The FDIC released a Financial Institution Letter on amendments to Section 19 of the Federal Deposit Insurance Act under the Fair Hiring in Banking Act.
Background: Section 19 prohibits individuals who have been convicted of certain offenses from participating in the affairs of FDIC-insured institutions. The new law made several changes to Section 19 related to certain older offenses, designated lesser offenses, criminal offenses involving dishonesty, and more.
Outlook: The FDIC said it will take several related actions this year, including revising its Section 19 application form, industry guidance, and implementing regulations.