A proposal to incorporate into agency regulations a longstanding policy providing relief for individuals with convictions for certain low-risk crimes and who want to work in a bank will be out for comment an additional 30 days, until March 16, the agency said in a Federal Register notice Monday.
The proposed rule would codify in regulation the policy of the Federal Deposit Insurance Corp. (FDIC) implementing Section 19 requirements of the Federal Deposit Insurance Act (FDIA). Section 19 prohibits anyone – without the prior written consent of the FDIC – from participating in banking who has been convicted of a crime of dishonesty or breach of trust or money laundering, or who has entered a pretrial diversion or similar program in connection with the prosecution for such an offense, according to the agency.
The proposed rule, issued late last year for a 60-day comment period, would set in regulation a policy adopted in 1998 by the agency which set the criteria for providing relief for individuals with convictions for certain low-risk (“de minimus”) crimes, forgoing the need for an application for a waiver of Section 19.
The FDIC, noting it received a request for a comment period extension, moved the comment deadline from Feb. 14 to March 16.