operational frameworks from the outset.
We would welcome the opportunity to discuss this proposal in more detail and answer any questions you may have. Thank you for considering Bestar Consulting as your trusted partner in this important endeavor.
Sincerely,
Roger Pay
CEO
Bestar Consulting Pte. Ltd.
[Your Contact Information]
Next Steps:
We propose a follow-up meeting on [Suggest a Date and Time] to discuss this proposal further and address any specific questions you may have. Please let us know if this time works for you.
This example provides a comprehensive picture of what a service provider proposal should entail. Remember to tailor it meticulously to the specific applicant and the services your company offers. Good luck!
How Bestar can Help
PSP License Proposal
Bestar can bring a wealth of expertise and resources to significantly enhance an applicant's chances of successfully obtaining a Payment Service Provider (PSP) licence from the Monetary Authority of Singapore (MAS). Here's a breakdown of how our professional help can be invaluable:
1. Deep Regulatory Expertise and Up-to-Date Knowledge:
Navigating Complexity: The MAS regulatory framework for PSPs, including the Payment Services Act 2019 and various Notices and Guidelines, can be complex and require a thorough understanding. Bestar specializes in interpreting these regulations and applying them to the applicant's specific business model.
Staying Current: Regulatory requirements can change. Bestar is constantly updated on the latest amendments, new guidelines, and MAS expectations, ensuring the application adheres to the most current standards.
Anticipating Challenges: Based on our experience, Bestar can anticipate potential roadblocks or areas of concern that MAS might raise during the assessment process.
2. Streamlined and Efficient Application Process:
Structured Approach: Bestar brings a structured methodology to the application process, ensuring all necessary steps are followed in a logical and timely manner.
Comprehensive Documentation: We can guide the applicant in preparing all required documentation accurately and comprehensively, minimizing the risk of incomplete submissions or requests for further information from MAS.
Reduced Errors and Delays: Our expertise helps avoid common pitfalls and errors that can lead to significant delays in the licensing process.
3. Tailored and Robust Compliance Frameworks:
Customized Solutions: Bestar understands that a one-size-fits-all approach to compliance doesn't work. We can develop AML/CFT policies, risk management frameworks, and technology risk management strategies that are specifically tailored to the applicant's business operations and the type of PSP licence sought.
Best Practices Implementation: We bring knowledge of industry best practices and can help the applicant implement robust controls and procedures that meet MAS's expectations.
Future-Proofing Compliance: Bestar can help build compliance frameworks that are not only compliant at the time of application but also scalable and adaptable for future growth and regulatory changes.
4. Enhanced Communication and Liaison with MAS:
Professional Representation: We can act as a professional point of contact with MAS, ensuring clear and effective communication.
Expert Responses: Bestar can assist in drafting well-articulated and comprehensive responses to MAS queries, demonstrating a strong understanding of the regulatory requirements.
Facilitating Dialogue: We can help facilitate a smooth dialogue with MAS throughout the assessment process.
5. Objective Perspective and Gap Identification:
Independent Assessment: Bestar provides an objective perspective on the applicant's readiness for licensing, identifying potential weaknesses or gaps in their proposed operations, policies, and procedures.
Risk Mitigation: Our expertise helps identify and mitigate potential regulatory risks before they become significant issues.
6. Increased Likelihood of Success:
Expert Guidance: By leveraging the knowledge and experience of Bestar, applicants significantly increase their chances of a successful licence application.
Reduced Burden on Internal Resources: Engaging Bestar frees up the applicant's internal team to focus on their core business activities rather than getting bogged down in the complexities of the regulatory process.
In essence, Bestar acts as a trusted partner, guiding the applicant through the intricate landscape of MAS regulations, ensuring a well-prepared and compliant application, and ultimately increasing the probability of obtaining the desired PSP licence in a timely and efficient manner. Our expertise can save the applicant significant time, resources, and potential frustration.
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