Singapore Regulator Frames AI Risk Reduction Guidelines

The Monetary Authority of Singapore (MAS), the city-state’s financial regulator, has issued a consultation paper proposing guidelines on artificial intelligence risk management for financial institutions.

The proposals apply to all financial institutions and set out expectations on oversight of AI risk management, systems, policies, procedures, life cycle controls and capabilities. These guidelines follow MAS’ supervisory review of banks’ AI use in 2024 and discussions with institutions.

Ho Hern Shin, Deputy Managing Director, said: “The proposed Guidelines on AI Risk Management provide financial institutions with clear supervisory expectations to support them in leveraging AI in their operations.”