The Monetary Authority of Singapore (MAS), the city-state’s central bank and financial regulator, has issued formal guidelines for financial institutions on the use of AI, titled “Guidelines on AI Risk Management for Financial Institutions.”

The framework sets supervisory expectations for clear accountability, risk management across the AI life cycle, oversight of third-party AI, and controls that match each institution’s risk exposure.

The guidelines take effect on October 7, 2027. Financial institutions should meet sections 3 and 4 from that date, and sections 5 and 6 by October 7, 2028.

MAS also plans to consult the sector in 2027 on whether more guidance is needed for agentic AI.

The move follows MAS’s earlier AI work, including an industry effort that released a responsible AI toolkit, and its earlier Fairness, Ethics, Accountability and Transparency (FEAT) assessment methodology.

It also follows a consultation by the Financial Stability Board, an international body that monitors the global financial system, which sought feedback on sound practices for AI adoption in finance.

🔗 Source: Monetary Authority of Singapore

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