A recent case in Malaysia shows how expensive weak screening can become. Bank Negara Malaysia imposed a total of RM1.56 million in penalties on two financial institutions over targeted financial sanctions breaches linked to failures such as using an outdated sanctions database.
According to Bank Negara, the issue involved the failure to promptly update sanctions data, which caused screening to be done against outdated information. In one case, there was also a failure to immediately freeze and report funds linked to a specified entity.
The message for businesses is simple: screening is only as strong as the data behind it.
Many companies still rely on manual checks, outdated systems, or the cheapest option available. But when your screening process is weak, delayed, or incomplete, the cost can be much bigger than what you saved. In regulated sectors, that can lead to penalties. In hiring and onboarding, it can lead to bad decisions, reputational damage, and avoidable risk.
This case is a strong reminder that outdated databases and weak screening processes can have real consequences.
That is why businesses should screen before they onboard, not after a problem appears.
At Verity Intelligence, we believe pre-screening should help businesses spot red flags early, make safer decisions faster, and reduce the risk of costly mistakes. A strong and updated screening database is not a nice-to-have. It is part of protecting your business.
Screen first. Decide safely.
