The Financial Authority of Singapore (MAS) and 6 banks have launched COSMIC, a frequent knowledge platform to let monetary establishments change insights on potential monetary crime actions. DBS, UOB, Customary Chartered, Citibank, and HSBC have begun sharing buyer info carrying “crimson flags” to allow them to warn one another of potential monetary crime, akin to cash laundering and terrorism financing, MAS stated.Â
The six banks will solely share knowledge if the shopper’s profile or conduct displays “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 clients as a consequence 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 information and set up the authorized framework to take action through the info platform. These amendments have kicked in with the launch of COSMIC, in line with MAS. The invoice units out insurance policies and operational tips to which individuals should adhere to safeguard the confidentiality of the shared knowledge.
“This can enable participant monetary establishments to share info on potential felony conduct, whereas safeguarding the pursuits of the overwhelming majority of consumers who’re reputable,” MAS stated. “Prospects are inspired to proceed to offer well timed responses if requested by monetary establishments to offer 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 belongings to assist the proliferation of weapons of mass destruction.
Final 12 months, MAS stated 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 obligatory in higher-risk conditions.