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Open Recommendations

Bank Supervision: Federal Reserve and FDIC Should Address Weaknesses in Their Process for Escalating Supervisory Concerns [Reissued with revisions on Nov. 25, 2024]
GAO-25-106771
Nov 25, 2024
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5 Open Recommendations
Agency Affected Recommendation Status
Federal Reserve System The Chair of the Federal Reserve should determine whether to promulgate a regulation or enforceable guidelines on corporate governance and risk management under section 39 of the Federal Deposit Insurance Act, consistent with those issued by the other regulators, and document steps taken to make this determination. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Reserve System The Chair of the Federal Reserve should issue a regulation to implement remaining open portions of section 166 of the Dodd-Frank Act, taking into account prior proposals and public comments. (Recommendation 2)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Deposit Insurance Corporation The Chair of FDIC should develop a central database for recording and reporting supervisory recommendations, similar to that used for matters requiring board attention. (Recommendation 3)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Deposit Insurance Corporation The Chair of FDIC should establish procedures, such as vetting meetings, for the Continuous Examination process program to ensure that managers formally consult with the examination team and relevant stakeholders before making substantive changes to examination findings. Such vetting meetings should be documented and include any divergent views that arise. (Recommendation 4)
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When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Deposit Insurance Corporation The Chair of FDIC should consider a requirement that case managers for Continuous Examination process institutions periodically rotate assignments. (Recommendation 5)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

World Bank Procurement: Risk Monitoring Can be Enhanced as U.S. Businesses Face Challenges Competing
GAO-24-106718
Sep 26, 2024
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2 Open Recommendations
Agency Affected Recommendation Status
Department of the Treasury The Secretary of the Treasury should ensure that the Office of International Affairs develops guidance and a formal process to determine whether to monitor individual World Bank borrower projects based on risks to U.S. interests. (Recommendation 1)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of the Treasury The Secretary of the Treasury should ensure that the Office of International Affairs develops guidance and a formal process for how it will monitor World Bank borrower projects when it determines that monitoring is necessary. (Recommendation 2)
Open
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Anti-Money Laundering: Better Information Needed on Effectiveness of Federal Efforts [Reissued with revisions on Jun. 13, 2024]
GAO-24-106301
Jun 13, 2024
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3 Open Recommendations
Agency Affected Recommendation Status
Department of the Treasury The Secretary of the Treasury should ensure that the Director of FinCEN develop and implement a communications plan to regularly inform Congress and the public in full about its progress implementing the Anti-Money Laundering Act of 2020. (Recommendation 1)
Open
In September 2024, FinCEN informed us that the agency is updating its internal tracking mechanisms with respect to the Anti-Money Laundering Act's (AMLA) sections for which FinCEN has rulemaking, reporting, or other anti-money laundering-related implementation responsibilities. These tracking mechanisms will be used as a basis for a public communications plan that will include updates to FinCEN's AMLA webpage and congressional notification of such updates. FinCEN anticipates implementing the communications plan by the end of February 2025.
Department of the Treasury The Secretary of the Treasury should ensure that the Director of FinCEN work with its survey vendor to improve the reliability of the agency's annual customer satisfaction surveys and appropriately disclose survey data limitations when results are reported. (Recommendation 2)
Open
In September 2024, FinCEN informed us that it is working with its vendor to explore the cost of a nonresponse bias analysis for its surveys and ways to improve survey response rates. In the meantime, beginning with its FY 2026 budget submission, FinCEN included language disclosing survey data limitations. FinCEN plans to complete its evaluation of pricing options for a nonresponse bias analysis by year-end of 2024 and its action plan to improve survey response rates in March 2025.
Department of Justice The Attorney General should lead an effort, in coordination with the Departments of Homeland Security and the Treasury, to develop a methodology for producing government-wide data on the outcomes of anti-money laundering investigations. This effort could be conducted in conjunction with the interagency working group DOJ was directed to form in the joint explanatory statement accompanying its fiscal year 2023 appropriation. (Recommendation 3)
Open
In November 2024, DOJ informed us that it is taking steps to implement this recommendation through improvements to the Organized Crime Drug Enforcement Task Forces' (OCDETF) management information system, a data management and performance analytics system that integrates data from OCDETF member agencies (which include Homeland Security and Treasury components). Specifically, OCDETF is automating agency information inputted into the system to reduce redundancy and integrating the system's database with an investigative database to develop strategic plans and intelligence products. We will continue to monitor DOJ's progress.

Bank Supervision: More Timely Escalation of Supervisory Action Needed
GAO-24-106974
Mar 06, 2024
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2 Open Recommendations
Agency Affected Recommendation Status
Congress Congress should consider requiring the adoption of noncapital triggers that require early and forceful regulatory actions tied to unsafe banking practices before they impair capital, such as by amending the Federal Deposit Insurance Act to incorporate noncapital triggers into the prompt corrective action framework. (Matter for Consideration 1)
Open
When we confirm what actions Congress has taken in response to this recommendation, we will provide updated information.
Board of Governors The Chair of the Federal Reserve Board of Governors should ensure that the Director of the Division of Supervision and Regulation revise its procedures on when to escalate supervisory concerns to informal or formal enforcement actions to be clearer and more specific and to include measurable criteria. (Recommendation 1)
Open
The Federal Reserve is evaluating its procedures for escalating supervisory concerns and issuing enforcement actions to help ensure that supervisory concerns requiring a more detailed resolution are promptly communicated to bank management. In addition, the Federal Reserve is evaluating its procedures for escalating supervisory concerns and issuing enforcement actions to help ensure that supervisory concerns requiring a more detailed resolution are promptly communicated to bank management. GAO will evaluate these updates after they are finalized.
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