A digital sharing platform is being developed by Singapore’s central bank in a move to help fight money laundering and other financial maneuvers that fund illegal activity.
The platform, expected in the first half of 2023, will exchange data with six of the region’s largest commercial financial institutions (FIs), the Monetary Authority of Singapore (MAS) said in a statement on Friday (Oct. 1).
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“A common challenge that FIs in most jurisdictions face is that they are unable to warn one another about unusual activity in customers’ accounts. This gap is frequently exploited by financial criminals to make illicit transactions through a web of entities with accounts in different FIs, such that each FI on its own does not have sufficient information to detect these transactions in a timely manner,” the MAS said.
Named COSMIC — Collaborative Sharing of ML/TF Information and Cases — the platform will give banks the ability to share data about customers and transactions whenever “material risk thresholds” are surpassed.
Loo Siew Yee, assistant managing director of policy, payments and financial crime, said that COSMIC will enable the central bank to more easily spot and curtail anything untoward while minimizing the impact on those conducting legitimate business.
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“The information sharing framework is designed to target serious criminal behaviors and allow FIs to more quickly detect the bad actors to purge and deter them. It will strengthen Singapore’s position as a trusted financial center and place to do business, where FIs can better serve the vast majority of legitimate customers,” she said in the statement.
The COSMIC platform was co-created by MAS and commercial banks DBS, OCBC, UOB, SCB, Citibank and HSBC. The data shared across the platform will only be used for the purpose of combating money laundering, terrorism financing and proliferation financing.
A digital sharing platform is being developed by Singapore’s central financial institution in a transfer to assist combat cash laundering and different monetary maneuvers that fund criminal activity.
The platform, anticipated within the first half of 2023, will change information with six of the area’s largest business monetary establishments (FIs), the Financial Authority of Singapore (MAS) mentioned in a press release on Friday (Oct. 1).
See additionally: Cross-Border CBDCs Being Piloted in Australia, Malaysia, Singapore, South Africa
“A typical problem that FIs in most jurisdictions face is that they’re unable to warn each other about uncommon exercise in prospects’ accounts. This hole is continuously exploited by monetary criminals to make illicit transactions by way of an internet of entities with accounts in numerous FIs, such that every FI by itself doesn’t have enough data to detect these transactions in a well timed method,” the MAS mentioned.
Named COSMIC — Collaborative Sharing of ML/TF Info and Instances — the platform will give banks the flexibility to share information about prospects and transactions at any time when “materials danger thresholds” are surpassed.
Lavatory Siew Yee, assistant managing director of coverage, funds and monetary crime, mentioned that COSMIC will allow the central financial institution to extra simply spot and curtail something untoward whereas minimizing the impression on these conducting legit enterprise.
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“The knowledge sharing framework is designed to focus on critical felony behaviors and permit FIs to extra shortly detect the unhealthy actors to purge and deter them. It can strengthen Singapore’s place as a trusted monetary heart and place to do enterprise, the place FIs can higher serve the overwhelming majority of legit prospects,” she mentioned within the assertion.
The COSMIC platform was co-created by MAS and business banks DBS, OCBC, UOB, SCB, Citibank and HSBC. The information shared throughout the platform will solely be used for the aim of combating cash laundering, terrorism financing and proliferation financing.