FDIC to Codify Policy on Employing Individuals with Criminal Backgrounds

The FDIC today proposed to codify as regulation its statement of policy regarding the implementation of Section 19 of the Federal Deposit Insurance Act. Section 19 prohibits persons convicted of a criminal offense involving dishonesty, breach of trust or money laundering from being employed by financial institutions without prior written consent from the agency.

As part of the proposal, FDIC is seeking comments on all aspects of its Section 19 SOP, including whether or not is should expand the de minimis criteria for receiving FDIC approval for individuals with minor offenses. Comments will be due 60 days after publication in the Federal Register.