**(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, 1008,11 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* — On motion of the Corporation, the court in which the convictio
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Stable record: federal_law:legal_authorities:record_usc_fe1ea88b2f2fcd61a73bce91 Source file: Laws/federal/codes/united-states-code/title-12/section-1829-penalty-for-unauthorized-participation-by-convicted-individual--c4dbb9190f.md Pages: Not recorded – Not recorded Passage SHA-256: 790beec664db7fce12cf564233e83cbbb1508643ab555b1cf2662cef961bb44a Retained source evidence SHA-256: a4a7250292951d11fea9de35ec37a520036e03da72bb99b3a5509f1d7f768195
Source location: Title 12, Chapter 16, § 1829; chapter-016-federal-deposit-insurance-corporation.md
Stored source content
**(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, 1008,11 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* — On motion of the Corporation, the court in which the conviction or the agreement of a person referred to in subparagraph (A) has been entered may grant an exception to the application of paragraph (1) to such person if granting the exception is in the interest of justice.
(ii) *Period for filing* — A motion may be filed under clause (i) at any time during the 10-year period described in subparagraph (A) with regard to the person on whose behalf such motion is made.
**(b) Penalty** Whoever knowingly violates subsection (a) shall be fined not more than $1,000,000 for each day such prohibition is violated or imprisoned for not more than 5 years, or both.
**(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* — For individuals who committed an offense when they were 21 years of age or younger, subsection (a) shall not apply to the offense if it has been more than 30 months since the sentencing occurred.
(C) *Limitation* — This paragraph shall not apply to an offense described under subsection (a)(2).
(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* — Subsection (a) shall not apply to such de minimis offenses as the Corporation determines, by rule.
(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* — In setting the criteria for de minimis offenses under subparagraph (A), if the Corporation establishes criteria with respect to insufficient funds checks, the Corporation shall require that the aggregate total face value of all insufficient funds checks across all convictions or program entries related to insufficient funds checks is $2,000 or less.
(D) *Designated lesser offenses* — Subsection (a) shall not apply to certain lesser offenses (including the use of a fake ID, shoplifting, trespass, fare evasion, driving with an expired license or tag, and such other low-risk offenses as the Corporation may designate) if 1 year or more has passed since the applicable conviction or program entry.
**(d) Bank holding companies**
(1) **In general** — Subsections (a) and (b) shall apply to any company (other than a foreign bank) that is a bank holding company and any organization organized and operated under section 25A of the Federal Reserve Act [[12 U.S.C. 611](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section611&num=0&edition=prelim) et seq.] or operating under section 25 of the Federal Reserve Act [[12 U.S.C. 601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section601&num=0&edition=prelim) et seq.], as if such bank holding company or organization were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting “Board of Governors of the Federal Reserve System” for “Corporation” each place that term appears in such subsections.
(2) **Authority of Board** — The Board of Governors of the Federal Reserve System may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.
**(e) Savings and loan holding companies**
(1) **In general** — Subsections (a) and (b) shall apply to any savings and loan holding company as if such savings and loan holding company were an insured depository institution, except that such subsections shall be applied for purposes of this subsection by substituting “Board of Governors of the Federal Reserve System” for “Corporation” each place that term appears in such subsections.
(2) **Authority of Director** — The Board of Governors of the Federal Reserve System may provide exemptions, by regulation or order, from the application of paragraph (1) if the exemption is consistent with the purposes of this subsection.
**(f) Consent applications**
(1) **In general** — The Corporation shall accept consent applications from an individual and from an insured depository institution or depository institution holding company on behalf of an individual that are filed separately or contemporaneously with a regional office of the Corporation.
(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* — The Corporation shall make all forms and instructions related to consent applications available to the public, including on the website of the Corporation.
(B) *Contents* — The forms and instructions described under subparagraph (A) shall provide a sample cover letter and a comprehensive list of items that may accompany the application, including clear guidance on evidence that may support a finding of rehabilitation.
(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* — The Corporation may not require an applicant to provide certified copies of criminal history records unless the Corporation determines that there is a clear and compelling justification to require additional information to verify the accuracy of the criminal history record of the Federal Bureau of Investigation.
