The Financial Authority of Singapore (MAS) and 6 banks have launched COSMIC, a widespread knowledge platform to let monetary establishments change insights on doable 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, reminiscent of cash laundering and terrorism financing, MAS mentioned.
The six banks will solely share knowledge if the shopper’s profile or conduct reveals “sure objectively-defined indicators of suspicion,” the central financial institution mentioned in an announcement on Monday. COSMIC is meant to plug gaps the place monetary establishments are unable to alert one another about uncommon actions involving their prospects attributable to confidentiality necessities.
Additionally: Singapore desires banks and telcos to bear losses if discovered negligent in phishing scams
In Might 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 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 members should adhere to safeguard the confidentiality of the shared knowledge.
“It will permit participant monetary establishments to share info on potential prison conduct, whereas safeguarding the pursuits of the overwhelming majority of shoppers who’re reputable,” MAS mentioned. “Prospects 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 transferring or elevating of funds and belongings to assist the proliferation of weapons of mass destruction.
Final yr, 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 totally operational. MAS additionally plans to increase knowledge platform entry to extra monetary establishments and add extra danger areas, making knowledge sharing obligatory in higher-risk conditions.