MAS issued consultation paper in May 2021 on proposals to require financial institutions (“FIs”) to conduct and respond to reference checks. Below is a summary of the responses.
- Scope of FI
- All FIs except foreign recognised market operators, foreign recognised clearing houses and licensed foreign trade repositories whose activities are primarily performed overseas, as well as money changers.
2. Checks on out of scope employers/FI
- For prospective employee who is currently or was previously employed by related FI (e.g., subsidiary), the hiring FI need not conduct a formal reference check with its related FI. This is provided the hiring FI has access to the records.
3. Scope of employees
- For employees of third-party service providers performing such functions outsourced by FIs, FIs should ensure such employees meet the FI’s hiring policies. SM roles that oversee such outsourced functions will be subject to reference checks.
4. Lookback period for checks
- Five-year lookback period starts from the date of the reference check being performed
5. Minimum mandatory information
- FIs to respond to reference check requests no later than 21 calendar days from their receipt.
6. Record keeping
- Information listed in Annex B of all employees for a minimum period of five years, with the exception of ancillary service personnel (eg. drivers, food and beverage personnel, and clerical personnel).
7. Implementation
- Transitional period of one year from the issuance of the Notices.
For the full details, please refer to https://www.mas.gov.sg/publications/consultations/2021/consultation-paper-on-proposals-to-mandate-reference-checks
Disclaimer: The information, views or opinions expressed are provided for general information and should not be relied upon as legal or professional advice.