AI model risk management
AI model risk management in Trade and Geopolitical Risk is drawing direct regulatory attention from the U.S. Office of the Comptroller of the Currency, the European Banking Authority, and the Monetary Authority of Singapore, all of which have issued or proposed guidance requiring firms to document, validate, and govern AI models used in trade finance, sanctions screening, and counterparty risk workflows. The OCC's model risk management bulletin framework and the EBA's draft guidelines on internal model governance are the reference points compliance teams are currently mapping against vendor contracts and internal model inventories. This is no longer a theoretical gap between AI governance policy and trade risk operations.
Watch
- OCC model risk management bulletin SR 11-7 applicability to AI-driven trade surveillance tools
- EBA draft guidelines on AI model validation: comment period and implementation timeline
- Monetary Authority of Singapore FEAT principles enforcement posture in 2024-2025
- Sanctions screening model failures flagged in recent FinCEN enforcement actions
- OFAC guidance on automated decision systems used in export control due diligence
Recent material activity in Trade & Geopolitical Risk
-
OFAC designates 14 entities linked to Russian defense procurement network
The Treasury Department's Office of Foreign Assets Control added 14 entities and 6 individuals to the Specially Designated Nationals list for their roles in procuring critical technology components for Russia's defense i…
Read a full sample brief → -
BIS adds 22 Chinese semiconductor entities to Entity List for advanced chip diversion
The Bureau of Industry and Security expanded export controls targeting Chinese semiconductor entities found to be diverting advanced computing chips through third-country intermediaries. New license requirements affect i…
Read a full sample brief →