Financial and Banking Industry Background Checks

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Health Street offers a full suite of background checks for financial companies. This may include a standard criminal background check, credit check, and verification of identity, employment history, education, licensure, and other qualifications. A financial background check may also include more detailed information such as checking for civil judgments or lawsuits, bankruptcies, foreclosures, and other issues that may be relevant to the financial services industry. Learn more about financial background checks or register below to get started.

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What Background Checks Does Health Street Offer in the Financial and Banking Industry?

Criminal Background Check Packages

Every criminal background check ordered through Health Street always begins with a Social Security Number Trace. From there, you can add specific background checks, choose from one of our most popular packages, or build your own.

Platinum Background Check Package


Includes Everything in Triple Database Package (above) plus Courthouse Repository (State and/or County level).

Ultimate Package


Includes Everything in Platinum Package (above) plus a 10 panel drug test.

Build Your Own Package

(prices vary)

Customize your background check package to create the perfect package. Options include criminal database checks, sanctions, resume verifications, and drug tests.

Resume Verification

(starting at $39)

Background screening services to check a person's job history, degrees, and references.

DOT Background Check

(starting at $39)

Ensure DOT compliance with Health Street's driver screening services.


Relevant Statistics About Financial Services Background Checks

If a background check is not required by law, some employers in the financial industry may wonder whether it's worth the time, effort, and cost. In almost all cases, the answer is yes! Consider these important statistics:

27% of individuals have admitted to embellishing their job applications or resumes.
Nearly 70 million people (1 in 3 adults) have some type of criminal record.
75% of employees admit to having stolen from their employer at least once.
Insider theft is most common in the banking, insurance, and healthcare industries.
According to the Federal Trade Commission (FTC), in 2021, fraud caused $5.8 billion in consumer losses, an increase of more than 70% over the previous year.
The cost of fraud for U.S. lending and financial services firms increased between 6.7% and 9.9% compared with pre-pandemic rates.
Financial service firms lose $4 for every $1 of fraud committed.

Financial Background Check

Laws Specific to Background Checks for Financial Companies

There are several laws that require a financial services background check for individuals working at banks and federally insured institutions. The Federal Deposit Insurance Act (FDIA) is a federal statute that sets the powers and responsibilities of the Federal Deposit Insurance Corporation (FDIC) and sets standards for all insured banks. FDIA Section 19 prohibits individuals from participating in the affairs of an insured depository institution if they have been convicted of certain criminal offenses or have entered into a pretrial diversion or other option, unless they receive written consent from the FDIC. This includes criminal offenses such as money laundering, financial crimes, or other crimes that involve a breach of trust or dishonesty.

The National Credit Union Administration (NCUA) is an organization that is responsible for regulating credit unions, insuring credit union deposits, and protecting members. NCUA Section 205(d) prohibits individuals from participating in the affairs of an insured credit union if they have been convicted of a criminal offense involving breach of trust or dishonesty or have entered into a pretrial diversion or another similar program unless they have received written consent from the NCUA.

To comply with these requirements, banks and credit unions must conduct criminal background checks to determine whether bank tellers and other potential employees have criminal records that impact their employability.

Investment advisors typically must obtain licenses from the Financial Industry Regulatory Authority (FINRA) before they are able to sell securities to consumers. As part of this process, a thorough background check is required. Broker Dealers and/or other organizations sponsoring a license are responsible for ordering background checks and verifying all information provided in an individual's disclosure. Some financial institutions may also require an international background check and a search of the domestic terrorist watch list.

The extent of the background check conducted may vary depending on the potential employee's role and the level of access they'll have to sensitive information. In all circumstances, a financial services background check must be conducted in a way that complies with local, state, and federal laws. This includes following the guidelines outlined in the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Act.

The Benefits of Conducting a Financial Services Background Check

While an investment advisor, credit union, or bank background check may be required by law, other employers in the financial services industry can determine whether or not to conduct a background check. It should be noted that there are many benefits to doing so.

For example, running a thorough background check can help you avoid hiring an employee who may be inclined to commit fraud, identity theft, or other crimes involving dishonesty or breach of trust. By running checks on a job candidate's education, licensing, and employment history, you'll have the peace of mind that comes with knowing you're hiring an individual who has the proper qualifications and qualities.

Since financial professionals handle sensitive customer data and deal with other people's money, it's common for employers to require thorough background checks. This can help you meet regulatory compliance requirements, ensure the protection of your customer's privacy, and reduce the risk of being held liable for an employee's crime.

Frequently Asked Questions

What do financial institutions look for in background checks?

While each financial institution may be different, it's common to check an applicant's identity, criminal background, credit, financial history, employment history, education, qualifications, and licensing. It's also common to search for civil lawsuits, foreclosures, and bankruptcies.

What disqualifies someone from working at a bank?

Applicants are automatically disqualified from working at a bank, credit union, or federally insured financial institution if they have been convicted of a financial-related crime, money laundering, or a crime that involves dishonesty or breach of trust.


"FDIC Statement of Policy for Section 19 of the FDI Act." Federal Deposit Insurance Corporation (FDIC),
"Guidance Regarding Prohibitions Imposed by Section 205(d) of the Federal Credit Union Act." National Credit Union Administration,
"Fair Credit Reporting Act." Federal Trade Commission (FTC),
"Equal Employment Opportunity is the Law." U.S. Department of Labor,
Gjerde, Jon. "Background Checks to Become a Financial Adviser." Chron,
"Background Screening in the Financial Services Industry." Big Report, 3 May 2017, | CAN'T USE THIS; THEY'RE A COMPETITOR!
"23 Background Check Statistics in 2022." Shortlister,
"New Data Shows FTC Received 2.8 Million Fraud Reports from Consumers in 2021." Federal Trade Commission (FTC), 22 February 2022,
"Fraud Costs and Volumes Remain Significantly Higher than Pre-Pandemic for Financial Services and Lending Firms, According to New LexisNexis Risk Solutions Report." LexisNexis, 6 January 2022,