The Financial Authority of Singapore (MAS) and 6 banks have launched COSMIC, a widespread information platform to let monetary establishments trade insights on attainable monetary crime actions. DBS, UOB, Customary Chartered, Citibank, and HSBC have begun sharing buyer info carrying “pink flags” to allow them to warn one another of potential monetary crime, resembling cash laundering and terrorism financing, MAS stated.
The six banks will solely share information if the client’s profile or habits reveals “sure objectively-defined indicators of suspicion,” the central financial institution stated in a press release on Monday. COSMIC is meant to plug gaps the place monetary establishments are unable to alert one another about uncommon actions involving their prospects because of confidentiality necessities.
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In Might 2023, Singapore proposed amendments to its Monetary Providers and Markets Invoice to facilitate the sharing of knowledge and set up the authorized framework to take action by way of the information platform. These amendments have kicked in with the launch of COSMIC, in keeping with MAS. The invoice units out insurance policies and operational pointers to which members should adhere to safeguard the confidentiality of the shared information.
“It will permit participant monetary establishments to share info on potential legal habits, whereas safeguarding the pursuits of the overwhelming majority of consumers who’re respectable,” MAS stated. “Clients are inspired to proceed to supply well timed responses if requested by monetary establishments to supply clarifications on their threat profiles or transactions, in order that monetary establishments could make knowledgeable threat assessments.”
The six banks will share info on a voluntary foundation, specializing in three industrial banking crime dangers: the misuse of authorized individuals, commerce finance for illicit functions, and proliferation financing, which encompasses the transferring or elevating of funds and property to assist the proliferation of weapons of mass destruction.
Final yr, MAS stated COSMIC can be operational in H2 2024, after the six banks had began sharing information. This extra time is designated for finetuning options and resolving operational points earlier than the platform is absolutely operational. MAS additionally plans to broaden information platform entry to extra monetary establishments and add extra threat areas, making information sharing necessary in higher-risk conditions.
