The Financial Authority of Singapore (MAS) has formally rolled out the COSMIC platform, a digital initiative aimed toward bolstering the protection towards cash laundering, terrorism financing, and the proliferation of weapons of mass destruction.
The system, which turned operational in the present day (1 April 2024), alongside the enforcement of the Monetary Companies and Markets (Modification) Act 2023, allows the seamless alternate of buyer info amongst monetary establishments (FIs) on a worldwide scale.
The introduction of COSMIC—quick for Collaborative Sharing of Cash Laundering/TF Data & Instances—follows the modification of the Monetary Companies and Markets Act in Might 2023.
This modification established a authorized and regulatory framework facilitating FIs to share crucial buyer knowledge, however solely below strict circumstances. Such knowledge sharing is contingent on the detection of particular, objectively-defined indicators of suspicious conduct or “pink flags”.
With the first goal of sustaining buyer confidentiality whereas enabling FIs to alert one another about potential threats, the brand new system imposes stringent insurance policies and operational safeguards.
This stability ensures the safety of respectable prospects’ pursuits whereas empowering FIs to successfully assess and mitigate dangers related to monetary crimes.
COSMIC’s improvement was a collaborative effort between MAS and 6 of Singapore’s largest industrial banks, together with DBS, OCBC, UOB, Citibank, HSBC, and Normal Chartered Financial institution.
These establishments will take part within the preliminary section of the platform, which at present focuses on addressing three predominant dangers: the misuse of authorized entities, commerce finance exploitation for illicit functions, and proliferation financing.
Lavatory Siew Yee
Lavatory Siew Yee, Assistant Managing Director (Coverage, Funds & Monetary Crime), MAS, stated,
“COSMIC will allow FIs to warn one another of suspicious actions and make extra knowledgeable danger assessments on a well timed foundation.
It enhances the trade’s present shut collaboration with MAS and legislation enforcement authorities to fight monetary crime. This can strengthen Singapore’s capabilities to uphold our popularity as a well-regulated and trusted monetary centre.”
Lam Chee Kin
Lam Chee Kin, Group Head of Authorized & Compliance, DBS stated,
“With criminals getting extra subtle, COSMIC is a recreation changer by offering banks, regulators, and legislation enforcement businesses the platform wanted to share info in a really managed and focused method and therefore weed out dangerous actors extra successfully.
COSMIC additionally enhances our personal monetary surveillance capabilities, enabling us to triangulate danger alerts sooner, unravel networks and take swift actions. On the similar time, we’re aware that respectable prospects shouldn’t be denied entry to monetary providers and have labored intently with fellow participant banks and MAS on a set of guiding ideas to make sure acceptable use of data derived from COSMIC.”
DBS added that it additionally sees potential for COSMIC to broaden its protection to incorporate extra forms of monetary crimes and contain a wider vary of monetary trade stakeholders.
This text was up to date at 2.40pm to incorporate DBS’ quote.
