What are the KYC Procedures for Merchant Onboarding?

KYC procedures for merchant onboarding

What are the KYC Procedures for Merchant Onboarding?

The merchant onboarding process is at the core of the payments industry, its effectiveness either enabling or inhibiting growth for businesses in this soon-to-be $2-trillion market. The global payments sector is rapidly evolving, with legislative changes, macroeconomic developments, and fintech’s push into the payments industry that is posing problems and opportunities. 

As payments companies negotiate the industry’s challenges, they are all affected by the digital change that is sweeping financial services. Customers and merchants have grown accustomed to faster, more convenient service, prompting payment providers to invest in digital infrastructure upgrades to gain speed and flexibility. Meanwhile, new businesses are emerging onto the market with unprecedented speed. 

When onboarding merchants, certain risks must be addressed, such as fraud, excess chargebacks, money laundering, tax evasion, and so on. Regulatory guidelines and applicable regulations compel us to take a number of preventive measures, including Know-Your-Customer (‘KYC’) and merchant due diligence procedures, in order to achieve this. As a result, we conduct a series of checks for merchants that begin before onboarding and last until the conclusion of their engagement with us. Financial service institutions or any other businesses who want to onboard merchants onto their platform can use the techniques described here to comply with guidelines and mitigate risk. 

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What is KYC?

When a client attempts to open an account or on board with a regulated financial institution, such as a bank, a private bank, or an investment company, KYC is conducted (e.g.: the KYC process you undertake when opening a bank account). An individual or a legal entity can be a client. The goal is to verify the client’s identity, address, and legitimacy through crucial document verification. When combined with due diligence and other mandatory tests, these allow us to identify possible fraudsters, and shell corporations and detect money laundering, among other things. Non-regulated enterprises, such as an online marketplace, are frequently required to conduct a full or partial KYC as a precaution. These enable us to secure ourselves and our end customers and the financial system as a whole. 

The Complete KYC Procedure

The KYC document check, also known as the Customer Due Diligence Check, is in the initial stage. Individual KYC and Business KYC are two types of KYC that can be used: 

Step 1: The KYC document check or CDD process

  • Individual KYC: We do a ‘KYC’ process, or CDD for an individual, when you are a merchant who is an individual (e.g., a sole proprietor). In general, we check your identity using an OVD check (identity documents such as Aadhaar, passports, driving licenses, and so on), individual PAN verification, and, if applicable, current address proof check (utility bills, etc.). We can also request additional documents to confirm your financial or company position, such as your business registration documents. 
  • Business KYC: When we are on-boarding a business partner, we perform a Business KYC procedure, also known as a CDD for a business. The OVD check is replaced by an ‘entity-proof’ check in this case. This, too, varies depending on the type of legal company you are. If you’re a company, for example, we’ll need to verify your certificate of incorporation, memorandum and articles of organization, and other documents. If you’re a trust or partnership, we’ll need your trust/partnership deed, registration certificates, and other documents. 

Step 2: Check for sanctions and PEPs on the sanction and PEP lists.

The names of our clients and their beneficial owners must then be checked against specified lists, such as national and international terrorism lists, or lists of “Politically Exposed Persons.” We must also notify the Financial Intelligence Unit of India (‘FIU-IND’) if a name appears on a sanctions list. We also check blacklists, greylists, and defaulter lists for firms, directors, and other individuals issued by banks, the Ministry of Corporate Affairs, the Securities and Exchange Board of India, the Enforcement Directorate, the Office of Foreign Assets Control (US), and others (for a detailed list please see Appendix II below). These checks help us combat terrorism and money laundering, as well as determine risk thresholds for individual clients. 

Step 3: Merchant screening and onboarding policies

Following that, we do a background and antecedent check in the form of an initial screening, for which we establish an internal merchant Onboarding Policy. The purpose of this step is to confirm the nature, purpose, and legitimacy of a potential client’s business. To determine business legitimacy, we conduct a variety of checks, including licensing/registration checks, credit checks, profit and loss statement checks, balance sheet reviews, and so on, based on information we obtain directly from the prospective client, as well as publicly available information such as the merchant’s websites, product listings, end-customer reviews, social media activity, and so on. We must additionally check for PCI-DSS compliance because it is mandated by law.  

Step 4: Merchant profiling and levels of diligence

Following these preliminary assessments, we must categorize merchants as low, medium, or high risk. Based on this, we determine the levels of due diligence and post-onboarding monitoring we do; for example, we need to conduct enhanced due diligence for PEPs but simpler due diligence for self-help organizations. We’re also barred from doing business with some industries (tobacco, hacking, gambling, weapons, and so on), while others are considered high-risk (pharmaceuticals, matrimony, gaming, security brokers, jewelry, and so on), necessitating more scrutiny and caution. 

Step 5: Continuous due diligence

Following onboarding, our due diligence procedures will continue to monitor any suspicious changes in merchant behavior. A change in the merchant’s website details, for example, or an unexpected display of high-risk products, could suggest fraud. These circumstances may necessitate a review of merchant risk profiles and due diligence levels. 

Step 6: Keep track of your transactions

We monitor merchant transactions as part of our onboarding process to look for any potential red flags, such as differences in expected transaction characteristics. Expected total transaction volume, average order value, chargeback frequency, and so forth are examples. For instance, if a merchant exceeds the maximum transaction limitations, exhibits a strange refund pattern, or receives frequent end-customer complaints, these are all red flags. Regulated entities must report any suspicious transactions (such as those that raise money laundering concerns) as well as transactions above specific thresholds (e.g., cash transactions over Rs.10 lakh, cross-border wire transfers surpassing Rs.5 lakh) to the FIU-IND. 

Step 7: Requirements for record-keeping and internal governance

Then, for at least 5 years, we preserve records of all merchant transactions and identity documents. These must be made available to the authorities upon request, such as in the case of an investigation. Internal governance demands such as dedicated internal committees, internal audits, periodic risk assessments, and proper employee training are also in place to ensure effective implementation of requirements. A Designated Director and a Principal Officer must also be selected, as they have specific reporting responsibilities under the PMLA. 

Step 8: Updates on a Regular Basis

Finally, both merchant risk profiles and KYC must be updated on a regular basis. It is required by law to update merchant KYC every 10 years for low risk, 8 years for medium risk, and 2 years for high risk. This is also aided by the continuous due diligence checks. 

