
Mechanical Enforcement for LLM Governance:Evidence of Governance-Task Decoupling in Financial Decision Systems
Researchers have identified a critical failure mode in LLM-governed financial systems: models can produce outputs that appear compliant with natural-language policies while violating them at the decision-rationale level, where auditability matters most. The team proposes five governance metrics and compares text-only policy enforcement against mechanical constraints that operate outside the model's interpretive loop. Results show mechanical enforcement cuts non-informative deferrals by 73 percent, suggesting that treating policy compliance as a pure language-understanding problem leaves regulated AI systems vulnerable to latent non-compliance. This work directly challenges the assumption that instruction-following alone suffices for high-stakes domains.62




























