Background check: Financial Background

Jun 20, 2019

Industry News, Services

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During new business partnerships, recruitment or even business deals there comes a point where money is involved. One needs to be careful when it comes to these matters because once the signature is on the dotted line it’s difficult to amend. Doing a financial background check to see if the person has a large amount of financial debt can save some companies millions, especially if the person is working with accounts/ money transfers etc.

What is needed?

  • Written consent from the new recruit/ partner/ rentee
  • Copy of their ID

What is revealed?

Their credit record is shown; including how much debt, from who/where and how long. It also shows if the candidate is a low, medium or high risk.

  • ID verification with Department of Home Affairs (if the ID is valid or part of identity fraud);
  • If the person is marked as deceased by Home Affairs;
  • Marriages registered with Department of Home Affairs (shows the spouse’s basic information);
  • Adverse financial history: Any court judgements and/or decrees, bankruptcy etc. The amounts, court case numbers and whether the debt has been settled;
  • Address history verification: This part shows the candidates address history and all properties owned/ rented;
  • Alias names: This part shows whether the person is or has been associated by any other names;
  • Previous credit searches: This shows where the candidate has:
  • Accounts (eg. Edgars, Markhams, Game, etc), how much is owed on each account and if the debt is being paid regularly;
  • Credit card or loan applications;
  • Debt collection activity (loan sharks etc).
  • Notices of corrections: This shows whether the candidate has any corrections made to their debt (if they asked the bank to pause on debt collection for a specific time period – sometimes to have their bank statement look “clean”).

What can Financial backgrounds be used for?

  • Recruitment – Especially if the candidate is in a sensitive position or dealing with any finance matters.
  • When an employee who has been with the company for a long period of time is promoted.
  • Vetting new business partners – Even if they are friends, family or old acquaintances. Closet skeletons can easily be hidden.
  • When (long term) renting out any property/ vehicles or loans.

What can you gain?

Any dishonesty about personal finances is clearly shown which gives peace of mind that you know the right choice has been made. It shows what type of person they are. If they don’t pay their debt, then how can they be trusted with company funds? If they have big amounts of unpaid debt, then what are the chances the dishonesty is brought to the company and those funds are illegally and secretly used to clear their debt? Is it a risk worth taking?

If you would like to enquire more about Financial Background checks, please feel free to contact Uphando Forensic and HR Services and we will gladly assist.


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