On Oct. 24, FDIC proposed to revise regulations on bank employment.
FDIC issued a proposal to revise its regulations on section 19 of the Federal deposit insurance (FDI) act (12 USC 1829) to conform with Fair hiring in banking act (FHBA).
Allowed people convicted of certain offenses to work in bank without FDIC approval.
Chairman Gruenberg, Vice Chair Hill, and CFPB Chopra issued statements in support.
Rule Provisions
Section 19 prohibits participation in banking by a person convicted of a crime involving dishonesty, breach of trust, money laundering or enrolled in program for such offense.
Excluded certain offenses from scope of S. 19 based on the amount of time that has passed since offense occurred or since the individual was released from incarceration.
Provided a list of offenses that S. 19 does not apply to, including fake identification use, shoplifting, trespassing, fare evasion, and driving with an expired license or tag.
Also, if one year or more has passed since the applicable conviction or program entry.
Additionally, excluded certain offenses from the definition of criminal offenses involving dishonesty, including an offense involving the possession of controlled substances.
Broaden statutory language concerning expunged, sealed, dismissed criminal records.
Prescribes standards for the FDIC’s review of applications submitted under Section 19.
Consultation
Comments must be submitted within 60 days of publication in the federal register.
Nov. 2023 FDIC Fed Reg Proposal
On Nov. 14, 2023, FDIC published proposal to revise the FHBA in the federal register.
Comments on proposed amendments must be received on or before Jan. 16, 2024.
Jul. 2024 FDIC Final Rule
On Jul. 30, 2024, FDIC reported board approved revisions to FDIA Section 19 regs.
The agency issued overview of key changes, Financial institution letter FIL-46-2024.
Chair Gruenberg strongly supported changes, expand bank employment opportunities.
Particularly for people of color disproportionately affected by criminal justice system.
CFPB Director Chopra stated changes will enable otherwise qualified people to pursue or continue careers in the banking industry; help banks hire and retain talent.
Aug. 2024 FDIC Fed Reg
On Aug. 7, 2024, FDIC published final FHBA-conforming regulations in federal register.
Rules provide application process for insured depository institutions (IDIs) and individuals seeking relief from section 19, section 19 information, FDIC's interpretation
