The Monetary Authority of Singapore (MAS) has launched COSMIC – a centralised digital platform to combat money laundering, terrorism financing and proliferation financing globally.
COSMIC, an acronym for COllaborative Sharing of Money Laundering/TF Information & Cases, helps facilitate the sharing of customer information among financial institutions (FIs).
According to the announcement, participation is voluntary for FIs.
MAS has co-developed the platform with six commercial banks in Singapore including DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered Bank.
These banks will be the participant FIs in the initial phase.
MAS’ assistant managing director of policy, payments and financial crime, Loo Siew Yee, said COSMIC will enable FIs to warn each other of suspicious activities and make informed risk assessments on a timely basis.
It complements the industry’s existing close collaboration with MAS and law enforcement authorities to combat financial crime.
This will strengthen Singapore’s capabilities as a well-regulated and trusted financial centre, she added.
Protecting customer information
The Financial Services and Markets Act 2022 (FSMA) was amended in May 2023 to provide the legislative framework for COSMIC.
This provides the legal basis and safeguards for sharing customer information among FIs.
Currently, information sharing is focused on three financial crime risks in commercial banking, including misuse of legal persons, misuse of trade finance for illicit purposes, and proliferation financing.
Participant FIs can share customer information only if certain objectively defined indicators of suspicion, or "red flags," are present in the customer's profile or behaviour.
FIs need to have policies and operational safeguards in place to protect the confidentiality of shared information.
