Compliance Bytes: Updates for your Global Screening Team [Episode #2]

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Compliance Bytes- Updates for your Global Screening Team

Picture yourself running a hurdle race. You run for a while as quickly as you can and now face a hurdle on your way. You make a swift jump and cross that only to see another hurdle a few steps away. Isn’t this what global compliance is all about? With new regulations sprouting every day and existing regulations evolving with amendments, global compliance sure becomes a complicated hurdle race.

Here’s a mini listicle of recent global compliance updates your screening team would want to take a look at.

1. The Australian Banking Royal Commission and Background Screening Recommendations

Effective: November 2020

This scandal exposed institutional malpractice and a sales-driven culture, where a major part of the accusation resides with the brokers that interacted directly with the customers.

As per the report presented by the commission, few brokers purposely offered customers, loans that they could not afford, and with such terms that would drive a lot of people bankrupt. Consequently the same happened.

This report states that to prevent this from reoccurring, brokers must act in the best interests of the customers in mind. This implies that, in the future, a broker would be fined for disregarding the customer’s financial situation on the excuse that it was the company policy that made him act that way.

Brokers in Australia have to undergo mandatory pre-employment background checks like the ones provided by the ANCC to make sure they do not have prior misconduct charges on their criminal record. For the customer, this ideally means that any dishonest broker who was fired from any financial institution for misconduct will not be able to find a position in another bank or lending institution.

2. Montgomery County Managing Director Enacts Bill to Expand Scope of “Ban the Box” Law

Effective: November 2020

“Ban the Box” refers to a ban on employers seeking information about applicants’ criminal history. In September 2020, 36 states and more than 150 cities and counties have embraced the ‘Ban the Box’ laws to reduce employment barriers for ex-offenders and have them judged on their knowledge, skills, and abilities.

On November 10, 2020, the MCC in Maryland enacted Bill 35-20, Human Rights and Civil Liberties – Fair Criminal Record Screening Standards – Amendments to expand the scope of the “Ban the Box” law that the County passed in 2014, according to a press release from the MCC.

Bill 35-20 targets to help stop workplace discrimination and promote the chances of fair screening standards by stopping background checks & preventing inquiries into particular types of arrests before the conditional offer of employment is rolled out. “Ban the Box” bill in Montgomery County, would mean:

Change definitions regarding fair criminal record screening standards

Prohibit particular inquiries regarding criminal records

Prohibit considering certain arrests and convictions in employment decisions

Change the law regarding criminal record screenings

At the beginning of 2014, the Council created a Ban the Box law which barred employers of 15 or more FTE in the County from running a criminal BGC of a job applicant, making inquiries about the criminal and arrest record of an applicant before the first interview’s completion.

Bill number 35-20 expands the reach of the Ban the Box law by banning BGC until a job offer has been offered, also preventing any inquiries about crimes, and redefines the term “employer” to bring under the purview any employer except people that provide services to minors or vulnerable adults

To know how your organization should proactively screen candidates while adhering to current and upcoming regulations, get in touch with our dedicated screening experts. They will be more than happy to explain how our screening solution can help you with that.

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