CNA reported that the Monetary Authority of Singapore (MAS) issued guidelines on 7 October 2026 requiring financial institutions to manage risks from their use of AI, including systems developed, operated or supplied by third parties. Institutions remain accountable for AI used in the services they provide.
Firms should obtain sufficient assurance from providers and assess whether third-party AI is suitable for its intended use. MAS said they should apply compensating controls where practical constraints or gaps in assurance arise. If risks remain outside a firm’s risk appetite, it should consider limiting, suspending or replacing the service.
Boards and senior management are expected to oversee AI risks, with clear responsibilities and risk-management frameworks. Firms should keep inventories of AI use, assess individual applications and apply controls covering data, testing, human oversight, cybersecurity, monitoring and changes to systems. The guidelines take effect on 7 October 2027, with phased implementation permitted until 7 October 2028.
MAS plans to consult the financial sector in 2027 on additional guidance for agentic AI systems that can operate autonomously and access tools.
