,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hfga  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #g1 #bjbf,mr4    
,flood introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to require !      
,f$]al bank+ ag5cies to conduct a /udy  
on ! use ( advanc$ te*nologies 9 fraud  
detection & prev5tion1 ) p>ticul>       
att5tion to community f9ancial          
in/itutions1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,bank ,fraud ,te*nology ,advancem5t ,act
 ( #bjbf4  #b4 ,def9itions ,9 ?is ,act3 
7#a7 ,advanc$ fraud detection te*nology 
,! t]m advanc$ fraud detection te*nology
 includes artificial intellig5ce1 ma*9e 
le>n+1 pr$ictive analytics1 behavioral  
biometrics1 network analytics1 data     
fusion tools1 di/ribut$ l$g]-bas$       
monitor+ tools1 block*a9 trac+ tools1 & 
o!r em]g+ te*nologies us$ to detect1    
prev5t1 or mitigate f9ancial fraud4     
7#b7 ,artificial intellig5ce ,! t]m     
artificial intellig5ce has ! mean+ giv5 

t t]m 9 section #ejjb ( ! ,national     
,artificial ,intellig5ce ,initiative    
,act ( #bjbj 7#ae ,u4,s4,c4 #idja74     
7#c7 ,cr$it union ,! t]m cr$it union    
means a ,/ate cr$it union or ,f$]al     
cr$it union1 z su* t]ms are def9$1      
respectively1 9 section #aja ( ! ,f$]al 
,cr$it ,union ,act 7#ab ,u4,s4,c4       
#ageb74  7#d7 ,f$]al bank+ ag5cy ,! t]m 
,f$]al bank+ ag5cy--  7,a7 has ! mean+  
giv5 su* t]m 9 section #c ( ! ,f$]al    
,deposit ,insurance ,act 7#ab ,u4,s4,c4 
#ahac72 &  7,b7 means ! ,national ,cr$it
 ,union ,adm9i/ration4  7#e7 ,insur$    
depository in/itution ,! t]m insur$     
depository in/itution has ! mean+ giv5  
su* t]m 9 section #c ( ! ,f$]al ,deposit
 ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 
7#f7 ,ma*9e le>n+ ,! t]m ma*9e le>n+ has
 ! mean+ giv5 t t]m 9 section #ejjb ( ! 
,national ,artificial ,intellig5ce      
,initiative ,act ( #bjbj 7#ae ,u4,s4,c4 
#idja74  #c4 ,/udy on advanc$           
te*nologies 9 fraud detection &         
prev5tion  7a7 ,9 g5]al ,! ,f$]al bank+ 

ag5cies1 9 consultation ) ! ,secret>y ( 
! ,treasury1 ! ,f9ancial ,crimes        
,en=cem5t ,network1 ! ,f$]al ,trade     
,commission1 ! ,bureau ( ,consum]       
,f9ancial ,protection1 & appropriate law
 en=cem5t ag5cies1 %all jo9tly conduct a
 compreh5sive /udy on ! use ( advanc$   
fraud detection te*nology by insur$     
depository in/itutions & cr$it unions4  
7b7 ,requir$ elem5ts ,! /udy requir$ "u 
subsection 7a7 %all evaluate ! foll[+3  
7#a7 ,curr5t use & effectiv5ess ,!      
curr5t use & effectiv5ess ( advanc$     
fraud detection te*nology1 includ+--    
7,a7 ! ext5t to :i* insur$ depository   
in/itutions & cr$it unions ( v>y+ asset 
sizes deploy advanc$ fraud detection    
te*nology2  7,b7 measurable outcomes    
relat+ to fraud r$uction1 loss          
mitigation1 & consum] protection2 &     
7,c7 b>ri]s to adoption1 includ+ co/1   
int]op]ability con/ra9ts1 regulatory    
unc]ta9ty1 data access limitations1 &   
liability conc]ns4  7#b7 ,community     
f9ancial in/itution access ,community   

f9ancial in/itution access to advanc$   
fraud detection te*nology1 includ+--    
7,a7 *all5ges fac$ by community f9ancial
 in/itutions 9 access+ or deploy+       
advanc$ fraud detection tools2  7,b7    
:e!r economies ( scale disadvantage     
small] community f9ancial in/itutions   
relative to l>ge community f9ancial     
in/itutions2  7,c7 options to facilitate
 %>$ s]vices1 utility models1           
manag$-s]vice provid]s1 or              
consortium-bas$ fraud detection plat=ms2
 &  7,d7 recomm5dations to ensure       
regulatory guidance is appropriately    
tailor$ to avoid disc\rag+ adoption by  
small] community f9ancial in/itutions4  
7#c7 ,artificial intellig5ce & ma*9e    
le>n+ ,artificial intellig5ce & ma*9e   
le>n+1 includ+--  7,a7 ! use (          
artificial intellig5ce & ma*9e le>n+    
models1 applications1 & tools 9 detect+ 
fraud patt]ns1 anomalies1 syn!tic       
id5tity fraud1 & real-"t paym5t fraud2  
7,b7 gov]nance frameworks us$ by insur$ 
depository in/itutions & cr$it unions to

