Statute Details
- Title: Payment Services (Composition of Offences) Regulations 2019
- Act Code: PSA2019-RG4
- Type: Subsidiary Legislation (SL)
- Authorising Act: Payment Services Act 2019
- Key Provision(s): Regulation 2 (Compoundable offences); references to compounding under section 96 of the Payment Services Act 2019
- Commencement Date: Not stated in the provided extract (legislative history indicates [28 January 2020] as the SL date)
- Legislative Status: Current version as at 27 Mar 2026 (per the extract); 2025 Revised Edition dated 17 Dec 2025
- Citation: SL 812/2019 (as shown in the legislative history)
What Is This Legislation About?
The Payment Services (Composition of Offences) Regulations 2019 (“Composition Regulations”) are subsidiary legislation made under the Payment Services Act 2019 (“PSA”). Their central purpose is to identify which offences under the PSA—and which offences under regulations made under the PSA—may be “compounded” by the Authority. In practical terms, compounding allows certain alleged offences to be resolved without going through a full criminal prosecution, by paying a composition sum and complying with any conditions imposed by the Authority.
In Singapore’s regulatory framework for payment services, the PSA establishes licensing and regulatory obligations for payment service providers and related persons. Where breaches occur, the PSA creates offences and penalties. The Composition Regulations work alongside the PSA’s compounding mechanism (referenced in the extract as section 96 of the Act) by narrowing the set of offences that are eligible for compounding. This provides both enforcement flexibility for the Authority and a predictable pathway for regulated entities to resolve certain matters efficiently.
Importantly, the Regulations do not create new substantive offences. Instead, they operate as a procedural and enforcement tool: they specify which categories of PSA offences (and regulation offences) can be compounded, and they exclude certain types of offences—most notably “continuing offences”—from compounding eligibility.
What Are the Key Provisions?
Regulation 1 (Citation) is a standard provision confirming the short title: “Payment Services (Composition of Offences) Regulations 2019”. While not substantive, it is relevant for legal referencing and drafting.
Regulation 2 (Compoundable offences) is the operative provision. It states that “the following offences may be compounded by the Authority in accordance with section 96 of the Act”. This means that compounding is not automatic; it is discretionary and must be exercised consistently with the PSA’s compounding framework. Regulation 2 then lists two main categories of eligible offences.
First category: specific PSA offences (non-continuing offences). Regulation 2(a) provides that any offence (other than a continuing offence) under specified PSA provisions—namely section 8(2), 16(5), 41(4), 43(2) or 92(1)—may be compounded. The extract also indicates 92(1) or (2) as part of the listed provisions. The “other than a continuing offence” limitation is significant: it signals that offences characterised by ongoing non-compliance (for example, where the breach persists over time) are not intended to be resolved through compounding alone. Instead, continuing breaches may require ongoing regulatory action and/or prosecution or other enforcement measures.
Second category: offences punishable by a fine only. Regulation 2(b) extends compounding eligibility to “any offence (other than a continuing offence) under the Act, or any regulation made under the Act, that is punishable by a fine only.” This is a broad catch-all. It means that where the PSA or its regulations create an offence and the statutory penalty is limited to a fine (and not imprisonment or other forms of punishment), the Authority may compound it—subject to the PSA’s compounding procedure and the “non-continuing offence” requirement.
Practical legal effect of the “fine only” rule. For practitioners, the “fine only” criterion is often the decisive factor in determining compounding eligibility. It reflects a policy choice: offences that are monetary in nature are more suitable for administrative resolution through compounding, whereas offences involving more serious penal consequences (or those that are continuing) are less likely to be treated as appropriate for compounding.
Interaction with section 96 of the PSA. Although the extract does not reproduce section 96, Regulation 2 expressly anchors compounding in that provision. This means that the Authority’s power to compound is governed by the PSA’s procedural safeguards and conditions—such as how an offer to compound is made, whether the accused must admit facts, the effect of compounding on liability, and any requirements for payment or compliance. Lawyers should therefore read Regulation 2 together with the PSA’s compounding section to advise on process, timing, and consequences.
How Is This Legislation Structured?
The Composition Regulations are brief and consist of two main provisions:
(1) Regulation 1 (Citation)—a short title provision.
(2) Regulation 2 (Compoundable offences)—the substantive list of offences eligible for compounding. Regulation 2 is structured as a two-part list: paragraph (a) identifies specific PSA offences (excluding continuing offences), and paragraph (b) provides a general category based on the penalty being “a fine only” (again excluding continuing offences).
There are no additional parts or detailed procedural provisions in the extract. The procedural mechanics are instead located in the PSA itself (notably section 96, as referenced in Regulation 2).
Who Does This Legislation Apply To?
Although the Regulations are addressed to “the Authority” for the purpose of compounding, the practical impact is on persons who may be charged with offences under the PSA or its regulations. This typically includes licensed payment service providers, applicants, officers or representatives of regulated entities, and other persons who are subject to the PSA’s regulatory requirements.
The Regulations apply to alleged offences that fall within the categories listed in Regulation 2. In advising clients, lawyers should assess (i) whether the alleged offence is under one of the specified PSA provisions (for paragraph (a)), or whether it is any PSA/regulation offence punishable by a fine only (for paragraph (b)); and (ii) whether the offence is a “continuing offence”. The “other than a continuing offence” limitation means that even if a breach is otherwise eligible, compounding may not be available if the offence is characterised as continuing under the PSA’s offence framework.
Why Is This Legislation Important?
From an enforcement and compliance perspective, the Composition Regulations are important because they operationalise a key enforcement tool: compounding. For regulated entities, compounding can reduce uncertainty, cost, and time associated with criminal proceedings. It can also allow the Authority to resolve certain matters efficiently while maintaining deterrence through monetary penalties.
For practitioners, the Regulations provide a clear eligibility framework. The list in Regulation 2(a) gives certainty for certain targeted PSA offences, while Regulation 2(b) offers broader coverage for offences punishable by fine only. This is particularly useful when advising on whether to engage with the Authority for a compounding outcome, and when evaluating risk management strategies for potential breaches.
Finally, the “non-continuing offence” limitation is a critical compliance signal. It suggests that where non-compliance is ongoing, the Authority may prefer enforcement approaches that address the continuing nature of the breach rather than relying solely on compounding. Practically, this means that clients should not assume that compounding is available for persistent regulatory failures; instead, they should focus on remediation and cessation of conduct, alongside any legal strategy regarding potential offences.
Related Legislation
- Payment Services Act 2019 (including section 96 on compounding; and the referenced offence provisions such as sections 8(2), 16(5), 41(4), 43(2), 92(1) and 92(2))
Source Documents
This article provides an overview of the Payment Services (Composition of Offences) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.