Bank Pre Employment Screening
Our criminal record "Smart Search Plus®" provides a search of county, state and Federal criminal records going back at least seven years.
Our criminal record "Smart Search Unlimited®" is even more extensive with records searches going back 10 years in all state, county and Federal jurisdictions where the applicant may have lived for the past 10 years.
For an example of an applicant with a Federal criminal record but no state or county arrest record, Click Here. This record would not have been found without a check of the separately maintained Federal criminal records systems which contains about 10 per cent of all arrest records.
Financial Institution Letters
Pre-Employment Background Screening
Financial Institution Letters
Pre-Employment Background Screening
Also, Cease and Desist Orders are public records and can be accessed through a link from the above-referenced website. Cease and Desist Orders are generally issued against an institution and contain the subject of any strictures, prohibitions or limitations. While banks are not prohibited from hiring an individual who has been assessed CMPs or performed duties in an institution subject to a Cease and Desist Order, management should determine the individual's role in any possible misconduct and provide appropriate oversight of that individual.
In addition, the National Federal Bureau of Investigations (FBI) Fingerprint Service is a program offered by the FBI, with the American Bankers Association (ABA) acting as the intermediary. All financial institutions can submit fingerprint cards through this service. The FBI compares the fingerprints that are submitted against a criminal database and informs institutions of a positive match if a criminal record is discovered. A copy of the criminal identification record is then mailed to the financial institution. In addition, questions and answers have been developed for management's use, as well as a sample announcement that can be used to inform employees of the fingerprinting program.
A common practice is to require written applications rather than resumes from applicants. A standardized application form can provide legal protection that a resume may be unable to provide. For example, resumes may contain information that cannot be used in the hiring process, such as personal information or membership that is irrelevant to the hiring decision. Moreover, a written application should state that untruthfulness or material omissions are grounds for termination and that by signing the form, the applicant attests to the accuracy of the information provided. This is especially relevant for those candidates who fail to disclose criminal convictions. While a conviction is not necessarily a valid reason for automatically rejecting a candidate, the omission or lying about a conviction may become the basis for disqualification. Without a signature on an application, a candidate cannot be later terminated on the basis of falsification. Furthermore, information about the applicant is collected in a standardized format that can be compared to other applicants and more readily identifies inconsistencies. If bank management decides to use a third-party service provider, a standardized application should be used to enable the third-party service provider to collect data required for the screening process, such as previous addresses for a certain number of years, sufficient information to verify previous employment and supervisor's name, and gaps in employment history. For positions that require a specific degree, an authenticated copy of the college transcript may be appropriate.
Due Diligence in the Selection of Background Screening Service Providers
When selecting a third-party service provider for background screening of potential employees, due diligence should be used, just as with selecting any other service provider. Prior to contracting with a background screening service provider, management should obtain and review audited financial statements to determine the service provider's viability, internal control environment, and reputation. Legal counsel should review the contract prior to consummation, and determine whether the contract contains language protecting the confidentiality of information obtained from applicants. Management should discuss with the third-party service provider its own hiring and employment processes. In addition, management should ensure that any information obtained in the screening process is not provided to any other entities or persons, or sold for profit by the service provider. Management should also inquire about the safeguards that the service provider has in place to prevent identity theft. The bank's board of directors, or an appropriate committee thereof, should formally approve the service provider prior to finalizing the contract.
Some third-party service providers search for criminal or civil records only at the local or state level, rather than in all pertinent local, state and federal jurisdictions. Therefore, it is important that the service provider selected is willing and able to review records in each jurisdiction where the applicant has previously lived and worked.
Pre-employment screening is not an invasion of privacy, but a verification of information provided by the applicant. Nevertheless, the pre-screening process must comply with the Fair Credit Reporting Act5 (FCRA), as information about a person's credit, character, general reputation, mode of living and personal characteristics are included6. Credit reporting agencies, which are covered by the FCRA, collect and communicate this information for employment purposes to the bank or entity conducting the pre-employment background screening process. Consequently, before requesting such a report, the bank must disclose in a separate document that the institution will be obtaining a consumer report on the applicant for employment purposes, and obtain the applicant's written consent.
If employment is denied based upon information in the consumer report, the applicant must be provided with the name, address, and telephone number of the consumer reporting agency that furnished the report, a statement that the consumer reporting agency did not make the decision to take adverse action and is unable to provide the consumer with the specific reasons why the adverse action was taken, and provide the applicant a notice of the applicant's right to obtain a free copy of the consumer report and to dispute with the consumer reporting agency the accuracy of any information in that report. If the applicant believes the information is incorrect, the applicant can inform the screening agency, which must remove or correct errors or unverified information within a certain time frame. Finally, applicants have a right to inspect their application files.
For some of the larger background screening companies, applicants provide information directly into the service provider's system and grant approval directly to the service provider. The results are then accessible only to the potential employer. This allows for a more streamlined process, and the applicant is fully aware that a third party will be conducting the pre-employment background screening process.
The pre-employment background screening process can assist bank management in the hiring of qualified applicants, while simultaneously reducing turnover, deterring fraud, and avoiding litigation. However, to be effective, bank management should establish in writing criteria for when pre-employment background screening should be used and for circumstances or positions that may warrant increased screening procedures based upon perceived risks. While the pre-employment background screening process is not infallible, it can provide greater confidence that applicants' representations are accurate.
Click on any of the links below for more information on any of our employment screening services.
Criminal Record Smart Search Plus®
Other Criminal Records Checks
Instant Driving Records
Pre-Employment Credit Reports
Pre-Employment Drug Screening
Volunteer Employment Screening
Church Worker Employment Screening
Autism Care Employment Screening
Health Care Provider Employment Screening
Consent Based SSN Verification
Credential Verifiication Services
I-9 Verification Compliance
For More Information Call Anytime
None of the information contained in this web site should be construed as legal advice.
All forms, policies, information and procedures should be reviewed by your legal counsel before being used in any way.
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