The Monetary Authority of Singapore has issued a consultation paper proposing Guidelines on AI Risk Management to set supervisory expectations for the responsible use of artificial intelligence by financial institutions across Singapore’s financial sector. The proposed Guidelines would apply to all financial institutions and are intended to be implemented proportionately, reflecting firms’ size, activities, AI usage and risk profiles. They cover a range of AI applications and technologies, including generative AI and newer developments such as AI agents, and set expectations on board and senior management oversight, firm-wide identification and inventorying of AI use, and risk materiality assessments based on impact, complexity and reliance. The framework also outlines AI life cycle controls spanning data management, fairness, transparency and explainability, human oversight, third-party risks, evaluation and testing, and ongoing monitoring and change management, alongside expectations for adequate capabilities and capacity to support AI use. Comments on the consultation are requested by 31 January 2026.
Monetary Authority of Singapore 2025-11-13
Monetary Authority of Singapore launches consultation on AI risk management guidelines for all financial institutions
The Monetary Authority of Singapore has released a consultation paper on proposed Guidelines on AI Risk Management for financial institutions. The Guidelines aim to ensure responsible AI use, covering applications like generative AI and AI agents, with expectations on oversight, risk assessments, and AI life cycle controls. They emphasize proportional implementation based on firms' size, activities, and risk profiles.