H.R. 8278 — Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act

This section states congressional findings on the limitations of current banking supervisory technology and the need for agencies to adopt new tools to monitor risks, ensure consumer protection, comply with the Bank Secrecy Act, and address artificial intelligence in financial services.

This section requires each covered financial regulatory agency to assess within 180 days of enactment how its existing technologies hinder real-time supervisory assessments of regulated entities and to evaluate opportunities to streamline its procurement rules for new systems. It further requires the agencies to jointly report to the House Financial Services Committee and Senate Banking Committee, beginning 18 months after the assessments and every 5 years thereafter, on their hardware and software for supervision, procurement practices, technology workforce and contractor reliance, data collection processes, market and technology trends, interagency information sharing, supervised-entity compliance costs, and planned technology upgrades.