MAS introduces new AI governance guidelines for financial institutions.
The Monetary Authority of Singapore requires financial institutions to remain fully accountable for the outcomes of third-party AI tools, including data leaks and glitches. Effective October 2027, firms must maintain AI inventories, implement risk-proportionate controls, and ensure human oversight for high-impact functions such as credit scoring.
Why it mattersLawyers advising financial institutions must ensure clients update their governance frameworks and third-party vendor contracts to reflect that liability cannot be outsourced.