DISCLAIMER: This post was last modified on 9 April 2024. Some information in this article may not be updated.

On 1 April 2024, the Monetary Authority of Singapore (MAS) announced the launch of COSMIC (Collaborative Sharing of Money Laundering/TF Information and Cases). This centralised digital platform will facilitate the sharing of customer information among financial institutions in the global fight against money laundering, terrorism financing and proliferation financing.  

The Financial Services and Markets (Amendment) Act 2023 and accompanying subsidiary legislation, which established the legal basis and safeguards for information sharing, became effective the same day.  

What is COSMIC and how does it work?

The Financial Services and Markets Act 2022 (the Act) was amended to set up COSMIC’s legislative framework. 

A participating financial institution (FI) may use the new platform to share customer information with another participant if the customer’s profile or behaviour exhibits suspicion. To ensure that the shared information remains confidential, the Act requires that all participating FIs have policies and safeguards in place. This will protect the interests of the majority of legitimate customers while enabling participating FIs to share information on potential criminal behaviour. 

MAS and the six major commercial banks in Singapore: DBS, OCBC, UOB, Citibank, HSBC and Standard Chartered Bank developed the COSMIC platform. These banks will be the primary users of the platform in its initial phase.  

MAS emphasised that information sharing is currently voluntary and focuses on three key financial crime risks in commercial banking: the misuse of legal persons, the misuse of trade finance for illicit purposes and proliferation financing.  

“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,” said Loo Siew Yee, Assistant Managing Director for Policy, Payments & Financial Crime at MAS.  

The launch of COSMIC demonstrates Singapore’s serious approach to combating financial crimes. This new digital platform could hasten the investigations of money laundering cases, potentially discouraging criminal activity.  

How can Bolder Group help?

Authorities continue to introduce new rules in the battle against financial crime, particularly money laundering. In such instances, it is crucial for organisations—particularly those in the financial industry—to stay up to date on the most recent developments and to adhere to any new regulations.  

At Bolder Group, we provide a full range of AML/KYC outsourcing services in all major jurisdictions globally with the help of our compliance experts across 18 jurisdictions. We ensure full compliance with the relevant legislation and regulatory bodies while providing customised solutions that align with the objectives of our clients.  

Contact our team to learn more about our solutions and services so we can help you stay compliant.  

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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