Following a public consultation in October 2021, the Financial Services and Markets Act 2022 (FSMA) was amended in May last year to provide the legislative framework for COSMIC. Financial institutions participating in COSMIC can share customer information with other participating financial institutions when a customer's profile or behavior shows certain objectively defined suspicious indicators or "red flags." FSMA requires participating financial institutions to have appropriate policies and operational safeguards in place to protect the confidentiality of shared information. The bill would enable participating financial institutions to share information about potential criminal conduct while safeguarding the interests of the vast majority of their legitimate customers. The HKMA encourages customers to respond promptly to requests from financial institutions to provide clarifying information on risk profiles or transactions so that financial institutions can make informed risk assessments.
Ms Loo Siew Yee, HKMA’s Assistant Executive Director for Policy, Payments and Financial Crime, said: “COSMIC will enable financial institutions to alert each other to suspicious activities and conduct more informed risk assessments in a timely manner. It further promotes the industry’s cooperation with the HKMA and The existing close collaboration between law enforcement agencies in combating financial crime will enhance Singapore's reputation and capabilities as a well-regulated and trustworthy financial centre."
