Singapore’s regulator has launched a new platform for financial institutions to combat money laundering by sharing customer information. This has been introduced amid an ongoing headline case involving 10 suspects and over $2 billion in seized assets.
The Monetary Authority of Singapore (MAS) has launched a centralized digital platform for financial institutions (FI) to share customer information called «COSMIC», according to a statement. The platform will be used to combat money laundering, terrorism financing and proliferation financing globally.
«A COSMIC participant FI may share customer information with another participant FI only if the customer’s profile or behavior displays certain objectively defined indicators of suspicion or red flags’,» MAS said.
Six Participants
COSMIC was co-developed by MAS and six major commercial banks in Singapore – DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered – which will act as participant financial institutions during the platform's initial phase. Information sharing will be voluntary and focused on three key financial crime risks: misuse of legal persons, misuse of trade finance for illicit purposes and proliferation financing.
Operational safeguards are required to protect the confidentiality of information shared and the interests of legitimate customers. COSMIC's launch coincides with the commencement of the Financial Services and Markets (Amendment) Act 2023 and accompanying subsidiary legislation which will act as a framework for the platform.
