Ai infrastructure embeds and verifies compliance in financial operations
Compliant AI Infrastructure for Regulated Finance: A tiered multi-agent framework with DLT audit trails for financial operations in DACH
Artificial Intelligence
Summary
Finance companies face complex rules that can change often and vary by region. The authors created a system where AI follows these rules not as fixed commands but as flexible guidelines. The system tracks every decision and proof in a secure, tamper-proof ledger, making it easy to check if everything was done right. It works specifically for European countries like Germany, Austria, and Switzerland but could expand across Europe. This approach helps companies meet legal rules while keeping operations efficient and transparent.
What this means in practice
- •For financial software developers: Develop AI-driven financial tools that enforce regulatory requirements dynamically across different jurisdictions in the DACH region.
- •For enterprise it compliance teams: Implement audit trails that provide verifiable, clause-level legal evidence for financial decisions to ensure regulator-ready reporting.
Authors
Walter Kurz, Reinhard Magg
Abstract
We present a compliance-first architecture for AI in regulated finance that treats regulation as an orientation layer rather than a deterministic ruleset. A matrix of regulatory intent and exposure provides a compact classification handle, which a governed policy compiler then maps into concrete prohibitions, obligations and runtime budgets. Prohibitions constrain feasibility and block externalisation, while obligations extend tasks with artefacts that must meet explicit admissibility criteria. Committee activation remains policy-driven and proportionate, preserving efficiency while ensuring supervisory oversight. Evidence, decisions and reason codes are bound to a permissioned DAG with deterministic timestamping, enabling replay, provenance checks and clear attribution of failure. Clause-level legal indexing with effective dates and capability-based agent routing ensure portability across DACH and the wider EU. The result is assurance by construction: compliance is embedded in execution and verifiable by auditors without sacrificing proportionality or transparency.