Financial institutions remain accountable for third-party AI under new MAS guidelines
The Monetary Authority of Singapore (MAS) has issued new guidelines requiring financial institutions to remain accountable for risks associated with third-party artificial intelligence services. Firms must assess, manage, and potentially limit the use of AI if it falls outside their risk appetite.
Why it matters
This establishes a regulatory framework for AI governance in the financial sector, ensuring that banks remain responsible for technology even when outsourced.
Among other expectations, financial institutions will be accountable for AI used in delivered services, including AI developed, operated or provided by third parties.
The logo of the Monetary Authority of Singapore on Feb 13, 2026. (File photo: CNA/Ili Mansor)
Chelsea Ong 07 Oct 2026 01:27PM Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a new cards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST SINGAPORE: Financial institutions will be expected to assess and manage risks from their use of artificial intelligence, including AI by third-party providers, under new guidelines issued by the Monetary Authority of Singapore (MAS) on Wednesday (Oct 7).
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