MAS Issues AI Risk Management Guidelines for Financial Sector

The Monetary Authority of Singapore (MAS) has issued a set of artificial intelligence risk management guidelines to support the safe adoption of AI in the financial industry. The guidelines set out supervisory expectations applicable to all financial institutions and all types of AI technologies.

Under the core requirements, financial institutions are expected to identify and strengthen oversight of AI-related risks, while also managing risks arising from the use of third-party AI solutions. MAS emphasizes that institutions should put in place robust governance and accountability frameworks for the development, deployment and use of AI systems.

The guidelines will take effect on October 7, 2027. Financial institutions must meet the requirements in paragraphs 3 and 4 by that date, and implement paragraphs 5 and 6 by October 7, 2028.

MAS also plans to issue additional guidance on agentic AI in 2027 and will seek further industry feedback on risk management measures for this emerging technology.