""Wells Fargo"":https://www.wellsfargo.com/ made a decision to terminate company employees with past criminal records involving dishonesty or breach of trust to comply with an FDIC act, the bank announced Thursday.
""The decision to terminate team members over criminal matters that occurred prior to their employment with Wells Fargo may seem tough â€" we recognize that these situations are difficult for everyone involved â€" but laws and regulations related to the employment of bank employees are designed to protect the interests of all consumers who put their trust in financial service companies,"" Wells Fargo said in a statement.
Explaining its decision, the bank said that as an insured depository institution, Wells is bound by Section 19 of the Federal Deposit Insurance Act. The act does not allow the bank to hire or continue the employment of anyone who is known to have a criminal record involving dishonesty or breach of trust.
The bank said it has been conducting background checks, which include fingerprints with the FBI, on its team members.
If any employee does have a criminal record involving those related incidences, he or she can dispute the accuracy of the information and appeal the termination if a mistake is believed to have been made.
If the bank does violate Section 19, it can be fined up to $1,000,000 per day or face imprisonment for up to five years, or both.
Headquartered in San Francisco, Wells Fargo is a nationwide, diversified, community-based financial services company with $1.3 trillion in assets.