12 U.S.C. § 1829 : US Code - Section 1829: Penalty for unauthorized participation by convicted individual

Search 12 U.S.C. § 1829 : US Code - Section 1829: Penalty for unauthorized participation by convicted individual

(a) Prohibition
(1) In general
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 pretrial 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.
(2) Minimum 10-year prohibition period for certain offenses
(A) In general
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,(!1)
1014, 1032, 1344, 1517, 1956, or 1957 of title 18; 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) Exception by order of sentencing court
(i) In general
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) Period for filing
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.
(b) Penalty
Whoever knowingly violates subsection (a) of this section 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) (!2) Bank holding companies
(1) In general
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 [12 U.S.C. 611 et seq.] or operating under
section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.], 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) Authority of Board
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) In general
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
"Director of the Office of Thrift Supervision" for "Corporation"
each place that term appears in such subsections.
(2) Authority of Director
The Director of the Office of Thrift Supervision may provide
exemptions, by regulation or order, from the application of
paragraph (1) if the exemption is consistent with the purposes of
this subsection.