Singaporean Finance Companies’ Licensing Solutions | Pre-licensing Assessment | Finance Company Licence Application Management | Post-licensing Compliance Solutions for MAS Regulated Finance Companies

We offer a comprehensive set of solutions to help you obtain and maintain a Singapore Finance Company Licence issued by the Monetary Authority of Singapore (MAS), tailored to:

• Your business goals and objectives
• Your client demographics
• Your countries of operation
• The size of your business
• The available human and technology resources
• Your risk appetite
• Your governance structure
• The products that you offer
• MAS regulared finance companies' obligations covering risk and compliance management under financial laws and regulations, the applicable financial licensing requirements, AML/CFT laws, privacy laws, consumer protection laws, and more

We have designed our regulatory licensing solutions to help you navigate the complexities of the Singaporean finance companies' licensing regime in a commercially oriented and goal-focused manner, providing effective support for all stages of the Singaporean finance companies’ licensing process, including but not limited to the following aspects:

• Singaporean Finance Company Licence Guidance: Advising on a wide range of aspects associated with Singaporean finance company licence as it relates to your specific situation
• Pre-licensing assessment: Covering compliance gap analysis as well as risk and compliance assessment
• Pre-licensing support:
• Drafting the necessary policies and procedures to help you comply with the Singaporean finance companies' licensing conditions and financial markets' regulations
• Developing internal controls to help you meet your obligations under the Singaporean finance companies' licensing regime
• Singaporean Finance Company Licence Application Support: Covering the entire licensing process
• Post-licensing Support: Covering
• Ongoing compliance advice
• Comprehensive second-line risk and compliance support, including leading the implementation of your risk management framework (RMF), compliance management framework (CMF), compliance monitoring program (CMP), compliance calendar and checklist, ongoing risk assessments, internal and external reporting, outsourced providers' management, and more
• AML/CFT advice
• AML/CFT compliance management
• Compliance assurance solutions, including compliance assurance program (CAP) development, implementation, and internal control testing

 

Service Coverage

This page is about Singaporean finance company licensing. Under the Finance Companies Act 1967, entities carrying on finance company business must hold a Finance Company licence issued by MAS. This licence authorises deposit-taking and the provision of credit and imposes ongoing prudential, governance, and compliance obligations. Depending on the business model, additional requirements may apply (e.g., AML/CFT compliance for finance companies under MAS Notice 824, and membership of the SDIC Deposit Insurance Scheme). We offer support for finance company licence applications tailored to:

• Consumer Finance Companies
• Commercial Finance Companies
• Auto Finance Companies
• Equipment Finance Companies
• Mortgage Finance Companies
• Microfinance Companies
• Payday Loan Companies
• Leasing Companies
• Factoring Companies
• SME-focused Finance Companies
• Foreign Finance Companies establishing in Singapore
• Financial institutions integrating finance-company activities
• Community Development Financial Institutions (CDFIs)

You can find more information about our Singaporean finance company licence solutions below:

 

Singaporean Finance Companies’ Licensing Preparation

Pre-licensing Compliance Assurance

Our Singaporean finance company licence solutions cover the following focus areas:

• Compliance Goals Analysis: We review your business-specific goals and resources against the suitability criteria for a Singaporean finance company licence
• Initial Consultation: We provide guidance on potential risk and compliance issues that may arise during the Singaporean finance companies’ licensing process
• Choosing the Right Jurisdiction: We assist in evaluating regulatory, risk, and compliance environments to determine the most suitable jurisdictions for your Singaporean finance company licence, tailored to suit your:

• business objectives,
• operational capacity,
• client base,
• markets of operations,
• and other relevant factors

• Gap Analysis: We identify gaps between your existing operations and regulatory requirements and help you align them in a commercially oriented manner
• Singaporean Finance Company Licence Application Plan: We help you establish a roadmap to effectively meet the requirements for your Singaporean finance company licence

 

 

Singaporean Finance Company Licence Guidance

Selecting the right compliance model is crucial not only for navigating the licensing process but also for maintaining ongoing compliance and avoiding potential breaches. Our Singaporean finance companies' licensing solution covers:

• Compliance Model Selection: To help you best comply with the Singaporean finance companies' licensing regime and related risk and compliance obligations.
• Corporate Governance Model Selection: We offer practical guidance on establishing effective corporate governance practices that support your risk and compliance oversight.
• Operations Model Advisory: We advise you on optimising your operational and governance models to help you efficiently comply with the licensing requirements for deposit takes and lenders and other applicable MAS regulated finance companies’ obligations, keeping in mind your specific circumstances, available resources and business goals.

