To Bank or Not to Bank: Institutions Handle Convicted, Formerly Sanctioned Clients Case-by-Case

By Colby Adams

Banking convicted felons is no crime. In fact, many of the country's over four million formerly incarcerated criminals maintain relationships with financial institutions, at times holding sizable accounts. But for compliance officers, determining when to run a criminal check on customers or to drop client accounts over concerns about past crimes isn't always clear. Many financial institutions don't maintain such policies but instead look at the backgrounds of their clients in rare instances, and then proceed on a case-by-case basis, according to analysts. In most cost cases, financial institutions only look into a customer's criminal record after suspicious activity in...