Name Check for 3rd Illegible Fingerprint Processing Results
With the implementation of Electronic Fingerprint Processing (EFP), a new step has been added to FINRA's fingerprint card process when the FBI identifies a third successive fingerprint card as "Illegible". In such cases, FINRA now requests that the FBI conduct a search of its database based on the associated person's name (Name Check) rather than on the fingerprints submitted, to verify whether the database contains criminal history record information (CHRI) on that individual based on the name search. Upon receipt of the third "Illegible" result, the individual's fingerprint status in CRD® will change from "ILEG" to "NMCK", to indicate that an FBI Name Check is being requested.
This revised FINRA process does not alter the fingerprint process for firms with respect to an individual who receives three successive "Illegible" results from the FBI after three good-faith attempts to be printed as required under Rule 17f-2 of the Securities Exchange Act of 1934:
- Firms are not required to submit a 4th fingerprint card for the individual.
- The individual’s registration status will change from “Approved Pending Results” to “Approved” upon receipt of the third successive Illegible result from the FBI, and will remain “Approved” even if the Name Check search returns CHRI for the individual, pending review by Disclosure Review staff.
- The Disclosure Review staff will review any CHRI returned and may request additional information from the firm that could affect the registration status of the individual. At a minimum, a new registration request will trigger a deficiency if the firm has not responded to a disclosure letter sent as a result of the CHRI review.
FINRA will post a CLRX or RAPX/CMPX status to the firm's "Fingerprint Status Received from FBI" Queue, depending on whether the Name Check process results in FINRA receiving CHRI.
1. If the FBI Name Check search returns no CHRI:
- The individual's fingerprint status will be updated to CLRX.
- No further action is taken by FINRA.
- The individual's "Approved" registration status will remain unchanged.
2. If the FBI Name Check search returns CHRI:
- The individual's fingerprint status will be updated to RAPX.
- Disclosure Review staff will review the CHRI.
- FINRA will send the firm a letter with the CHRI. Additional information may be requested from the firm following FINRA review.
- The individual's "Approved" registration status will remain unchanged unless and until Disclosure Review staff takes action based on a deficiency or other appropriate finding relating to the CHRI received.
- Once Disclosure Review staff have completed the review, the RAPX status will then change to CMPX.
System changes firms will see:
- The "NMCK" status will replace the 3rd "ILEG" on the Fingerprint Card Screen.
- The firm can click on the barcode associated with NMCK to see the history for that card.
- The firm can click on the barcode associated with NMCK to see the history for that card.
- On the Fingerprint Card Status History Screen, NMCK appears along with the 3rd ILEG status.
- If the firm clicks on the barcode, it can see the 3rd ILEG status.
- If the firm clicks on the barcode, it can see the 3rd ILEG status.
- The "RAPX" "CLRX" or "CMPX" disposition after a Name Check is performed will replace the NMCK status on the Fingerprint Card Screen.
- If the firm clicks the barcode associated with the CLRX, RAPX or CMPX disposition, the history will show the NMCK status along with the disposition for that card.
- If the firm clicks the barcode associated with the CLRX, RAPX or CMPX disposition, the history will show the NMCK status along with the disposition for that card.
- The Name Check status will appear in the Firm Reconciliation Download.
No additional fee is charged for the Name Check review. Note that because the FBI's Name Check process is performed manually, the FBI may take up to one month to complete the review.
