AIBullisharXiv – CS AI · May 77/10
🧠
A Regulatory Governance Framework for AI-Driven Financial Fraud Detection in U.S. Banking: Integrating OCC, SR 11-7, CFPB, and FinCEN Compliance Requirements for Model Development, Validation, and Monitoring Lifecycles
Researchers present the RGF-AFFD, an integrated governance framework for AI-driven fraud detection in U.S. banking that unifies compliance requirements from four regulatory bodies (OCC, SR 11-7, CFPB, FinCEN). The framework includes a Regulatory Digital Twin meta-model that benchmarks six AI architectures, with an LSTM+XGBoost ensemble achieving 0.9289 ROC-AUC, and establishes continuous monitoring protocols to satisfy fragmented regulatory requirements simultaneously.