Singapore's central bank finalises AI risk rules for every financial institution, and puts agentic AI next on its list

The Monetary Authority of Singapore published its final Guidelines on Artificial Intelligence Risk Management on 7 October, after a consultation that began in November 2025. They apply to all financial institutions and to all forms of AI.

Boards and senior management are expected to oversee AI risk, though a firm “need not establish a dedicated AI committee solely to meet this expectation”. Firms should know where they use AI, judge how material each use is, and apply controls across its life cycle. They remain accountable for AI that third parties supply: if a vendor's AI falls outside their risk appetite, they should consider “limiting, suspending or replacing the use of the third-party AI service”. Firms whose AI use is not material may adopt basic policies.

“The Guidelines will take effect on 07 October 2027,” MAS says. Firms may phase them in, meeting Sections 3 to 4 from that date and Sections 5 and 6 by 7 October 2028.

MAS also flags what comes next: “In 2027, MAS intends to further consult the financial sector on what additional guidance on agentic AI would be useful.” Deputy Managing Director Ho Hern Shin said AI “has significant potential to improve financial services”.

For banks, insurers and their software suppliers in Singapore, the year's run-in gives a fixed date for inventories, materiality ratings and vendor controls, while rules written for agents are at least a year further off.

• Confirmed The Guidelines take effect on 7 October 2027; Sections 3 to 4 apply from then and Sections 5 and 6 by 7 October 2028. Monetary Authority of Singapore
• Confirmed Financial institutions remain accountable for third-party AI and should consider limiting, suspending or replacing a vendor's AI service that exceeds their risk appetite. Monetary Authority of Singapore
• Confirmed MAS intends to consult the sector in 2027 on additional guidance on agentic AI. Monetary Authority of Singapore