FDIC Loosens Restrictions on Hiring Bank Personnel with Criminal Histories


All Employers in the Banking Industry


September 6, 2018


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The Federal Deposit Insurance Corporation (FDIC) recently released revised guidelines easing hiring requirements for banking industry employers. Historically, Section 19 of the Federal Deposit Insurance Act (the Act) prohibited employers in the banking industry, with FDIC-insured designation, from hiring individuals with certain criminal convictions – namely, convictions pertaining to crimes of dishonesty, breach of trust, money laundering, or individuals who accepted entry into a pretrial diversion program in connection with prosecution for similar types of offenses. According to the FDIC, the changes were made in an attempt to lower the number of individuals precluded from employment in the banking industry who have minor offenses and are currently considered to be of low risk.