On November 13, 2025, the Monetary Authority of Singapore (MAS) unveiled a consultation paper. In this paper, it put forward a proposal stating that the boards of directors and senior management teams of financial institutions should shoulder the ultimate responsibility for risks stemming from the use of artificial intelligence.

The paper clearly outlines that the board, or a committee authorized by it, must factor in significant AI risks when formulating the risk appetite framework and approve the acceptable levels of such risks. Meanwhile, the senior management is tasked with putting AI risk management policies and procedures into practice, as well as ensuring that employees have the necessary skills and knowledge to handle AI - related matters.

This initiative is designed to spur financial institutions to adopt a systematic approach to managing AI risks. It also works in tandem with four other initiatives that Singapore has previously rolled out, like the 'Explorers Programme'. At present, Singapore is boosting employees' AI capabilities through corporate retraining initiatives. However, some institutions continue to focus more on short - term profits rather than investing in risk management.

The public is invited to submit their comments on this proposal until mid - December.