back Back

MAS unveils COSMIC to tackle money laundering and terrorism financing

By Gloria Mathias

April 02, 2024

  • APAC Fintech news
  • APAC news
  • Citibank
Share

MAS, Fintech News, Singapore News, Fintech Solutions, Financial Fraud, Terrorism Financing, COSMIC, Financial Institutions, APAC News, APAC Fintech News, Fintech News, The Monetary Authority of Singapore (MAS) has launched COSMIC, the centralised digital platform to facilitate the sharing of customer information among financial institutions (FIs) to combat money laundering (ML), terrorism financing (TF) and proliferation financing (PF) globally.

COSMIC stands for “Collaborative Sharing of Money Laundering /TF Information & Cases”

The Financial Services and Markets (Amendment) Act 2023 and accompanying subsidiary legislation, which set out the legal basis and safeguards for such sharing, commenced on the same day.

Following public consultation in October 2021, the Financial Services and Markets Act 2022 (FSMA) was amended in May 2023 to set out the legislative framework for COSMIC.

A COSMIC participant FI may share customer information with another participant FI only if the customer’s profile or behaviour displays certain objectively defined indicators of suspicion, or “red flags”. The FSMA requires participant FIs to have in place policies and operational safeguards to protect the confidentiality of information shared. This will allow participant FIs to share information on potential criminal behaviour while safeguarding the interests of many legitimate customers. Customers are encouraged to continue to provide timely responses if requested by FIs to provide clarifications on their risk profiles or transactions so that FIs can make informed risk assessments.

COSMIC was co-developed by MAS and six major commercial banks in Singapore namely; DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered Bank. These banks will be the participant FIs on COSMIC during its initial phase.

Information sharing is currently voluntary and focused on three key financial crime risks in commercial banking, namely:

  • misuse of legal persons
  • misuse of trade finance for illicit purposes
  • proliferation financing

Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said, “COSMIC will enable FIs to warn each other of suspicious activities and make more 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 to uphold our reputation as a well-regulated and trusted financial centre.”

Previous Article

April 02, 2024

GLN International, SendMn and QPay expand QR payment network to Mongolia

Read More
Next Article

April 02, 2024

Valu partners with noon Payments to enhance payment options

Read More








IBSi Daily News Analysis

bahrain, islamic finance

April 17, 2024

APAC Fintech news

Sovereign upgrades elevate Sukuk ratings; GCC debt markets on track to break $1tn barrier

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Ozone API and Thistle Initiatives help banks prepare for PSD3

Read More

Today

Entrust completes acquisition of ID verification provider Onfido

Read More

Today

Worldline partners with RiskQuest to streamline credit checking

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023