The recent 11.5 billion riyal corruption scandal in Saudi Arabia has sent shockwaves through the business world. This massive fraud, involving bank officials and businessmen, highlights a critical vulnerability in corporate governance—employee background screening. Could this scandal have been avoided with better checks? Absolutely. Here’s a detailed look at the scandal and how robust employee background screening could have made all the difference.

The Saudi Scandal Details – What Happened?

In a dramatic turn of events, Saudi anti-graft authorities recently uncovered a corruption scheme involving bank officials and businessmen worth 11.5 billion riyals. The investigation, led by the Anti-Corruption Authority (Nazaha) in collaboration with the Saudi Central Bank, revealed an extensive network of bribery and fraud.

Here’s how the scandal unfolded:

1. The Bribery Network

An organized gang, comprising expatriates, citizens, and businessmen, was discovered to be depositing cash from unknown sources and transferring it outside the Kingdom. Bank employees were bribed to facilitate these transactions, creating a deeply entrenched web of corruption.

2. Massive Financial Transfers

Authorities found that 11,509,209,169 riyals had been transferred out of Saudi Arabia through illicit channels. This staggering amount highlighted the scale of the operation and the level of collusion involved.

3. Arrests and Charges

The crackdown led to the arrest of five expatriates caught while depositing over 9.78 million riyals in cash. Additionally, seven businessmen, twelve bank employees, and a non-commissioned officer were apprehended for their involvement. The charges included bribery, forgery, and exploiting positions for illicit financial gain.

4. Fake Commercial Entities

One businessman set up several fake commercial entities under his name and those of his family members. These entities opened bank accounts used to deposit cash from unknown sources, with bank employees colluding to transfer the money abroad. In exchange, the employees received money and gifts.

5. Bribery to Delay Legal Actions

In a bid to stall investigations, the businessman paid 300,000 riyals to a police officer and 4 million riyals to other officials. These payments were intended to delay legal proceedings related to their suspicious financial activities.

How Employee Background Screening Could Have Prevented This

The 11.5 billion riyal scandal underscores the dire need for comprehensive employee background screening. Here’s how implementing robust background checks could have made a difference:

Identifying Red Flags Early

Thorough background screening can reveal past criminal activities, financial discrepancies, and connections to dubious entities. By identifying these red flags early, businesses can avoid hiring individuals with a propensity for unethical behavior.

Verifying Qualifications and Employment History

Background checks ensure that candidates’ qualifications and employment histories are legitimate. This verification process can prevent individuals with falsified credentials from gaining positions of trust where they might engage in corrupt activities.

Continuous Monitoring

Employee background screening shouldn’t be a one-time event. Continuous monitoring helps in detecting any changes in employees’ financial status, legal issues, or suspicious behavior. Regular updates can alert businesses to potential risks before they escalate.

Strengthening Internal Controls

Implementing a culture of thorough background checks can strengthen internal controls by ensuring that all employees, especially those in sensitive positions, are thoroughly vetted. This can significantly reduce the risk of internal collusion and bribery.

Enhancing Corporate Reputation

A rigorous background screening process demonstrates a company’s commitment to integrity and ethical practices. This enhances corporate reputation and builds trust with clients, partners, and stakeholders, ultimately contributing to long-term success.

Dodging Frauds with EmploySmart™ – The CRI™ Group Solution

In light of the recent 11.5 billion riyal corruption scandal in Saudi Arabia, businesses worldwide are becoming acutely aware of the importance of thorough employee background screening. Corporate Research and Investigations (CRI™ Group’s) EmploySmart™ services offer a robust solution designed to protect companies from similar fraudulent activities. Here’s how businesses can opt for EmploySmart™ to dodge frauds and ensure a safe, compliant work environment.