Final thoughts:

Merchant onboarding is beset by the same age-old regulatory, trend, and competition issues that hamper the payments industry as a whole. Where once the industry dynamic was split between large retailer’s competitive margins and smaller merchant’s regulatory issues, the spectrum has now expanded to embrace the rising marketplace economy. Because everyone is a merchant in today’s environment, merchant onboarding volume, and transactional volume are both lucrative and hard. The marketplace economy has created a risk and regulatory gap, which is being navigated by a subset of creative payments organizations. 

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Best Practices for Managing and Improving Merchant Onboarding

Merchant Onboarding

Best Practices for Managing and Improving Merchant Onboarding

The recent global health crisis has had an influence on a wide range of industries and geographies, not least the payments industry, which has seen an unprecedented transformation. Consumer purchasing habits have evolved to online shopping for products and services, resulting in the requirement for faster onboarding and better continuing merchant monitoring to reduce fraud and compliance risk for merchant acquirers. 

When it comes to onboarding new merchants, automation is critical in order to make a smooth transition from the previous time-consuming approach to a slicker, faster process that reduces friction for the new merchant. But what steps should merchant acquirers take to guarantee that they are prepared to meet this new challenge of changing the customer experience while limiting risk? 

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Automation of underwriting processes

It is critical for acquirers to provide a smooth merchant onboarding experience for their customers. With the epidemic hastening the general public’s shift to a more online approach, new smaller digital-only merchants are popping up all the time, with low margins and a need to be up and running quickly; for them, a swift onboarding procedure is vital. 

Before an underwriting decision can be made, the normal merchant onboarding process comprises a number of phases that must be completed, as shown in the creative below. This is typically a 3–5-day process. This process is too protracted, as previously said, given the current climate and the unique terrain of online-only micro-merchants. 

Digital automation can shorten the time it takes to underwrite a new merchant from days to minutes. However, if not done appropriately, this speed in decision-making can come at the expense of risk management and have a detrimental influence on the acquirer’s profitability. 

Collecting data that is both actionable and objective

Effective onboarding decisioning requires access to meaningful and objective data. To enrich their perspective of each applicant, merchant acquirers should use a combination of their own data, third-party data, and assessment services. The best strategy is to combine application data with external data from a growing industry of data suppliers who can provide essential insight and assessment on topics like bank account validation, email addresses, IP addresses, device IDs, and negative hotlists. Internal data from various sources is ingested, which eliminates human data entry and reduces judgmental underwriting decisioning while also ensuring consistency. 

Using analytics and algorithms

Acquirers should not only have precise and objective data, but they should also be able to analyze it using analytic models and procedures. The tools should allow the acquirer to import models, scorecards, trees, and tables, and they should be completely user-configurable. Acquirers frequently have historical data about applicants in addition to external data, but it is inaccessible owing to the sprawl of data. Rather than going through the pain of trying to centralize all referential data in a single data store, design a solution that allows you to take data from multiple sources and retrieve it when you need it. 

Effective risk management, tracking, and learning rates

Risk management should not be the primary consideration for merchant acquirers and their merchant customers during the onboarding process. Merchant acquirers’ portfolios have become riskier as a result of increased digitization and demand for innovative payment options. As new entities pop up and enter the system at breakneck speed, the barrier to entry into the digital/ecommerce economy has increased. Validating these new entities necessitates the use of more robust systems that can make use of both internal and external data. 

Acquirers should improve their ability to manage fraud and compliance risk by evaluating possible collusive or fraud-targeted merchant behavior, the chance of merchant attrition or insolvency, and current and prospective merchant profitability. 

There is an increasing requirement for merchant monitoring in real-time in order to spot aberrant merchant behavior in time to prevent losses. We also find a lot of value in linking pre-book (onboarding) performance/results with post-book (monitoring) outcomes in order to establish a faster learning loop and enhance both areas. In reality, many acquirers are looking to meet both of these demands with a single platform/capability to improve insight sharing. 

Ensuring that merchant monitoring methods are comprehensive

Risk management is a continuous necessity that does not end after a merchant is onboarded. The world of business moves quickly, and many businesses, particularly smaller, more flexible ones, must pivot or alter their course quickly to stay competitive. Their consumer profile may alter as a result of these developments. As a business grows, a merchant may need to expand into new markets or adjust the way they accept payments to accommodate a greater range of card types and payment methods. As a result, their risk profile may shift, leaving your company vulnerable.

Identifying potential changes in a merchant’s sales operations that could influence their risk criteria requires some type of ongoing monitoring. Keeping note of indicators such as surges in sales activity, surpassing payment thresholds, out-of-area or strange sales activities, and altering website products or connections can provide you with an up-to-date image of each merchant you work with and show any potential red flags. Keeping a lookout for their presence on punishment lists, as well as any unfavorable or adverse media coverage, will be essential.  

An effective merchant monitoring approach will be automated, leverage cutting-edge analytics, real-time urgency and flexible data ingestion, and be able to proactively alert acquirers to potential risks and double as a competitive advantage for attracting new merchants to their network. 

Technology that is 'plug and play'

It’s critical to get your relationship with your new merchant off to the greatest possible start. A quick and flawless automated sign-up procedure can help attract and secure new merchants to your payments firm, but if things go wrong once they’ve signed on the dotted line, all your efforts could be for naught. A key component of the merchant onboarding process is a faster merchant setup. It enables merchants to swiftly deploy the equipment and technology they require to accept payments right now. As a result, this step should be as simple and straightforward as signing up.

Your new merchant will be a happy customer if everything is ready to ‘plug and play’ right out of the box. If it’s difficult to set up and get ready to use, they’ll toss it in the back of the drawer before it’s even used – and your brand’s reputation suffers as a result. As a result, make sure that all of the software, training materials, and other information that the merchant will need to get up and running is preloaded or supplied with the device, so that your new customer has everything they need right away. 

Quicker go-live

Because of the ecommerce boom, the introduction of smart technology, and the pervasiveness of social media, today’s consumers demand fast access. This puts pressure on merchants and brands to be available to their customers 24 hours a day, seven days a week, which necessitates collaboration with service providers that can assist them in achieving this high level of service. Merchants, like customers, don’t want to wait weeks for a new potential payment provider to process their manual (or even paper) application. They expect to be up and running in a matter of minutes. Why not a merchant account if they can obtain this level of service with a commercial banking account?

To learn more about our advanced merchant onboarding solutions. 

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How MIMOIQ is helping Hinduja Leyland Finance to scale up their Operation-Process.

How MIMOIQ is helping Hinduja Leyland Finance to scale up their Operation-Process.

Here is an example of the tasks and processes that MIMOIQ executes for Hinduja Leyland Finance: Hinduja Leyland Finance offers easy financing options or car loans to customers who are looking to purchase a vehicle.

