H.R. 8671 — Bank Fraud Technology Advancement Act of 2026

This section defines terms used in the Act, including advanced fraud detection technology (emerging technologies such as artificial intelligence, machine learning, predictive analytics, and blockchain tracing tools to detect financial fraud), credit union, federal banking agency, and insured depository institution (with references to existing statutory meanings in the Federal Credit Union Act and Federal Deposit Insurance Act).

This section directs the Federal banking agencies, in consultation with the Secretary of the Treasury, FinCEN, FTC, CFPB, FCC, and other Federal and State agencies, to conduct a study evaluating the current use and effectiveness of advanced fraud detection technologies by insured depository institutions and credit unions, including access barriers for community institutions, artificial intelligence and machine learning applications, information-sharing frameworks, payments system risks, and regulatory considerations. The agencies must issue a public report with findings and legislative or regulatory recommendations to the House Financial Services Committee and Senate Banking Committee within 18 months of enactment.

This section authorizes the Federal banking agencies to jointly establish a voluntary pilot program, within 1 year after submission of a required report, that gives insured depository institutions and credit unions with less than $10 billion in assets access to advanced fraud detection tools through pooled procurement, model validation assistance, standardized vendor templates, regulatory clarity on model governance, and anonymized fraud data feeds from Treasury and law enforcement. The program expires after 3 years, after which the agencies must report findings, determinations, and any legislative or regulatory recommendations to the House Financial Services Committee and Senate Banking Committee within 6 months.