<h1>Government urges fintechs to strengthen risk management, compliance and governance against AI-enabled frauds; IFSC foreign currency settlement operational</h1> A senior government finance official urged fintech firms to strengthen risk management, compliance and governance to guard against AI-enabled frauds such as voice and identity cloning and deepfakes, and announced operationalisation of a foreign currency settlement system in a domestic IFSC, aligning the jurisdiction with other global financial centres. The remarks signal intensified regulatory expectations for fintechs to bolster controls, accountability and incident-response capabilities, and reinforce government support for digital infrastructure and AI development rooted in local contexts, potentially increasing supervisory scrutiny, compliance costs and legal exposure for firms that fail to mitigate AI-driven risks.