Anyone in the financial industry knows that stringent background checks are done on potential employees. They may even do periodic background checks on already hired employees. After all, a large amount of money goes through these employees’ hands and safeguards are needed to make good hiring decisions, maintain a safe and secure workplace, and protect sensitive data.

Recent hacks of Capital One, Experian, and Equifax prove that the financial industry cannot be too careful with hiring and security.

The Financial Industry Has Unique Concerns—Like Compliance.

Can an in-house background check catch everything? Probably not. There is a lot to keep up with. Besides the usual criminal check, credit check, education check, verification of credentials, and references check, the financial industry must maintain compliance with the Patriot Act, Sarbanes-Oxley, FDIC (Federal Deposit Insurance Corporation) and other regulators—such as OFAC (Office of Foreign Assets Control), FINRA (Financial Industry Regulatory Authority), NASD (National Association of Securities Dealers), and SEC (Securities and Exchange Commission).

Financial institutions must be in compliance with anti-bribery and corruption regulations such as the BSA (Bank Secrecy Act), FCPA (Foreign Corrupt Practices Act), and critical mandates like KYC (Know Your Customer) and CIP (Customer Information Protection).

Section 19 of the Federal Deposit Insurance Act (FDIA) and Section 205(d) of the Federal Credit Union Act (FCUA) govern whether an individual may be employed by a federally insured depository institution or an insured credit union, respectively. These institutions are prohibited from employing “any person who has been convicted of any criminal offense involving dishonesty or breach of trust, including money laundering or any criminal offense concerning the illegal manufacture, sale or distribution of or trafficking in controlled substances.”

Research on an international level is sometimes warranted if that institution trades on a global basis. Checks must use many databases to reveal any credit or fraud risks, and help institutions reduce mortgage fraud by making sure their portfolio complies with all legislative and regulatory requirements. We all remember the huge Comfed mortgage fraud case of years past—in one instance the fraud was orchestrated by the bank’s attorney!

Some positions that demand the highest levels of security are: banking associates, executives, and managers; financial consultants; financial services associates and executives; and any independent contractors or agents.

The Insurance Industry Has Specific Regulations.

Insurance companies are regulated by the Violent Crime Control Act as well as by the various state laws and requirements set by state insurance departments. Under 18 U.S.C. § 1033(e) of the Violent Crime Control and Law Enforcement Act of 1994 (VCCA), “individuals who have been convicted of a felony crime involving dishonesty or breach of trust are prohibited from working in the insurance industry unless they obtain written consent from their state insurance commissioner.”

Why Choose The Hire Authority for Your Background Screening?

As you can see, employee background checks at financial institutions are complex. They must be done by a professional, experienced, and expert team that has kept up with recent legislation and regulation specific to this industry.

Be safe, not sorry. At The Hire Authority we are thorough in our screening, which guarantees that you will receive information that is current and relevant. We care about your security and we will work to keep you safe from harm or unnecessary problems.

We’d be happy to answer any questions you may have and give you a quote.
Call (508) 230-5901 or visit our website www.hireauth.com.

The foregoing should not be construed as legal advice. Employers should always consult their own legal counsel for advice on labor and employment matters.