Summary

GAO reviewed examinations of international banking facilities (IBF) conducted by federal bank regulatory agencies to determine if the examinations are adequate to ensure compliance with restrictions imposed on IBF activities. The group of regulatory agencies is comprised of the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.

GAO found that the regulatory agencies have not ensured that all IBF are complying with regulatory restrictions, because recognized minimum examination standards have not been developed and utilized. The Federal Reserve's examinations were the most comprehensive, but documentation of examinations was sometimes incomplete, and scope and methodology standards for reviews have not been disseminated.