FDIC Updates Section 19 Application Form

The FDIC updated its Section 19 Application Form to reflect changes made in August 2018 to its Statement of Policy for Section 19 of the FDI Act.

Section 19 of the FDI Act “prohibits a person convicted of any criminal offense involving dishonesty, breach of trust, money laundering, or who has entered into a pretrial diversion or similar program in connection with a prosecution for such offense from participating in the affairs of an FDIC-insured institution.”  As we previously reported, a Section 19 application is not required for individuals that fall under the exceptions in the Statement of Policy.  Changes to the application include the broadening of the de minimus offenses section, the sponsorship section, and the individual waivers section.  Specifically, the de minimus exceptions now include convictions for issuance of insufficient funds checks of moderate aggregate value, small dollar, simple theft, isolated minor offenses committed by young adults, and drug-related offenses.  The sponsorship section removed the non-transferable language and the individual waivers section removed the pretrial diversion restriction language.  According to the FDIC, these modifications were made to reduce the number of Section 19 applications that were submitted.

The updated FDIC Section 19 Application Form can be found here.