How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This Act may be cited as the ''AI Fraud Deterrence Act''.
Establishes the short title of the bill as the AI Fraud Deterrence Act. This section creates no compliance obligations.
(a)(1)–(2) 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 intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10), such person shall be fined not more than $1,000,000 or imprisoned not more than 20 years, or both.''.
Amends 18 U.S.C. § 1341 (mail fraud) in two ways. First, it raises the general fine ceiling from $1,000,000 to $2,000,000 for all mail fraud violations. Second, it adds a new AI-specific sentencing enhancement: where a mail fraud violation is committed with the assistance of artificial intelligence, the defendant faces a fine of up to $1,000,000 or imprisonment of up to 20 years, or both. This is a criminal sentencing provision that creates no new affirmative compliance obligation for AI developers or operators.
(b)(1)–(2) 2 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 intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10), such person shall be fined not more than $1,000,000 or imprisoned not more than 20 years, or both.''.
Amends 18 U.S.C. § 1343 (wire fraud) with the same two-part structure as the mail fraud amendment: a general fine ceiling increase from $1,000,000 to $2,000,000 and a new AI-specific enhancement imposing a fine of up to $1,000,000 or imprisonment of up to 20 years, or both, when the violation is committed with the assistance of artificial intelligence.
(c)(1)–(2) 3 by striking ''Whoever knowingly'' and inserting the following: ''(a) IN GENERAL.—Whoever knowingly''; and (2) by adding at the end the following: ''(b) ARTIFICIAL INTELLIGENCEArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10).—Whoever commits subsection (a) with the assistance of artificial intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10) shall be fined not more than $2,000,000 or imprisoned not more than 30 years, or both.''.
Amends 18 U.S.C. § 1344 (bank fraud) by restructuring the existing offense into subsection (a) and adding a new subsection (b) specifically for AI-assisted bank fraud. The AI-enhanced penalty is significantly steeper than the mail and wire fraud enhancements: a fine of up to $2,000,000 or imprisonment of up to 30 years, or both — the highest penalty in the bill.
(d)(1)(D) ''(2) the term 'artificial intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10)' has the meaning given such term in section 5002 of the National Artificial IntelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10) Initiative Act of 2020.''.
(d)(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.''.
Amends 18 U.S.C. § 1346 to add a definition of artificial intelligence for purposes of the mail fraud, wire fraud, and bank fraud statutes in chapter 63. The definition incorporates by reference the definition in section 5002 of the National Artificial Intelligence Initiative Act of 2020. Also makes a clerical amendment to the chapter 63 table of sections to reflect the retitled section heading.
(e)(1)(A) 4 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 intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10), 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'';
(e)(1)(B) 4 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 intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10), 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'';
(e)(1)(C) 4 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 intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10), shall be fined under this title, or imprisoned for not more than 20 years, or both'';
(e)(2)(C) ''(10) the term 'artificial intelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10)' has the meaning given such term in section 5002 of the National Artificial IntelligenceArtificial intelligencethe term 'artificial intelligence' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020.18 U.S.C. § 1346(2); 18 U.S.C. § 1956(c)(10) Initiative Act of 2020.''.
Amends 18 U.S.C. § 1956 (money laundering) to add AI-specific sentencing enhancements across three subsections of the money laundering statute. For subsection (a)(1) transactions and subsection (a)(2) transportation violations, AI-assisted violations trigger a fine of up to $1,000,000 or thrice the value of the monetary instrument or funds involved (whichever is greater), or imprisonment of up to 20 years, or both. For subsection (a)(3) sting operations, the enhancement is a fine under title 18 or imprisonment up to 20 years, or both. Also adds a definition of artificial intelligence to 18 U.S.C. § 1956(c) by cross-reference to the National AI Initiative Act.