Background Screening and the AML/CFT Policy

Back in September, we explained that Bank Negara Malaysia established the Anti-Money Laundering and Counter-Terrorism Financing measures to ensure employees are held to a high standard of accountability by providing a framework that included preventive measures for reporting institutions, financial intelligence units and law enforcement agencies to avoid scenarios in which money laundering could occur and be used for terrorism.

In the framework, financial institutions are obligated to determine the integrity and credibility of all employees, including agents, brokers and contractors. If any of these are vulnerable to unsavoury influences, all processes within a financial institution can be jeopardised.

The framework includes obligations that financial institutions have to fulfill to ensure clear reporting procedures and thorough risk management. The aim is to determine their employees’ status and relationships, be it international, local, personal, professional or political.

Importantly, the framework holds the organisation’s leadership accountable for communicating and training employees in accordance to a code of ethics.

The framework also states that financial institutions, like Banking, Deposit-Taking Institutions, Insurers and Takaful providers, are obligated to conduct screening upon hiring and throughout employment to ensure that employees’ personal information, criminal records and employment records can be verified.

Evidently, background screening of employees play an important role in the creation of an employee assessment system to help manage risk exposure. As a service provider, Verity Intelligence understands the positive correlation between an organisational culture of integrity built by the conduct of its employees and the ability to supply reliable services. Thus, it is important that financial institutions now look into background screening to ensure that their staff are competent and credible.

To meet the requirements set out in the AML/CTF framework, Verity Intelligence can aid by conducting ID checks, criminality and local integrity checks, financial credit or bankruptcy, PTPTN & industrial court verification and much more to help vet potential as well as current employees.

Stay tuned as we continue to share Bank Negara’s new policies for financial institutions, or visit for more.

Related Posts

One thought on “Background Screening and the AML/CFT Policy

Leave a Reply

Your email address will not be published. Required fields are marked *