September 20, 2018

Background Checks – WST

Background checks are a must for any business.  FFIEC guidance states that “Management should have a process to verify job application information for all new employees.  The sensitivity of a particular job or access level may warrant additional screening and recurring background and credit checks. Management should verify that contractors are subject to similar screening procedures.  In addition to initial screening, management should remain alert to changes in personal circumstances of employees and contractors that could increase incentives for system misuse or fraud.”

Financial institutions should consider the following checks:

  1. Review character references;
  2. Check government issued ID;
  3.  Evaluate prior experience and educational records;
  4. Check for conviction of criminal offense.
    1. Any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such offense, may not; become, or continue as, an institution-affiliated party with respect to any insured depository institution; own or control, directly or indirectly, any insured depository institution; or otherwise participate, directly or indirectly, in the conduct of the affairs of any insured depository institution.

The FDIC Pre-Employment Background Screening Financial Institution Letter is a great place to learn more:

Past Weekly Security Tips – WST