Background Screening Archives

South Africa’s unemployment rate has surged to a staggering 33.2%. Behind this number lies an even more troubling reality, with the country’s youth continuing to bear the brunt of the crisis. With youth unemployment increasing by 39,000 to 4.9 million compared to the first quarter of this year, the barriers facing young people entering the workforce have never been more daunting.

For many young South Africans, securing their first job is more than a personal milestone, representing the key to economic independence and inclusion. However, for millions, this door remains firmly shut. More than 1.9 million people under 35 years of age have already given up searching for work, while almost 60% have no previous work experience. This creates a paradox, where jobs require experience, yet experience requires a job.

“While education offers some protection, the divide remains stark,” says Jennifer Barkhuizen, Head of Marketing at Managed Integrity Evaluation (MIE). “Youth without matric qualifications face an unemployment rate above 51%, while those that have finished school fare marginally better at 47.6%. Tertiary training improves the odds; however, a graduate employment rate of 23.9% remains uncomfortably high in a country in need of skills.”

Despite the challenges, opportunities do exist. Growth in technology, renewable energy, logistics, healthcare and financial services is driving demand for young people who bring digital fluency, problem-solving ability and adaptability. For the millions of jobseekers, these sectors offer rare entry points into markets that otherwise feel out of reach. However, while these opportunities exist, employers face a different challenge – ensuring that qualifications are genuine.

The risk of misrepresented credentials

Employers eager to bring in fresh talent are increasingly confronted with the risk of misrepresented credentials. To this end, MIE’s 2024 Background Screening Index reveals that of the 652,133 qualification checks conducted, 6.59% contained discrepancies. As many as 7.82% of matric certificates and 8.28% of short course qualifications could not be verified, while international credentials proved even more problematic, with 11% failing verification.

“Fraudulent qualifications are easily purchased online and on social media, making it imperative for employers to verify educational qualifications. Tertiary qualification risk remains high, as many institutions do not maintain centralised records, often leading to delays in verification,” explains Barkhuizen.

Beyond education, employers must also weigh risks such as criminal records and financial integrity. Convictions for fraud, theft, or assault highlight the importance of thorough vetting to protect workplace trust and safety. At the same time, credit checks often uncover concerns such as defaults or debt review, raising red flags for potential roles in finance and logistics where reliability is non-negotiable.

“Screening is not about excluding people but about building trust between employer and employee. By verifying credentials, companies can hire with confidence while opening doors for those who are genuine, giving South Africa’s youth a real chance to step into the workforce and help shape a fairer, more transparent future,” concludes Barkhuizen.

Not long ago, CV and qualification fraud were seen as a fringe issue, and something that popped up in sensational headlines but rarely hit close to home. Then came the recent news that a former employee at a JSE-listed firm was fined R500,000 and barred from board positions for a decade, all for claiming a PhD they never earned. Suddenly, the story was no longer theoretical, but a real sense of the challenge that the majority of South African employers’ face today.

The hiring landscape is shifting quickly, and not in favour of the employer. The rise of fake qualifications, AI-written CVs, and overconfidence in outdated vetting methods may contribute in creating the perfect storm, that few companies can afford to navigate, writes Jennifer Barkhuizen, Head of Marketing at Managed Integrity Evaluation (MIE), a business unit of Mettus.

While the national corporate world processes the fallout of that scandal, international data is painting a more unsettling picture: CV and qualification fraud are on the rise, with AI being a major driver. In the United Kingdom, for example, 67% of large companies have witnessed an increase in job application fraud, with 45% discovering candidates who have either claimed a degree that they did not earn, or who have inflated their marks. Alarmingly, only 52% of large companies, 37% of medium-sized firms and 29% of small businesses claim to cross-reference candidate credentials, while some do not check at all.

In South Africa, MIE’s 2024 Background Screening Index reveals that qualification fraud remains a major area of concern in the country. Notably, of the 652,133 qualification checks processed in 2024, as many as 7.82% of matric certificates and 8.28% of short course qualifications were misrepresented. Here, tertiary qualification risk remains high, as many institutions do not maintain centralised records, often leading to delays in verification. Moreover, international qualifications remain a threat, with 11% of checks revealing inconsistencies or unverifiable records².

