The Bank Holding Company Act and Change in Bank Control Act limit the ability of individuals and entities to exert a controlling influence over an insured depository institution without first obtaining approval from the appropriate federal regulator. Approval typically occurs in the context of an application to form, merge, or acquire a bank or bank holding company, or a filing under the Change in Bank Control Act. Inherent to the approval process are name checks on individuals who have a significant influence on the policymaking activities of the bank or bank holding company, either by virtue of their management position or through the ability to vote a significant percentage of any class of voting shares.
These name checks include a request for information on the individual from other regulatory and investigative agencies. As announced in SR Letter 03-10, Enhancement to the Name Check Process Related to Applications Reviewed by the Federal Reserve, these name checks include an FBI criminal history check.1 This check assists the Federal Reserve System (the System) in ensuring that proposed shareholders and policymakers have the experience, competence, and integrity to lead a banking organization in a safe and sound manner. In order for the FBI to perform the criminal history check, the System needs to obtain the individual's fingerprints.
Accordingly, we are offering the following guidance to Third District institutions and individuals. This guidance should allow you to anticipate a request for fingerprints and initiate them in a manner that will not delay your filing.
Who Must Provide
The applicability of name checks will vary depending on the type of proposal and other factors unique to each filing. As a result, you should contact Regulatory Applications staff at this Reserve Bank for further clarification on the availability of an exemption.
How are Fingerprints
A key element in determining the necessity of a background check is the Interagency Biographical and Financial Report, Form FR 2081(c). To avoid delays, applicants are encouraged to submit Form 2081(c) prior to the submission of the application. If fingerprints are required, applicants are encouraged to submit them early and may follow either of the following procedures:
How Do I
Get Additional Information?
Additional information on the fingerprinting procedures is available on the following websites:
Questions regarding fingerprints or the FBI criminal history check can be answered by the following individuals in the Regulatory Applications Unit:
Get a Fingerprint Card?
For a fingerprint card and related materials, please contact:
Make Live-Scan Appointments?
To schedule an appointment to have your fingerprints taken via Live-Scan at the Federal Reserve Bank of Philadelphia, please contact:
We appreciate your understanding and support for this additional step in ensuring a safe and sound banking system.
The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.