The Monetary Authority of Singapore (MAS) is working with partners including the Government Technology Agency of Singapore and the Singapore Police Force to deploy artificial intelligence and machine learning (AI/ML) tools in the fight against financial crime.
The initiative centres on a Proof-of-Value (POV) aimed at developing pre-emptive scam detection capabilities, says MAS on May 4.
Under the POV, MAS will draw on data from five banks to build more robust AI/ML models to help identify higher-risk transactions and accounts.
Earlier detection is expected to support faster intervention and reduce customer losses from scams, reasons the regulator for Singapore’s financial services industry.
According to MAS, it has set up a secure data-sharing environment and framework for industry partners to safeguard customer information, ensuring data is used responsibly and remains confidential through cryptographic protection.
Bank account numbers will be “hashed” so that only the originating bank can identify underlying accounts. Hashing, says MAS, is a one-way algorithmic process which substitutes input data with a unique set of generated values.
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Access to the data will also be restricted to authorised personnel within a controlled and continuously monitored environment, and all data will be deleted at the end of the POV.
MAS says this POV will help lay the groundwork for deeper industry collaboration, with AI/ML tools designed to complement existing anti-financial crime measures at individual institutions.
Subject to the results of the POV, the central bank may expand the scope and sophistication of the models, including incorporating broader datasets and additional use cases to strengthen the financial system’s defences against criminal activity.
