12 USC 1829 - Penalty for unauthorized participation by convicted individual

U.S Code last checked for updates: May 06, 2024

§ 1829.

Penalty for unauthorized participation by convicted individual

(a)

Prohibition

(1)

In general

Except with the prior written consent of the Corporation—

(A)

any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense, may not—

(i)

become, or continue as, an institution-affiliated party with respect to any insured depository institution;

(ii)

own or control, directly or indirectly, any insured depository institution; or

(iii)

otherwise participate, directly or indirectly, in the conduct of the affairs of any insured depository institution; and

(B)

any insured depository institution may not permit any person referred to in subparagraph (A) to engage in any conduct or continue any relationship prohibited under such subparagraph.

(2)

Minimum 10-year prohibition period for certain offenses

(A)

In general

If the offense referred to in paragraph (1)(A) in connection with any person referred to in such paragraph is—

(i)

an offense under—

(I)

section 215, 656, 657, 1005, 1006, 1007, 1008,1

 See References in Text note below.

1014, 1032, 1344, 1517, 1956, or 1957 of title 18; or

(II)

section 1341 or 1343 of such title which affects any financial institution (as defined in section 20 of such title); or

(ii)

the offense of conspiring to commit any such offense,

the Corporation may not consent to any exception to the application of paragraph (1) to such person during the 10-year period beginning on the date the conviction or the agreement of the person becomes final.

(B)

Exception by order of sentencing court

(i)

In general

(ii)

Period for filing

(b)

Penalty

(c)

Exceptions

(1)

Certain older offenses

(A)

In general

With respect to an individual, subsection (a) shall not apply to an offense if—

(i)

it has been 7 years or more since the offense occurred; or

(ii)

the individual was incarcerated with respect to the offense and it has been 5 years or more since the individual was released from incarceration.

(B)

Offenses committed by individuals 21 or younger

(C)

Limitation

(2)

Expungement and sealing

With respect to an individual, subsection (a) shall not apply to an offense if—

(A)

there is an order of expungement, sealing, or dismissal that has been issued in regard to the conviction in connection with such offense; and

(B)

it is intended by the language in the order itself, or in the legislative provisions under which the order was issued, that the conviction shall be destroyed or sealed from the individual’s State, Tribal, or Federal record, even if exceptions allow the record to be considered for certain character and fitness evaluation purposes.

(3)

De minimis exemption

(A)

In general

(B)

Confinement criteria

In issuing rules under subparagraph (A), the Corporation shall include a requirement that the offense was punishable by a term of three years or less confined in a correctional facility, where such confinement—

(i)

is calculated based on the time an individual spent incarcerated as a punishment or a sanction, not as pretrial detention; and

(ii)

does not include probation or parole where an individual was restricted to a particular jurisdiction or was required to report occasionally to an individual or a specific location.

(C)

Bad check criteria

(D)

Designated lesser offenses

(d)

Bank holding companies

(1)

In general

(2)

Authority of Board

(e)

Savings and loan holding companies

(1)

In general

(2)

Authority of Director

(f)

Consent applications

(1)

In general

(2)

Sponsored applications filed with regional offices

Consent applications filed at a regional office of the Corporation by an insured depository institution or depository institution holding company on behalf of an individual—

(A)

shall be reviewed by such office;

(B)

may be approved or denied by such office, if such authority has been delegated to such office by the Corporation; and

(C)

may only be denied by such office if the general counsel of the Corporation (or a designee) certifies that the denial is consistent with this section.

(3)

Individual applications filed with regional offices

Consent applications filed at a regional office by an individual—

(A)

shall be reviewed by such office; and

(B)

may be approved or denied by such office, if such authority has been delegated to such office by the Corporation, except with respect to—

(i)

cases involving an offense described under subsection (a)(2); and

(ii)

such other high-level security cases as may be designated by the Corporation.

(4)

National office review

The national office of the Corporation shall—

(A)

review any consent application with respect to which a regional office is not authorized to approve or deny the application; and

(B)

review any consent application that is denied by a regional office, if the individual requests a review by the national office.

(5)

Forms and instructions

(A)

Availability

(B)

Contents

(6)

Consideration of criminal history

(A)

Regional office consideration

In reviewing a consent application, a regional office shall—

(i)

primarily rely on the criminal history record of the Federal Bureau of Investigation; and

(ii)

provide such record to the applicant to review for accuracy.

(B)

Certified copies

(7)

Consideration of rehabilitation

Consistent with title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.), the Corporation shall—

(A)

conduct an individualized assessment when evaluating consent applications that takes into account evidence of rehabilitation, the applicant’s age at the time of the conviction or program entry, the time that has elapsed since conviction or program entry, and the relationship of individual’s 2

 So in original. Probably should be preceded by “the”.

offense to the responsibilities of the applicable position;

(B)

consider the individual’s employment history, letters of recommendation, certificates documenting participation in substance abuse programs, successful participating in job preparation and educational programs, and other relevant mitigating evidence; and

(C)

consider any additional information the Corporation determines necessary for safety and soundness.

(8)

Scope of employment

(9)

Coordination with the NCUA

(g)

Definitions

In this section:

(1)

Consent application

(2)

Criminal offense involving dishonesty

The term “criminal offense involving dishonesty”—

(A)

means an offense under which an individual, directly or indirectly—

(i)

cheats or defrauds; or

(ii)

wrongfully takes property belonging to another in violation of a criminal statute;

(B)

includes an offense that Federal, State, or local law defines as dishonest, or for which dishonesty is an element of the offense; and

(C)

does not include—

(i)

a misdemeanor criminal offense committed more than one year before the date on which an individual files a consent application, excluding any period of incarceration; or

(ii)

an offense involving the possession of controlled substances.

(3)

Pretrial diversion or similar program

(Sept. 21, 1950, ch. 967, § 2[19], 64 Stat. 893; Pub. L. 101–73, title IX, § 910(a), Aug. 9, 1989, 103 Stat. 477; Pub. L. 101–647, title XXV, § 2502(a), Nov. 29, 1990, 104 Stat. 4860; Pub. L. 102–550, title XV, § 1505, Oct. 28, 1992, 106 Stat. 4055; Pub. L. 103–322, title XXXII, § 320605, Sept. 13, 1994, 108 Stat. 2119; Pub. L. 109–351, title VII, § 710(a), Oct. 13, 2006, 120 Stat. 1990; Pub. L. 111–203, title III, § 363(8), July 21, 2010, 124 Stat. 1554; Pub. L. 117–263, div. E, title LVII, § 5705(a), Dec. 23, 2022, 136 Stat. 3411.)

cite as: 12 USC 1829