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This data platform will help banks share criminal intelligence

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A knowledge platform is being constructed to permit banks working in Singapore to share intelligence on clients who’re doubtlessly concerned in felony actions. 

The transfer is a part of the nation’s efforts to bolster its defenses in opposition to monetary crimes, together with cash laundering, terrorism funding, and financing of weapons of mass destruction, in response to the Financial Authority of Singapore (MAS). 

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Dubbed COSMIC, the information platform is at present being collectively developed with six main banks, together with DBS, UOB, Customary Chartered, Citibank, and HSBC. 

It is going to plug present gaps the place, attributable to confidentiality necessities, monetary establishments are unable to alert one another about uncommon actions involving their clients. This hole permits criminals to hold out illicit transactions by means of completely different monetary establishments to keep away from detection, stated Singapore’s Minister of State for Commerce and Business Alvin Tan, who is also a MAS board member. 

His feedback had been made Tuesday throughout the second studying of the Monetary Providers and Markets (Modification) Invoice in parliament. The proposed amendments to the Invoice will allow the sharing of data and set up the authorized framework to facilitate data alternate by way of the information platform. 

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Tan stated the amended Invoice outlines when and the way such sharing of buyer danger information can happen. The Invoice additionally supplies the authorized and operational safeguards to make sure the confidentiality of data that’s shared and the pursuits of reliable clients. He stated the amendments incorporate suggestions from public session on COSMIC, including that the information platform will make it simpler for monetary establishments to detect and deter felony exercise.

The platform might be deployed in phases and is predicted to be operational from the second half of subsequent 12 months. Within the preliminary part, sharing of data between MAS and the six banks might be voluntary. 

This part will allow the platform to acquire operational stability and for MAS, alongside the collaborating monetary establishments, to fine-tune its options and resolve operational considerations, Tan stated. 

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Entry to the information platform might be expanded to extra monetary establishments ultimately, with extra give attention to different danger areas. For the preliminary part, COSMIC will give attention to three areas: trade-based cash laundering; misuse of authorized individuals, such because the abuse of shell firms; and financing and evasion of worldwide sanctions. The sharing of knowledge may even be made obligatory in higher-risk conditions, the minister famous.

“COSMIC will enable participant monetary establishments to share with each other data, on a confidential foundation, on clients whose profile or habits displays potential monetary crime considerations,” Tan stated.

“Such danger data may embody ‘crimson flag’ behaviors and particulars of the regarding transaction. Sharing on COSMIC would supply a recipient monetary establishment with higher data to reinforce its danger understanding of a buyer, thus, enabling the monetary establishment to detect suspicious habits extra precisely and expediently.”

Monetary establishments may use information on the platform to find out if a monetary transaction is reliable. If a transaction is assessed and suspected to contain felony actions, a report on the shopper have to be submitted to the related authorities beneath current legal guidelines.

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MAS can have entry to all data shared on COSMIC, which Tan stated is important to assist the business regulator monitor processes and guarantee collaborating monetary establishments are utilizing the platform appropriately. 

“Because the proprietor of the platform, MAS will guarantee COSMIC data is exchanged and saved securely,” the minister stated. “The platform can have strong controls, together with cybersecurity measures, comparable to information encryption and firewalls to dam unauthorized exterior entry. It is going to even have strict consumer entry limitations. These controls might be topic to periodic audits to make sure their efficacy.”

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Taking part monetary establishments might be required to take care of strong information cybersecurity measures for COSMIC, together with having programs and processes in place to stop unauthorized use. They may even be anticipated to implement cybersecurity and encryption measures to guard information obtained from COSMIC. 

Monetary establishments additionally aren’t permitted to reveal data obtained by way of the information platform to third-party organizations, besides in particular circumstances, comparable to fulfilment of court docket orders or following police requests to facilitate investigations. 




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