November 02, 2023

New Reg Alert details NCUA’s proposal to implement Fair Hiring in Banking

Reg Alert on computer

NAFCU sent member credit unions a Regulatory Alert Wednesday detailing the NCUA’s proposed rule to implement provisions of the Fair Hiring in Banking Act and codify the Second Chance Interpretive Ruling and Policy Statement (IRPS). The association noted all federal credit unions would be impacted by the proposal, which would “allow persons convicted of certain crimes to be employed at credit unions without requesting a waiver from the Board.”

In addition, the proposal replaces a lifetime ban for those with disqualifying convictions to work in the banking sector and creates and exception for criminal acts committed before the age of 21.

NAFCU previously wrote to the NCUA to support a “decrease of regulator burdens in hiring and evolution of employment policies” and encouraged a study of the effect of the IRPS on fidelity bonds, the safety and soundness of credit unions, and security of confidential information.

The Regulatory Alert outlines five questions for credit unions to consider in their feedback. Credit unions can submit comments to NAFCU until Nov. 22.