## AI-Driven National Financial Intelligence Framework Proposed

📈 Following an alleged Rs. 13.2 billion fraud linked to National Development Bank PLC, Sri Lanka is urged to shift from reactive compliance to an integrated, tech-driven financial governance ecosystem. • Overall Strategy: A national fraud prevention framework is proposed to connect the Financial Intelligence Unit (FIU), LankaPay, CEFTS transaction networks, banks, and regulatory platforms into a real-time AI architecture. • Technological Standardisation: To support smaller institutions facing high customization costs, the Central Bank of Sri Lanka (CBSL) could mandate minimum regulatory tech standards. Approved core banking system and fintech vendors would be required to natively integrate AI-driven anomaly detection and AML modules. • Systemic Upgrades: Financial institutions must aggressively adopt Artificial Intelligence, machine learning, and predictive analytics to automatically identify circular fund transfers, related-party risks, and mule accounts in real time. • Institutional Governance: Boards & Committees: Must actively challenge abnormal transaction patterns rather than treating oversight as a ceremonial exercise. Three Lines of Defence: Operational management, independent risk/compliance, and internal audit must use AI-supported testing and remain free from corporate pressure. Cybersecurity & HR: Tightening data governance, data integrity, and whistleblower protection is critical, as modern financial fraud heavily intersects with digital vulnerabilities. _Note: Based on published analytical commentary following recent financial sector developments._