Staff vetting is a screening process that delves deeper into an employee’s background than what they may reveal on a resume or in an interview. It often includes criminal record checks, verification of degrees, professional licenses and certifications, social media checks and more. It also involves looking for red flags that might signal the potential risk of a money laundering (ML) or other business crime.
It’s important to note that staff vetting should only be carried out in compliance with laws and regulations, such as non-discrimination and equal opportunity. It is not about digging up dirt on every candidate but rather ensuring that the people you hire will add value to your business.
Ensuring Peace of Mind: The Importance of Staff Vetting in the Workplace”
If your vetting process uncovers an issue with a new hire, you will be able to take steps to mitigate that risk. The most common risk is that the person will pose a ML risk by collecting customer identity documents, performing customer due diligence (CDD) and/or processing payments for captured activities. This can be mitigated through carrying out identity and address confirmation searches, as well as other checks such as insolvency search results.
While it is possible to identify ML risks through employees by vetting them properly, you should also consider conducting periodic re-screening of existing staff. This will identify issues that might have arisen since they joined the company, including criminal records, driving incidents and sanctions. This will help you to manage ongoing risk and meet your AML obligations.