Banks in Singapore start sharing knowledge to fight monetary crime

The Financial Authority of Singapore (MAS) and 6 banks have launched COSMIC, a widespread knowledge platform to let monetary establishments trade insights on doable monetary crime actions. DBS, UOB, Commonplace Chartered, Citibank, and HSBC have begun sharing buyer info carrying “pink flags” to allow them to warn one another of potential monetary crime, comparable to cash laundering and terrorism financing, MAS mentioned. 

The six banks will solely share knowledge if the client’s profile or conduct 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 clients because of confidentiality necessities.

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In Could 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 through the information platform. These amendments have kicked in with the launch of COSMIC, in accordance with MAS. The invoice units out insurance policies and operational pointers to which contributors should adhere to safeguard the confidentiality of the shared knowledge.

“This may enable participant monetary establishments to share info on potential felony conduct, whereas safeguarding the pursuits of the overwhelming majority of shoppers who’re professional,” MAS mentioned. “Clients are inspired to proceed to supply well timed responses if requested by monetary establishments to supply clarifications on their danger profiles or transactions, in order that monetary establishments could make knowledgeable danger 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 shifting or elevating of funds and property to assist the proliferation of weapons of mass destruction.

Final 12 months, MAS mentioned COSMIC could 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 absolutely operational. MAS additionally plans to develop knowledge platform entry to extra monetary establishments and add extra danger areas, making knowledge sharing necessary in higher-risk conditions.