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CAMS · Question #189

In many jurisdictions, financial institutions are prohibited from hiring a person who has been convicted of what type of offense?

The correct answer is B. Offenses involving dishonesty. Regulatory frameworks in most jurisdictions prohibit financial institutions from employing individuals convicted of offenses involving dishonesty to protect the integrity of the financial system and its customers.

AML/CFT Compliance Programs

Question

In many jurisdictions, financial institutions are prohibited from hiring a person who has been convicted of what type of offense?

Options

  • AKidnapping
  • BOffenses involving dishonesty
  • CDriving while under the influence
  • DProtests of government action

How the community answered

(29 responses)
  • A
    7% (2)
  • B
    69% (20)
  • C
    7% (2)
  • D
    17% (5)

Why each option

Regulatory frameworks in most jurisdictions prohibit financial institutions from employing individuals convicted of offenses involving dishonesty to protect the integrity of the financial system and its customers.

AKidnapping

Kidnapping is a serious violent crime, but it does not relate to financial integrity or dishonesty and is not the category of offense that triggers the standard employment prohibition statutes specific to financial institutions.

BOffenses involving dishonestyCorrect

Offenses involving dishonesty - such as fraud, theft, embezzlement, forgery, or money laundering - directly bear on the trustworthiness required of any financial institution employee. Regulations such as Section 19 of the US Federal Deposit Insurance Act (12 U.S.C. 1829) and equivalent laws in other jurisdictions explicitly bar hiring individuals convicted of such crimes without prior written consent from the relevant regulator, reflecting the direct risk that dishonest employees pose to depositors and financial system integrity.

CDriving while under the influence

A DUI conviction is a serious traffic offense but is not classified as a crime involving dishonesty and does not typically trigger the regulatory hiring prohibitions that apply specifically to financial services roles.

DProtests of government action

Protests of government action are not criminal offenses in most democratic jurisdictions and would not constitute a lawful basis for a blanket financial institution hiring prohibition.

Concept tested: Financial institution hiring prohibitions for dishonesty convictions

Source: https://www.law.cornell.edu/uscode/text/12/1829

Topics

#employee screening#hiring prohibitions#dishonesty offenses#AML program staffing

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