Regulatory Update December 2024 – APAC Region
5 December 2024 – Information Paper on Artificial Intelligence Model Risk Management
The Monetary Authority of Singapore (“MAS”) conducted thematic reviews on selected banks in their usage of Artificial Intelligence (“AI”) as part of internal operational processes. Whilst the usage of AI technologies has the potential to improve efficiency, the associated risks cannot be ignored.
Potential risks of using AI technologies include:
- financial risks
- operational risks
- regulatory risks
- reputational risks.
Financial Institutions (“FIs”) which are using such AI technologies or are considering utilising related tools should review the Information Paper and implement the best practices where relevant.
To view the Information Paper, please click here.
10 December 2024 – Monetary Authority of Singapore Guidelines on Conflicts of Interest Management
The MAS provided further examples on the types of conflicts of interest and how to mitigate them in Appendix 5 of the Guidelines on Licensing and Conduct of Business for Fund Management companies.
Whilst these are targeted at fund management companies, these examples may be useful for other FIs to implement where appropriate. FIs should review these examples and implement appropriate controls to mitigate any potential sources of conflict of interest.
To view the Guidelines, please click here.
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