The Monetary Authority of Singapore (MAS) is actively exploring the use of artificial intelligence (AI) in the fight against money laundering, according to Ravi Menon, the managing director of MAS. In a wide-ranging interview, Menon highlighted the agency’s keen interest in utilizing AI as it connects the dots across large data sets beyond the capacity of the human brain. He noted that MAS already employs machine learning and advanced data analytics to detect fraudulent and suspicious activities.

The recent billion-dollar money laundering crackdown in Singapore has emphasized the need for strengthening “big-picture surveillance.” Money launderers often operate across different financial institutions, requiring the ability to connect the dots across them. AI could be applied to COSMIC (Collaborative Sharing of Money Laundering/Terrorism Financing Information and Cases), an upcoming digital platform designed to enable financial institutions to share information on suspicious customers or transactions. By applying AI to COSMIC, the platform can provide additional insights and a more holistic view of risks.

MAS recognizes the importance of a “balanced approach” to AI, acknowledging both its benefits and risks. In the upcoming FinTech Festival, AI will take center stage, exploring its growth and adoption in financial services, particularly its potential to reimagine the financial system architecture for the underserved.

Moreover, the festival is expected to feature announcements related to instant cross-border payments, including a link-up between Singapore’s PayNow system and Malaysia’s DuitNow. The MAS will also unveil the next phase of Project Greenprint, an initiative focused on sustainability data. Additionally, efforts to achieve instant settlement in cross-border transactions through central bank digital currencies and distributed ledger technology have seen promising results in collaborations with other central banks.