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This bill establishes regulatory sandboxes within federal financial agencies that allow regulated financial entities to test artificial intelligence products and services with temporary relief from certain regulatory requirements. Entities may apply to their appropriate financial regulator for approval to operate AI test projects under alternative compliance strategies, with the agencies having 90 days to approve or deny applications. The bill specifies that approved projects must demonstrate they serve the public interest, do not present systemic or national security risks, and comply with anti-money laundering requirements, with projects operating for a defined period before termination.
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