ASIA IN BRIEF: Singapore Launches COSMIC App to Combat Money Laundering
Singapore’s Monetary Authority has launched an application called “COllaborative Sharing of Money Laundering/TF Information & Cases” (COSMIC) to target money laundering and terrorism financing. The app was developed in collaboration with six major commercial banks in Singapore, including DBS, OCBC, UOB, Citibank, HSBC, and Standard Chartered Bank. This initiative allows participants to share customer information only if certain red flags are displayed, which are defined as potential indicators of criminal behavior by Singaporean law.
The purpose of COSMIC is to protect the vast majority of legitimate customers while enabling financial institutions to make informed risk assessments. It encourages bank customers to provide timely responses if requested to clarify their risk profiles or transactions. This proactive approach is necessary to combat financial crimes effectively.
Insights:
Collaborative efforts between regulatory authorities and financial institutions are crucial to combat money laundering and terrorism financing effectively. By leveraging technology and sharing information securely, countries can strengthen their financial systems and protect customers from criminal activities. Initiatives like COSMIC demonstrate the importance of proactive measures in maintaining the integrity of the financial sector.
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