About Hinduja Leyland Finance

Hinduja Leyland Finance Limited offers loans to customers for commercial and personal vehicles including tractors, cars, and multi-utility vehicles in India. It was incorporated on November 12, 2008, and finances a wide range of commercial and personal vehicles in the primary as well as the secondary market of used vehicles. These include medium and heavy commercial vehicles (“MHCVs”), light commercial vehicles (“LCVs”), small commercial vehicles (“SCVs”), cars, multi-utility vehicles, three-wheelers, and two-wheelers. 

HLF’s vehicle finance business has a diversified customer base comprising of First Time Buyers, Captive Users, Retail Operators, Strategic and Large Fleet Owners, Small Truck Owners, and self-employed individuals, who are largely based in urban and semi-urban locations. HLF also finances tractors and construction equipment and provides loans against property. In September 2015, HLF launched their housing finance business through its wholly-owned subsidiary, Hinduja Housing Finance Limited, which focuses on providing finance for affordable housing loans. 

Challenges faced by Hinduja Leyland Finance in recovery of loan amount after the car has been picked up.

There could be several reasons for the scenarios mentioned below :  

MIMOIQ assists Hinduja Leyland Finance to overcome these challenges by providing and executing a comprehensive audit process for the identification of the vehicle and recovery of loan amount. This task is made easy with the help of their vast network of field officers equipped with cutting-edge technologies. 


How is MIMOIQ helping Hinduja Motor Finance achieve their goals?

If a customer avails a car loan from Hinduja Motors Finance and a situation arises where the customer is unable to pay his/her installments for two consecutive months, the car is picked up and sent to a car yard. Our field officers are then activated via the robust MIMOIQ mobile app powered by MIMOIQ’s software solution, TraQSuite. The field officer assigned the task with the data provided by the Hinduja team visits the car yard to verify whether the vehicle is indeed the same vehicle that was registered under that particular loan. This is done by clicking pictures, verifying chassis numbers, vehicle registrations, and also matching the documents available at the yard with the data that the field officer possesses. Once the vehicle has been identified, the field officer then reports back to the client with the required data.

Nationwide coverage with skilled field officers

We create long-term value for the Hinduja Motor Finance Group with our cutting-edge technology and a ground presence of 14000+ field officers. MIMO’s professional field officers are equipped with agile technology that ensures data authenticity, which includes geotagging, negative monitoring, quality management, and real-time data delivery—a robust mix of services and tech to provide an organization with comprehensive constructs required to execute any activity related to audit surveys that include document verification, asset identification, data authentication, and real-time reporting. 

Streamlining the Asset Audit Process

The asset audit process for Hinduja Motor Finance is deconstructed into 3 easy steps by MIMO that includes

Asset Identification

This includes verifying and matching the data provided by the client. 

Data Authentication

This includes verifying all document-related data and authenticating the information received by the client. 

Real-time reporting

Instant updates regarding any development regarding a particular task or activity. 

Reduction in Turn Around Time (TAT):

A vast network of field officers across the country ensures reduction in TAT for any task assigned by the client. With MIMO’s ever-growing army of field verification associates, multiple tasks can be assigned, and multiple visits can be executed within a short period of time. 

How can this process be used to help other brands?

Organizations with similar standard operating processes (SOPs) can avail of MIMO’s software solutions for Asset and Inventory management, streamlining of asset audit processes, seamless data integration and verification, and the utilization of highly scalable, portable, and easily integrable automated processes.

We create long-term value for organizations with our cutting-edge technology and a ground presence of 14000+ field officers. MIMO’s vast network of professional field officers equipped with agile technologies enables a highly effective and efficient mix of skilled associates and state-of-the art tech which ensures that tasks are completed within a short period of time. 

Can CIBIL Score affect your Job Prospects?

cibil score

Can CIBIL Score affect your Job Prospects?

The credit score is a three-digit numeric number representing a person’s credit history in India. This rating is based on an individual’s credit payment history across loan kinds and credit institutions over a set period of time, as recorded in the CIR. Credit-scoring organizations also notes a person’s payments, late payments, loan terms, and other factors. 

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Can a person's credit score have an impact on their job prospects?

This practice cannot be guaranteed because certain firms from other industries may examine your CIBIL score and credit record before shortlisting you for an interview. Many firms have begun to focus on an individual’s financial health in order to evaluate numerous human traits such as reliability and honesty, as time has passed. 

What Is A CIBIL Score and Why is It Important for Job Seekers?

The CIBIL score is a three-digit figure that ranges from 300 to 900 and is used to offer a summary of your loan and credit card payment history. This report outlines your loan and credit transactions with each bank and financial institution during a specific time period. Simply explained, your CIR is your credit report, and your CIBIL score is the credit ranking you receive based on your CIR’s performance. Your CIBIL score is a good indicator of your financial situation.

Although the CIBIL score’s primary function is to show your credit worthiness, it also aids in determining how financially responsible a job applicant is. Employers used to check a candidate’s CIBIL score only when he or she applied for certain jobs or profiles, but now practically every major private and public employer checks a candidate’s CIBIL score for all types of job openings. 

What factors do companies consider when reviewing credit check reports?

In this scenario, it’s important to analyze the employer’s perspective in order to properly understand why CIBIL scores are scrutinized before employing people. The following are some of the most common explanations: 

Checking Your Background

A background employment check is one of the legitimate reasons for investigating your credit record or score. A person with a poor CIBIL score, for example, may be perceived as reckless, and his or her talents may be seriously questioned. Companies are known to be hesitant to hire someone with a criminal past; in the near future, an individual’s severely poor credit score may have an impact on his or her career opportunities. As a result, poor credit and employment checks are intimately linked. 

Bad Characteristics Analysis

Would you trust someone with a low CIBIL score? Such a person might not be considered a trustworthy employee candidate, and his or her honesty would be severely scrutinized. The employer’s point of view functions and concerns a calm workplace atmosphere in this circumstance. 


In any instance, if the firm policy states that they will not hire anyone with a terrible credit record or a credit score below 650, even the most qualified individuals will be excluded from consideration. 

High Debt Trap Hampers Performance

Focusing on work becomes tough for someone who has a large debt hanging over his head. Employers who are keen on examining a person’s CIBIL score are fully aware of this reality. Financial troubles have a significant influence on work life, and they can completely derail your ability to deliver the exact outcomes that the employer requires. 

Are CIBIL scores checked by all employers and sectors?

