What is the exchange rate that a major payment institution must apply for the purposes of safeguarding and display of exchange rates?
MPIs are required to safeguard customer money received in respect of certain payment services. As a MPI may safeguard customer money in a currency different from that received from its customer, it is necessary that MPIs use a standardised exchange rate to compute the amount of money to be safeguarded. Hence, MAS requires a MPI to adopt exchange rates published by its safeguarding institution to safeguard customer money. A MPI which provides domestic money transfer services or cross-border money transfer services must apply the exchange rate it offers to its customer for that service, where it is applicable.
The display of exchange rate requirements will only apply when the regulated entity offers an exchange rate at the point of transaction. Where a currency conversion is performed and the regulated entity that provides an applicable payment service does not offer an exchange rate at the point of transaction, and instead the exchange rate is determined by a third party, the regulated entity will be required to disclose in writing to the customer that the exchange rate is not available at the point of transaction and will be determined by a third party at a later date.