,,ib ,union ,cal5d> ,no4 #fab #aai?     
,,congress  #b;d ,session  ,h4 ,r4 #hfga
 ,report ,no4 #aai-gjd ,,9 ,,! ,,h\se   
,,( ,,repres5tatives  ,may #g1 #bjbf,mr4
 ,flood introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,june #ah1 #bjbf;,additional  
sponsor3 ,ms4 ,pett]s5  ,june #ah1      
#bjbf,report$ ) an am5dm5t1 committ$ to 
! ,committee ( ! ,:ole ,h\se on ! ,/ate 
( ! ,union1 & ord]$ to be printed,strike
 out all aft] ! enact+ clause & ins]t ! 
"p pr9t$ 9 italic,for text ( introduc$  
bill1 see copy ( bill z introduc$ on    
,may #g1 #bjbf  ,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

 means em]g+ te*nologies us$ to detect1 
prev5t1 or mitigate f9ancial fraud &    
scams1 includ+ 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+ tools4  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 has ! mean+    
giv5 ! t]m insur$ cr$it union 9 section 
#aja ( ! ,f$]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 & scam      
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 ! ,f$]al        
,communications ,commission1 & o!r      
appropriate ,f$]al & ,/ate gov]nm5t     
ag5cies1 includ+ 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*nologies1 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 detection1 prev5tion1   
loss r$uction1 loss mitigation1 privacy1
 & consum] protection2  7,c7 b>ri]s to  
adoption & consid]ations (              
int]op]ability1 data access1 liability1 
error rates1 & regulation2 &  7,d7 h[   
v>i\s fraud detection te*nologies diff] 
9 use1 effectiv5ess1 co/s1 b5efits1 &   
consid]ations "u subp>agraphs 7,a7 ?r\gh
 7,c74  7#b7 ,community f9ancial        
in/itution access ,community f9ancial   
in/itution 7t is ei!r an insur$         
depository in/itution or cr$it union7   
access to advanc$ fraud detection       
te*nology1 includ+-- 7,a7 *all5ges fac$ 
by community f9ancial in/itutions 9     
access+ or deploy+ advanc$ fraud        
detection tools1 includ+ unique *all5ges
 fac$ by v>i\s types ( community        
f9ancial in/itutions2  7,b7 :e!r        
economies ( scale disadvantage small]   

community f9ancial in/itutions 9 g5]al1 
or c]ta9 types ( small] 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 by insur$   
depository in/itutions & cr$it unions ( 
artificial intellig5ce & ma*9e le>n+    
models1 applications1 & tools 9 detect+ 
fraud patt]ns1 anomalies1 syn!tic       
id5tity fraud1 & real-"t paym5t fraud2  
7,b7 gov]nance frameworks us$ by insur$ 
depository in/itutions & cr$it unions to
 manage fraud model risk1 expla9ability1
 & validation2 &  7,c7 /eps ,f$]al bank+
 ag5cies c take 9 coord9ation ) o!r     
relevant gov]nm5t ag5cies & ! private   
sector to ensure access by insur$       

depository in/itutions & cr$it unions1  
includ+ community f9ancial in/itutions &
 _! ?ird-p>ty v5dors1 to su* models1    
applications1 & tools4  7#d7 ,in=mation 
%>+ & public-private p>tn]%ips          
,in=mation %>+ & public-private         
p>tn]%ips1 includ+-- 7,a7 ! effectiv5ess
 ( exi/+ in=mation-%>+ frameworks2  7,b7
 :e!r exp&$ 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 :at b5efits & risks arise

 f exi/+ sup]visory expectations )      
respect to innovations 9 fraud detection
 & prev5tion1 includ+ :e!r exi/+        
sup]visory expectations create b>ri]s to
 innovation :ile ma9ta9+ relevant       
safegu>ds2  7,b7 ! ne$ = int]ag5cy      
guidance1 regulatory cl>ity1 or safe    
h>bors to support te*nology adoption 9 a
 mann] t promotes fraud detection &     
prev5tion consi/5t ) consum] protection1
 privacy1 safety & s\ndness1 & national 
security2  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 available4  7#b7        
,classifi$ annex ,a report "u p>agraph  
7#a7 may include a classifi$ annex1 if  
applicable1 provid$ to ! committees4    
7#c7 ,recomm5dations ,! report requir$  
"u p>agraph 7#a7 %all include           
legislative1 regulatory1 or sup]visory  
recomm5dations t promote fraud detection
 & prev5tion consi/5t ) consum]         
protection1 safety & s\ndness1 &        
national security1 :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 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  

,f9ancial ,in/itution ,fraud ,te*nology 
,pilot ,program  7a7 ,9 g5]al ,n lat]   
?an #a ye> aft] submission ( ! report   
requir$ "u section #c7;c71 ! ,f$]al     
bank+ ag5cies may jo9tly e/abli% a      
volunt>y pilot program to facilitate    
community f9ancial in/itution access =  
insur$ depository in/itutions & cr$it   
unions ) less ?an #aj1jjj1jjj1jjj 9     
total consolidat$ assets 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$s4  7c7 ,sunset & report  7#a7      
,sunset ,any pilot program e/abli%$ "u  
?is section %all expire n lat] ?an #c   
ye>s aft] submission ( ! report requir$ 

"u section #c7;c74  7#b7 ,report ,n lat]
 ?an #f mon?s aft] ! expiration ( all   
pilot programs e/abli%$ "u ?is section1 
! ,f$]al bank+ ag5cies %all issue a     
report to ! ,committee on ,f9ancial     
,s]vices ( ! ,h\se ( ,repres5tatives & !
 ,committee on ,bank+1 ,h\s+1 & ,urban  
,affairs ( ! ,s5ate1 & make su* report  
available to ! public1 conta9+-- 7,a7   
all f9d+s & det]m9ations made by !      
,f$]al bank+ ag5cies 9 c>ry+ out any    
pilot program e/abli%$ "u ?is section2 &
  7,b7 any legislative1 regulatory1 or  
o!r recomm5dations ! ,f$]al bank+       
ag5cies may h bas$ on su* f9d+s &       
det]m9ations4  7#c7 ,classifi$ annex ,a 
report "u p>agraph 7#b7 may include a   
classifi$ annex1 if applicable1 provid$ 
to ! committees4  ,june #ah1            
#bjbf,report$ ) an am5dm5t1 committ$ to 
! ,committee ( ! ,:ole ,h\se on ! ,/ate 
( ! ,union1 & ord]$ to be pr9t$