Slasify’s Response to MAS Suspension with LianLian Global
In an important update, the Monetary Authority of Singapore (MAS) has instructed licensed payment service providers, especially remittance companies, to temporarily stop using non-bank and non-card channels for sending money to China. This directive, in effect from 1 January 2024 to 31 March 2024, aims to address worries about funds getting frozen in recipients’ accounts by PRC law enforcement agencies. As businesses adjust to this temporary change, it’s essential to grasp the implications and consider possible solutions.
Understanding the MAS Directive
To comprehend the MAS directive, it’s essential to understand its origin—a response to the freezing of funds sent to China, primarily affecting Chinese nationals employed in Singapore. Over three months, this directive targets non-bank and non-card channels, prompting remittance companies to reevaluate their operational approaches in response to recent challenges in the money transfer landscape.
How This Impacts Businesses
This directive introduces a set of challenges for remittance companies, compelling them to swiftly and strategically adjust their operational models. Slasify, being proactive in understanding the potential implications, recognizes the need for remittance companies to adapt during this adjustment period. The directive forces businesses in the remittance sector to reassess and fine-tune their strategies to align seamlessly with the evolving regulatory landscape.
Slasify’s Transparent and Dependable Method
Slasify has significantly improved its ability to send money from overseas to mainland China by utilizing LianLian Global’s services. Previously, there was a yearly limit of USD 50,000 and limited acceptance of UnionPay by some banks. Now, the annual limit is removed, and transactions are capped at Chinese Yuan 200,000 per transaction, with support from all banks, making the process smoother.
LianLian Global handles currency control reports on behalf of Slasify to reduce the risk associated with transactions. Before using LianLian Global, payments in Chinese Yuan were possible through UnionPay (via Wise) and Zhongguo Remittance. However, UnionPay faced limited acceptance, and Zhongguo Remittance lacked a valid license in China, posing risks such as frozen accounts for beneficiaries.
How LianLian Global Differs
LianLian Global’s role in submitting currency control reports sets it apart from Slasify. The beneficiary is responsible for providing required documents to unlock foreign currencies, whether in Chinese Yuan or USD. Every Chinese resident has a USD 50,000 annual limit for international transactions, and surpassing this limit requires supporting documents.
LianLian Global tailors its model for Slasify’s industry, whitelisting transactions with the authorities. However, its use is limited to salary and contractor remuneration transfers, with violations resulting in severe consequences. Unfortunately, LianLian Global cannot assist with capital transfers.
Exploring Additional Transfer Options
Beyond UnionPay, Slasify presents viable alternatives such as SWIFT and local remittance companies in Singapore for facilitating money transfers to China. Specifically, SWIFT becomes the preferred choice for contractors receiving salaries exceeding USD 50,000, despite the potential challenges associated with documentation. Employers enjoy the flexibility of transferring funds to Slasify from any bank account, empowering Slasify to subsequently distribute the funds to employees’ accounts, irrespective of their bank, provided there are no issues related to Anti-Money Laundering (AML) and sanctions.
Seamless Transactions with LianLian Global
At the heart of Slasify’s commitment lies the seamless integration with LianLian Global as a primary payment method. This strategic alignment not only adheres to the MAS directive but also guarantees a continuous flow of remittances without disruptions. Leveraging the reliability of LianLian Global as a financial partner reinforces Slasify’s unwavering dedication to providing clients with a secure and efficient channel for cross-border transactions. This assurance holds true even in the face of the current regulatory adjustments.
Client Advisory During the Cautionary Period
Throughout the designated 14-day cautionary period, clients are strongly urged to exercise caution and choose reputable and secure channels for their cross-border transactions. Slasify clients, in particular, experience significant benefits from the platform’s integrated payment solutions, notably the strategic collaboration with LianLian Global. This partnership ensures a dependable avenue for transactions, safeguarding clients against potential uncertainties arising from regulatory adjustments.
Ongoing Monitoring and Future Steps
In alignment with MAS commitments, there is a dedicated effort to closely monitor and continually assess remittance companies, ensuring adherence to regulatory standards. Slasify clients can place trust in the robustness of their transactions, fortified by the resilience of the integrated payment partner, LianLian Global. Beyond the effective period of the directive, Slasify maintains an unwavering dedication to client satisfaction and adaptability, ensuring clients a seamless experience on the platform. This commitment extends well into the future, ensuring resilience in the face of evolving regulatory landscapes.
Stay Informed with Slasify
Slasify encourages clients to stay informed during this period of change. Regular updates and valuable resources related to the MAS directive are provided through official channels, empowering clients to make confident decisions in the evolving landscape of cross-border transactions.
In a financial industry undergoing regulatory changes, Slasify stands as a beacon of adaptability, providing a secure, reliable, and frictionless experience for businesses and consumers. Clients can confidently comply with regulatory directives, backed by the resilience of integrated payment solutions like LianLian Global when choosing the Slasify platform.
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