Amends penalties for financial crimes committed with the assistance of artificial intelligence, increasing fines to $1,000,000 and imprisonment terms. Mandates fines for AI-assisted money laundering to be not more than $1,000,000 or thrice the value of the funds involved, with imprisonment terms up to 20 years. Defines "artificial intelligence" according to the National Artificial Intelligence Initiative Act of 2020 definition. Codifies increased penalties and definitions within the United States Code to deter AI-assisted financial crimes.
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AI Fraud Deterrence Act
ETO AGORA · U.S. federal laws · 2024
Summary
Amends penalties for financial crimes committed with the assistance of artificial intelligence, increasing fines to $1,000,000 and imprisonment terms.
Mandates fines for AI-assisted money laundering to be not more than $1,000,000 or thrice the value of the funds involved, with imprisonment terms up to 20 years.
Defines "artificial intelligence" according to the National Artificial Intelligence Initiative Act of 2020 definition.
Codifies increased penalties and definitions within the United States Code to deter AI-assisted financial crimes.
Segment 1
A BILL To increase penalties for the commission of financial crimes using artificial intelligence.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. Short title.
This Act may be cited as the “AI Fraud Deterrence Act”.
Amends penalties for mail, wire, and bank fraud committed using AI, increasing fines and imprisonment terms.
SEC. 2. Financial crimes and artificial intelligence.
(a) Mail fraud.—Section 1341 of title 18, United States Code, is amended— (1) by striking “$1,000,000” and inserting “$2,000,000”; and (2) by inserting after the period at the end the following: “If the violation is committed with the assistance of artificial intelligence, such person shall be fined not more than $1,000,000 or imprisoned not more than 20 years, or both.”.
(b) Wire fraud.—Section 1343 of title 18, United States Code, is amended— (1) by striking “$1,000,000” and inserting “$2,000,000”; and (2) by inserting after the period at the end the following: “If the violation is committed with the assistance of artificial intelligence, such person shall be fined not more than $1,000,000 or imprisoned not more than 20 years, or both.”.
(c) Bank fraud.—Section 1344 of title 18, United States Code, is amended— (1) by striking “Whoever knowingly” and inserting the following: “(a) In general.—Whoever knowingly”; and (2) by adding at the end the following: “(b) Artificial intelligence.—Whoever commits subsection (a) with the assistance of artificial intelligence shall be fined not more than $2,000,000 or imprisoned not more than 30 years, or both.”.
Defines 'artificial intelligence' using the National Artificial Intelligence Initiative Act of 2020 definition.
(d) Artificial intelligence defined.— (1) IN GENERAL.—Section 1346 of title 18, United States Code, is amended— (A) by amending the section heading to read as follows: “Definitions”; (B) by striking “chapter, the term” and inserting the following: “chapter— “(1) the term”; (C) by striking the period at the end and inserting “; and”; and (D) by adding at the end the following: “(2) the term ‘artificial intelligence’ has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.”.
Increases penalties for AI-assisted money laundering, introducing fines up to $1 million or triple the value of the funds involved, and up to 20 years in prison.
(2) CLERICAL AMENDMENT.—The table of sections for chapter 63 of title 18, United States Code, is amended by striking the item relating to section 1346 and inserting the following: “1346. Definitions.”.
(e) Money laundering.—Section 1956 of title 18, United States Code, is amended— (1) in subsection (a)— (A) in the continuation text following paragraph (1)(B)(ii), by inserting after “or both” the following: “, or, in the case that such violation is committed with the assistance of artificial intelligence, shall be fined not more than $1,000,000 or thrice the value of the monetary instrument or funds involved in the transaction, whichever is greater, or imprisoned for not more than 20 years, or both”; (B) in the continuation text following paragraph (2)(B)(ii), by inserting after “or both” the following: “, or, in the case that such violation is committed with the assistance of artificial intelligence, shall be fined not more than $1,000,000 or thrice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater, or imprisoned for not more than 20 years, or both”; and (C) in the continuation text following paragraph (3)(C), by inserting after “or both” the following: “, or, in the case that such violation is committed with the assistance of artificial intelligence, shall be fined under this title, or imprisoned for not more than 20 years, or both”; and
(2) in subsection (c)— (A) in paragraph (8), by striking “and” at the end; (B) in paragraph (9), by striking the period and inserting “; and”; and (C) by adding at the end the following:
“(10) the term ‘artificial intelligence’ has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.”.