Yes, we believe banks should perform criminal background checks on prospective board members, as both Illinois and federal law prohibit individuals who have been convicted of certain crimes from serving as directors or otherwise participating, “directly or indirectly, in the conduct of the affairs of any insured depository institution.”

We are not aware of any requirement to perform credit checks on prospective board members. If you wish to do so, we recommend obtaining their written consent to the credit check.

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/16.5 (“Except with the prior written consent of the Commissioner, no State bank shall knowingly employ or otherwise permit an individual to serve as an officer, director, employee, or agent of the State bank if the individual has been convicted of a felony or of any criminal offense relating to dishonesty or breach of trust.”)

• Federal Deposit Insurance Act, 12 USC 1829(a)(1) (“Except with the prior written consent of the Corporation

(A) any person who has been convicted of any criminal offense involving dishonesty or a 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 offense, may not

     (i) become, or continue as, an institution-affiliated party with respect to any insured
     depository institution;

     (ii) own or control, directly or indirectly, any insured depository institution; or

     (iii) otherwise participate, directly or indirectly, in the conduct of the affairs of any
     insured depository institution; and

(B) any insured depository institution may not permit any person referred to in subparagraph (A) to engage in any conduct or continue any relationship prohibited under such subparagraph.”)

• Fair Credit Reporting Act, 15 USC 1681b(a)(3) (“Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other: . . . (2) In accordance with the written instructions of the consumer to whom it relates.”)