Title: Fair Hiring in Banking Act
Policy area: Finance and Financial Sector

Summary:
Fair Hiring in Banking Act
This bill generally exempts certain individuals convicted of a crime from requirements related to employment by an insured depository institution or an insured credit union. Specifically, written consent from the Federal Deposit Insurance Corporation or the National Credit Union Administration is not required for an institution to hire an individual convicted of a criminal offense involving dishonesty, a breach of trust, or money laundering
However, written consent is required for specified financial crimes (including theft by a bank employee) or for any person seeking to become a director or senior executive officer.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5025 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 5025

To amend the Federal Deposit Insurance Act and the Federal Credit Union 
   Act to provide exceptions to the prohibition on participation by 
   individuals convicted of certain offenses, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2022

 Mr. Manchin (for himself, Mr. Tillis, Mr. Van Hollen, and Mr. Coons) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Deposit Insurance Act and the Federal Credit Union 
   Act to provide exceptions to the prohibition on participation by 
   individuals convicted of certain offenses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Hiring in Banking Act''.

SEC. 2. PENALTIES FOR UNAUTHORIZED PARTICIPATION BY CONVICTED 
              INDIVIDUAL.

    (a) Insured Depository Institutions.--Section 19(a) of the Federal 
Deposit Insurance Act (12 U.S.C. 1829(a)) is amended by adding at the 
end the following:
            ``(3) Prior written consent not required.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the prior written consent of the 
                Corporation shall not be required under paragraph (1) 
                for any person who has been convicted of an offense 
                referred to in paragraph (1)(A) or has agreed to enter 
                into a pretrial diversion or similar program with a 
                prosecution for such an offense--
                            ``(i) after the 7-year period beginning on 
                        the date that the sentencing or program 
                        requirements in connection with the conviction 
                        or pretrial diversion or similar program have 
                        been completed;
                            ``(ii) after the 30-month period beginning 
                        on the date that the sentencing or program 
                        requirements in connection with the conviction 
                        or pretrial diversion or similar program have 
                        been completed if the person who committed the 
                        offense was under 21 years of age; or
                            ``(iii) if the conviction or agreement for 
                        such offense has been pardoned, sealed, or 
                        expunged even if any record of the conviction 
                        or program entry remain accessible by courts, 
                        law enforcement, or in connection with the 
                        employment or application for employment of the 
                        person in a position where a criminal 
                        background check is required by law.
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to--
                            ``(i) any offense described in paragraph 
                        (2)(A);
                            ``(ii) any person who intends to acquire 
                        control of any insured depository institution; 
                        or
                            ``(iii) any person who seeks to become a 
                        director or executive officer of any insured 
                        depository institution.
                    ``(C) Definitions.--In this paragraph--
                            ``(i) the term `control' has the meaning 
                        given the term in section 7(j)(8); and
                            ``(ii) the term `executive officer' has the 
                        meaning given the term in section 22(h) of the 
                        Federal Reserve Act (12 U.S.C. 375b(h)).''.
    (b) Insured Credit Unions.--Section 205(d) of the Federal Credit 
Union Act (12 U.S.C. 1785(d)) is amended by adding at the end the 
following:
            ``(4) Prior written consent not required.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the prior written consent of the 
                Board shall not be required under paragraph (1) for any 
                person who has been convicted of an offense referred to 
                in paragraph (1)(A) or has agreed to enter into a 
                pretrial diversion or similar program with a 
                prosecution for such an offense--
                            ``(i) after the 7-year period beginning on 
                        the date that the sentencing or program 
                        requirements in connection with the conviction 
                        or pretrial diversion or similar program have 
                        been completed;
                            ``(ii) after the 30-month period beginning 
                        on the date that the sentencing or program 
                        requirements in connection with the conviction 
                        or pretrial diversion or similar program have 
                        been completed if the person who committed the 
                        offense was under 21 years of age; or
                            ``(iii) if the conviction or agreement for 
                        such offense has been pardoned, sealed, or 
                        expunged even if any record of the conviction 
                        or program entry remain accessible by courts, 
                        law enforcement, or in connection with the 
                        employment or application for employment of the 
                        person in a position where a criminal 
                        background check is required by law.
                    ``(B) Exceptions.--Subparagraph (A) shall not apply 
                to--
                            ``(i) any offense described in paragraph 
                        (2)(A); or
                            ``(ii) any person who seeks to become a 
                        director or senior executive officer, as 
                        defined under section 212(f).''.
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