How can background checks help banks and financial institutions comply with the Dodd-Frank Act?
The Dodd-Frank Act is a United States federal law that gives the government jurisdiction over regulation of the financial industry. Enacted in July 2010, Dodd-Frank created financial regulatory processes to limit risk by enforcing transparency and accountability. As part of this law, the Consumer Financial Protection Bureau was formed to protect consumers from large, unregulated banks. They work with financial institutions to prevent risky business practices that could ultimately hurt consumers. In addition, they also provide consumers access to honest information about lending, mortgages, and credit scores.
Background investigations help to vet your financial institution’s employees to be sure that they have no questionable past activities and that they really have the educational and vocational experience that they claim. This is critical in being able to document that you are compliant with Dodd-Frank. Companies are now required to have a chief compliance officer, as well. Knowing your employees are clean is an important first step toward ensuring overall compliance.