19 December 2023

On 6 December 2023, the Monetary Authority of Singapore (“MAS”) published a consultation paper seeking feedback on the scope of the term “relevant party” under proposed regulations relating to the information sharing scheme for prescribed financial institutions (“FIs”) aimed at combating money laundering (“ML”), terrorism financing (“TF”) and proliferation financing (“PF”). The consultation closes on 5 January 2024. 

The Financial Services and Markets (Amendments) Act 2023 establishes a new electronic information sharing system for the disclosure, publication and sharing of risk information by prescribed FIs for the prevention and detection of ML, TF and PF. The new system, called COSMIC (short for “Collaborative Sharing of ML/TF Information & Cases”), will enhance information exchange between the prescribed FIs to more effectively deter and disrupt criminal activities. 

MAS is developing COSMIC together with six major banks. COSMIC will allow prescribed FIs to securely share with one another risk information on a “relevant party” who exhibits multiple red flags that may indicate potential financial crime concerns, where the stipulated thresholds in the Financial Services and Markets Act 2022 are met. This will make it easier for prescribed FIs to detect and thereby deter criminal activity. 

MAS intends to prescribe in regulations the persons who will be a relevant party of a prescribed FI. In this consultation, MAS seeks feedback on the proposed scope of the term “relevant party”. 

MAS is also conducting a related public consultation on a new COSMIC notice which sets out requirements relating to the sharing of information through COSMIC, along with related amendments to MAS Notice 626 on Prevention of Money Laundering and Countering the Financing of Terrorism - Banks. 

Reference materials 

The consultation paper is available on the MAS website www.mas.gov.sg.