Canadian Regulatory Compliance

OSFI E-23 Compliance

End-to-end model risk management aligned with the Office of the Superintendent of Financial Institutions' most critical AI governance guideline.

What OSFI E-23 Requires

OSFI Guideline E-23 establishes the regulatory expectations for model risk management at federally regulated financial institutions in Canada. It mandates that banks, credit unions, and lenders maintain complete visibility into their AI and model inventory, conduct ongoing risk assessments, and implement governance frameworks at the board level.

The guideline covers the full model lifecycle — from development and validation to deployment, monitoring, and retirement. Institutions must demonstrate not just compliance, but defensible governance practices that hold up under regulatory examination.

How Saillent Helps

Our five-tier governance framework maps directly to OSFI E-23's core requirements:

Tier 1 — Model Inventory: Complete AI and model inventory including Shadow AI detection.

Tier 2 — Risk Assessment: Classify and rate each model by risk level, aligned with OSFI E-23.

Tier 3 — Audit Trail: Real-time monitoring and automated logging for high-risk models.

Tier 4 — Governance Framework: Board-approved policies, procedures, and committee charters.

Tier 5 — Training: Role-based training and annual certification programs.

Who This Applies To

OSFI E-23 applies to all federally regulated financial institutions — Schedule I and II banks, trust companies, loan companies, and cooperative credit associations. Provincial regulators increasingly reference OSFI guidelines.

Start your OSFI E-23 readiness assessment →