Analyzing a person’s credit record is a relatively recent trend in India. Although it is not widely used, it is gradually becoming so in several industries. Currently, only senior-level interviews in the financial and IT sectors are used to test the CIBIL report. What may employers see on a credit check, you might wonder. Employers attempt to obtain a detailed understanding of the candidate’s financial transactions and credit management skills; thus, the response should be yes. 

A thorough examination of loans and payment patterns tells a great deal about a person’s nature. There are significant rumors that in the next years, all corporations will require candidates to submit their credit ratings as part of the interview requirements. 

What can one do in this situation?

It’s worth noting that the RBI has issued rules indicating that credit reports kept by businesses like CIBIL can only be accessed by banks and other financial institutions. Furthermore, inquiries from other businesses or groups are not considered. As a result, the need to present a CIBIL report in order to secure work is solely at the discretion of the firm giving the position. 

Is it possible to acquire a job with negative credit?

If you’re preparing to apply for a job, the first thing you should do is to perform a credit check and obtain reports to make sure there are no red flags. There are a few things you should keep in mind to ensure this: 

Repayment History

It is important to ensure that one’s loan/credit card payments are consistent and made on time. This is a major determinant of your credit score and report. Verify that your report contains no payment delays or non-payment penalty. 

Borrowing in Moderation

Most individuals aren’t aware of this, however borrowing excessively lowers your CIBIL score. If you have taken a large loan or overused your credit card to the point that your limit is almost surpassed, your credit score may suffer as a result. As a result, it is critical to limit credit usage.

Credit mix

To maintain a strong CIBIL score, an individual’s credit history should include a mix of secured and unsecured loans. If your credit record mainly contains unsecured loans, it may have a negative impact on your credit score.

Loan Requested or Accepted

It’s important to understand that when you seek a loan, a financial institution or bank may request your credit report. As a result, making too many inquiries in a short period of time may lower your score. If you’ve been turned down for a loan or a credit card, wait a long time before applying with another bank.

Resolve Conflict

There may be occasions when, owing to a communication mistake, erroneous information is provided to CIBIL, resulting in a negative impact on your report. As a result, a person should double-check his or her report to ensure that the correct information is being copied. Additionally, to avoid any type of dispute or quarrel, strive to bring it to the notice of CIBIL while also informing your bank of any mishap.

It’s a good idea to monitor your credit report routine. This would provide an opportunity to guarantee that your credit reports reflect well and, as a result, ensure that you do not miss out on future job prospects. 

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Top 10 Questions regarding ‘Criminal Record Checks’


Top 10 Questions regarding ‘Criminal Record Checks’

There are a number of factors to consider before recruiting a new employee for your firm. While skills, experience, and attitude should always be taken into account, it’s also critical that you conduct a criminal background check on your possible new hire. A criminal records check is part of the thorough background investigation that takes place before an applicant is hired. It checks numerous records available in the public domain to uncover the candidate’s criminal past, if any.

About 52% of businesses claimed they run criminal background checks to ensure that careless hiring is avoided. Surprisingly, in some places of India, criminal record checks indicated a 75 percent failure rate of candidates.

Employers all over the world include criminal background check questions in their job applications to verify the applicants’ criminal records. During the employment process, a criminal background check of potential hires aids companies in assessing job candidates’ antecedents. 

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Here are a few questions you should know the answers to when conducting a Criminal Records Check :

Why is it necessary to run a criminal background check?

To provide a truly secure workplace devoid of criminal intent, a thorough criminal records check becomes vitally necessary. With a criminal background check, you can be sure you’re hiring people with a clean record. This also involves searching the Litigate database. A litigation database check determines whether a candidate’s name appears in any proprietary or public database, such as a civil lawsuit database, criminal databases, and/or regulatory compliance database. Both Indian and international databases can be searched to see if the candidate has any ties to organized crime or has been referenced in any legal proceedings. When a competent professional agency does not do a criminal records check, such offenses can cause irreparable damage to a company’s reputation. According to a study, discrepancies linked to criminal records and references accounted for 19.5 percent of all discrepancies in India in 2016. 

To whom should we run a criminal background check?

Every new employee should undergo a criminal background check to ensure that no criminals access your organization. A single inconsistency can have a negative influence on your workplace’s safety, motivation, and brand reputation. A criminal background check is required regardless of the hiring level! 

Are there any regulations governing the checking of criminal records?

In India, there is no law specifically dealing with criminal records or background checks. However, for conducting criminal records checks, the Indian Contract Act, Indian Penal Code, and Information Technology Acts of 2000 and 2005 are often used as benchmarks. Companies that fail to keep personal data obtained on employees confidential may face penalties under the Credit Information Companies (Regulation) Act of 2005.

What databases can I use to look for criminal records?

Litigation-related information can also be found via the National Crime Records Bureau and the CBI’s Most Wanted Lists, in addition to district magistrate, state, and Supreme Court public records. The list of defaulters can be found in databases maintained by SEBI, RBI, the Registrar of Companies, and the Central Vigilance Committee’s list of corrupt officials.

How do I do a criminal background check?

It’s critical to seek advice from a reputable firm with access to indexed criminal records and litigation databases. It is critical to inform the candidate that a criminal records check will be conducted and secure his or her written consent before proceeding. In most cases, employers consult with background check companies to do thorough criminal background checks! 

What methods do background check businesses use to search for criminal records?

Companies that conduct background checks often scan a range of sources, including local, state, and federal databases, as needed. While there are numerous sources available, the ones chosen will be determined by the exact searches that your prospective employer has requested. 


One of the most prominent sources for criminal and offense history searches is state court records. While some municipal courts may make their documents searchable online, around 30% of courthouses require direct access in person. In order to assist in-person courthouse record searches in these jurisdictions, background check organizations execute real-time criminal records searches and maintain a network of court runners. As you might expect, such in-person searches take time, but they allow screening companies to get the most accurate and up-to-date information from the court. 

Is it possible to suspend an employee based on a criminal background check?

In India, if a government employee has spent 48 hours or more in police custody, he or she will be automatically suspended. Any offence, including dowry killing allegations, might lead to such detention. Disciplinary committees and policies are established by private companies. After evaluating each case, they can decide on a course of action.

What should you do if you come upon anything negative?

One of the most basic steps in recruiting the best individuals is to run a criminal background check. After a thorough investigation of the applicant’s background, a hiring decision should be made. Before making a hiring choice, it’s a good idea to offer the employee an opportunity to explain the negative finding.

How can the HR manager confirm that the criminal background check on the job application is accurate?

The greatest criminal background checks are those that are accurate, thorough, quick, and obtained legally. The inclusion of criminal background check questions in the job application is the first step in conducting a complete criminal record check.