 

Singaporean Finance Company Licence and Entering MAS Regulated Environment

We help businesses transition from an unregulated environment to operating under the Singaporean finance companies' licensing regime, helping them meet their obligations as a Singaporean finance company licence holder.

We also assist already regulated businesses in aligning their existing risk and compliance management structures with the Singaporean finance companies' licensing regime requirements.

Our focus areas for this service include:

• New businesses
• Existing Singaporean finance companies operating in unregulated markets
• Regulated Singaporean finance companies that expand into foreign jurisdictions
• Financial institutions and/or service providers with established risk and compliance frameworks seeking to offer regulated deposit taking or lending services as a new product.

 

Multi-Jurisdictional Compliance

With years of experience managing risk and compliance obligations for businesses operating under multiple financial licences across various jurisdictions, we help businesses remain compliant with regulated finance companies’ obligations globally.

 

Singaporean Finance Company Licence and Wholesale Markets

Obtaining a Singapore Finance Company licence may not be necessary or suitable for all credit businesses, particularly where activities are limited to corporate (wholesale) lending without deposit-taking. Wholesale-only lending models can fall outside the Finance Companies Act where the lender qualifies as an “excluded moneylender” under the Moneylenders Act 2008, or operates under alternative structures that do not require a Finance Company licence. We offer risk and compliance management solutions to assist wholesale lenders that:

• Lend solely to corporations and other excluded classes under the Moneylenders Act.
• Do not take deposits from the public.
• Operate under alternative structures that do not require a Finance Company Licence.

We help these businesses manage obligations that still apply, including: AML/CFT controls and suspicious-transaction reporting, PDPA data-protection compliance, governance and risk controls, advertising limits to retail borrowers, and oversight of outsourced service providers.

 

 Singaporean Finance Company Licence Application

We assist with your licence application through ongoing engagement in the Singaporean finance companies’ licensing process:

• Document Compilation and Review: We compile and review all required supporting documents to support your Singaporean finance company licence application.
• Application Form Completion: We help you complete the forms so that all material information is accurate and complete.
• Pre-Submission Review: We can arrange a pre-submission review session with key stakeholders to ensure all parts of your application are understood and agreed upon. This session aligns application details with the actual situation, removing ambiguity.
• Singaporean Finance Companies' Licensing Process and Regulatory Liaison: We manage the end-to-end submission process, maintaining clear and effective communication channels throughout the licensing process.
• Timeline Management: We closely monitor and adhere to all necessary deadlines, providing timely updates and adjustments to keep the application process on track.

 

Resolving Singaporean Finance Company Licence Issues

Having competent compliance advisors is crucial when licensing issues arise. Therefore, our Singaporean finance company licence solutions include a range of services to address and resolve these issues effectively:

• Remediation Solutions for Singaporean Finance Company Licence Applicants: We address and remediate risk and compliance issues identified by regulators, helping your operations align with the Singaporean finance companies' licensing regime requirements.
• Specific Licence Conditions Compliance: We can help you manage additional conditions imposed on your Singaporean finance company licence, developing a tailored action plan to maintain compliance and facilitate the eventual removal of these conditions with minimal disruption to your business operations.

• Licensing Issues Handling: We address common licensing issues encountered during the Singaporean finance companies’ licensing process, providing you with solutions to navigate and resolve these challenges efficiently.
• Further Information: You can visit our Compliance Remediation Solutions page for more information.

