If the problem still needs to be resolved at an earlier stage, it can become a real headache for any organization or financial institution. We can relate this to the hiring process of any organization, as there are higher chances of interacting with an employee who has a criminal background. Which business would like to hire a person with a criminal background? No one.
So, how do we avoid onboarding such people? To avoid onboarding people with criminal backgrounds, the organization needs to have a robust and efficient AML compliance program in place. However, the question arises: Despite the strict compliance efforts, what if the culprit bypasses these AML compliance checks and finds a way to join your organization? It sounds very devastating for businesses. However, advanced background checks and screening systems integrated with tI and ML can save businesses from onboarding criminals. Background screening helps businesses comply with the AML regulations. The following piece of content will highlight the importance of background checks and screening for businesses and the top Background checks that every business should conduct before hiring new clients or interacting with new business partners.
Understanding the Employee Background Checks
Implementing a comprehensive background check, which includes gathering an employee’s complete information to ensure the person is real. So what benefits could businesses have if they successfully get the required information? Well, with information in hand, your business can easily apply the AML checks on your clients and business partners. Therefore, background checks are very important because they help business to check their history, which involves checking their criminal record, previous employee history, what they study, their source of income, and many other things that could be beneficial in checking the background of any client.
The following check must be applied if we streamline the required check that every business must apply to their clients.
· Bank Account history
· Social media activities
· Employment History
· Educational Background
· Medical Licence
Top employee background checks that every business should consider
1. Criminal Record Check
Is there any organization that would like to onboard people with criminal backgrounds?
No organization would do that knowing that this could damage their reputation and cause millions of dollars in fines. Therefore, to avoid this, all types of businesses must check that their clients do not have any criminal records in the past criminal that could risk the company’s reputation. You must be asking what benefits a business could have. Well, precautionary measures such as the AML check, which also ensure that your business is complying with the AML regulations, ensure that candidates do not have a history of any sort of crime, theft, fraud, or other offenses, and your business is meeting regulation requirements.
2. Employment Verification
People with fake employment histories will try to exploit your business platform and perform criminal activities like money laundering and other financial crimes. So whenever you hire a new employee, be careful and thoroughly check the history of their employment. How do business verify their identity and job history? Here are some of the ways that can help you verify your employees. First, you need to contact the previous organization and get the information such as job title, his responsibilities in the previous office, and how much time he had spent in the last company. Verifying employees Can prevent hiring individuals who have falsified their resumes or targeted individuals.
3. Education Verification
Another major AML check that is considered as an essential part of employee AML Checks is verifying an employee’s educational career. What if you hire someone with fake educational degrees? Will it not compromise your world performance and efficiency? It definitely will. Therefore, the company should check the academic qualifications and degrees employees claim they have. This is particularly important for positions that require specific educational credentials, such as degrees, licenses, or certifications. So, what benefits could businesses have with an educational verification background.? It can help prevent credential fraud. It also ensures compliance with industry-specific requirements, especially in regulated fields like healthcare or finance.
4. Credit History Check
The person who has earned the money through illegal sources will hesitate to provide the history of their credits. Because of the fear of detection of their illegal practices. So what could be a better option than knowing your employee’s history than knowing from where he is earning? Therefore, This is the most important AML employee check than any other on the list Many people ask how businesses should check an employee’s credit history. Though there are many ways to keep it short, businesses need to check that Credit checks comply with legal regulations, such as the Fair Credit Reporting Act (FCRA) in the U.S.
5. Reference Checks
What if you have access to previous colleagues or team leads of the person who is trying to get a job in your company? Knowing a person’s work ethic, character, and skill set could be valuable for the company. Because the previous company’s colleagues can disclose the strengths and weaknesses that are not evident from resumes and interviews. These five background checks form the foundation of a robust screening process that helps businesses in many ways to make informed decisions while onboarding new employees.
Do comprehensive Background checks matter?
Onboarding loyal and legitimate employees is quite challenging for organizations,and any compromise to this process can cause not only reputational damage but also regulatory fines and penalties. So, there would be no nanosecond answer to this question. However, there will also be questions about the strategy you follow to employ sanction and PEP checks while onboarding the new employee.
