Singapore sets AI risk rules for financial sector from 2027

The guidelines set out clear supervisory expectations for financial institutions to manage risks arising from AI use, while allowing them to tailor their approaches according to their risk profiles, MAS said in a statement on Wednesday. — AFP pic

First Published: Thursday, 08 Oct 2026 9:18 AM MYT

SINGAPORE, Oct 8 — The Monetary Authority of Singapore (MAS) on Wednesday issued the Guidelines on Artificial Intelligence (AI) Risk Management to support responsible AI adoption in Singapore’s financial sector.

The guidelines set out clear supervisory expectations for financial institutions to manage risks arising from AI use, while allowing them to tailor their approaches according to their risk profiles, MAS said in a statement on Wednesday.

The central bank said the guidelines will take effect on October 7, 2027, and financial institutions may implement the guidelines in phases by October 7, 2028. 

“Financial regulators and international bodies are correspondingly highlighting the need to manage AI risks effectively while enabling firms to realise the benefits of adoption.

“Following MAS’ consultation on the guidelines in November 2025, the Financial Stability Board has also consulted on sound practices for financial institutions’ responsible adoption of AI,” it said.

MAS Deputy Managing Director Ho Hern Shin said the central bank will continue to work with the industry to advance sound AI risk management practices in a practical and industry-grounded manner.

“With greater regulatory clarity on financial institutions’ AI usage, they can innovate with confidence, while maintaining the trust of customers and the resilience of Singapore’s financial system,” she said. — Bernama