The checks can take a long time, cost a lot of money, and necessitate a lot of diligence. For interstate and international hires, the problems multiply. The HR manager should not let any financial or time restrictions allow the criminal background records check process to be shortened. 


What are the rights of employees/applicants?

The criminal record check report received by the firm may be incomplete or erroneous due to the constraints inherent in the process. To protect the rights of employees/applicants, the law compels employers to give employees/applicants the option to present additional information to substantiate the report’s incompleteness or inaccuracy. 


Individuals should be given a copy of the report and given enough time to respond with the requested additional information in the interest of fairness. If the people fail to provide the required information within the specified time frame, or if the information provided is insufficiently persuasive, the company might begin an adverse action procedure while keeping the individual informed. Individuals will then need to seek the respective judicial authorities for dispute resolution if they have any further grievances. 


Is there a limit to how far back criminal record checks can go?

Employers can decide how far back they want the search to go, with seven years being the most popular option. Other options include ten years and “unlimited,” which looks for all reasonably available information. After the search is completed, the records that are shown in the report will be determined by how far back the search was conducted as well as any applicable legal constraints. Background check businesses can record criminal convictions indefinitely in most jurisdictions; however, certain states limit the reporting of convictions to seven years.


A number of factors are considered when determining whether a record is within the seven-year timeframe, including the date of conviction, release, or parole. Many screening businesses examine these similar variables, as well as periods of probation when deciding whether to publish a conviction record that can legally be reported indefinitely but the customer has requested a fixed (e.g., seven-year) time limit. 


In terms of non-conviction, most background check agencies are unable to report anything older than seven years (such as non-pending records of arrest, criminal case dismissals, etc.). Non-convictions, on the other hand, are not required to be reported in a few states.


A criminal record check allows you to make an informed decision regarding a candidate’s appropriateness and fit for your organization. Even though a conviction does not automatically disqualify a candidate, you will be in the best position to determine whether their criminal history poses an unreasonable risk to your organization. 

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How do Employers verify Education Records of Applicants for Employment: Best Practices

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How do Employers verify Education Records of Applicants for Employment: Best Practices

One of the most crucial components of background screening is the education verification process. Regardless of whether they work in a blue-collar or white-collar environment, today’s workforce requires some type of educational qualification. Companies may wish to trust an applicant’s educational qualifications based on the appearance of their documents, which is understandable. However, it is critical to verify any educational claims made by the candidate legitimately. 

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Market conditions are growing increasingly difficult, prompting people to use all methods necessary to find work. It has been discovered that a substantial number of job applicants are lying about their qualifications in order to seem suitable prospects. Unethical practices such as degree forgery, bogus institutes, and deceptive claims are difficult to detect, necessitating background checks. Every year, India generates between 2 and 2.5 million graduates. With such a large number of degree holders, having strict education check regulations becomes even more vital. 

What is an Educational Background Check?

An education background check verifies an applicant’s statements about their schooling. Their attendance and degrees acquired at high schools, colleges, and vocational schools are verified through this process.


Thousands of people may be interested in a great job opportunity. While some are deserving, others can make up a few areas of their resume to fit in. Employers can use background checks to verify a candidate’s training, certifications, and academic history. That way, they’ll be able to spot any anomalies in the application and take appropriate action. 

According to SHRM (Society for Human Resource Management), 69 percent of employers investigate candidates' criminal history

Thousands of people may be interested in a great job opportunity. While some are deserving, others can make up a few areas of their resume to fit in. Employers can use background checks to verify a candidate’s training, certifications, and academic history. That way, they’ll be able to spot any anomalies in the application and take appropriate action. 

The following are the motivations for conducting an education background check:

An education background check verifies an applicant’s statements about their schooling. Their attendance and degrees acquired at high schools, colleges, and vocational schools are verified through this process.

Identifying knowledge gaps against job requirements:

The people you employ must be qualified for the position for which they are applying. A thorough examination of the candidate’s educational background offers information about the subjects they studied and their relevance to the post.

Protecting against false degrees and diplomas:

Diploma mills, which provide candidates with phony degrees, are on the rise. These organizations provide forged certificates in exchange for money, resulting in educational gaps. These organizations are unaffiliated with any reputable organization or government agency. Rather, they collaborate with independent organizations whose curriculum and standards do not conform to the legally mandated standard. 

Verify the authenticity and usefulness of foreign degrees:

Students are increasingly seeking education in other countries. It’s possible that the curriculum in those countries doesn’t exactly fit the job description. Furthermore, as part of the education verification process, the legitimacy of international educational institutions and the worth of their degrees must be confirmed. 

How do Employers verify Educational Background of prospects?

Education verification of degrees and diplomas is mainly done in the institutions’ in-house offices. Third-party education check services are also used by companies and institutions because they have their own proprietary databases for confirming the individual’s claims. While conducting education verification, a number of parameters must be checked and validated. 

Verifying the name and registration number:

This is essentially an identification verification. By comparing the candidate’s name and roll number to official institute records, it is possible to determine whether the applicant genuinely attended the university that is being claimed.

Verifying course information:

This education verification parameter is crucial since it establishes a direct link between the applicant’s education and the employment role being offered. This entails generating a list of all the subjects the candidate has taken and determining their relevance to the job. 

Graduation year:

Because youthful applicants are increasingly sought after by employers, many candidates fake their graduation dates. By contacting the institution provided by the candidate, education verification of graduation records can be simply acquired. 

Graduation status:

This essentially verifies the candidate’s quality. Businesses frequently do not prefer candidates with lower grades or drop years. The job’s nature may necessitate applicants with a high level of expertise and knowledge. Candidates may hide their drop years or mislead about their grades. To achieve high-quality recruiting, such inconsistencies should be identified during education verification.

Whether the institution has been deemed fake by regulatory bodies:

As previously stated, forgeries and diploma mills are on the rise. Verifying the educational institute’s legitimacy can assist protect the company from candidates from questionable institutions. This can be accomplished by comparing the institution’s information to that provided by regulating authorities such as the UGC.

Few methods that employers use to verify education records of individuals:

Collaborating with a third-party background check company

Employers’ preferred method of verifying an applicant’s education is to work with a third-party background check company. They can verify an applicant’s schooling records in a fraction of the time that it would take an employer to do by themselves, and they can provide verified information to the employers in as little as a few hours. They can also confirm the applicant’s claimed educational background.

The DIY approach

If an employer does not use a verification provider, education verification can be done manually by the HR department. Contacting the university’s registrar, providing details about the prospective employee, and requesting verification would be part of this DIY process. 

