Singaporean banks will be able to exchange information on potentially risky clients next year. The move aims to curb illicit flows amid the city-state’s growing role as a key financial and wealth hub.
On Tuesday, Parliament passed a bill that paves the way for the Monetary Authority of Singapore to establish and maintain a secure digital information exchange system. The platform, called Cosmic, aims to make it easier for financial institutions to detect and stop activities in areas such as fraud, money laundering and terrorist financing.
The system will be introduced in the second half of next year in six banks. DBS Group Holdings Ltd., Oversea-Chinese Banking Corp., United Overseas Bank Ltd., Standard Chartered Plc, Citigroup Inc. and HSBC Holdings Plc will be the first group to gain access to Cosmic.
Currently, financial firms are prohibited from sharing customer information, and are mostly able to do so following police investigations and court orders.
“A clean and sound financial sector is the foundation upon which Singaporeans and foreigners alike choose to invest and manage their funds,” Alvin Tan, Minister of State at the Commerce Department, told lawmakers.