Regulatory Alerts2024-07-30 | FIL-49-2024Final Rule to Revise FDIC Regulations Concerning Section 19 of the Federal Deposit Insurance Act
The Federal Deposit Insurance Corporation issued a final rule revising its regulations under 12 C.F.R. parts 303 and 308 to align Section 19 of the Federal Deposit Insurance Act with the Fair Hiring in Banking Act. The updated regulations exclude older, de minimis, expunged, sealed, and dismissed offenses from the statutory prohibition, while reclassifying simple drug possession offenses as non-dishonesty crimes and establishing clear review standards for Section 19 applications. By harmonizing these exclusions and application procedures, the rule streamlines eligibility for individuals seeking FDIC consent to participate in insured financial institutions and clarifies timing, foreign jurisdiction, and record-status requirements.
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