A few of the best practices for conducting educational background checks:

Written Disclosure: Employers must notify candidates in writing that they will perform background checks. 

Consent: Employers must seek each applicant’s authorization before performing background checks through third-party providers. 

Result sharing: The employer must share the results of the background check with the applicant and notify them of their rights and next steps when the vendor completes the background check. 

Following steps in the adverse-effects procedure: If an employer learns any negative information that may have an impact on their employment decisions, they must follow the adverse-action procedure. For example, if you discover a discrepancy after doing a background check and decide not to hire the individual, you must send the candidate or employee a final adverse action notice. 

Anti-discrimination regulations: Employers must abide by their country’s anti-discrimination laws. 

Equality: Conduct a background check on every applicant, regardless of race, ethnicity, color, gender, or other ascribed qualities. 

Following local laws: You must follow local laws based on your hiring location. 

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity. MIMO offers all-inclusive background check services with a focus on compliance adherence to provide you with the most reliable and up-to-date details. 

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What is an Employment Credit Check and Why is it Needed?

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What is an Employment Credit Check and Why is it Needed?

An employee credit check is when an employer obtains a copy of an applicant’s or current employee’s financial records in order to have a better understanding of their financial history. What does this mean for an employer or a company as a whole?

Credit checks are an important part of the onboarding process because they reveal how economically responsible a person is, which reflects the attitude they will have toward company finances. Any type of corporate obligation is well-known to be associated with financial responsibility. 

Regardless of an employee’s position, the firm must be able to trust them with money, which is made possible by a thorough credit history check.


This is a guarantee to the company that its personnel will not engage in any financial mismanagement, such as fraud or other criminal activity, which would result in a significant loss. 

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What does a credit check actually verify?

A credit check provides various details about an employee, particularly about his or her financial situation. Typically, an employer will have access to information such as a person’s credit card and debit card debts, payment and default history, details of any late payments, loans, and so on. 

A credit default check confirms the employee’s or candidate’s personal details through national ID checks in addition to financial information. This assists organizations in verifying the candidate’s name, age, residence, and other vital information. 

Employers should be aware that there is a legislation in India that prohibits anyone from utilizing another person’s credit information, and if someone is found guilty of making adjustments or leaking any kind of credit data, they would face severe consequences. 

For employers, it is their responsibility to guarantee that sensitive information about employees or prospects is handled professionally and responsibly. Under no circumstances should they share such sensitive information with a third party or alter any facts. 

Why is a credit check required in the recruiting process?

While it is the employer’s job to do complete credit history checks in the best interests of the company, it is critical to understand why a credit check is such an important component of the employment screening process. How you handle finances and the integrity of your entire firm are intertwined in any organization. If an employer hires someone with a history of financial mismanagement, they risk ruining their company’s reputation and brand image.

Why would a potential employer check an applicant’s credit?

The risk is substantially greater, especially if the person holds a leadership position or any capacity directly tied to the company’s finances. Such hazards can be avoided by thoroughly vetting each candidate through credit checks, regardless of their position. Furthermore, a person’s financial management reveals a lot about their attitude, intentions, and personality. Employers can simply flag any credit default situation and understand how responsible their prospects are with a credit check, which can save them a lot of problems in the future. 

The credit history of an applicant can reveal potential issues that an employer would prefer to avoid: 

A nationwide poll of 1,528 human resources professionals was conducted by the National Association of Professional Background Screeners in collaboration with HR.com. According to the findings, 25% of HR professionals employ credit or financial checks when hiring for select roles, while only 6% check all candidates’ credit. 

How can an applicant prepare for a potential employer's credit check?

When doing a credit check, employers are mostly looking for trends or habits of financial mismanagement, so knowing what your credit report says before applying for any job is the best way to prepare (no matter the position). 

You don’t want to be surprised when you apply for a job and find out that something negative is on your credit reports, so job seekers should get a good idea of what their credit reports look like well ahead of time. Also, you must be able to justify any bad entries. 

Each of the three major credit bureaus

is required to provide you with one free credit report each year. These reports are available for free, as allowed by federal law. We recommend that you don’t read all three reports at once, but spread them out over four months. 

Keep in mind that, while employers are legally allowed to pull your credit history, it is only one of many considerations when applying for a new job. However, there is a simple approach to making your credit report look as nice as you do in your job interview: always pay your bills on time. 

What Is Reported in an Employment Credit Check?

Employment credit checks reveal a person’s credit-to-debt ratio and previous bankruptcies, revealing how they’ve handled credit and bill payments in the past—an important indicator for jobs where the employee will be handling or managing money. While employment credit checks do not reveal credit scores, the following information may be revealed: 

How can MIMO help?

Background screening of applicants has become the norm in today’s business world, with practically every company employing some form of background screening as part of its hiring process. It is simple to understand why. A well-designed background screening program will almost likely lower your cost-per-hire by delivering immediate and measurable results. 

Pre-employment tests, when combined with modern screening techniques, aid in the speeding up of the recruiting process and the selection of the best candidates for a post. When you hire a new employee, your firm makes several long-term expenditures on onboarding and training. Pre-employment testing is one of the most objective means of determining whether an applicant is a correct match for your organization, as it assesses cognitive capacity, skills, EQ, and communication, among other things. 

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity and decreased turnover.

MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 

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8 Best Practices for Effective Vendor Due Diligence

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8 Best Practices for Effective Vendor Due Diligence

Vendor due diligence processes differ depending on the firm, industry, and geography. Due diligence measures are mandated by some regulatory agencies, and other industry associations have developed standardized procedures. Furthermore, depending on the type of vendor being evaluated, requirements may alter. While there is no uniform standard, there are some pieces of information that all procurement and risk professionals should collect while conducting vendor due diligence and establishing their vendor checklist. 

This vendor due diligence checklist serves as an overview of the types of information that should be considered when making procurement decisions. Although not every item on this list is required, the more you complete it, the better prepared you will be to manage risk during the vendor selection process. 

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What Is Vendor Due Diligence and How Does It Work?

Prior to onboarding with a new vendor, supplier, or other third party, you should undertake due diligence. The due diligence process should evaluate a vendor’s financial and operational soundness, as well as any potential dangers they may pose to your company.

Third-party providers represent a variety of

A rigorous vendor due diligence approach that allows for risk-based vendor selection can substantially speed up vendor onboarding while reducing the danger of a catastrophic disruption or data breach. Contract review, vendor-completed assessments, and external information gathering on the target organization and its subcontractors are frequently part of the due diligence process. All of this is eventually measured against the risk tolerance of your company. Although vendor due diligence is not a “one-size-fits-all” process, there are several common pieces of information that can assist an organization build a solid foundation of understanding for its risk profile. 