(7) **Consideration of rehabilitation** — Consistent with title VII of the Civil Rights Act of 1964 ([42 U.S.C. 2000e](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2000e&num=0&edition=prelim) 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 22 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** — With respect to an approved consent application filed by an insured depository institution or depository institution holding company on behalf of an individual, if the Corporation determines it appropriate, such approved consent application shall allow the individual to work for the same employer (without restrictions on the location) and across positions, except that the prior consent of the Corporation (which may require a new application) shall be required for any proposed significant changes in the individual’s security-related duties or responsibilities, such as promotion to an officer or other positions that the employer determines will require higher security screening credentials.
(9) **Coordination with the NCUA** — In carrying out this section, the Corporation shall consult and coordinate with the National Credit Union Administration as needed to promote consistent implementation where appropriate.
**(g) Definitions** In this section:
(1) **Consent application** — The term “consent application” means an application filed with Corporation 2 by an individual (or by an insured depository institution or depository institution holding company on behalf of an individual) seeking the written consent of the Corporation under subsection (a)(1).
(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** — The term “pretrial diversion or similar program” means a program characterized by a suspension or eventual dismissal or reversal of charges or criminal prosecution upon agreement by the accused to restitution, drug or alcohol rehabilitation, anger management, or community service.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
§ 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—
Page 1131
TITLE 12—BANKS AND BANKING
§ 1829
1 See References in Text note below.
(i) become, or continue as, an institu-
tion-affiliated party with respect to any
insured depository institution;
(ii) own or control, directly or indi-
rectly, any insured depository institution;
or
(iii) otherwise participate, directly or in-
directly, 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 sub-
paragraph (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 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 ex-
ception to the application of paragraph (1) to
such person during the 10-year period begin-
ning on the date the conviction or the agree-
ment of the person becomes final.
(B) Exception by order of sentencing cour
Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Board of Governors of the Federal Reserve System for permission to exercise, upon such conditions and under such regulations as may be prescribed by the said board, the following powers:
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 601. Authorization; conditions and regulations
Any national banking association possessing a
capital and surplus of $1,000,000 or more may file
application with the Board of Governors of the
Federal Reserve System for permission to exer-
cise, upon such conditions and under such regu-
lations as may be prescribed by the said board,
the following powers:
First. To establish branches in foreign coun-
tries or dependencies or insular possessions of
the United States for the furtherance of the for-
eign commerce of the United States, and to act
if required to do so as fiscal agents of the United
States.
Second. To invest an amount not exceeding in
the aggregate 10 per centum of its paid-in cap-
ital stock and surplus in the stock of one or
more banks or corporations chartered or incor-
porated under the laws of the United States or
of any State thereof, and principally engaged in
international or foreign banking, or banking in
a dependency or insular possession of the United
States either directly or through the agency,
ownership, or control of local institutions in for-
eign countries, or in such dependencies or insu-
lar possessions.
Third. To acquire and hold, directly or indi-
rectly, stock or other evidences of ownership in
one or more banks organized under the law of a
foreign country or a dependency or insular pos-
session of the United States and not engaged, di-
rectly or indirectly, in any activity in the
United States except as, in the judgment of the
Board of Governors of the Federal Reserve Sys-
tem, shall be incidental to the international or
foreign business of such foreign bank; and, not-
withstanding the provisions of section 371c of
this title, to make loans or extensions of credit
to or for the account of such bank in the manne
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 601. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Corporations to be organized for the purpose of engaging in international or foreign banking or other international or foreign financial operations, or in banking or other financial operations in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institutions in foreign countries, or in such dependencies or insular possessions as provided by this subchapter and to act when required by the Secretary of the Treasury as fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five: Provided, That nothing in this subchapter shall be construed to deny the right of the Secretary of the Treasury to use any corporation organized under this subchapter as depositaries in Panama and the Panama Canal Zone, or other insular possessions and dependencies of the United States.