 

Post-Licensing Support

We offer a full range of ongoing risk and compliance solutions for licensed Singaporean finance companies. Our services include, but are not limited to:

Ongoing Risk and Regulatory Compliance

• MAS Regulated Finance Companies’ Obligations Guidance: We can advise your risk, compliance, management and other teams on meeting the requirements of the Singaporean finance companies' licensing regime and other regulatory compliance obligations. You can visit our Compliance Consultancy Service page for more information.
• Regulatory Risk and Compliance Management: We provide dedicated compliance managers to manage your overall compliance. For more information, visit our Specialised Compliance Management Solutions page for Finance Companies.
• Compliance Assurance Solutions: As part of our compliance assurance solutions, we offer:
• Compliance Assurance Program (CAP) development and testing options
• Internal Controls Design option
• Internal Controls Testing option
• Internal AML/CFT Review option
• Statutory AML/CFT Audit option
• Compliance Training Solutions: We offer training programs to different teams on complying with:
• MAS regulated finance companies’ obligations for risk and regulatory compliance management. You can visit our Compliance Training page for more information.
• Singaporean Finance Companies’ AML/CFT obligations and operational best practices for fraud prevention. You can visit our AML/CFT Training page for more information.
• Crisis Management Planning: We can develop proactive strategies to manage potential compliance crises effectively.
• Anti-Money Laundering (AML) and Counter Terrorist Financing Solutions: We provide a full range of AML/CFT solutions for Singaporean finance companies. For more information, visit our Specialised AML/CFT Solutions page for Singaporean Finance Companies.
• Advanced Compliance Technologies: We can assist you with selecting and integrating advanced technology solutions, such as compliance automation tools and regulatory technology (RegTech), to streamline compliance processes without disrupting operations.
• Risk and Compliance Framework Adjustments: Including adjustments to risk management frameworks (RMFs), compliance monitoring programs (CMPs), compliance management frameworks (CMFs), and other core procedures and policies to align them with:
• new business goals
• regulatory changes
• changes in your operations
• evolving market conditions
• changes in stakeholders’ risk appetites (your banking partners, insurance companies, liquidity providers, etc.).

 

 

Risk and Compliance Obligations for Singaporean Finance Company Licence Holders

Finance company licence holders are subject to various obligations set out in applicable laws and regulations. They are also expected to uphold standards for their conduct and internal operations, as outlined in regulatory guidance or accepted industry practices.

We can help you address these obligations and expectations through comprehensive support in the different areas. The list below is not exhaustive:

Singaporean Finance Company Licence and Regulatory Compliance Obligations

• Compliance Management Systems: We can help you establish effective compliance programs, compliance monitoring plans, controls testing methodologies, compliance calendars and more (as per the requirements of the Finance Companies Act  and MAS Technology Risk Management Guidelines).
• Risk Management Frameworks: We can help you develop comprehensive risk management frameworks to fulfil MAS regulated finance companies’ obligations for identifying, assessing, and mitigating operational, regulatory, strategic, financial and other types of risks.
• Policy and Procedure Development: We can help you draft and implement policies and procedures aligned with the Singaporean finance companies’ licensing requirements.
• Compliance Monitoring Plans: We can oversee the execution of your CMPs, covering ongoing monitoring of your compliance obligations under the Singaporean finance companies’ licensing regime.
• Internal Control Testing and Compliance Assurance: We can conduct internal reviews and audits of your controls to test their effectiveness and compliance with the applicable regulatory standards.
• Capital Adequacy Requirements: We assist Singaporean finance companies in developing capital adequacy monitoring controls where required under licensing frameworks, including credit unions, building societies, and non-bank lenders operating under prudential or financial licensing regimes.
• Liquidity Management Requirements: We help implement liquidity monitoring and cash flow stress testing controls for licensed Singaporean finance companies, particularly where operating under financial institution or protected deposit frameworks.
• Financial Auditing Standards: We can assist in establishing procedures to help you comply with the audit and assurance requirements under the Singaporean finance companies’ licensing regime.
• Credit Contract Compliance: We can help you establish controls to comply with consumer lending and disclosure obligations applicable to Singaporean finance companies entering into regulated credit contracts, including hardship provisions and responsible lending requirements (as per the requirements of the MAS Notice 827).

