US Treasury Releases Financial Services AI Risk Management Framework and AI Lexicon, February 2026

The United States Department of the Treasury published two documents on 19 February 2026: a Financial Services AI Risk Management Framework and an AI Lexicon. The Framework provides voluntary guidance for financial institutions on managing risks arising from artificial intelligence deployment in financial services. The AI Lexicon establishes standardised terminology for AI-related concepts in the financial sector. Neither document is a binding regulation or final rule; both are voluntary guidance instruments issued under Treasury's advisory function.

Treasury issued these documents pursuant to its broad statutory mandate to promote financial stability and oversee the integrity of the financial system, drawing on authority under 31 U.S.C. § 321 (general Treasury powers) and its role coordinating the Financial Stability Oversight Council (FSOC) under the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203. The AI Risk Management Framework draws on existing risk management guidance from federal banking regulators and aligns with the National Institute of Standards and Technology (NIST) AI Risk Management Framework published in January 2023. The AI Lexicon does not create new defined terms with legal effect but provides common terminology for interagency communication and industry use.

Banks, insurance companies, investment advisers, broker-dealers, and fintech firms deploying AI in customer-facing or back-office financial services operations should review the Framework to assess whether their internal AI governance programs align with Treasury's stated risk management expectations. Firms subject to examination by the OCC, FDIC, Federal Reserve, or SEC should anticipate that examiners may reference the Framework when assessing AI risk management practices, even though the Framework is not legally binding. Crypto firms registered with FinCEN or operating under bank charters should also review the Lexicon to confirm they use consistent terminology in regulatory filings and compliance documentation.

The Framework and Lexicon are voluntary; compliance is not required under any currently effective statute or regulation. Treasury has not opened a formal rulemaking proceeding to convert the Framework into binding rules. Financial institutions that choose to align with the Framework should document that alignment in their AI governance programs, as examiner expectations may evolve and future mandatory rules could reference the Framework's principles. Treasury has not announced a comment period or a date for converting either document into a proposed or final rule.

Source: U.S. Department of the Treasury, Press Release, "Treasury Releases Financial Services AI Risk Management Framework and AI Lexicon," 19 February 2026. Official URL: https://home.treasury.gov/news/press-releases/sb0401. Confirmed: 4 March 2026.

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