A Framework for Regulation of Artificial Intelligence in Finance

This white paper sets a regulatory framework for artificial intelligence in finance. It explains why current regulations are inadequate and why institutions need a principles based model that governs AI with clarity and control. The paper identifies the ethical, operational, and supervisory challenges created by generative AI and outlines the structures required to manage them. It defines the role of governance, risk, compliance, and cybersecurity in establishing disciplined oversight. It describes how firms must control data, secure models, evaluate outputs, and maintain integrity across the entire AI lifecycle. It sets a regulatory journey that aligns AI with existing standards and prepares institutions for future expectations. It argues that responsible deployment demands transparency, fairness, privacy, reliability, and continuous monitoring. It presents six regulatory principles that give banks a stable foundation as AI becomes central to financial operations

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