Dialogue on Employment Screening


To ensure employees of financial institutions possess the highest standard of integrity and professionalism, which are essential to sustain public confidence in the financial sector, and to mitigate the risk of ‘rolling bad apples’ within the industry, Bank Negara had in March 2018 issued a policy document entitled “Employment Screening” with implementation date commencing 1.7.2018.

Under this policy, hiring banks are required to conduct a thorough reference check with job applicants’ previous employers and banks which receive request for reference checks are obliged to disclose relevant information on the job applicants who are their staff or former staff, particularly information which touch on integrity and honesty.

To ensure that all member banks adhere to certain standard practices which can be applied across the board, MCBA organized and facilitated a dialogue session on 16th August 2018 by inviting all member banks to voice their concern and suggest recommendations to overcome teething issues they face with each other in implementing the reference checks.

The outcome of the dialogue session was very fruitful in that member banks were able to come to consensus on what should be the set of standard practices member banks should adopt in dealing with each other to ensure that the process of employment screening is handled more efficiently.

MCBA has since compiled the standard practices and distributed them in the form of Guideline to all member banks.