OCBC Automates Cooperation with Law Enforcers
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OCBC has implemented an automated solution that accelerates collaboration with law enforcement agencies by up to 100-fold.
On average, it takes between 10 days and three months for banks to respond to production orders or requests by law enforcement agencies to provide information for investigation on the bank accounts of individuals or companies. With the new solution – Production Orders: Electronic Transmission (POET) – OCBC will cut turnaround time to just one or two working days with minimal manual processing assuming the information requested does not exceed 13 months.
By greatly reducing the turnaround time for production orders, we are doing our part to put the squeeze on criminals, said Loretta Yuen, OCBC’s head of group legal and regulatory compliance.
After a successful pilot, OCBC launched POET in collaboration with the Commercial Affairs Department (CAD) in July 2019. Since then, it has extended collaboration to other agencies including the Singapore Customs, Inland Revenue Authority of Singapore (IRAS), the Corrupt Practices Investigations Bureau (CPIB) and various units under the Singapore Police Force. It is in collaboration with more than 10 law enforcement agencies and expects about 70 percent of production orders to come through POET.
Other banks are also considering to adopt the solution to improve compliance efficiency. In addition to DBS and UOB, the report noted that foreign banks in Singapore also expressed interest in POET.
Collaboration with regulators aside, Yuen also highlighted the benefit of data gathered by POET for banks not only to respond to requests but to identify compliance risk early.
We can use it as additional surveillance risk indicators, as well as in intelligence data mining and transactional link analysis to identify hidden relationships and/or clustering relationships that may pose money laundering risks to the bank, Yuen said.
On average, OCBC receives more than 1,000 production orders per month from law enforcement agencies and the figure is projected to rise in the coming years.
Questions & Answers
Q.What is the primary benefit of OCBC's new POET system for law enforcement agencies?
What is the primary benefit of OCBC's new POET system for law enforcement agencies?
The POET system significantly reduces the time taken for OCBC to respond to production orders, speeding up investigations. It cuts the turnaround time from several days or months to just one or two working days.
Q.Which specific law enforcement agencies are currently collaborating with OCBC through the POET system?
Which specific law enforcement agencies are currently collaborating with OCBC through the POET system?
OCBC launched POET with the Commercial Affairs Department and has since extended collaboration to include Singapore Customs, Inland Revenue Authority of Singapore, and various units under the Singapore Police Force.
Q.How does OCBC plan to utilise the data collected through the POET system beyond just responding to requests?
How does OCBC plan to utilise the data collected through the POET system beyond just responding to requests?
OCBC intends to use the gathered data as additional surveillance risk indicators for early identification of compliance risks. It will also be used for intelligence data mining and transactional link analysis to uncover potential money laundering risks.
Q.Are other banks in Singapore considering adopting the POET solution developed by OCBC?
Are other banks in Singapore considering adopting the POET solution developed by OCBC?
Yes, other banks are considering adopting the solution to improve compliance efficiency. DBS and UOB are mentioned, and foreign banks in Singapore have also expressed interest in POET.
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