The Financial Authority of Singapore (MAS) and 6 banks have launched COSMIC, a widespread knowledge platform to let monetary establishments alternate insights on attainable monetary crime actions. DBS, UOB, Commonplace Chartered, Citibank, and HSBC have begun sharing buyer data carrying “crimson flags” to allow them to warn one another of potential monetary crime, corresponding to cash laundering and terrorism financing, MAS mentioned.
The six banks will solely share knowledge if the client’s profile or habits displays “sure objectively-defined indicators of suspicion,” the central financial institution mentioned 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 resulting from confidentiality necessities.
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In Could 2023, Singapore proposed amendments to its Monetary Companies and Markets Invoice to facilitate the sharing of information 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 line with MAS. The invoice units out insurance policies and operational pointers to which contributors should adhere to safeguard the confidentiality of the shared knowledge.
“It will permit participant monetary establishments to share data on potential felony habits, whereas safeguarding the pursuits of the overwhelming majority of shoppers who’re reliable,” MAS mentioned. “Clients are inspired to proceed to offer well timed responses if requested by monetary establishments to offer clarifications on their threat profiles or transactions, in order that monetary establishments could make knowledgeable threat assessments.”
The six banks will share data 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 help the proliferation of weapons of mass destruction.
Final 12 months, MAS mentioned COSMIC can be operational in H2 2024, after the six banks had began sharing knowledge. This extra time is designated for finetuning options and resolving operational points earlier than the platform is totally operational. MAS additionally plans to broaden knowledge platform entry to extra monetary establishments and add extra threat areas, making knowledge sharing necessary in higher-risk conditions.