The Financial Authority of Singapore (MAS), along with six participating banks, has introduced COSMIC, a collaborative platform designed to enable financial institutions to share insights and information on potential monetary crime activities. Singapore’s major banks, including DBS, UOB, Standard Chartered, Citibank, and HSBC, have started exchanging information about suspicious transactions, referred to as “red flags,” to alert one another to potential financial crimes, such as money laundering and terrorism financing, according to the Monetary Authority of Singapore.
Six participating banks have agreed to exclusively collaborate and share information about customers’ profiles and buying habits, provided that they exhibit objectively defined red flags or suspicious activity, according to a statement released by the central bank on Monday. Cosmic aims to bridge knowledge gaps that exist when financial institutions are unable to informally alert each other about unusual transactions involving their customers due to confidentiality constraints?
By May 2023, Singapore aims to establish a dedicated information platform to streamline the sharing of data and develop a standardized framework for taking swift action in response. The amendments to regulatory requirements have taken effect with the introduction of the COSMIC system, as mandated by the Malaysian Authority on Securities (MAS). The invoice outlines insurance policies and operational guidelines for members to follow, ensuring the confidentiality of shared information is maintained.
The move enables participating financial institutions to exchange information on suspicious transactions while protecting the interests of legitimate customers. “Financial institutions prompt clients to provide timely explanations of their risk profiles and transaction details upon request, enabling the institution to conduct informed risk assessments.”
Six major banks have agreed to voluntarily share information about a new foundation focused on combating three specific types of financial crimes: the misuse of authorized individuals, commercial finance for illicit purposes, and proliferation financing – which involves the transfer or laundering of funds and assets to support the proliferation of weapons of mass destruction?
Last year, Malaysia’s central bank, Bank Negara Malaysia (MAS), announced that the Cross-Border Interbank Information Exchange for Secure and Efficient Trade (COSMIC) system would likely become operational by the second half of 2024, following the successful exchange of information among six participating banks. This additional timeframe is allocated for refining options and addressing operational details prior to the platform’s definitive launch, thereby ensuring a smoother start-up process. To further expand its market presence, MAS intends to create a knowledge-sharing gateway that will facilitate the integration of more financial institutions and introduce new risk categories, thereby mandating information exchange in high-risk scenarios.
