Introduction
Section 205(d) of the Federal Credit Union Act, 12 U.S.C. §1785(d), generally prohibits individuals convicted of certain crimes from being employed by, or participating in the affairs of, an insured credit union. This employment ban applies to any person convicted of, or who has entered into a pretrial diversion or similar program for, a criminal offense involving dishonesty or breach of trust. Under certain circumstances, however, the NCUA may grant written consent to a covered individual to work for or participate in the affairs of an insured credit union. In 2022, the Fair Hiring in Banking Act amended Section 205(d) to expand employment opportunities for those with a previous minor or older criminal offense, among other provisions. Part 752 of the NCUA’s regulations, 12 C.F.R. part 752, implements Section 205(d) and the Fair Hiring in Banking Act and governs the employment prohibition criteria and exceptions, as well as the consent application process for seeking the NCUA’s consent pursuant to Section 205(d).
All requests for the NCUA’s consent to work must be submitted to the appropriate NCUA field office using application NCUA Form 3250. Prospective applicants and other interested parties should consult Part 752 and review NCUA Form 3250 and its instructions prior to completing a consent application, as not all criminal convictions require an application to be submitted. Part 752 also describes the factors the NCUA will consider when evaluating any application for consent.
Any questions regarding the process to request the NCUA’s consent pursuant to Section 205(d), including whether an application is required, may be directed to the Office of General Counsel at OGCmail@ncua.gov.
Section 205(d) Resources
- Final Rule – Part 752
- Application to Request Consent Pursuant to Section 205(d) (NCUA Form 3250)
- Sample Cover Letter – Individual Application for Consent to Work
- Sample Cover Letter – Credit Union-Sponsored Application for Consent Work
- Section 205(d) Guidance – Frequently Asked Questions
Additional NCUA Resources
- NCUA Privacy Resources
- NCUA Secure File Transfer Portal
- NCUA Secure File Transfer User Guide for Credit Unions
FBI Resources
In addition to a completed NCUA Form 3250, fingerprinting will be required to enable the NCUA to obtain the covered individual’s criminal history record (i.e., identity history summary check, or “rap sheet”) from the Federal Bureau of Investigation (FBI). It is not necessary for the covered individual to request their own criminal history record from the FBI. Once the NCUA obtains the covered individual’s FBI criminal history record, it will be provided to the individual who is the subject of the application to review for accuracy. The NCUA cannot change or make corrections to an individual’s criminal history record. If inaccuracies are found, the individual must address those inaccuracies with the FBI directly.