Featured Product

    MAS to Introduce Digital Platform to Prevent Frauds in Banking Sector

    October 01, 2021

    The Monetary Authority of Singapore (MAS) announced plans to launch, in the first half of 2023, the COSMIC platform to facilitate prevention of money laundering, terrorism financing (ML/TF), and proliferation financing. The platform will enable financial institutions to securely share with each other the relevant information on customers and transactions, where they cross material risk thresholds. The COSMIC platform will initially focus on three key financial crime risks in commercial banking: abuse of shell companies, misuse of trade finance for illicit purposes, and proliferation financing. MAS seeks feedback on the proposed legislative framework and the features for COSMIC by November 01, 2021.

    While some other countries have introduced arrangements for information-sharing among financial institutions, the COSMIC platform will be the first centralized platform where information is shared in a structured format that allows for seamless integration with data analytics tools. This will help financial institutions collaborate productively and at scale. The COSMIC platform is the co-creation of MAS and six major commercial banks in Singapore—namely, DBS, OCBC, UOB, SCB, Citibank, and HSBC. The platform will have strong security features to prevent unauthorized access to information and will be operated by MAS. The six banks will participate and be permitted to share information in COSMIC during this initial phase. MAS plans to progressively extend coverage to more financial institutions and focus areas and to make some aspects of sharing mandatory. 

    The regulatory framework for COSMIC will specify the types of information to be shared and the circumstances under which information-sharing will be permitted or mandated. MAS will provide in legislation that this information-sharing by financial institutions is permitted only for the purpose of combating money laundering, terrorist financing, and proliferation financing. MAS will also require all COSMIC participants to implement robust measures to safeguard against unauthorized use and disclosure of COSMIC information. MAS will supervise financial institutions for compliance with these requirements and take action against errant financial institutions. MAS will use the information from COSMIC in its risk surveillance to detect illicit networks operating in the financial system and to target these activities for timely supervisory intervention. 

     

    Keywords: Asia Pacific, Singapore, Banking, ML/TF, Proliferation Financing, Fintech, COSMIC, AML/CFT, Regtech, Digital Platform, MAS

    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552