Deploying Data Analytics in Supervision of Financial Institutions
As an integrated financial supervisor, MAS fosters a safe and sound financial services sector through its oversight of financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and payment entities. MAS is also responsible for well-functioning financial markets, sound conduct, and investor education. Here are just two examples of how we leverage on data analytics.
Network Analysis for Suspicious Transaction Reports
As part of its supervision of financial institutions (FIs), MAS monitors and assesses FIs’ money laundering and terrorism financing (ML/TF) risk management. The work includes monitoring the Suspicious Transaction Reports (STRs) filed by FIs on potentially illicit flows of funds and financial crime concerns. To analyse the STRs, MAS developed a network analytics tool to identify concerning clusters of individuals/entities that exhibited suspicious behaviours. This sharpens our ability to prioritise and target FIs with higher ML/TF risks in our supervision.
Monitoring and Enforcement of Safe Management Measures
MAS has been using data analytics to monitor FIs’ implementation of safe management measures since the onset of the COVID-19 pandemic. We review data such as customer footfall, wait time and peak hours to identify customer service locations and branches with large crowds and guide the prioritisation of inspections and enforcement actions on these locations. In addition, we use natural language processing (NLP) to gather international news to keep current with COVID-19 related developments, as well as to analyse consumer feedback and monitor vulnerabilities in different customer and product segments.
We caught up with Grace Thng, Deputy Director, Supervisory Technologies at MAS to share her experiences at MAS.
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