Financial institutions remain accountable for third-party AI under new MAS guidelines
Among other expectations, financial institutions will be accountable for AI used in delivered services, including AI developed, operated or provided by third parties.
Singapore's Monetary Authority of Singapore (MAS) unveiled new guidelines on Oct 7, 2025 requiring financial institutions to assume responsibility for artificial intelligence (AI) used in their services, even when developed or managed by third-party providers. According to MAS, firms must evaluate and mitigate risks associated with AI, including those from external suppliers, and implement appropriate controls throughout the AI lifecycle.
If risks remain beyond the firm's risk tolerance, they should consider limiting, suspending, or replacing the third-party AI service.
Financial institutions are expected to assess AI risks at both the enterprise level and individual use cases, build their AI capabilities, and regularly review controls as AI technology evolves. The guidelines also stress the need for effective oversight by boards and senior management, including setting clear roles, risk appetite, and management frameworks. MAS plans to consult the financial sector in 2027 on additional guidance for autonomous AI systems that can operate independently.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Financial institutions remain accountable for third-party AI under new MAS guidelines channelnewsasia.com
- MAS rolls out AI risk management guidelines for Singapore’s financial sector businesstimes.com.sg
