Background Screening Blog

5 Reasons Financial Sector Employers Should Include a Federal Criminal Search in Background Screening

Written by Verified Credentials | Aug 13, 2026, 2:22:00 PM

Hiring for financial services roles and those that work adjacent to them often requires a different approach than a blanket screening policy can provide. Screening candidates who will have access to sensitive customer information, financial systems, and company assets often requires additional regulatory compliance and risk management.

For instance, the Federal Deposit Insurance Act (12 U.S.C. § 1829) requires Federal Deposit Insurance Corporation (FDIC) insured banks, such as state nonmember banks, national banks, and other state member banks with FDIC insurance, to screen individuals who “participate in the affairs of an insured institution” for criminal records regarding dishonesty, breach of trust, or money laundering. Additionally, regulations from the Financial Industry Regulatory Authority and the Securities and Exchange Commission govern certain roles related to onboarding and licensing, such as financial advisors, registered representatives, securities professionals, compliance personnel, and others involved in regulated investment or brokerage activities.

Employers in the financial sector may sometimes focus on meeting baseline requirements to remain compliant, but going above and beyond what’s required by law can go a long way toward shaping customer and public perception. Even if your business or a financial position you are hiring for doesn’t require thorough background screening by law, building client trust and retention in the financial industry rests on high expectations for professionalism and security. County criminal searches remain the foundation of many employment background checks, but they don't always tell the whole story. Here are five reasons why financial employers should consider adding a National Federal Criminal Search to their screening program.

 

1: Serious financial crimes are often prosecuted federally

State and federal court systems operate independently. Why does that matter? Certain offenses that employers consider when screening candidates for financial positions may only appear in federal court records. A National Federal Criminal Search reviews records from all 94 U.S. Federal District Courts, helping uncover criminal cases that may not be found through traditional criminal searches.

County searches can provide employers with some of the most up-to-date and accurate information available on select criminal history within a small, finite area where a financial professional lives or where your business operates. In contrast, National Federal Criminal Searches can help locate relevant information on constitutional law, federal statutes, and disputes that cross state lines. Running a federal criminal history search can help uncover serious crimes that are prosecuted at a federal level that employers hiring for financial positions may need to know about, such as:

  • White-collar crimes
  • Fraud
  • Embezzlement
  • Tax evasion
  • Capital punishments
  • Robbery
  • Kidnapping
  • Illegal sale of firearms
  • Pornographic exploitation of children

 

2. Internal data shows that federal searches can uncover offenses that may be important for financial employers to know about

Curious what records are commonly found in a National Federal Criminal Search?

Using data from our own internal system, the most common discrepancies found from May 2025 to May 2026 when running a National Federal Criminal Search were:

  • Drug trafficking-related charges
  • Felon in possession of a firearm
  • Felony fraud (often involving theft)

While every hiring decision has unique factors for consideration, these findings demonstrate that federal searches can uncover information that may be highly relevant for positions involving financial responsibility and sensitive customer data.

 

3. Trust is one of your organization's most valuable assets

Financial institutions are built on trust. Customers expect the people handling their personal information and financial assets to meet high standards of integrity.

A background screening program built to screen for financial positions helps employers:

  • Reduce hiring risks relevant to serious financial crimes.
  • Protect sensitive customer information and public trust.
  • Support regulatory and compliance efforts.
  • Strengthen confidence in hiring decisions.

A background check can’t predict future behavior, but closing the loop on screening gaps related to serious financial crimes can provide a more complete picture to reduce risk and demonstrate due diligence before extending an offer.

 

4. A layered screening strategy can help close critical gaps

Every employer's hiring needs are different, but positions with any level of access to money, financial systems, or confidential customer information may benefit from a more comprehensive approach.

Pairing targeted screening methods like County Criminal Searches with additional searches can help close the loop on records that are directly relevant to the safety and trust for financial roles, such as:

  • National Federal Criminal Search: To search for federal crime information from all 94 Federal District Courts nationwide, all in one efficient search.
  • Address History Trace: To uncover potentially undisclosed residential history and alias names associated with a candidate’s Social Security Number,
  • Employment Verification: Verify resume information, previous employment, and other employment details
  • Professional License Verification: Confirm important licenses such as CPA, Securities Industry Essentials, investment advisor, and banking are valid and up to date.
  • Credit Report (where applicable): Retrieve a candidate’s financial profile from TransUnion credit bureaus for a more detailed look at financial behavior and accountability.
  • Global Watch List: To help you identify candidates that have been barred from doing business in or entering the United States, according to the Office of Foreign Assets Control.
  • National Sex Offender Public Registry (NSOPR): Search for sex offender information from individual state, territory, and tribal area registries with one quick search.

Together, these searches can help provide employers in the financial industry with broader visibility into a candidate's background and help clear candidates of compromising criminal history before starting a new role.

 

5. National Federal Criminal Searches are quick

If you are interested in adding National Federal Criminal Searches to searches for financial professionals but are concerned that it might hold up your onboarding process, we have some good news to end this article on. 97% of National Federal Criminal Searches completed by Verified Credentials between April and June 2026 were completed in 24 hours or less.

 

In an industry built on trust, every hiring decision counts

In the financial industry, employers continue to face mounting pressure to protect customer information, reduce the risk of fraud, and hire employees who meet high standards of trust and integrity. Choosing background screening solutions designed for the financial services industry can help simplify hiring while providing the information needed to make more informed employment decisions.

Whether you're hiring tellers, loan officers, accountants, cybersecurity professionals, or executive leaders, in an industry built on trust, every hiring decision counts. Learn more about background checks and packages specifically for the financial industry, or contact our team to book a quick consultation.