# Hill House oversight testimony (Jun 2026): Statement of Chairman Travis Hill: Oversight of Prudential Regulators

Source: https://www.bankingnewsai.com/ai-regulation/documents/fdic-testimony-oversight-prudential-regulators-2026
Last updated: Aug 26, 2026

In June 4, 2026 testimony to the House Financial Services Committee, FDIC Chairman Travis Hill described the April 2026 model risk revision as replacing 2011-era standards that had constrained banks' ability to use innovative modeling approaches, saying the revised guidance 'supports the use of innovative technology and sets forth a risk-based approach tailored to size and complexity.' He also said the FDIC's proposal to implement the BSA program rule 'encourages responsible innovation and the use of emerging technologies, such as artificial intelligence, to detect and disrupt illicit finance activity more effectively.'

## At a glance

| Field | Value |
| --- | --- |
| Authority | [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) |
| Type | Speech |
| Status | Final |
| Published | Jun 4, 2026 |
| Applies to | Statement of policy direction; no direct obligations |
| Official text | https://www.fdic.gov/news/speeches/2026/oversight-prudential-regulators |

## Key points

- Delivered June 4, 2026 before the House Committee on Financial Services.
- Frames the revised model risk guidance as 'an avenue for the safe and sound adoption of technology.'
- Ties AI explicitly to the pending BSA/AML program rule: emerging technologies including AI should be used to detect and disrupt illicit finance.
- No AI-specific rulemaking or request for information announced.
- Consistent with Hill's stated preference for a technology-neutral, open-minded supervisory approach.

## What changed for banks

Confirms at Chairman level that the FDIC's AI strategy is to modernize existing frameworks (model risk, BSA/AML) rather than create AI rules, and signals that examiners should not penalize responsible AI adoption in AML.

## Use cases it governs

- [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc)
- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)
- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)

## FAQ

### Does the FDIC encourage AI in AML compliance?

Yes. Chairman Hill's June 2026 testimony says the FDIC's BSA program rule proposal encourages responsible use of emerging technologies such as AI to detect and disrupt illicit finance more effectively.

### Has the FDIC announced an AI rule?

No. As of the June 2026 testimony, the FDIC's AI-relevant actions are the revised model risk guidance and the BSA program rule proposal; no AI-specific rule or RFI had been announced.

## Related documents

- [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026) — Agencies Revise the Interagency Model Risk Management Guidance (Apr 17, 2026)
- [FDIC House testimony on AI and innovation (Mar 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fdic-testimony-innovation-speed-of-markets-2026) — Innovation at the Speed of Markets: How Regulators Keep Pace with Technology (Mar 26, 2026)
- [FDIC 2025 Report on Cybersecurity and Resilience](https://www.bankingnewsai.com/ai-regulation/documents/fdic-cybersecurity-resilience-report-2025) — 2025 Report on Cybersecurity and Resilience (Jul 14, 2025)
- [Hill 'Charting a New Course' speech](https://www.bankingnewsai.com/ai-regulation/documents/fdic-charting-new-course-speech-2025) — Charting a New Course: Preliminary Thoughts on FDIC Policy Issues (Jan 10, 2025)
- [FDIC 2024 Risk Review](https://www.bankingnewsai.com/ai-regulation/documents/fdic-risk-review-2024) — 2024 Risk Review — Section 5: Operational and Cyber Risks (May 22, 2024)
- [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023) — Interagency Guidance on Third-Party Relationships: Risk Management (Jun 6, 2023)
- [FDIC FIL-27-2021](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-27-2021) — Interagency Statement on Model Risk Management for Bank Systems Supporting BSA/AML and OFAC Compliance (Apr 9, 2021)
- [FDIC FIL-20-2021](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-20-2021) — Request for Information and Comment on Financial Institutions' Use of Artificial Intelligence, Including Machine Learning (Mar 29, 2021)

Last reviewed Aug 26, 2026. Cite the official text (https://www.fdic.gov/news/speeches/2026/oversight-prudential-regulators) for the rule and this page for the summary and dates.

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