Bank Application Resources - Section 19
Provided below are links to resources that should be helpful for a party considering or pursuing an application to allow an individual convicted of certain criminal offenses to participate in the affairs of an insured institution. Prior to submitting an application, the FDIC encourages prospective applicants to carefully review each of the resources, which include appropriate references to the Federal Deposit Insurance Act and the FDIC Rules and Regulations, along with contact information for the appropriate FDIC Regional or Area Office.
On December 23, 2022, the Fair Hiring in Banking Act (Act), was signed into law and became immediately effective. The Act provides significant amendments to Section 19 of the Federal Deposit Insurance Act (12 U.S.C. § 1829) (Section 19). The FDIC is in process of updating its application form, industry guidance, and implementing regulations to reflect the recent amendments.
On November 14, 2023, the FDIC issued a Notice of Proposed Rulemaking (NPR) that would revise 12 C.F.R. part 303, subpart L, and part 308, subpart M, thereby updating the FDIC’s regulations concerning section 19 of the Federal Deposit Insurance Act to conform with the Act. Comments on the proposal must be received on or before January 16, 2024. Items listed below include a link to Financial Institution Letter (FIL) 57-2023, which contains a summary of the proposed changes and a link to the November 14, 2023 Federal Register publication of the NPR.
Resources Specific to Applications for Section 19 and the Application Process
Laws and Regulations
- Section 19 of the FDI Act - Penalty for Unauthorized Participation by Convicted Individual
- Part 303 Subpart L – Section 19 of the FDI Act (Consent to Service of Persons Convicted of, or Who Have Program Entries for, Certain Criminal Offenses)
Laws, Regulations, and Supervisory Guidance
- FIL-57-2023 - Notice of Proposed Rulemaking to Revise FDIC Regulations Concerning Section 19 of the Federal Deposit Insurance Act
- November 14, 2023 Federal Register
- FIL-72-2020, FDIC Final Rule Revises and Codifies Policy to Allow Greater Employment Opportunities for Individuals with Certain Minor Criminal Offenses on Their Records
- The publication titled "Your Guide to Section 19" is being updated to incorporate changes made by the Fair Hiring In Banking Act, which became effective December 23, 2022. An updated guide to Section 19 will be posted to this website when it becomes available.
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