Quick answer: Bank tellers typically must pass a criminal history check, because Section 19 of the Federal Deposit Insurance Act bars FDIC-insured institutions from employing people convicted of crimes involving dishonesty, breach of trust, or money laundering without FDIC consent. Most banks also verify identity, SSN, employment, education, and sometimes credit and drug screening.
- Section 19 is a federal hiring restriction, not a suggestion; it applies to insured banks and, through similar rules, to credit unions.
- A strong teller screen combines national and county criminal searches, a sex-offender registry check, SSN trace, and employment verification.
- FCRA disclosure, authorization, and adverse-action steps apply to every check you order.
What federal law requires for bank teller screening
Section 19 of the FDI Act makes it unlawful for an FDIC-insured institution to hire, or allow to participate in its affairs, a person convicted of a criminal offense involving dishonesty or breach of trust, or a person who has entered a pretrial diversion program for such an offense, unless the FDIC grants written consent. Money laundering offenses are covered too. Credit unions face a parallel prohibition under Section 205(d) of the Federal Credit Union Act, enforced by the NCUA.
Certain minor offenses may fall outside the ban, such as some older or low-level matters under the FDIC’s de minimis criteria. Your compliance officer should confirm whether a specific record qualifies before you decide.
Which searches belong in a teller background check
Tellers handle cash, account data, and customer identity documents every day. Your screening package should reflect that exposure.
| Search | What it shows | Why it matters for tellers |
|---|---|---|
| SSN trace | Name and address history tied to the SSN | Confirms identity and tells you which counties to search |
| County criminal | Court records at the source | Finds theft, fraud, and forgery convictions |
| National criminal database | Multi-jurisdiction record index | Widens the net beyond known addresses; verify hits at the court |
| Federal criminal | Federal district court cases | Catches bank fraud, embezzlement, and money laundering |
| Sex-offender registry | Registry listings | Supports a safe branch environment |
| Employment verification | Dates, titles, and reasons for leaving | Confirms cash-handling and customer service history |
| Education verification | Degrees or diplomas claimed | Catches falsified credentials |
| Drug test (optional, per policy) | Substance use per panel | Applied consistently if your policy requires it |
Credit checks
Some institutions review credit for roles with cash access. Credit reports are consumer reports under the FCRA, and some states limit their use in hiring. Confirm state rules and apply the check only where it is job related and consistent with your policy.
Step-by-step compliance workflow
- Give the applicant a standalone written disclosure that a consumer report may be obtained for employment purposes.
- Get signed authorization before ordering anything.
- Order searches through an FCRA-compliant screening provider.
- Review results against Section 19 and your written, job-related criteria.
- If a result may lead you to reject the candidate, send a pre-adverse action notice with a copy of the report and the FTC summary of rights.
- Allow a reasonable period for the applicant to dispute errors, then send the final adverse action notice if you proceed.
The EEOC advises employers not to use blanket exclusions for all criminal records and to consider the nature of the offense, the time elapsed, and the job duties. Section 19 is the legal exception for covered offenses, but for non-covered records an individualized assessment is the safer practice.
Bank teller screening checklist
- Written screening policy applied to every teller candidate
- Disclosure and authorization forms reviewed by counsel
- SSN trace to build the county search list
- County criminal searches for every address in the last 7 years or more, per policy
- Federal and national criminal searches
- Sex-offender registry search
- Employment and education verification
- Documented Section 19 review for any dishonesty, breach of trust, or money laundering record
- Pre-adverse and adverse action templates ready
- Re-screening schedule for current employees, if your policy includes one
Handling results that raise questions
If a record appears to trigger Section 19, do not extend an offer until compliance has reviewed it. Some institutions apply to the FDIC for consent; others decline to proceed. If a record falls outside Section 19, weigh the offense against the teller duties, how long ago it occurred, and any evidence of rehabilitation. Document the reasoning each time so decisions are consistent.
Also confirm that a national database hit is accurate. Those indexes can contain outdated or mismatched entries, so verify the record at the county or federal court before acting.
Speed and cost for high-volume branch hiring
Branch teller hiring is often high volume and time sensitive. Reveal Background offers FCRA-compliant screening with same-day results on most searches, no setup fee, and pay-per-report pricing, so you only pay for the checks you order. You can create an account and build a teller package from the searches above. If your policy includes drug testing, Reveal arranges it through American Screening Corp.
Frequently asked questions
Do all bank tellers need a background check?
Nearly all insured banks screen tellers. Section 19 effectively requires institutions to know whether a hire has a covered conviction, and a criminal search is the standard way to find out.
What convictions disqualify someone from being a bank teller?
Convictions for crimes involving dishonesty, breach of trust, or money laundering, and related pretrial diversion programs, bar employment at an FDIC-insured bank unless the FDIC grants consent. Some minor offenses may qualify for de minimis treatment.
Do banks run credit checks on tellers?
Some do, particularly for roles with cash or account access. A credit check is an FCRA consumer report, requires authorization, and is restricted in certain states, so confirm local law first.
How long does a bank teller background check take?
Many searches return the same day. Timing depends on the court: county records that need manual retrieval can take longer, and employment or education verifications depend on the responding institution.
Sources
- FDIC: Federal Deposit Insurance Act, Section 19
- EEOC: Enforcement Guidance on Arrest and Conviction Records
- FTC: Background Checks, What Employers Need to Know
This article is general information, not legal or medical advice.
