Key facts
- The Federal Reserve's internal watchdog recommended strengthening security protocols for staff international travel.
- The central bank lacks a formal program to prepare employees for international travel or to track them afterward.
- The Fed does not track employee foreign travel, share risk assessments, or ensure compliance with foreign travel regulations.
- Current reporting requirements only apply to staff with security clearances.
- China was flagged for targeting and obtaining information from the Federal Reserve System.
The Federal Reserve's internal watchdog has called for enhanced security measures concerning international travel undertaken by the central bank's staff, citing risks from foreign intelligence agencies. The Inspector General's report noted that the Fed currently lacks a formal program to prepare employees for international travel, track their movements, or assess risks associated with their trips. The report also highlighted that existing reporting requirements only apply to staff with security clearances, even though many other employees have access to confidential information. China was specifically mentioned as having targeted and obtained information from the Federal Reserve System, with common foreign collection methods including targeting personnel during international visits and conferences. The Fed is reportedly responsive to the concerns and is working on implementing reforms.