Why should companies perform Background Checks?

Anti-Money Laundering (AML) and Background Checks of Employees

Background checks are essential because they help verify information about the candidates and help companies make informed decisions during the recruitment process. The background checks help reduce the risks and prevent anyone from tarnishing the company’s reputation. Companies are always looking for the best candidates, and therefore background checks are crucial so that bad hires are not inducted into the organization. The checks help to verify that the person is not involved in any criminal activity and verify that the documents furnished for verification are genuine.

What is included in the Background Checks of employees?

A background check involves exhaustive information about the individual from private databases and the public domain. Their name, birth date, ID number, personal and educational documents- all the records are used for verification. It includes the following steps-
Identity verification – It involves cross-checking the applicants’ names and ID numbers. It also consists of verifying the applicants’ citizenship and knowing whether it’s legally permissible for them to work in a particular country.
Criminal history: This verification process will detect the candidates’ involvement in any crime or know if they are on parole. It also helps to know if an arrest warrant has been issued against the person.
Employment history – It gives details about the applicant’s past work experience, and details about the companies which the applicants have worked for previously, and check if the records they have furnished are correct or not.
Educational Records – It checks if the person has furnished correct educational documents or not.
Credit history verification– It will verify the applicant’s credit history- financial records.

The Importance of Background Check

Background Check is a crucial element of the recruitment process. You should verify the employees’ background and know if the details are correct. Companies will prefer only verified professionals and assign them responsibilities of their organisation. 

A background check is an important activity of the recruitment process that helps identify any suspicious activity. Organisations have to verify if a candidate is involved in any money-laundering activity. In this way, organisations can prevent suspicious individuals from entering the workforce. Organisations need to scrutinise the CV information cautiously and perform a thorough background check.

Employment Background Checks

The recruitment process involves a thorough background check for the candidates. With the help of a professional company, SMEs and large-scale companies can perform background checks. With databases, they can thoroughly check whether the applicant is involved in any financial fraud or financial crime such as money laundering. The database consists of persons monitored on different parameters- PEP-Politically Exposed Persons, Sanctions, and verifies applicants with the help of regulatory and law enforcement data from more than 200 countries. The databases are updated regularly, leaving no scope of missing any latest information.


You can get the best hires for your company and verify them, posing no threat to your organization. A background check will help to safeguard your company’s reputation. AML UAE offers an array of AML compliance services. The services will help to comply with AML/ CFT rules and regulations. You can get complete information on the correct AML procedures by visiting AML/CFT Policy, Controls, and Procedures Documentation. AML UAE is a unanimous choice of a large number of businesses in the UAE for getting reliable AML services. For more information on the AML services, feel free to visit AML UAE.

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About the Author

Pathik Shah


Pathik is a Chartered Accountant with more than 25 years of experience in compliance management, Anti-Money Laundering, tax consultancy, risk management, accounting, system audits, IT consultancy, and digital marketing.

He has extensive knowledge of local and international Anti-Money Laundering rules and regulations. He helps companies with end-to-end AML compliance services, from understanding the AML business-specific risk to implementing the robust AML Compliance framework.