When evaluating a vendor, keep these eight best practices in mind:

Gather information about the company

Begin by gathering basic company information to verify the company’s authenticity and ensure that all compliance requirements and standards are fulfilled. Refer to reputable sources provided by the organization as well as any publicly available information that may have an impact on your organization’s capacity to acquire or engage with a specific vendor. This is also an opportunity to assess employee behavior and knowledge of cyber hazards in order to identify any potential weaknesses, such as those caused by dissatisfied or irresponsible employees.

Examine financial data

It’s critical to evaluate an organization’s financial information before dealing with a vendor to ensure its financially sound and up-to-date on any required licensing fees or taxes. Furthermore, having a thorough understanding of an organization’s growth history can aid in predicting future costs associated with dealing with third and fourth-party vendors throughout time. 

Make a list of operational risks

If a vendor in your supply chain suffers a data breach, your company will be held liable for any sensitive customer data that may have been exposed as a result. This is why, in the event of a data breach, all organizations in your network must have a strategy in place, often known as business continuity and disaster preparedness plan. 

This strategy details an organization’s methods for resuming normal operations and ensuring effective and transparent communication with the appropriate people. It’s also crucial to analyze the vendor’s function inside your organization so that you can fully comprehend the operational consequences of a third-party data breach and prepare accordingly. 

Evaluate the legal risk

Some third-party providers will have access to very sensitive data about your business, clients, and workers. As a result, assessing the legal risk posed by a company is an important element in the due diligence process. If a third-party vendor has a data breach or a controversy, the legal and reputational responsibility will be transferred to your company. This is why it’s critical to start the process by ensuring compliance and identifying any potential legal issues. 

Assess the threat of cyber-attacks

It’s critical to manage cybersecurity risk among partners, suppliers, and vendors so that risks may be discovered and addressed before a breach happens. Organizations should look at the vendor’s cybersecurity posture, compliance status, and anti-attack programmes.

Set risk profiles in order of importance

As previously stated, some third-party providers will have greater access to your organization’s network than others, necessitating further monitoring. Vendors should be prioritized based on their level of access, the type of information supplied with them, and the relevance of the service or product provided by the company. This will lead the rest of the due diligence process, as well as inform IT security about which vulnerabilities must be addressed right once in order to have the most impact on risk reduction.

Maintain a constant eye on vendor risk

Risk management for third-party vendors is an ongoing strategy that extends beyond due diligence. As the digital transition continues, the threat landscape is continuously changing, and businesses are continuing to expand their networks. An efficient third-party risk management programme should keep an eye on emerging threats and verify that the vendor’s cybersecurity network is in good shape.

Make the questionnaire procedure automated

The due diligence questionnaire procedure can be time-consuming and draining for IT security personnel that would rather be working on more vital responsibilities. Back-and-forth talks and selecting the next measures for risk mitigation can take a long time. The procedure can be automated with the correct third-party risk management software to streamline operations, assure consistency, and provide complete visibility into a vendor’s cybersecurity network. 

Why Are Vendor Due Diligence Requirements Getting Tougher?

Procurement, risk management, and security teams’ vendor due diligence to-do lists have gotten a lot longer recently. Given COVID-19’s impact on third-party operations, as well as other health, environmental, and geopolitical concerns, many firms are going beyond standard IT security audits in their vendor due diligence activities. Information on manufacturing, business continuity, transportation, non-IT items, and other domain areas that make up today’s complicated supply chains is gathered in this way.  

Organizations are also conducting additional due diligence on potential providers due to information security and data privacy compliance obligations. In this climate, a data breach may be devastating, especially if financial information or sensitive enterprise information is stolen. Building a strong vendor due diligence programme can help your company decrease its security risk while also enhancing its partnerships.

Three Methods for Conducting Vendor Due Diligence

Whether you’re starting a vendor due diligence programme for the first time or need to improve an existing one, it’s critical to think about your overall strategy. Customers generally conduct due diligence in one or more of the following ways: Whether it’s in-house, shared, or outsourced, there’s a solution for every business. 

The DIY Approach to In-House Vendor Due Diligence

Many businesses are attempting to manage vendor data gathering and analysis on their own. Even if your business is well-staffed and funded, DIY due diligence can be a strain if you handle the process with disparate, manual technologies (e.g., spreadsheets). 

Making it as simple and pleasant as possible for suppliers to reply to assessment questionnaires is one key to success with an internal approach. A vendor-facing portal for viewing survey completion status, threat intelligence reports, and suggested remediations should also be included in the solution. It should also keep a thorough audit trail for future confirmation of assessments. 

Finally, you’ll want to make sure that the solution can trigger workflow tasks automatically based on assessment attributes, risk scores, and recommendations. This will allow you to concentrate more on risk management while spending less time worrying about content collection.

The Network Approach to Shared Due Diligence

When resource-constrained teams need to scale their projects, vendor risk intelligence networks can help. To simplify risk analysis and mitigation, network members and vendors pool their efforts and exchange completed risk material. They provide on-demand access to risk scores and content that is backed up by industry-standard questionnaires. They’re ideal for small businesses looking for benchmark data or larger corporations looking for a simple approach to tier providers and identify those that need further in-depth evaluations.

The Managed Services Approach to Outsourced Due Diligence

Outsourcing third-party evidence collecting and analysis to vendor risk assessment services is a popular choice. Instead of chasing down assessment replies and verifying their accuracy, this technique allows your in-house team to focus on risk identification and mitigation. 

This method can reduce risk reduction time-to-value faster. It’s also a good choice for teams with a lot of resources – or those with a lot of internal capabilities. 


In M&A transactions, private equity deals, credit underwriting, and financial sales and trading, vendor due diligence should offer an accurate assessment of a vendor’s cybersecurity posture and should flag important vulnerabilities. With a complete picture of a vendor’s or acquisition target’s cyberhealth, your company can make confident judgments regarding prospective risks, future expenses, and how to manage and reduce risks on an ongoing basis. 

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Background Verification in the Banking Industry: Why is it needed and how it’s done


Background Verification in the Banking Industry: Why is it needed and how it’s done

Because banking occupations require access to financial and sensitive personal information, background verification in the banking industry is rigorous. The banking business in India has been steadily expanding over the last several years.  Rising rural penetration, strict regulatory control, rising disposable incomes, and the spread of internet and mobile banking services are all contributing factors. 

