FDIC Eases Rules for Bank Employees With Criminal Records

The Federal Deposit Insurance Corp. narrowed the scope of crimes that disqualify employment at a bank, making it easier for banks to hire people with prior criminal offenses.

The federal regulator’s final rule also limited the instances—under Section 19 of the Federal Deposit Insurance Act—in which a bank would have to get written approval for hiring someone with a criminal conviction on their record.

The rule will allow “more individuals to work for banks without going through the Section 19 application process, without increasing risk to the Deposit Insurance Fund,” FDIC Chairman Jelena McWilliams said in a statement.

Section 19 ...