Employee Background Check

Introduction

In alignment with the increased security requirements and stringent financial regulations in Australia, has instituted a rigorous process for selecting individuals who can manage the company’s and customer's confidential information and financial assets. This policy ensures that the company knows the identity and background of its potential hires, maintaining high standards of security and compliance.

To achieve this, the selection process includes:

  1. Comprehensive Background Checks: This involves verifying the potential hire's education, employment history, criminal record, and credit history to ensure they meet the stringent standards required for handling sensitive information and financial assets, in compliance with Australian financial regulations and privacy laws.
  2. Identity Verification: Using advanced technologies and databases to confirm the identity of each candidate, ensuring they are who they claim to be and have a clear record of integrity and reliability, as mandated by Australian security standards.
  3. Security Clearance: Only candidates who pass rigorous security clearance checks are considered for positions involving access to sensitive data and financial This may include assessments in line with guidelines set by the Australian Security Intelligence Organisation (ASIO).
  4. Financial Screening: Assessing the financial background of candidates to identify any potential risks or conflicts of interest, ensuring that individuals with financial vulnerabilities are not placed in positions where they could be compromised, and adhering to regulations set by the Australian Prudential Regulation Authority (APRA).
  5. Ongoing Monitoring and Training: Once hired, employees undergo continuous monitoring and are required to participate in regular training sessions on data security, regulatory compliance, and ethical standards, in accordance with Australian corporate governance and regulatory frameworks.

By implementing these measures, ensures that only the most trustworthy and qualified individuals are entrusted with the responsibility of managing sensitive information and financial resources, thereby upholding the highest standards of security and regulatory compliance in Australia.

Purpose

The purpose of this policy is to outline the procedures follows to conduct background checks on applicants, evaluate their eligibility for employment, and ensure compliance with all relevant Australian regulations throughout the screening process. This approach minimizes risks associated with theft, fraud, or other financial crimes.

Major Facts
  • Regulatory Compliance and Data Protection: Financial services background checks are essential for maintaining regulatory compliance and protecting sensitive consumer and financial organization data.
  • Comprehensive Screening: Given the access financial services employees have to sensitive information, financial background checks are generally more comprehensive than employment screenings in other industries.
  • Risk Mitigation: Poor hiring decisions can expose financial service companies to significant risks, including internal theft, embezzlement, fraud, and negligent hiring
  • Legal and Regulatory Awareness: Employers in this industry must understand the relevant laws and regulations when making hiring decisions to ensure compliance and mitigate risks.
Understanding the Importance of Financial Services Background Checks

ensures that its candidates are trustworthy, honest, and safe. The company also verifies that new hires possess the necessary qualifications and experience for their roles. 's specialized Compliance team regularly accesses sensitive information about its employees and customers, as well as managing company funds.

Failing to conduct a financial services background check could lead to losses from embezzlement, identity theft, and negligent hiring liability. These checks are crucial for enhancing the integrity and trust of the organization and its employees. Due to Australian regulatory requirements, financial services background checks are often more rigorous than those in other industries.

Conducting employee background checks provides several benefits:

  • Maintenance of regulatory compliance
  • Protection of customers’ privacy
  • Reduction of crime risk
  • Improved workplace safety
  • Increased employee morale
  • Protection of the organization’s brand

Criminal Background Check

If an applicant has a criminal record, ’s Compliance team reviews the following details from the criminal background check:

  • Offense Date
  • Nature of the Offense
  • Offense Severity (Indictable/Summary)
  • Disposition
  • Date of the Disposition
  • Sentence Information, if Reported
    • Spent Convictions, which are also generally reported in accordance with Australian

    Education and Employment Verification

    verifies applicants' claimed education to ensure they have the necessary qualifications for their jobs. Education verification reports include the following details about an applicant’s educational history:

    • Name of the educational institution
    • Dates of attendance
    • Degrees or certifications obtained
    • Field of study or major
    • Graduation status

    Employment verification reveals the following information about each of an applicant’s past jobs:

    • Employer’s name and address
    • Employment dates
    • Titles/positions held

    These details are reported in accordance with Australian employment and privacy laws.

    International Background Check

    Candidates who have lived and worked in other countries should undergo international background checks. ’s Compliance team conducts a thorough review of the candidate's international work history to ensure compliance with Australian regulatory standards. This includes verifying there are no disputes or impeachments in their international employment record, as regular domestic background checks may not uncover pertinent information about candidates from overseas.

    Civil Court Verification

    occasionally conducts civil court checks as part of its pre-employment screening process when there is suspicion of unethical, immoral, or dishonest activity by an employee.

    Certain types of civil lawsuits and judgments may be relevant due to the access employees will have to sensitive customer and institutional data, in accordance with Australian legal requirements and privacy laws.

    AUSTRAC. The Australian Transaction Reports and Analysis Centre Office’s Enforcement list

    The Australian Transaction Reports and Analysis Centre (AUSTRAC) is an independent agency within the Australian Government responsible for collecting financial intelligence to combat money laundering and terrorism financing. AUSTRAC regulates and supervises financial institutions, private companies, and their employees, including directors and officers, under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

    AUSTRAC conducts checks to enforce actions against entities and individuals involved in financial crimes. This includes searching AUSTRAC's enforcement action list to identify any bans from working in the government or private service industries.

    Disqualifying Grounds for Working in

    Generally, if an applicant’s background check reveals any financial-related crimes, they are typically disqualified from working at . Australian law mandates strict adherence to regulations governing the employment of individuals convicted of offenses involving dishonesty, breach of trust, or money laundering. Additionally, individuals who have participated in a diversion program related to such crimes are also ineligible for employment under Australian legal standards.

    By utilizing financial background checks, employers can ensure that applicants meet the Australian Transaction Reports and Analysis Centre (AUSTRAC) background check requirements.

    Financial Background Check

    Background checks are crucial for all companies, with particular importance for firms in financial services like , to obtain accurate information on every potential employee. collaborates with various third-party background screening companies authorized to swiftly access comprehensive information, ensuring compliance with Australian regulatory standards.

    Procedures to Comply With when Conducting a Background Check

    partners with a third-party background check company to ensure compliance with The Australian Transaction Reports and Analysis Centre (AUSTRAC), as well as state and local regulations, when conducting background checks. Upon receiving the background check report, , as the employer, makes the decision whether to proceed with the hiring process

    If decides not to hire the applicant based on information found in their background check report, it follows the required Adverse Action steps, which include:

    1. Providing the applicant with a pre-adverse action letter, explaining why no longer intends to move forward with their application.
    1. Allowing a "reasonable amount of time" (typically around five business days) for the applicant to review and correct any false information in their background check.
    1. Making a final decision regarding the applicant's employment
    1. Providing the applicant with an official adverse action letter if decides not to hire them for the job.
    1. Including with each notification a copy of the background report and a document titled "Summary of your rights under Australian law."

    Verifying the background of Employees with a Trusted Background Check Provider of Choice

    Whenever is looking to hire new employees, it is imperative to conduct a financial services background check on every applicant. By partnering with a background check provider, ensures comprehensive background check services that prioritize security, providing the most accurate and up-to-date information available.