You do not need to soak your hands in oil before washing, not sure where you got that from. Soap and water works fine.
I should clarify that my comment was assuming that, like in the OP, someone was handling a Carolina Reaper. Capsaicin being fat-soluble should mean that it dissolves into the oil and then gets carried away by the dish soap. I've never had to use this personally, since just dish soap and water has always worked fine for me.