(a) Prohibition.
(1) Except with the prior written consent
of the Corporation—
(A) any person who has been convicted
of any criminal offense involving dishonesty or a breach of trust
or money laundering, or has agreed to enter into a pre trial diversion
or similar program in connection with a prosecution for such offense,
may not—
(i) become, or continue as, an institution-affiliated
party with respect to any insured depository institution;
(ii) own or control, directly or
indirectly, any insured depository institution; or
(iii) otherwise participate, directly or indirectly,
in the conduct of the affairs of any insured depository institution;
and
(B) any insured depository institution may not permit any person
referred to in subparagraph (A) to engage in any conduct or continue
any relationship prohibited under such subparagraph.
1-398.51
(2) (A) If the offense referred
to in paragraph (1)(A) in connection with any person referred to in
such paragraph is—
(i) an offense under—
(I) section 215, 656, 657, 1005, 1006, 1007,
1008, 1014, 1032, 1344, 1517, 1956, or 1957 of title 18, United States
Code; or
(II) section
1341 or 1343 of such title which affects any financial institution
(as defined in section 20 of such title); or
(ii) the offense of conspiring
to commit any such offense,
the Corporation may not consent to any exception to the
application of paragraph (1) to such person during the 10-year period
beginning on the date the conviction or the agreement of the person
becomes final.
(B) (i) On motion of the Corporation, the
court in which the conviction or the agreement of a person referred
to in subparagraph (A) has been entered may grant an exception to
the application of paragraph (1) to such person if granting the exception
is in the interest of justice.
(ii) A motion may be filed under clause (i)
at any time during the 10-year period described in subparagraph (A)
with regard to the person on whose behalf such motion is made.
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(b) Penalty. Whoever knowingly violates
subsection (a) shall be fined not more than $1,000,000 for each day
such prohibition is violated or imprisoned for not more than 5 years,
or both.
(d)
Bank holding
companies.* (1) Subsections (a) and (b) shall apply
to any company (other than a foreign bank) that is a bank holding
company and any organization organized and operated under section
25A of the Federal Reserve Act or operating under section 25 of the
Federal Reserve Act, as if such bank holding company or organization
were an insured depository institution, except that such subsections
shall be applied for purposes of this subsection by substituting “Board
of Governors of the Federal Reserve System” for “Corporation” each
place that term appears in such subsections.
(2) The Board of Governors of the Federal
Reserve System may provide exemptions, by regulation or order, from
the application of paragraph (1) if the exemption is consistent with
the purposes of this subsection.
(e) Savings and loan holding companies.
(1) Subsections (a) and (b) shall apply
to any savings and loan holding company as if such savings and loan
holding company were an insured depository institution, except that
such subsections shall be applied for purposes of this subsection
by substituting Board of Governors of the Federal Reserve System for
“Corporation” each place that term appears in such subsections.
(2) The Board of Governors
of the Federal Reserve System may provide exemptions, by regulation
or order, from the application of paragraph (1) if the exemption is
consistent with the purposes of this subsection.
[12 USC 1829. As amended
by acts of Aug. 9, 1989 (103 Stat. 477); Nov. 29, 1990 (104 Stat.
4860); Oct. 28, 1992 (106 Stat. 4055); Sept. 13, 1994 (108 Stat. 2119);
Oct. 12, 2006 (120 Stat. 1990); and July 21, 2010 (124 Stat. 1555).]