EmploySmart™ – Comprehensive Employee Background Checks

EmploySmart™ is a certified pre-employment screening service tailored to meet the highest standards, including BS7858 certification. This service is pivotal in avoiding negligent hiring liabilities by providing detailed and customized screening packages for every position within your company. By partnering with CRI Group, businesses can access a full spectrum of background checks, including:

• Address Verification – Ensures the candidate’s physical address is verified.
• Identity Verification – Confirms the authenticity of the candidate’s identity.
• Previous Employment Verification – Validates the candidate’s employment history.
• Education & Credential Verification – Checks the legitimacy of educational qualifications.
• Local Language Media Check – Reviews local media for any relevant information.
• Credit Verification & Financial History – Assesses the candidate’s financial integrity.
• Compliance & Regulatory Check – Ensures adherence to compliance standards.
• Civil Litigation Record Check – Searches for any involvement in civil litigation.
• Bankruptcy Record Check – Identifies any history of financial insolvency.
• International Criminal Record Check – Uncovers any criminal records worldwide.
• Integrity Due Diligence – Investigates the overall integrity of the candidate.

Case Study –  Preventing the 11.5 Billion Riyal Fraud

Imagine if the Saudi organizations had utilized EmploySmart™ before the scandal erupted. Instead of facing a staggering $11.5 billion loss, they could have dodged a bullet by identifying potential risks during the hiring process.

EmploySmart™’s meticulous background checks would have exposed red flags lurking beneath the surface. Financial irregularities, inconsistencies in employment histories, or even questionable references could have been easily detected.  In the Saudi case, these checks would have revealed the individuals’ involvement in previous financial improprieties, preventing them from gaining access to the organizations’ resources and orchestrating their elaborate scheme.

By investing in EmploySmart™, companies can safeguard their finances and reputation. Our comprehensive background checks go beyond simple criminal history searches. We delve into financial records, verify credentials, and even assess character references to ensure you hire trustworthy individuals. Don’t leave your company’s future to chance. Choose EmploySmart™ and mitigate the risk of financial loss and reputational damage.

Specialized Screening with EmploySmart™ EduGuard

For educational institutions, EmploySmart™ EduGuard offers specialized pre-employment background screening services tailored to stringent safeguarding requirements. This service ensures that all prospective and existing employees, contractors, and volunteers who interact with children and young people undergo rigorous background checks. EmploySmart™ EduGuard helps educational institutions make informed hiring decisions, protecting their reputation and assets while creating a safe learning environment.

Why Choose CRI Group™ EmploySmart™?

Global Expertise

CRI™ boasts an expansive network of Certified Fraud Examiners and Compliance Officers strategically positioned across five continents. This global reach ensures that your background checks are conducted by professionals who understand local laws, regulations, and cultural nuances, while adhering to rigorous international standards. Whether your business operates domestically or across borders, our team provides comprehensive and culturally sensitive background checks that leave no room for error.

Certified Excellence

As the sole background screening service provider in the UAE and the Middle East to hold the prestigious BS 7858 certification, CRI™ sets the benchmark for excellence in the industry. This certification demonstrates our unwavering commitment to quality, accuracy, and ethical practices. By choosing CRI™, you’re choosing a partner that prioritizes the highest standards in background screening, ensuring you receive reliable and trustworthy results.

Customizable Solutions

We recognize that every business has unique needs and requirements. That’s why our EmploySmart™ services are fully customizable. We tailor our background checks to align with your specific industry, job roles, and geographical locations, ensuring that you receive the most relevant and actionable information. This flexibility empowers you to make informed hiring decisions based on comprehensive and tailored insights.

Quick Turnaround

In today’s fast-paced business environment, time is of the essence. CRI™ understands the importance of swift decision-making. Our streamlined processes and dedicated team of over 50 full-time analysts ensure you receive accurate and comprehensive background check results promptly. This allows you to move forward confidently, knowing you have the necessary information to make critical hiring decisions without unnecessary delays.

Trusted Partner

CRI™ prides itself on being more than just a service provider – we’re your trusted risk management and compliance partner. Our flat organizational structure ensures that you have direct access to senior staff, who are always available to provide guidance and expertise. With a team of experienced professionals dedicated to your success, you can rely on CRI™ for unparalleled support and expertise throughout your background screening journey

Don’t leave your business vulnerable—opt for EmploySmart™ and protect your operations, reputation, and future.