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GAO-21-466PR 1 (2021-05-24)

handle is hein.gao/gaolsx0001 and id is 1 raw text is: O1O o U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Comptroller General Washington, DC 20548 of the United States May 24, 2021 The Honorable Jelena McWilliams Chairman Federal Deposit Insurance Corporation 550 17th St., NW Washington, DC 20429 Priority Open Recommendations: Federal Deposit Insurance Corporation Dear Ms. Chairman: The purpose of this letter is to provide an update on the overall status of the Federal Deposit Insurance Corporation's (FDIC) implementation of GAO recommendations and to call your personal attention to open recommendations that should be given high priority.1 In November 2020, we reported that on a government-wide basis, 77 percent of our recommendations made 4 years ago were implemented.2 FDIC's implementation rate for these recommendations was 96 percent. As of April 2021, FDIC had six open recommendations overall. Fully implementing these open recommendations could significantly improve FDIC's efforts to more effectively oversee risks to consumers and the safety and soundness of the U.S. banking system. Since our April 2020 letter, FDIC has implemented two of our three priority recommendations. In doing so, FDIC has collaborated with other relevant financial regulators to clarify how consumer protection laws are applied for customers that may experience harm when their accounts are aggregated by financial technology firms; and jointly conducted a retrospective review with other federal banking regulators and the Financial Crimes Enforcement Network of Bank Secrecy Act/anti-money laundering regulations to help ensure that the regulatory objectives are being met in the most effective and least burdensome way. We are not adding any additional priority recommendations this year. We ask your attention to the remaining open priority recommendation, which is related to financial technology (fintech). (See enclosure for the recommendation). In December 2018, we recommended that FDIC coordinate with other federal banking regulators and the Consumer Financial Protection Bureau (CFPB) to communicate in writing to 1Priority recommendations are those that GAO believes warrant priority attention from heads of key departments or agencies. They are highlighted because, upon implementation, they may significantly improve government operation, for example, by realizing large dollar savings; eliminating mismanagement, fraud, and abuse; or making progress toward addressing a high-risk or duplication issue. 2GAO, Performance and Accountability Report: Fiscal Year 2020, GAO-21-4SP (Washington, D.C.: Nov. 16, 2020). GAO-21-466PR FDIC Recommendations Page 1

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