The value of public sector bank assets climbed from USD 1.52 trillion in FY17 to USD 1.56 trillion in FY18, according to an IBEF analysis. Because of India’s liberal regulatory regulations, the insurance market is predicted to reach USD 280 billion by 2020. When it comes to NBFCs (Non-Banking Financial Companies), their lending capacity have increased by as much as 18 percent in the previous five years. The causes for this include leaner cost structures, improved risk management skills, and improved product lines, among others. 


However, not everything in our country’s financial industry is perfect. The banking industry is synonymous with cases of identity theft, accounting fraud, asset appropriation, and money laundering. What may surprise you is that insiders are responsible for 50% of all frauds! 

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In 2018, the sector’s disparity rate was 10.13 percent. In other words, the BFSI sector has the greatest rate of persons misrepresenting their qualifications or lying on resumes. 

That is why background verification is vital.

While background verification is becoming common in most industries, banks and financial institutions use them at all levels of their workforce. 


Pre-employment background checks are essential in the banking business, where employees manage sensitive financial and personal data on clients, stakeholders, and insurers. Customers’ bank records, passwords required for cash transfers, and business protocol are among the sensitive data. The importance of an ethical workforce in the BFSI sector cannot be overstated. 


Naturally, efforts should be made to safeguard the financial facility’s security and repute. Preventative measures, such as personnel background verification, can help to address the trust deficit in this business. 

The Reason:

To guarantee that consumer information is kept safe

A banking facility has access to cash, accounts, and a variety of sensitive papers. They must guarantee that consumer information is kept safeguarded in a world when cyber intrusions and data breaches are common. 

They may double-check the potential recruits’ work history, how compliant they are with banking sector rules, and if they have done the task, they claim to have done by doing a background check. Banking institutions need assurance; otherwise, their reputations and clients are at risk of being defrauded. 

To adhere to the industry's best practices when it comes to money transfer permits

The requirements for acquiring a money transmitter license are stringent. If a financial institution goes through the time-consuming process of obtaining money transfer permits, new employees must be thoroughly scrutinized. 

Failure to do so may result in legal action against the business facility, as well as the loss of their money transfer license. It is simple to guarantee that the candidate has the requisite professional license and clean work history by doing relevant background checks.

To provide an exceptional client experience

Customers place a high value on banking services to meet their financial demands. That’s why it’s critical to recruit people that are naturally smart, pleasant, and problem-solvers. A thorough employee background verification can assist in determining whether a candidate will fulfill not just the company’s but also the customers’ expectations.

How to Do It

The purpose of bank background checks is to ensure that candidates are being truthful about their previous job, educational qualifications, and professional credentials. Some banks examine a customer’s credit history to learn more about their spending habits and tendencies. 


The banks must adhere to the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission’s requirements at all times (EEOC). Banks in the United States are required to conduct criminal background checks in accordance with Section 19. Before performing a background check for the banking business, the employer (banking or financial institute) must provide the applicant with a disclosure document detailing the consumer report that the employer would get in order to hire them. 


The applicant must sign a document acknowledging their permission to a pre-employment background check. 

The majority of firms in the BFSI sector have a background verification policy. It outlines the actions, processes, and deliverables that the applicant will face. 


In banking, where organizations rely on safe and responsible procedures to prosper, hiring trustworthy and competent personnel is critical. Regardless of whether the information gathered from the verification is favorable or negative, the bank should treat the candidate’s data with care and responsibility as an employer. This information has the potential to affect a wide range of individuals, including the candidate’s professional life and the reputation of the company. This component in the talent management process necessitates careful consideration at all stages of the lifecycle. 

Fortunately, technological solutions are always improving to make this process easier, more dependable, and less prone to mistakes.

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 


The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity and decreased turnover. MIMO offers all-inclusive background verification services with a focus on protection to provide you with the most reliable and up-to-date details. 

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Importance of Education Verification Checks in Modern Hiring

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Importance of Education Verification Checks in Modern Hiring

When applying for a job, you will almost certainly be required to demonstrate that you have met a minimal academic requirement. While some positions may just demand a high school diploma, others will require a college diploma or perhaps more. 


When writing a CV, be sure to include a list of your academic accomplishments. However, some people, believe it or not, are not always entirely honest. According to one estimate, up to 40% of individuals have lied on their resume, with schooling being one of the most typical areas where people mislead. According to the same poll, 46% of resumes had some type of contradiction between an applicant’s academic claims and their educational institution’s records. 

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It’s no surprise, therefore, that education backgrounds are one of the first things businesses look at when doing background checks on potential employees. 


But what would an education verification check on your schooling reveal? What kind of information would your new supervisor be able to obtain? Where should you embellish a little on your resume, and where should you give the truth? We’ll cover all you need to know about education verification checks in this post, as well as how to do your own background check to discover what your future boss could find out.

The Importance of Education Verification Checks

Before you employ, conduct an Education Verification check to ensure that a candidate’s claims about their education, degree, training, or certification are accurate and to identify any potential anomalies. This service, also known as an Education Background Check or an Education Check, is used to verify academic experience at high schools, universities, colleges, and vocational institutions. 

Education verification checks assist you to:

What Does a Background Check for Education Verification Show?

To verify credentials, education verification checks contact the candidate’s universities, colleges, vocational schools, and high schools that include: 

Professional License Verifications: When Should You Use Them?

A Professional License Verification guarantees that the applicant is licensed to operate in a certain occupation and gives the credential title, current status, issue, and expiration dates as some professions require both specific training and a valid professional license. 

It is possible to examine licenses for occupations such as: 

Why Should Employers Verify Education Credentials?

1. To protect against Claims of Negligent Hiring

Employers are obliged to take reasonable precautions to safeguard their business and workers. A small business may be exposed to liability if a new recruit engages in risky behavior or injures a coworker while on the job. Pre-employment screening can help identify warning signs that a person and a position aren’t a suitable match. 

2. Verify that an applicant possesses the necessary certifications

Certain occupations, particularly in the fields of healthcare, fitness, and teaching, need a high level of competence supported by specialized certificates and degrees. If a candidate does not have the necessary skillset to execute the job, the organization may be exposed to a great deal of risk. 

3. Fraudulent Credentials and/or Degrees

Employers may use school verification to ferret out diploma mills, phony academic degrees, and desperate people trying to pad their applications with downright fraudulent information.

4. Feel secure in the knowledge that your organization follows all privacy and data security regulations.

It’s vital to safeguard the confidentiality and security of sensitive information about your applications. To secure data and the sensitive information you receive about your candidates, you need to follow privacy rules and utilize encryption.

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity and decreased turnover. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 

For more information and to avail of our Background verification services, please contact us at https://mimo-technologies.com/

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