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 611. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 611. Formation authorized; fiscal agents; de-
positaries in insular possessions
Corporations to be organized for the purpose
of engaging in international or foreign banking
or other international or foreign financial oper-
ations, or in banking or other financial oper-
ations in a dependency or insular possession of
the United States, either directly or through the
agency, ownership or control of local institu-
tions in foreign countries, or in such depend-
encies or insular possessions as provided by this
subchapter and to act when required by the Sec-
retary of the Treasury as fiscal agents of the
United States, may be formed by any number of
natural persons, not less in any case than five:
Provided, That nothing in this subchapter shall
be construed to deny the right of the Secretary
of the Treasury to use any corporation orga-
nized under this subchapter as depositaries in
Panama and the Panama Canal Zone, or other
insular possessions and dependencies of the
United States.
(Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a),
as added Dec. 24, 1919, ch. 18, 41 Stat. 378; amend-
ed Feb. 27, 1921, ch. 73, 41 Stat. 1145; Proc. No.
2695, eff. July 4, 1946, 11 F.R. 2517, 60 Stat. 1352;
renumbered § 25A, Pub. L. 102–242, title I,
§ 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)
Editorial Notes
REFERENCES IN TEXT
This subchapter, referred to in text, was in the origi-
nal ‘‘this section’’, meaning section 25A of act Dec. 23,
1913, which is classified to this subchapter (§ 611 et seq.).
For definition of Canal Zone, referred to in text, see
section 3602(b) of Title 22, Foreign Relations and Inter-
course.
CODIFICATION
Section is comprised of par. 1 (undesignated) of sec-
tion 25A of act Dec. 23, 1913, which comprises this sub-
chapter.
Par. 2 (und
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 611. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
For the purposes of this subchapter—
**(a)** The term “person” includes one or more individuals, governments, governmental agencies, political subdivisions, labor unions, partnerships, associations, corporations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in cases under title 11, or receivers.
**(b)** The term “employer” means a person engaged in an industry affecting commerce who has fifteen or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year, and any agent of such a person, but such term does not include (1) the United States, a corporation wholly owned by the Government of the United States, an Indian tribe, or any department or agency of the District of Columbia subject by statute to procedures of the competitive service (as defined in [section 2102 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section2102&num=0&edition=prelim)), or (2) a bona fide private membership club (other than a labor organization) which is exempt from taxation under [section 501(c) of title 26](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section501/c&num=0&edition=prelim), except that during the first year after March 24, 1972, persons having fewer than twenty-five employees (and their agents) shall not be considered employers.
**(c)** The term “employment agency” means any person regularly undertaking with or without compensation to procure employees for an employer or to procure for employees opportunities to work for an employer and includes an agent of such a person.
**(d)** The term “labor organization” means a labor organization engaged in an industry affecting commerce, and any
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 2000e. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2000e. Definitions
For the purposes of this subchapter—
(a) The term ‘‘person’’ includes one or more
individuals, governments, governmental agen-
cies, political subdivisions, labor unions, part-
nerships, associations, corporations, legal rep-
resentatives, mutual companies, joint-stock
companies, trusts, unincorporated organiza-
tions, trustees, trustees in cases under title 11,
or receivers.
(b) The term ‘‘employer’’ means a person en-
gaged in an industry affecting commerce who
has fifteen or more employees for each work-
ing day in each of twenty or more calendar
weeks in the current or preceding calendar
year, and any agent of such a person, but such
term does not include (1) the United States, a
corporation wholly owned by the Government
of the United States, an Indian tribe, or any
department or agency of the District of Co-
lumbia subject by statute to procedures of the
competitive service (as defined in section 2102
of title 5), or (2) a bona fide private member-
ship club (other than a labor organization)
which is exempt from taxation under section
501(c) of title 26, except that during the first
year after March 24, 1972, persons having fewer
than twenty-five employees (and their agents)
shall not be considered employers.
(c) The term ‘‘employment agency’’ means
any person regularly undertaking with or
without compensation to procure employees
for an employer or to procure for employees
opportunities to work for an employer and in-
cludes an agent of such a person.
(d) The term ‘‘labor organization’’ means a
labor organization engaged in an industry af-
fecting commerce, and any agent of such an
organization, and includes any organization of
any kind, any agency, or employee representa-
tion committee, group, association, or pl
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 2000e. This identifies an authority to review, not proof of applicability.