Singapore Central Bank to Utilize AI Technology to Combat Money Laundering

Richard M. November 6, 2023 4 minute read

The Monetary Authority Singapore (MAS) seeks to utilise AI technology to bolster the security of financial institutions and protect the country’s economy from financial crimes, such as money laundering and terrorist financing.

Singapore’s government and law enforcement agencies are “most keen” to explore the latest technology and how artificial intelligence can support the banking sector and other financial institutes to fight against money laundering and terrorist financing. The MAS managing director, Ravi Menon, stated in an interview that the upcoming annual Singapore FinTech Festival is all about AI and innovations in the virtual assets sector. The event will be held from November 15th to 17th at the Singapore Expo.

Menon also added that the MAS is already using AI technology and advanced big data analysis to detect fraud and suspicious activities. AI is also used in processing various information and reports on financial institutions and finding high-risk sectors that need extensive supervision by regulatory authorities. But the latest crackdown in the financial sector reveals that there is more to be done, especially in the cryptocurrency industry, which demands “big-picture surveillance.” Menon stated, “Money launderers operate across different financial institutions, and you need to be able to join the dots across them.”

According to the MAS, machine learning and AI technology will also assist law enforcement agencies in the upcoming Collaborative Sharing of Money Laundering/Terrorism Financing Information and Cases (COSMIC). MAS will develop the COSMIC platform in collaboration with six central commercial banks. This will store all information about digital banking platforms. AI is a landmark in the financial industry and evolving economic developments, as well as a catalyst for raising investment opportunities. That’s why MAS chose it as the theme of the festival day. The director stated, “Like all technologies, AI brings great promise and great peril. We need to be realistic in appreciating both sides. How can we harness the benefits and not get too scared about the risks? At the same time, we can’t be too wide-eyed about it and ignore some of the risks.”

Furthermore, Singapore’s government will launch Project Greenprint in the next phase. It is the central bank’s effort to use technology to obtain high-quality sustainability statistics. Four digital platforms, including an environmental, social, and governance registry located in Singapore, have been tested as part of this program. The project details will be disclosed in the next phase, but for now, it is progressing well.