GAO recapped its "priority open
recommendations" for the Federal Reserve Board
("FRB"). Highlighted recommendations concern FinTech, the
Bank Secrecy Act ("BSA") and stress testing.
GAO stated that implementing these 23 open recommendations -
seven "priority recommendations" - "could
significantly improve the Federal Reserve's efforts to more
effectively oversee risks to consumers and the safety and soundness
of the U.S. banking system."
On FinTech, GAO identified two issues: (i) situations in which
consumers should be reimbursed for losses resulting from
unauthorized account activity; and (ii) the use of
"alternative data" in making credit decisions and
detecting fraud.
As to the BSA, GAO noted that banks were limiting services to
customers, or ending customer relationships, when potential AML
issues arise. GAO was concerned that these bank decisions may
result in law-abiding customers being deprived of services.
