FDIC Highlights Changes to Bank Employment Restrictions on Convicted Individuals

In a Financial Institution Letter, the FDIC highlighted changes made to the Federal Deposit Insurance Act ("FDIA") as to prohibitions on bank employment of an individual who has been convicted of an offense relating to dishonesty, breach of trust or money laundering.

The FDIC stated that the amendments exclude from the scope of Section 19:

• offenses that occurred seven or more years ago;
• offenses where there is an order of expungement, sealing or dismissal of the conviction;
• individuals that were incarcerated over five years ago; and
• individuals that were 21 years old or younger when they committed the offense.

The FDIC also stated that the amendments exclude from the definition of "criminal offense involving dishonesty" (i) misdemeanor criminal offenses that were committed more than one year prior to the individual filing for an application or (ii) offenses relating to the possession of controlled substance(s).