In this article you will find:
It could be a lead that converts into a client, a decision-maker of a strategic corporate entity or a legal entity; whatever the situation, background check with a KYC process is the common point to stay one step ahead.
The main function of KYC is to provide you with security to make the best decisions and mitigate as much as possible the chances of errors, crises, and conflicts. In other words, the KYC process in Colombia is no longer just a matter of security; it is also a center of value creation for your company.
Background checks are essential for:
- Assessing and mitigationg risks
- Preventing fraud
Today, I will talk about why background checks play a vital role in making labor and financial decisions in the country and how these inquiries have become strategic tools to protect the interests and integrity of individuals and organizations.
Importance in Labor and Financial Decisions
Selecting the best candidates for key positions in your company or strategic business partners can be a challenging task. It is also challenging to evaluate the solvency and reliability of your leads and convert them into clients who do not fall into arrears.
For this reason, background checks are essential to obtain objective information in all cases and make data-driven decisions that directly impact the economic growth of Colombia in general and your company in particular.
Mitigating Risks and Frauds
By investigating the work, financial and legal history, you can identify inconsistencies or potential risks and take proactive measures to avoid financial losses or damage to your company's reputation.
Likewise, in the financial field, it helps to detect irregularities, unusual activities and fraudulent behavior, allowing your company to protect itself against risks and safeguard the interests of its customers and shareholders.
What is a Background Check?
A background check is the review and collection of relevant information about an individual or entity, including their history of:
- Employment
- Education
- Financial
- Legal
This practice is carried out to assess the suitability and reliability of a person or company before making critical decisions such as hiring staff, granting loans or entering into a business partnership.
The most representative process of this information check that protects your company is KYC; (Know Your Customer) which provides you with a comprehensive view of the person or entity in question.
The Relevance of Background Checks
The essence of the relevance of background checks is that they help you make the best decisions among a large volume of possibilities. That is why they are so important in the Colombian labor and financial environment.
- When it comes to KYC, more is better:
- + efficient employees.
- + prosperous strategic partnerships.
- + customers with a high average ticket.
- + quality in decision-making.
Methods of Inquiry
In the background check process, there are two main methods:
- Manual: which involves direct searching in relevant databases and records.
- Third-party conducted: in which specialized services are hired to conduct the inquiry.
In this section, we will explore both methods and provide examples of databases and records in Latin America.
Manual Inquiry Method
This method involves the applicant personally conducting the search in relevant databases and records. It requires a lot of time and effort since it involves navigating through various sources of information to collect the necessary background.
This includes reviewing human resources files, court records or requesting criminal background reports from the competent authorities.
The problem with this method is that it is labor-intensive and highly sensitive, requiring professionals with the experience or appropriate resources to avoid mistakes.
Third-Party Inquiry Method
The third-party inquiry method involves hiring specialized services to conduct the background check on behalf of the applicant.
These services usually have access to specialized databases and advanced search tools, allowing them to obtain information quickly and accurately.
Additionally, by having trained personnel in data interpretation and identifying potential risks, these services can provide you with detailed reports and customized analysis according to the needs of your company.
Need for Consent
It is important to note that, in most cases, the consent of the individual or entity subject to the inquiry is required to access their personal information.
This consent can be explicit, through the signing of a form or agreement, or implicit, in the case that the inquiry is made in the context of an established labor or financial relationship.
It is the applicant's responsibility to ensure that all applicable regulations and laws regarding privacy and data protection are complied with.
Databases in Latin America
In Latin America there are several relevant databases and records that you can consult to obtain labor, financial, legal and educational backgrounds. Some of them are:
Colombia
Commercial Registry in Colombia: offers information about the constitution and dissolution of companies, as well as their legal representatives and financial statements, facilitating the assessment of the solvency and reputation of companies.
National Database Registry (RNBD): is managed by the Superintendence of Industry and Commerce and contains information about personal databases operating in the country.
Mexico
National Population Registry (RENAPO): provides information about the identification and marital status of Mexican citizens, including data such as names, dates of birth, gender, among others.
Public Registry of Property and Commerce (RPPC): offers information about the ownership of real estate, as well as about registered companies and their legal representatives. This can be useful for evaluating the solvency and reputation of companies and individuals.
Peru
National Registry of Identification and Civil Status (RENIEC): provides information about identification, marital status and criminal records of Peruvian citizens.
Argentina
National Registry of Recidivism in Argentina: contains criminal records of individuals convicted in Argentina, useful for verifying the suitability of candidates in labor hiring processes. contratación laboral.
4 Simple Steps to Background Checks
Now we will tell you the steps, something relatively simple based on common sense.
- Step 1 - Identify the information source
- Step 2 - Access the corresponding website: make sure you are accessing the official website of the entity to ensure the truthfulness and reliability of the information obtained.
- Step 3 - Conduct the background check: depending on the type of background being consulted, additional data may be required such as the judicial case number or the type of tax debt.
- Step 4 - Review and download the documents - these may include certificates of disciplinary records, tax statements, judicial records and corrective measures, as appropriate.
As you can see it's very straightforward, but, at the same time, it can be quite labor-intensive. Additionally, if someone with little experience were to handle this process manually, it could be a headache in the future.
That's why my advice is to use the services of a specialized company that can:
- Handle large quantities of background checks.
- Provide greater accuracy.
- Do so in much less time.
- At a very low cost.
Why should you automate this process in your company?
It's very simple, because it's more efficient, precise, and provides greater security in the data. And Truora offers you this possibility at the best cost-benefit ratio.
Efficiency: time and resource savings
By using the most advanced technology and intelligent algorithms, Truora provides you with relevant information in a matter of seconds, eliminating the need for laborious manual searches that consume a lot of time.
Streamline your decision-making processes, reduce waiting times, and optimize the use of human resources, increasing productivity and operational efficiency.
Precision: updated and reliable data
By accessing updated and reliable databases, automatic queries can provide accurate and relevant information about the employment, financial, legal and educational backgrounds of individuals and entities.
Reduce the risk of errors and omissions, allowing your company to make decisions based on reliable and up-to-date data.
Security: privacy and confidentiality protection
Automatic querying offers an additional level of security and data protection by ensuring compliance with privacy and confidentiality regulations.
Truora offers advanced security protocols to protect the confidential information of your users and ensure its integrity and confidentiality at all times.
Truora: Outstanding solution in background verification
Truora is the best background check solution in Colombia and Latin America.
Using cutting-edge technology and a focus on data accuracy and security, it offers automatic background check services that allow your company to obtain accurate and reliable information about individuals and entities in a matter of seconds..
Try TruChecks by Truora, take advantage of your free trial and experience the process of background checks for your company.
