Singapore to Expand COSMIC After Platform Strengthens AML Detection

Singapore will broaden its Collaborative Sharing of Money Laundering/Terrorism Financing Information & Cases (COSMIC) platform over the next two years after authorities said it has improved banks' ability to detect illicit financial activity and supported law enforcement investigations.

Speaking in Parliament on August 5, Minister of State Alvin Tan, answering on behalf of Deputy Prime Minister and Monetary Authority of Singapore (MAS) Chairman Gan Kim Yong, said COSMIC has produced positive results since its launch on April 1, 2024. The platform enables participating banks to share risk information on customers displaying money laundering or terrorism financing red flags, helping identify suspicious networks and strengthen the country's anti-financial crime framework.

During its initial phase, COSMIC included six major commercial banks and focused on three high-risk areas: misuse of legal entities, abuse of trade finance, and proliferation financing. Information exchanged through the platform has led participating banks to submit additional suspicious transaction reports, while reviews prompted the closure of a significant number of suspicious customer accounts. The shared intelligence has also assisted MAS and law enforcement authorities in identifying suspicious networks for timely investigation.

The regulator added that COSMIC's effectiveness was recognized in the Financial Action Task Force's (FATF) recent mutual evaluation of Singapore, which assessed the country's measures to combat money laundering, terrorist financing and proliferation financing.

Building on these results, MAS is now working with the banking industry to expand the platform beyond its original three risk categories and onboard additional major banks that play key roles in Singapore's AML/CFT efforts. The expansion is expected to be completed within the next two years.

MAS said it will adopt a measured approach to the rollout, aiming to enhance information sharing while safeguarding customer confidentiality and reducing the risk of unnecessary de-risking by financial institutions.