Singapore, Cyprus, and the US Expedite Efforts to Combat Financial Crimes Effectively

Singapore, Cyprus, and the US are stepping up their efforts to curb financial crimes while aiming to make the global financial system risk-free and future-proof.

Cyprus and the US have signed a memorandum of cooperation to enhance their efforts in curbing financial crimes. The Cypriot Council of Ministers announced this agreement after Nicosia publicized its collaboration with the United States. The memorandum aims to assist law enforcement authorities in investigating sanctions, violations, corruption, and money laundering cases.

The council’s decision to establish cooperation between the Cyprus Police and the FBI aims to speed up crime investigations while limiting money laundering activities.

According to the announcement, the memorandum’s conclusion “reflects the government’s efforts, particularly the determination of the president of the republic himself, to further strengthen the capacity of the country’s law enforcement authorities to address illegal financial activities and to detect and prosecute financial crimes.”

It will focus on exchanging knowledge about investigation methodologies, tactics, and techniques while ensuring the highest standards of confidentiality and data protection.

Like Cyprus and the US, Singapore has also increased its efforts to curb financial crimes. The Monetary Authority of Singapore (MAS) launched the Collaborative Sharing of Money Laundering /TF Information and Cases (COSMIC), an online platform to improve the financial system’s defense against financial crimes.

The platform serves as a centralized hub for sharing customers’ information among financial institutions and watchdogs, aiming to determine and mitigate potential risks associated with them.

The COSMIC participants may only be able to share the customer information with the other participants in case if the client’s profile displays suspicious indicators or red flags. MAS’s assistant managing director, Loo Siew Yee, said, “COSMIC will enable FIs to warn each other of suspicious activities and make more informed risk assessments on a timely basis. It complements the industry’s close collaboration with MAS and law enforcement authorities to combat financial crime. This will strengthen Singapore’s capabilities to uphold our reputation as a well-regulated and trusted financial center.”

The MAS and the country’s six prominent commercial banks, including the Development Bank of Singapore (DBS), Oversea-Chinese Banking Corporation (OCBE), United Overseas Bank (UOB), Citibank, the Hong Kong and Shanghai Banking Corporation (HSBC), and Standard Chartered Bank, collectively worked together through the development phase. 

The above-mentioned banks are among the early participants of COSMIC, majorly focusing on three critical factors in commercial banking: trade finance for illegal activities, proliferation financing, and misuse of legal entities.

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