MAS issues Guidelines on audit of Payment Service Providers
Payment institutions and money-changing licensees must ensure their annual audits meet MAS' baseline and mandatory coverage areas for financial years ending 31 December 2026 onwards
Change
On 16 July 2026, the Monetary Authority of Singapore issued Guidelines on Audit of Payment Service Providers [PS-G04] under the Payment Services Act, setting baseline and mandatory audit coverage areas and reporting expectations for Standard Payment Institutions, Major Payment Institutions and Money-changing Licensees, effective for annual audits with financial year ending 31 December 2026 onwards.
Why it matters
The Guidelines standardise what a Payment Service Provider's annual audit must cover, replacing discretion with defined baseline and mandatory coverage areas, and specify the reports to be submitted to MAS and the audit coverage required for new licensees and newly licensed payment services. Providers and their auditors must align the audit scope with PS-G04 for financial years ending 31 December 2026 onwards, with the resulting revised Form 4 auditor's reports due from 30 June 2027. Firms should confirm their appointed auditor's engagement scope meets the mandatory coverage before the first affected financial year-end.
Implications
- — Compliance and finance teams at Standard Payment Institutions and Major Payment Institutions must ensure their appointed auditor's engagement covers the baseline and mandatory areas set out in PS-G04 for the financial year ending 31 December 2026, as the resulting Form 4 report is due to MAS by 30 June 2027.
- — Money-changing Licensees must apply the same audit coverage and reporting expectations to their annual audit, aligning the auditor's scope with the Guidelines before the first affected financial year-end.
- — Newly licensed and recently licensed payment service providers must apply the Guidelines' specific audit-coverage requirements for new licensees and newly licensed payment services, rather than assuming the standard coverage alone suffices.
Who is affected
- — Standard Payment Institutions and Major Payment Institutions licensed under the Payment Services Act
- — Money-changing Licensees
- — Auditors engaged by licensed payment service providers
What to watch
- — The Guidelines take effect for annual audits with financial year ending 31 December 2026 onwards; the revised Form 4 will be available on MAS-Tx in Q2 2027, and the first Form 4 submissions under the Guidelines are due from 30 June 2027.