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