In short, the evidence is clear that it’s never been easier for candidates to fake it, and it’s a proof point as to why a structured, end-to-end screening process remains critical, not just for regulated sectors, but for any organisation that takes people risk seriously.

For larger organisations, the stakes are even higher. With complex structures, high hiring volumes, and decentralised decision-making, it becomes easier for credential fraud to slip through the cracks. A single bad hire, particularly in leadership, finance, or compliance positions, can have a ripple effect across the entire business.

The traditional tools employers have leaned on for decades, such as gut feel, reference calls, and a cursory scan of credentials, are struggling to keep up, and the consequences of getting it wrong are growing. While a falsified CV may seem harmless at the interview stage, once the person is in your boardroom, your financial systems, or your client-facing teams, the risk is no longer just about inadequate performance. It’s about compliance failures, reputational damage, and, in the worst case, criminal liability.

Concerningly, most businesses remain unaware of the scale of the threat, with many assuming that fraud only occurs at senior levels or among desperate candidates. In reality, it’s affecting all sectors and at all seniority levels, and often passes undetected because verification systems are outdated, aren’t robust enough, or haven’t been used at all.

This mismatch between perception and reality is where the true risk lies. The result? A ticking time bomb in boardrooms, sales teams, and even healthcare, where misrepresentation can cost lives. Ultimately, when thorough screening procedures are not applied consistently, it creates blind spots where fraud thrives.

This isn’t just about catching dishonest applicants, it’s about building a hiring process that is fair, rigorous, and reliable – one that applies the same standards to every candidate, regardless of their role or seniority. The truth is that you do not always know where the risk will come from, and this is why the same level of scrutiny must apply across the board.

That means going beyond instinct, traditional interview processes, and references. It requires verifying qualifications directly with institutions, validating identity documents through official sources, checking employment history for discrepancies, and assessing references critically, not just cold calling listed contacts.

Doing this well takes more than good intentions and dedication of time and resources. It takes the support of companies that know exactly what to look for, who understand nuances, the local context, and the red flags that are otherwise easy to miss, such as inconsistencies in employment dates and non-accredited institutions, to name a few.

This is where experience matters, and by working with a partner who is a specialist in this field, you can ensure that your background screening processes aren’t just consistent, but also compliant, confidential, and credible.

Trust is no longer a given in today’s hiring landscape. It must be proven, and the strongest organisations don’t leave that to chance. They don’t wait for fraud to make headlines in their own corridors and, instead, invest in processes that expose the gaps before they become risks, and verify every hire before trust is extended. Because in a world where credentials can be bought, true credibility must be earned.

Compliance requirements for Accountable Institutions

Regulatory compliance has never been more critical, especially with increasing concerns over financial crimes such as money laundering, terrorist financing, and proliferation financing. The Financial Intelligence Centre (FIC) has reinforced the obligations of accountable institutions through Directive 8 and Guidance Note 7A, outlining key compliance requirements under the Financial Intelligence Centre Act, 2001 (FIC Act).

For companies seeking to navigate these obligations efficiently, background screening, risk management, and thorough client vetting are essential. MIE’s expertise in criminal checks, qualification verification, employee vetting, and identity authentication helps ensure seamless compliance. This article explores the key aspects of Directive 8 and Guidance Note 7A, and how MIE can assist accountable institutions in meeting their compliance obligations.

Understanding Directive 8 and Guidance Note 7A

Clarifying the scope of Directive 8

Directive 8 mandates that accountable institutions must screen both prospective and current employees for competence and integrity. This includes assessing individuals against targeted financial sanctions lists to mitigate the risk of association with money laundering, terrorist financing, and proliferation financing.

Obligations under Guidance Note 7A

Guidance Note 7A, finalised on 13 February 2025, offers detailed guidance on implementing various aspects of the FIC Act. It emphasises the development and maintenance of a Risk Management and Compliance Programme (RMCP) that must be approved by senior management or the board of directors.

The RMCP should include:

Procedures for customer due diligence (CDD), including client identification and verification.
Processes for ongoing monitoring of client activities.
Protocols for record-keeping and reporting of suspicious transactions.
Measures to ensure compliance with targeted financial sanctions.

Employee screening and risk mitigation

Both Directive 8 and Guidance Note 7A emphasise the critical role of employee screening. Accountable institutions must implement risk-based employee vetting to ensure their workforce aligns with the integrity requirements defined in their RMCP. This approach significantly reduces internal risks associated with financial crime.

