In today's digital gold rush, where trust is the new currency, unlocking the best talent and customers demand meticulous screening. Those who adhere to these ethical standards are better positioned to thrive and lead in the digital age.
Recently the Top In Tech series broadcasted an episode titled, “Democratising Screening in the Digital Age to Mitigate Fraud and Scams”. This 39th episode sought to discover how organisations, particularly those within the finance and fintech sectors, are not only meeting the stringent compliance requirements set forth by Bank Negara Malaysia (BNM) under the Anti-Money Laundering Act (AMLA) but also harnessing the power of employment and customer screening to identify the perfect blend of talent and customers needed to fuel their growth ambitions.
Moderated by Karamjit Singh, Chief Executive Officer (CEO) of Digital News Asia, the episode featured a lineup of experienced speakers, including Mark Leow, Founder and Managing Director of Verity Intelligence & HaloCheck; Tan Kian Aun, President of the Malaysian Institute of Estate Agents; Muhammad Nazri, AMLA Trainer; and Darren Lai, Partner at Richard Wee Chambers.
The Importance of Screening in Real Estate and Law Firms
Tan highlighted that the world of real estate is a dynamic realm where transactions involve substantial investments and significant risks. Whether you’re a property owner, a landlord, or a potential tenant, it’s crucial to have a comprehensive understanding of the individuals involved in the process. This is where screening comes into play.
“Lawyers are no strangers to background checks for employment. A law firm's reputation as a reliable resource depends on hiring individuals with good standing and appropriate character. Each lawyer we hire has to first be qualified under the Legal Protection Act and then there is also the Bar Council Registration. The issuance of these certificates are guaranteed by the High Court of Malaya,” said Darren.
Top 5 High-Risk Crimes in Malaysia’s Financial Landscape
“As our economy continues to grow, we must remain vigilant against evolving threats. These are some of the high-risk crimes that happen in the financial landscape – corruption; fraud; drug trafficking; smuggling; and organised crimes – identified in the National Risk Assessment (NRA) 2020. Therefore, all of us – be it in the public or private sector, big or small firms – we must equip ourselves with screening tech to effectively detect, prevent, and eliminate illicit activities,” said Nazri.
Building Trust Through Employment Screening
When it comes to hiring, Verity Intelligence goes beyond the ordinary background check. Recognised as one of the leading background screening and verification companies in Malaysia and Singapore, Verity Intelligence's comprehensive employment screening process has helped organisations avoid potential losses due to negligent hiring and fraudulent business transactions.
Founder, Mark Leow, shared that when he was a headhunter, he discovered that many of the candidates pitched to customers had embellishments in their resumes. Some had faked their degrees, some had engaged in serious gross misconduct during their employment, while some were criminals. This inspired Mark to help customers screen their candidates before they hire.
In 2020, Verity introduced HaloCheck as their R&D and Technology arm. Recognising a gap in Instant Background Checks, especially for Customer Onboarding among reporting Financial Institutions, HaloCheck helps customers comply with Bank Negara Malaysia's AMLA requirements for Customer Due Diligence (CDD).
Customer Due Diligence: CDD checks involve several steps, beginning with identifying and verifying the customer, and then screening the individuals’ or entities' names against various blacklists issued by International Organizations, Governments, Regulatory Bodies, Authorised Agencies, as well as other legally available blacklists or watchlists.
The Link Between Fraud and ESG
“While the question of how fraud is linked to ESG may seem broad, it is important to consider the three components of ESG: environmental, social, and governance. Fraud can be linked to the governance aspect of ESG, as it involves issues of transparency, accountability, and ethical business practices,” said Darren.
By implementing good governance measures, organisations can minimise the risk of fraud and ensure the trust of their stakeholders. ESG frameworks provide guidelines for organisations to operate responsibly and sustainably, reducing the likelihood of fraudulent activities.
Key Takeaway
While standard screening processes may be enough for companies most of the time, deeper employment screening, due diligence checks and ongoing monitoring play a pivotal role as it offers organisations a greater peace of mind.
Watch the replay of the Top In Tech Episode 39 HERE:
