MAS launches platform against money laundering and terrorism financing

The platform will identify financial crime risks through customer data sharing.

The Monetary Authority of Singapore (MAS) launched COSMIC, a centralised digital platform for financial institutions (FIs) to share customer data aimed at combating money laundering (ML), terrorism financing (TF), and proliferation financing (PF) globally.

The Financial Services and Markets (Amendment) Act 2023 set out the legal framework for COSMIC.

Under the framework, a participating COSMIC FI can only share customer data with another participating FI if the customer’s profile or behaviour exhibits specific, objectively defined suspicious indicators, known as "red flags."

Meanwhile, customers are encouraged to provide timely responses as requested by FIs to clarify their risk profiles or transactions, allowing FIs to make informed risk assessments.

MAS co-developed COSMIC with DBS, OCBC, UOB, Citibank, HSBC, and Standard Chartered Bank.

The six banks will participate in COSMIC’s initial phase.

Currently, information sharing focuses on three key financial crime risks in commercial banking: misuse of legal persons, misuse of trade finance for illicit purposes, and proliferation financing.