 manage fraud model risk1 expla9ability1
 & validation2 &  7,c7 int]actions      
betwe5 fraud detection models & consum] 
protection laws4  7#d7 ,in=mation %>+ & 
public-private p>tn]%ips ,in=mation %>+ 
& public-private p>tn]%ips1 includ+--   
7,a7 ! effectiv5ess ( exi/+             
in=mation-%>+ frameworks2  7,b7 :e!r    
exp&$ public-private p>tn]%ips or       
c5traliz$ fraud utilities w\ld enhance  
detection capabilities2  7,c7 !         
feasibility ( a volunt>y fraud analytics
 consortium accessible to community     
f9ancial in/itutions2 &  7,d7 privacy1  
data protection1 & cyb]security         
consid]ations associat$ ) exp&$ data    
%>+4  7#e7 ,paym5ts sy/em risks ,paym5ts
 sy/em risk1 includ+-- 7,a7 fraud risks 
associat$ ) electronic funds transf]s & 
*ecks2 &  7,b7 :e!r advanc$ analytics c 
r$uce fraud :ile pres]v+ settlem5t      
f9ality & paym5t sy/em /ability4  7#f7  
,regulatory & sup]visory consid]ations  
,regulatory & sup]visory consid]ations1 
includ+--  7,a7 :e!r exi/+ sup]visory   

expectations create b>ri]s to           
innovation2  7,b7 ! ne$ = int]ag5cy     
guidance1 regulatory cl>ity1 or safe    
h>bors to support te*nology adoption2   
7,c7 opportunities to h>monize          
expectations across ,f$]al bank+        
ag5cies2 &  7,d7 :e!r additional tra9+ =
 ,f$]al bank+ ag5cies /aff is necess>y  
to promote effective regulation &       
sup]vision ( f9ancial in/itutions' use (
 advanc$ fraud detection te*nology1     
especially = community f9ancial         
in/itutions4  7c7 ,report &             
recomm5dations  7#a7 ,report ,n lat] ?an
 #ah mon?s aft] ! date ( enactm5t ( ?is 
,act1 ! ,f$]al bank+ ag5cies %all issue 
a report to ! ,committee on ,f9ancial   
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate conta9+ all f9d+s & 
det]m9ations made 9 c>ry+ out ! /udy    
requir$ "u ?is section1 & make su*      
report publicly available1 except =     
classifi$ or sup]visory in=mation4  7#b7
 ,recomm5dations ,! report requir$ "u   

p>agraph 7#a7 %all include legislative1 
regulatory1 or sup]visory recomm5dations
 :i* may include--  7,a7 proposals to   
support %>$ fraud detection utilities or
 consortium-bas$ analytics plat=ms2     
7,b7 guidance or safe h>bors to enc\rage
 responsible artificial intellig5ce use 
9 fraud prev5tion2  7,c7 pilot programs 
tailor$ to community f9ancial           
in/itutions2 &  7,d7 recomm5dations to  
/r5g!n public-private in=mation %>+     
consi/5t ) privacy & civil lib]ties     
protections4  #d4 ,community bank fraud 
te*nology pilot program  7a7 ,9 g5]al ,n
 lat] ?an #a ye> aft] submission ( !    
/udy "u section #c1 ! ,f$]al bank+      
ag5cies may jo9tly e/abli% a volunt>y   
pilot program to facilitate community   
f9ancial in/itution access to advanc$   
fraud detection tools4  7b7 ,program    
features ,! pilot program describ$ 9    
subsection 7a7 may include--  7#a7 pool$
 procurem5t or %>$ s]vices models2  7#b7
 model validation assi/ance or te*nical 
support2  7#c7 /&>diz$ v5dor risk       

managem5t templates2  7#d7 regulatory   
cl>ity reg>d+ model gov]nance           
expectations2 &  7#e7 collaboration ) ! 
,dep>tm5t ( ! ,treasury & law en=cem5t  
to provide anonymiz$ fraud typology data
 fe$s4