A snapshot of Singapore’s approach to AI in AML regulation in 2024

2024 Index score: 5.53 / 10

Index score between 0-10, with a lower score reflecting a more efficient and innovative regulatory approach.‍

The Napier AI / AML Index is a benchmarking tool that assesses how effectively countries are balancing anti-money-laundering (AML) efforts with outcomes, while also estimating the uplift possible from AI-driven AML improvements. A lower overall score denotes stronger performance (i.e., better balance between efforts and outcomes).

The Napier AI / AML Index, developed by Napier AI in partnership with GlobalData, is a benchmarking tool that evaluates how effectively countries balance their anti–money laundering (AML) efforts with measurable outcomes, while also estimating the potential gains achievable through AI-driven AML enhancements.

See how Singapore ranked this year: Napier AI / AML Index 2025-2026

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Singapore is at the forefront of AI guidance and collaboration in anti-money laundering (AML) regulatory compliance. Regulators in Singapore take a pro-innovation stance on AI, and it is one of the few markets with some guidance on implementing AI for use in AML controls. Singapore is making significant strides with its 2024 Governance Framework for Generative AI, requiring transparency and responsibility. The market’s regulatory initiatives present an opportunity to mitigate some of the risks associated with AI in financial services, acknowledging that technology is not the only factor at play, and that the right testing and assurance will be paramount for financial institutions.

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This is not a new idea in Singapore. In 2018, the Monetary Authority of Singapore (MAS), Singapore’s financial services supervisor, issued the ‘Principles to Promote Fairness, Ethics, Accountability and Transparency (FEAT) in the Use Of Artificial Intelligence and Data Analytics in Singapore’s Financial Sector’.

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The MAS takes a collaborative approach and works closely with regulated firms on shaping regulations. In 2019, it launched the ‘Sandbox Express’ to provide firms a way to test new products with speed. And in April 2024, MAS launched COSMIC (Collaborative Sharing of Money Laundering/ Terrorism Financing Information & Cases). The digital platform, launched with six major commercial banks operating in the market, allows financial institutions to share information on customers that meet stipulated risk thresholds to intersect possible financial crime. In July 2024, MAS announced $100 million SGD (equivalent to around $76 million USD) additional funding to support AI initiatives in the financial services, to encourage AI model building and training, deployment of AI models for high impact use cases, governance and risk management, as well as testing and monitoring.

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“The UK and Singapore are leading the way in AI-driven anti-money laundering (AML) innovation, balancing regulatory oversight with technological advancement. Both countries are setting global standards by adopting agile, scalable AI systems that enhance compliance, mitigate financial crime risks in booming financial hubs, and support sustainable growth in the evolving digital economy. From the evolving AML typologies to the changing regulatory frameworks, and ever-changing watchlists, the lesson from these trailblazing markets is clear: the key for successful implementation for AML is a collaborative regulator and an innovation-friendly approach.” to Ben Goodwin, Head of Financial Services – APAC, UK Department for Business and Trade

Compliance costs in Singapore can be high, as there is a high regulatory burden with heavy fines for non-compliant institutions. However, the MAS is a model regulator for collaboration and is guiding the industry to have the right controls in place to drive down money laundering. The compliance burden is necessary and proportionate, considering Singapore’s thriving fintech scene and booming economy – AI will be key to driving down the associated costs.

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