 

Singaporean Finance Company Licence and Operational Oversight Obligations

• Oversight of Outsourcing: We can establish a set of effective controls to comply with MAS regulated finance companies’ licensing obligations for overseeing outsourced services, also covering related obligations under AML/CFT compliance, ISO requirements, and more (as per the requirements of the MAS Guidelines on Outsourcing for Financial Institutions).
• Structures for Governance: We can help you establish effective governance structures to comply with MAS regulated finance companies’ obligations and develop an effective approach to overseeing your risk exposure and compliance status across different functions of your business.
• Senior Management Accountability: We can help you comply with MAS regulated finance companies’ obligations for senior management and key staff conduct and competence (as per requirements of the MAS Guidelines on Fit and Proper Criteria)
• Maintaining Operational Resilience: We assist in developing continuity plans to meet MAS regulated finance companies’ obligations for operational resilience, helping critical business services withstand disruptions.
• Managing Technology Risks: We provide guidance on technology risk management obligations under the Singaporean finance companies’ licensing regime.
• Reserve Fund Management: We assist Singapore finance companies in structuring and maintaining statutory reserve funds and provisioning for bad and doubtful debts in compliance with the Finance Companies Act.

 

Singaporean Finance Company Licence and Resource Management Obligations

We can help you comply with the following requirements of the Singaporean finance companies’ licensing regime:

• Adequacy of Resources: Covering financial, technological, human and other resources.
• Competence of Professionals: Covering key personnel, their necessary skills, knowledge, and professional competence.
• Our focus areas include:

• Assessment and Gap Analysis: We can help you evaluate the adequacy of your financial, technological, and human resources against the requirements of the licensing regime.
• Resource Allocation Plans: We can help you develop strategies to optimise resource allocation, covering sufficient capacity for compliance, operations, banking, customer support and other functions and departments.
• Technological Solutions: We can recommend and implement RegTech tools to streamline compliance processes, such as transaction monitoring, reporting, and audit trails.
• Key Personnel Assessment: We can help you assess the skills, qualifications, and experience of key personnel to identify areas for improvement.
• Training and Development Programs: We can design and deliver targeted compliance training programs to upskill personnel in compliance, risk management, deposit taking or lending regulations.
• Compliance Monitoring: We can help develop controls to monitor representatives' adherence to conduct and disclosure obligations.
• Ongoing Training: We can help you create a framework to support continuous education for advisors and representatives on licensing obligations, market integrity, and client interaction standards.
• Regulator Liaison: We can act as an intermediary with regulators to address queries and help you demonstrate compliance with resourcing obligations.

 

Singaporean Finance Company Licence and Reporting

• Regulatory Reporting: We can help you prepare and submit periodic and ad-hoc reports covering:
  • MAS Regulated Finance Companies’ licensing obligations
  • MAS Regulated Finance Companies’ AML/CFT obligations (SMRs, STRs, SARs, cross-border transaction reports, cash transaction reports, and other reporting obligations)
  • MAS Regulated Finance Companies’ obligations under financial market conduct regulations
• Compliance Documentation: We can help you develop and maintain the necessary documentation to meet record-keeping obligations under various laws and regulations.
• Audit Readiness: We can prepare you for audits and reviews to demonstrate compliance with regulatory requirements, provisions of the Singaporean finance companies’ licensing regime, applicable operational standards, and more.

 

Related Services

We assist in obtaining Singapore finance company licence equivalents in the following jurisdictions:

• Australia: For more information on the Australian equivalent of a Singapore finance company licence, the Consumer Lending ACL, you can visit our Consumer Lending ACL page.
• United Kingdom: For more information on the UK equivalent of a Singapore finance company licence, the FCA consumer credit authorisation, please visit our UK Building Society Authorisation page.
• New Zealand: For more information on the New Zealand equivalent of a Singapore finance company licence, the FSP registration, you can visit our New Zealand FSP Registration page.
• United States: For more information on the United States equivalent of a Singapore finance company licence, the Federal Savings and Loan Association license, you can visit our Federal Savings and Loan Association Licence page.
• Other Jurisdictions: We also offer licensing solutions for finance company licensing in prominent financial centres and offshore tax havens, including but not limited to:

• Cayman Islands
• Bermuda
• Gibraltar
• Isle of Man
• Malta