Modifications to the Statement of Policy for Section 19 of the Federal Deposit Insurance Act (FDIC Financial Institution Letter)

On December 11, 2012, the FDIC Board of Directors modified the de minimis exceptions to Section 19 of the Federal Deposit Insurance Act, which prohibits a person convicted of certain criminal offenses from being involved in the affairs of a FDIC-insured financial institution. While waivers of Section 19 normally require a formal application to the FDIC, the FDIC has a Statement of Policy that grants a blanket exception for certain de minimis convictions. The recent modifications increase the potential fine and the number of days of imprisonment allowable under this de minimis exception. Specifically, the modifications increase the allowable potential fine to $2,500 and permit up to three days of actual jail time served, without requiring a formal application for a waiver of Section 19.

Click here to view Financial Institution Letter in full (links externally to FDIC website).