Trust Layers: AI-Augmented Multi-Layer Risk Compliance Engines for Next-Gen Banking Infrastructure

Abstract

section_summary: New advances in technology now allow for banking operations to be completely orchestrated and executed by algorithms. The existing secure infrastructure for money and data flows, automated risk control has emerged (TRUST LAYERS), securing and automating the discovery and control of compliance violations and shady practices in those algorithmic operations throughout all layers of operation.

section_summary: Trust Layers are considered the next layer of infrastructure security after network and application security layers. Concerning banking operations, we now stand at a historical stage where all physical, financial and data flows can be orchestrated and executed by algorithms. Very soon all money and data flows in the current financial system will be processed through clouds of algorithms employing AI in one layer or another. Building on them, an extra layer of infrastructure has emerged, automation of the risk engine, securing and automating the discovery and control of compliance violations and shady practices in those algorithmic operations throughout all layers of operation. It detects and controls algorithm based compliance violations. Firstly, automatic modeling algorithms produce a digital double or shadow of all finance products, operations, obligations and rights. Secondly, control algorithms constantly monitor the real life operations and compare them with the model, detecting and combining in formal proofs any non-compliance. Next, certified proof algorithms connect violations with contracts and pass them to enforcement engines. All transactions and orders are also digitally modeled and certified, securing detection and control of market abuse, insider trading and fraud of any kind. Lastly, communication and data flows, including emails, are modeled and examined through NLP and data mining.