Each year, we make more than 1,000 recommendations to help improve the federal government. We alert department heads to the recommendations where they can save the most money, address issues on our High Risk List, or significantly improve government operations.
For example, FDIC should work with other financial regulators to review whether money laundering related regulations could work better and be easier for banks.
Since our previous letter in April 2019, FDIC hasn’t implemented any of our priority recommendations.
FDIC Priority Recommendations Graphic
What GAO Found
In April 2019, GAO identified 2 priority recommendations for the Federal Deposit Insurance Corporation (FDIC). Since then, FDIC has implemented none of those recommendations.
In April 2020, GAO identified 1 additional priority recommendation for FDIC, bringing the total number to 3. These recommendations involve the following areas:
- collaborating with other financial regulators to address consumer risks and communicating to banks that engage in third-party relationships with fintech lenders in the underwriting process
- conducting a retrospective review to help ensure that Bank Secrecy Act/anti-money laundering regulatory objectives are being met effectively and efficiently
FDIC's continued attention to these issues could improve its ability to more effectively oversee risks to consumers and the safety and soundness of the U.S. banking system.
Why GAO Did This Study
Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional and/or executive branch decision making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits. Since 2015 GAO has sent letters to selected agencies to highlight the importance of implementing such recommendations.
For more information, contact Michael E. Clements at (202) 512-8678 or ClementsM@gao.gov.