What is background verification and why is it required? Startups call for a proper mix of talent, passion, and energy. While startups stand to gain from employee loyalty and motivation on the back of higher salaries and stock options, this culture can be disrupted by a bad hire. For example, a startup founder discovered that his COO hired her brother for a senior position in one of the critical areas. These types of issues with family members are bound to cause trouble.

Do startups do background checks: A surge in crimes, frauds and pedestrian accidents have shone the spotlight on the importance of conducting a thorough due diligence and conducting employee background verifications.

Unless you are applying to a role as a C-level executive, “you won’t be subject to anything more than a basic background check,” says Richard. “You’ll probably have a short phone call with the HR person and complete an online form. Then they’ll verify some of your education, but that should be about it.

In India, the Reserve Bank of India introduced smart KYC guidelines in 2002 for all banks and they were required to become compliant with these by 2005. KYC solutions are aimed at the prevention of money laundering by criminals or corrupt individuals and agencies through banks. In the last decade or so, Know Your Customer (KYC) solutions have become essential for global financial services companies to identify their customers. As a result, they now have a better idea of who their customers are and what their financial profiles are like. This enables them to offer customised products for investment to customers and manage risks in a better way.

Customer onboarding is a critical application of KYC solutions which are aimed at the prevention of identity theft, money laundering by corrupt individuals and agencies. The identification and verification process could include the collection of information including identification numbers and details of utility bills, credit history checks along with existing contact data.

KYC, or know your customer is an essential process for businesses who wish to build long term relationships with their partners, clients or customers. During the KYC process, personal information is collected and verified by the company which helps to prevent identity theft and other fraudulent activities. Industry specific regulations such as Anti Money Laundering (AML) have made KYC a mandatory process in many cases. KYC (also known as Know your Customer or Know Your Client) is the process of a business identifying and verifying the identity of its clients. The term is also used to refer to the bank regulation which governs these activities.