The regulatory landscape for financial AI in LatAm
Latin America has no unified framework for regulating AI in financial services, but the sectoral regulators in the main markets have developed substantial expectations. The regional trend is towards greater scrutiny of AI models, especially in credit decisions, fraud detection and customer service.
Mexico: the CNBV and Banxico
The National Banking and Securities Commission has issued circulars on model risk management that apply directly to AI systems used in regulated financial institutions. These circulars require documentation of the model life cycle, independent validation, continuous performance monitoring and contingency plans. The Banco de México has specifically addressed the systemic risks of AI in the payments sector and has issued guidance on AI in the context of fintechs regulated under the Fintech Law.
Colombia: the Financial Superintendence
The Financial Superintendence of Colombia has issued circulars and opinions on the use of AI and machine learning in supervised entities. The emphasis is on model risk management, the governance of training data, and the obligation of explainability in credit decisions under Law 1328 on financial consumer protection.
