How Back­ground Screen­ing Aids Bank Ne­gara’s AML/CFT Ef­forts

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Re­spond­ing to the in­crease in money laun­der­ing ac­tiv­i­ties and the wor­ry­ing threat of ter­ror­ism fi­nanc­ing, the Malaysian gov­ern­ment and Bank Ne­gara es­tab­lished the Anti-Money Laun­der­ing and Anti-Ter­ror­ism Fi­nanc­ing mea­sures to en­sure busi­nesses can be held ac­count­able by pro­vid­ing le­gal and reg­u­la­tory frame­work. The frame­work in­cludes pre­ven­tive mea­sures for re­port­ing in­sti­tu­tions, fi­nan­cial in­tel­li­gence units and law en­force­ment agen­cies, along­side do­mes­tic and in­ter­na­tional co­op­er­a­tion. The frame­work spec­i­fied that:

EM­PLOYEE SCREEN­ING PRO­CE­DURES

23.5.1 For the pur­pose of this Para­graph, ref­er­ence to em­ploy­ees in­cludes agents. 23.5.2 The screen­ing pro­ce­dures shall apply upon hir­ing the em­ployee and through­out the course of em­ploy­ment. 23.5.3 Re­port­ing in­sti­tu­tions are re­quired to es­tab­lish an em­ployee as­sess­ment sys­tem that is com­men­su­rate with the size of operations and risk ex­po­sure of re­port­ing in­sti­tu­tions to ML/TF. 23.5.4 The em­ployee as­sess­ment sys­tem shall in­clude an eval­u­a­tion of an em­ployee’s per­sonal in­for­ma­tion, in­clud­ing crim­i­nal records, em­ploy­ment and fi­nan­cial his­tory. With the frame­work and laws in place, fi­nan­cial in­sti­tu­tions (banks, in­surance com­pa­nies, pen­sion funds) need to do their part by en­sur­ing that their staff, in­clud­ing agents (for ex­am­ple, in­surance agents) are held at a high stan­dard of ac­count­abil­ity too. Back­ground screen­ing, for pre­and dur­ing em­ploy­ment, is a way to ad­dress this. con­ducted a study to com­ply with Bank Ne­gara’s AML/CFT frame­work for em­ploy­ment back­ground screen­ing and this is what they found. With thou­sands of per­son­nel in each fi­nan­cial in­sti­tu­tion, be it a bank or an in­surance com­pany, it is re­ally hard to claim you know all your em­ploy­ees very well. Based on the study con­ducted, it is com­mon to find em­ploy­ees suf­fer­ing from fi­nan­cial dif­fi­cul­ties, which could drive them to take des­per­ate mea­sures, such as be­ing dis­hon­est in busi­ness trans­ac­tions and em­bez­zle­ment. Pre- and dur­ing em­ploy­ment back­ground screen­ings can be a help­ful way to iden­tify em­ploy­ees with these sorts of prob­lems; a com­pany can then de­cide if they need to in­ter­vene by pro­vid­ing help. Know­ing your em­ploy­ees will al­low one to help them when they are in need. In re­turn, busi­ness risks are re­duced, hence main­tain­ing the stan­dards pro­vided by the AML/CFT frame­work. is recog­nised as one of the lead­ing back­ground screen­ing and verification com­pa­nies in Malaysia and cus­tomers quicker turn­around times and bet­ter-qual­ity screen­ing re­ports with­out com­pro­mis­ing ac­cu­racy and ser­vice lev­els. While founder and managing di­rec­tor Mark Leow grad­u­ated from San Fran­cisco State Univer­sity with a De­gree in Busi­ness Ad­min­is­tra­tion & Mar­ket­ing. A very pas­sion­ate en­trepreneur with busi­ness ven­tures in tech­nol­ogy, man­u­fac­tur­ing and HR, Leow started to help com­pa­nies con­duct due dili­gence when they hire. than 500 cus­tomers from of­fices in Malaysia and Sin­ga­pore, and screens more than 4,000 re­sumes a month. More than 60 of the Top 100 com­pa­nies, For­tune 500, multi­na­tion­als and gov­ern­ment-linked com­pa­nies in Malaysia and Sin­ga­pore them solve their hir­ing prob­lems with em­ploy­ment screen­ing ser­vices. In­tel­li­gence and ar­ti­cles on how back­ground screen­ings can help busi­nesses, visit ver­i­ty­in­tel.com.

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