Verity journal

Can Malaysian Employers Legally Conduct Background Checks?

Yes. Background screening in Malaysia is legal. But like all personal data processing activities, it must comply with the Personal Data Protection Act (PDPA) 2010. Failure to follow PDPA guidelines can result in hefty penalties and reputational risk.

So, what’s allowed? What’s not? And how do you stay compliant?

Let’s break it down.

What Does PDPA Malaysia Say About Background Screening?

The Personal Data Protection Act 2010 (PDPA) governs how personal data is collected, used, stored, and disclosed in Malaysia.

When conducting background checks, the following PDPA principles apply:

• Notice & Consent – Candidates must be informed and give written consent.
• Purpose Limitation – Screening data must only be used for hiring decisions.
• Data Minimization – Only collect information that’s relevant to the job role.
• Access & Correction – Candidates have the right to access their report.
• Security of Data – Screening must be handled by secure, reputable providers.

Note: Verity’s screening services are fully PDPA compliant and ISO 27001–certified for data protection.

What Background Checks Are Legal in Malaysia?

As long as consent is obtained, the following checks are legally permissible:

• Employment history verification
• Education qualification checks
• Criminal record checks (with candidate consent)
• Bankruptcy and financial status checks
• Reference checks
• Sanctions or watchlist screening

What Background Checks Are NOT Legal?

Background screening becomes illegal or non-compliant if:

• Consent is not obtained or is coerced
• Data is used beyond the stated hiring purpose
• Sensitive personal data is mishandled (e.g., health or political data)
• Checks are done via unlicensed or non-compliant vendors

How to Stay PDPA-Compliant When Screening Candidates

1. Use a Trusted Screening Provider
Work with a provider like Verity Intelligence—Malaysia’s No.1 background screening company—to ensure screening is conducted ethically and legally.

2. Choose a PDPA-Compliant Tool
For instant criminal checks, sanctions screening, and court record lookups, our tool VERISafe provides fast, consent-based checks that align with PDPA requirements.

3. Assess Risk Based on Role
Not all roles require the same depth of checks. Use our Risk Matrix to determine how deep you should screen based on job function and access level.

Bonus: What If You’re in a Regulated Industry?

If you’re regulated by Bank Negara Malaysia (BNM), you may also need to comply with additional due diligence under AMLA and Section 17A of the MACC Act.

We offer BNM-specific background checks to help you comply with financial regulations.

Final Thought: Legal Screening Builds Trust

“Running a legal background check isn’t about policing your people—it’s about protecting your business.”

Screening with consent, clear purpose, and the right partner builds trust while reducing your risk.

Ready to Protect Your Business?

Whether you’re screening new hires or existing employees, Verity ensures full compliance with PDPA Malaysia.

• ISO 27001–certified
• Consent-based
• Fast, secure, and accurate
• Trusted by 1,000+ companies in Malaysia & Singapore

Start Screening Legally with Verity BGC: https://www.verityintel.com/employment-background-check/
Explore Instant Checks with VERISafe: https://www.verityintel.com/verisafe/