Financial Services Background Screening

Q: Is a credit check required for all bank employees?

Not all, but it's strongly recommended for any position with access to financial systems, customer accounts, or fiduciary responsibilities. Many institutions screen all employees as a best practice.

Q: What criminal history disqualifies someone under Section 19?

Section 19 of the FDIA prohibits hiring anyone convicted of a crime involving dishonesty, breach of trust, or money laundering. This includes fraud, embezzlement, forgery, and similar offenses. FDIC approval can be sought for exceptions.

Q: How often should sanctions screening be conducted?

Best practice is real-time continuous monitoring. At minimum, screening should occur at hire and whenever sanctions lists are updated (OFAC updates multiple times per week).

Q: Do we need to screen contractors and vendors?

Yes. Regulatory guidance requires financial institutions to conduct appropriate due diligence on third parties, including background screening for contractors with access to customer data or financial systems.

Meet FINRA, FDIC, and SEC requirements with comprehensive screening designed for financial institutions. Protect assets, ensure regulatory compliance, and prevent fraud.

10-15

Average Checks Per Hire

Real-time (required)

Sanctions Screening

$1.5M per incident

Avg. Fraud Loss

$50K-$1M+

Regulatory Fine Risk

Up to $1M per day

Section 19 Violations

< 6 hours

VerifAI Turnaround

Financial Services Screening Challenges

FINRA and SEC regulations mandate thorough background investigations

Section 19 of the FDIA prohibits hiring individuals with certain criminal histories

Credit history checks are essential for positions with fiduciary responsibilities

Regulatory examinations scrutinize screening programs and documentation

Global sanctions and watchlist screening required for AML compliance

High cost of fraud and embezzlement in financial services

Required & Recommended Checks

Comprehensive screening package for financial services organizations.

Criminal Background Check

REQUIRED

Comprehensive federal, state, and county criminal search

Credit History Check

REQUIRED

Full credit report review for positions with financial responsibilities

FINRA BrokerCheck

REQUIRED

Registration and disciplinary history verification for registered representatives

Global Sanctions Screening

REQUIRED

OFAC SDN, EU sanctions, UN sanctions, and other global watchlists

Employment Verification

REQUIRED

Verify previous financial industry employment and reasons for departure

Education Verification

REQUIRED

Confirm degrees and professional certifications (CFA, CPA, etc.)

Professional License Check

REQUIRED

Verify securities licenses, insurance licenses, and regulatory registrations

Identity Verification

REQUIRED

SSN trace and identity confirmation

Civil Litigation Search

Search for civil lawsuits, judgments, and liens

Continuous Monitoring

Ongoing criminal, credit, and sanctions monitoring

Key Regulations & Compliance

FINRA Rules 3110 & 3120

Require member firms to establish supervisory systems including background investigations of registered persons.

FDIC Section 19

Prohibits banks from hiring individuals convicted of certain criminal offenses without FDIC approval.

Bank Secrecy Act / AML

Requires financial institutions to implement anti-money laundering programs including employee screening.

SEC Regulation S-P

Requires safeguarding customer information, including screening employees with data access.

CFPB Supervision

Consumer Financial Protection Bureau oversight requires documented compliance programs.

Case Study

Financial ServicesMid-Size Regional Bank (1,200 employees)

Challenge

Manual OFAC screening was inconsistent and audit findings flagged gaps in Section 19 compliance documentation.

Solution

Automated sanctions screening with complete audit trails, achieving 100% compliance in next regulatory examination.

100% audit compliance

Key Result

Frequently Asked Questions

Is a credit check required for all bank employees?

Not all, but it's strongly recommended for any position with access to financial systems, customer accounts, or fiduciary responsibilities. Many institutions screen all employees as a best practice.

What criminal history disqualifies someone under Section 19?

Section 19 of the FDIA prohibits hiring anyone convicted of a crime involving dishonesty, breach of trust, or money laundering. This includes fraud, embezzlement, forgery, and similar offenses. FDIC approval can be sought for exceptions.

How often should sanctions screening be conducted?

Best practice is real-time continuous monitoring. At minimum, screening should occur at hire and whenever sanctions lists are updated (OFAC updates multiple times per week).

Do we need to screen contractors and vendors?

Yes. Regulatory guidance requires financial institutions to conduct appropriate due diligence on third parties, including background screening for contractors with access to customer data or financial systems.

Other Industries We Serve

Healthcare

Transportation & Logistics

Education

Government & Public Sector

Staffing & Recruitment

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