Can remittance companies licensed under the Money-changing and Remittance Businesses Act (MCRBA) lend money?
Remittance companies are currently licensed under the Money-changing and Remittance Businesses Act (MCRBA). The Money-changing and Remittance Businesses Act regulates licensees for their money-changing and remittance activities, primarily to mitigate the risks of money-laundering and terrorism financing. In the past year, MAS has been alerted to a remittance licensee offering consumer loans.
It is not the intent of MAS to allow remittance licensees to conduct consumer lending. If licensees wish to do more, they must hold the appropriate licence and be subject to the relevant regulatory measures.
Remittance companies that are currently conducting consumer lending will have to cease such activities by the time they are licensed under the Payment Services Bill.
MAS clarified the same in response to “Can remittance companies lend money” – The Straits Times, 18 January 2019