Ongoing monitoring is essential

Compliance is not a one-time exercise. Institutions must engage in continuous monitoring, update their RMCP regularly, train employees on regulatory developments, and remain vigilant to changes in compliance obligations.

Balancing compliance and privacy

While conducting CDD and employee vetting, institutions must comply with data protection regulations such as POPIA (Protection of Personal Information Act). This means implementing strict measures to protect personal information while fulfilling legal and compliance duties.

MIE Webinar: Understanding Directive 8

This essential webinar explains what Directive 8 is and why it’s crucial for South Africa’s financial sector. Watch now to understand how Directive 8 is reshaping compliance in South Africa’s financial landscape and why it is vital for you to stay informed.

Implementing Directive 8 and Guidance Note 7A compliance measures with MIE

1. Conduct comprehensive vetting

MIE’s background screening services support compliance with Directive 8 by verifying employee and client identities, conducting criminal record checks, and validating academic and professional qualifications.

2. Use reliable independent verification

MIE leverages independent and credible data sources to verify client and employee information, ensuring institutions meet CDD and employee vetting obligations with confidence.

3. Strengthen risk management programs

With access to MIE’s criminal checks, qualification verification, and sanctions screening, institutions can integrate accurate data into their RMCP and enhance their risk mitigation strategies.

4. Ongoing monitoring and compliance support

MIE’s solutions assist with ongoing client and employee monitoring, ensuring your compliance framework remains responsive and up to date.

Why choose MIE for Directive 8 compliance?

MIE is a trusted partner for background screening, employee vetting, risk management, and verification services that align with FIC requirements. Our solutions help accountable institutions:

Conduct criminal record checks to ensure integrity.
Verify qualifications and employment history.
Screen against financial sanctions lists.
Implement robust, risk-based employee and customer due diligence.

Directive 8 and Guidance Note 7A represent a firm stance by the FIC to enhance anti-money laundering and anti-terrorism financing measures in South Africa. By implementing a compliant RMCP, conducting background screening, maintaining ongoing monitoring, and protecting personal data under POPIA, accountable institutions can significantly reduce financial crime risks.

With MIE as your compliance partner, navigating the regulatory landscape becomes easier. Our tools and expertise help you stay compliant, protect your business, and build trust with regulators and clients alike.

For more information on how MIE can assist with your compliance needs, contact us today.

There is no doubt that every industry across the world has been impacted by the global COVID-19 pandemic, and the background screening industry is no different. In South Africa, as in many countries, the hard lockdown enforced in March 2020 and the months that followed had both immediate impact and long-lasting repercussions.

Managed Integrity Evaluation’s (MIE) 10^th annual Background Screening Index (BSI) shares statistics and highlights the impact the pandemic had on levels of activities in the industry, showing how the lockdown affected demand for background screening, and emphasizing which industries were impacted in both activity and risk.

“One of the challenges continuously faced by recruitment professionals is the risk of candidates misrepresenting their professional, criminal, and academic histories in order to secure work,” says Jennifer Barkhuizen, Head of Communications at MIE. “This places added pressure on the recruitment process and further underpins the need to accurately and reliably assess candidates before hiring commences, to ensure that the candidate is the right fit for an organization, and that the necessary due diligence has taken place. Not only are financial and reputational risks mitigated for the organization, but undue pressure on recruitment budgets can be avoided.”

Another trend highlighted in the 2020 BSI report is that criminal record checks remain the most requested amongst all available checks, and although risk levels dropped to below 20% in 2020, this is expected to increase in 2021 due to lower lockdown levels, increased unemployment and economic strain.

“Interestingly, integrity assessments were the most-requested stand-alone psychometric assessments in 2020,” notes Barkhuizen. “This highlights the need for businesses to ensure that they are hiring quality candidates who will uphold the integrity of the organization.”

“The high unemployment rate in South Africa, coupled with retrenchments and organizations closing their doors, will contribute to the many challenges job-seekers face with finding employment, and further emphasizes the importance of background screening vigilance on the part of those responsible for hiring decisions.”

Looking ahead to 2021, Barkhuizen expects that background screening solutions will become an integral part of HR policies and procedures as businesses look to mitigate associated potential risks.

South African Unemployment Rate Surges to 33.2%