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As cross-border instant money transfers grow in the digital age, the Monetary Authority of Singapore (MAS) and other central banks are adopting advanced technological measures to enhance their security. These digital safeguards are particularly focused on protecting vulnerable groups, such as the elderly.
In a recent response to parliamentary concerns, Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, outlined key measures being adopted to protect against scams. MAS has established real-time payment linkages with India, Malaysia, and Thailand for low-value transactions.
These linkages facilitate instant, low-cost payments for users, including tourists and migrant workers. Financial institutions involved in these linkages have implemented stringent anti-scam controls, such as default transaction notifications for amounts of SG$100 or less and daily limits of $G1,000. These controls are designed to reduce the risk of scammers exploiting these channels. Institutions will continue to monitor scam trends and adjust their measures accordingly.
For users, it is crucial to maintain vigilance both for domestic and cross-border transactions. They are encouraged to practice good online banking hygiene, including safeguarding account credentials, checking transaction notifications regularly, and verifying recipient details before completing transactions.
Moreover, MAS has updated the Payment Services Act (PS Act) from 4 April 2024 to cover more digital payment services, including custodial and cross-border transactions involving digital payment tokens (DPTs). The amendments will enforce stricter anti-money laundering (AML) and user protection measures. A new platform, COSMIC, will also be introduced to improve financial crime detection through enhanced information sharing among financial institutions.
Recent technological advancements have further enhanced the security and efficiency of cross-border transactions. Notable among these is the launch of real-time payment linkages between Singapore and India.
MAS and the RBI launched the PayNow-UPI linkage, allowing real-time fund transfers between bank accounts and e-wallets in both countries using mobile numbers or Virtual Payment Addresses (VPAs). This innovative system is the world’s first real-time payment linkage to use scalable cloud-based infrastructure for future growth.
The Second Annual Ministerial Dialogue (AMD) between Singapore’s Ministry of Trade and Industry and Malaysia’s Ministry of Investment, Trade, and Industry highlighted advancements in the digital economy, including trade facilitation, cloud computing, and real-time payments.
The dialogue also focused on cybersecurity, with planned collaborations between Singapore’s Cyber Security Agency and Malaysia’s National Cyber Security Agency. Additionally, the IMDA and MCMC signed an MoU to address telecommunications scams through cross-border cooperation.
Additionally, Singapore has also launched real-time payment systems with Malaysia. The PayNow-DuitNow linkage, unveiled at the Singapore FinTech Festival, facilitates instant and secure person-to-person fund transfers between Singapore and Malaysia. This system is notable for including non-bank financial institutions, broadening accessibility and inclusivity. Users can send and receive up to S$1,000 or MYR3,000 daily, using the recipient’s mobile phone number or VPA. The service is being introduced in phases to ensure a smooth transition and to familiarise users with the new system.
Along the same lines, MAS and the Bank of Thailand (BOT) launched the PayNow-PromptPay linkage, the first global real-time retail payment system to connect Singapore’s PayNow and Thailand’s PromptPay. This system enables users to transfer up to S$1,000 or THB25,000 daily between the two countries using just a mobile number. It promises quicker, more affordable transactions compared to traditional methods. The linkage is part of ASEAN Payment Connectivity and aligns with global efforts to improve cross-border payment efficiency.
These advancements mark significant progress in enhancing the infrastructure for cross-border payments. By leveraging advanced technology and fostering collaboration between financial institutions and central banks, these initiatives aim to provide a seamless, secure, and cost-effective payment experience for users across borders.
