Know Your Employee (KYE)

KYE applies due diligence to employees and contractors to mitigate internal fraud, data leakage, and conflict-of-interest risks. It includes background checks, identity verification, sanctions/adverse media screening, role-based access reviews, and periodic certifications (e.g., personal dealings, outside interests). Higher-risk roles (payments ops, system admins, traders) warrant stronger vetting and continuous monitoring. Governance integrates with HR, IT, and security: joiner-mover-leaver controls, least-privilege access, and MFA/Zero Trust. Regulators assess insider-risk controls, segregation of duties, and investigation playbooks. Effective KYE strengthens culture, reduces control breaks, and provides defensible evidence during audits and incident reviews.