Posted on 09/11/2012 at 03:46 PM by The Newsroom
The past couple of weeks have seen an unusual amount of media focus on financial institution employee background checks and related dismissals. At least one dismissal has prompted a civil rights complaint. Not only should your institution be sure it is complying with Section 19 of the FDIC Act and the regulations and guidance associated with that part of the Act by regularly performing such checks, but that the implications of violations, which include fines of up to $1,000,000 a day, as well as the waiver process and de minimis exceptions are specific in nature. You should understand that Section 19s requirements are not the same as the more recent National Mortgage Lender licensing requirements, which, while similar in some respect to Section19s prohibitions, differ in some material respects.