MAS reviewing practice of remittance firms giving 'loans'

A check with the Monetary Authority of Singapore and Ministry of Law revealed that Toast Me holds a remittance licence issued by the MAS. It does not have a moneylending licence. In its contract, Toast Me issued a cash advance of $630 to a maid some
In its contract, Toast Me issued a cash advance of $630 to a maid some time last year, after deducting a "first-time fee of $70". A monthly interest of 10 per cent was charged on a loan amount of $700.ST PHOTO: SYAZA NISRINA
A check with the Monetary Authority of Singapore and Ministry of Law revealed that Toast Me holds a remittance licence issued by the MAS. It does not have a moneylending licence. In its contract, Toast Me issued a cash advance of $630 to a maid some
A check with the Monetary Authority of Singapore and Ministry of Law revealed that Toast Me holds a remittance licence issued by the MAS. It does not have a moneylending licence.PHOTO: LIN ZHAOWEI FOR THE SUNDAY TIMES

Move comes as Government is tightening moneylending rules to protect foreigners here

The Monetary Authority of Singapore (MAS) has said it is reviewing the way remittance firms conduct business when it comes to charging interest for cash advances.

Its reply came after The Sunday Times highlighted how, in a contract it had seen, Toast Me, which operates a remittance business in Lucky Plaza, issued a cash advance of $630 to a maid some time last year, after deducting a "first-time fee of $70".

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A version of this article appeared in the print edition of The Sunday Times on October 28, 2018, with the headline 'MAS reviewing practice of remittance firms giving 'loans''. Print Edition | Subscribe