Fed releases prohibition letters

The Federal Reserve Board has released nineteen Section 19 letters issued in July, August and September 2016. A Section 19 letter prohibits the named individual from becoming or continuing as an institution-affiliated party with respect to any insured depository institution, and is issued when a regulator is made aware that the individual has been convicted of a crime involving dishonesty or 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 an offense. The prohibition requirement is found in Section 19 of the Federal Deposit Insurance Act, 12 U.S.C. 1829, and is mirrored for insured credit unions in Section 205(d) of the National Credit Union Act, 12 U.S.C. 1785(d).