FDIC Should Improve Evaluations of Customer ID, Risk Assessments, Says Government Audit

By Brian Orsak

The U.S. Federal Deposit Insurance Corp. should improve its testing of how financial institutions identify their customers and assess money laundering risks, a government auditor said. The FDIC, the chief regulator of more than half of U.S. financial institutions, failed to identify violations involving customer identification programs in at least three of 24 financial institutions reviewed, the Office of the Inspector General (OIG) said in a report issued Friday. FDIC examiners were also inconsistent in evaluating the risk assessments of banks, the report said. But the FDIC disagreed with the assessment. Agency official Sandra Thompson, in a letter issued with...