On December 23, 2022, the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 (NDAA), which contained 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).

 

Section 19 prohibits a person from participating in the affairs of an FDIC-insured institution if he or she has been convicted of an offense involving dishonesty, breach of trust, or money laundering, or has entered into a pretrial diversion or similar program in connection with a prosecution for such an offense, without the prior written consent of the FDIC.

 

Several of the Act’s changes to Section 19 are highlighted below and in the attached Overview.  The amended Section 19 statute can be found on the FDIC’s website.