Bank Negara Malaysia has issued a policy document on Employee Screening. The policy aims to promote an ethical workforce within the financial sector by strengthening the screening practices for recruitments by financial institutions. Greater transparency on conduct histories of prospective employees will facilitate financial institutions in making informed hiring decisions.

The Central Bank said from 1 July 2018, financial institutions would be required to conduct a screening on prospective employees. Salient requirements of the policy document are as follows:

1. Financial institutions must request for employment references from current and past employers of the prospective employee;
2. Financial institutions receiving a request for employment references must provide specified information in response to the request;
3. Prospective employees must provide a statutory declaration on past criminal convictions or ongoing criminal investigations or proceedings that he/she may be the subject of;
4. Financial institutions must make an inquiry with the Financial Markets Association of Malaysia before employing–
a. any individual as a financial market dealer; and
b. any former financial market dealer or broker into any position.

The policy document will be applicable to financial holding companies, licensed institutions and prescribed development financial institutions.



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