Financial Considerations

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Military Sealift Command civil service mariners must be able to obtain and maintain a secret security clearance eligibility for assignment. All applicants shall thoroughly review and report information that is true, correct and made in good faith. Issues should be proactively brought to Military Sealift Commands’ attention.

Individuals who do not make MSC aware of these issues in advance or on their Personnel Security Questionnaire (PSQ) may be removed from employment upon confirmation of the issue. An area of concern is the failure to report Financial Problems. The following are examples of financial problems or issues are of concern, which must be reported when completing a (PSQ) and may impact employment with MSC:

A history of not meeting financial obligations
Not paying your bills
Denial of credit
Bouncing checks
Failing to make child or spousal support payments
Bankruptcy

The following guidance from Chief of Naval Operations Personnel Security Policy Office (CNO/N09N2) is provided:

To assist Department of the Navy commands, the Chief of Naval Operations Personnel Security Policy Office (CNO/N09N2) highlights, the adjudicative guidelines under the continuous evaluation program that can affect an individual’s eligibility for access to classified information and/or assignment to sensitive positions.

Financial Considerations

An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. Unexplained affluence is often linked to proceeds from financially profitable criminal acts. Conditions that could raise a security concern and may be disqualifying include:

Inability or unwillingness to satisfy debts,
Indebtedness caused by frivolous or irresponsible spending and the absence of any evidence of willingness or intent to pay the debt or establish a realistic plan to pay the debt;
Deceptive or illegal financial practices such as embezzlement, employee theft, check fraud, income tax evasion, expense account fraud, filing deceptive loan statements, and other intentional financial breaches of trust,
Consistent spending beyond one’s means, which may be indicated by excessive indebtedness, significant negative cash flow, high debt-to-income ratio, and/or other financial analysis;
Financial problems that are linked to drug abuse, alcoholism, gambling problems, or other issues of security concern;
Failure to file annual Federal, state, or local income tax returns as required or the fraudulent filing of the same;
Unexplained affluence, as shown by a lifestyle or standard of living, increase in net worth, or money transfers that cannot be explained by subject’s known legal sources of income;
Compulsive or addictive gambling as indicated by an unsuccessful attempt to stop gambling, “chasing losses” (i.e., increasing the bets or retuning another day in an effort to get even), concealment of gambling losses, borrowing money to fund gambling or pay gambling debts, family conflict or other problems caused by gambling.

Real life examples that lead to denied Security clearances

Example 1:
Applicant incurred several debts between 1995 to 2003 that he did not pay and did not list as delinquent on his security clearance application. Applicant failed to dispel financial considerations, personal conduct, and criminal conduct security concerns. Clearance is denied.

Example 2:
Applicant, who had debts discharged in bankruptcy in 1988, filed a Chapter 13 repayment plan in 2001. The Chapter 13 was dismissed because Applicant failed to make the required payments. Applicant deliberately falsified a signed, sworn statement made to a Defense Security Service agent after the dismissal, by claiming he was making his Chapter 13 payments. Clearance is denied.

Example 3:
Applicant’s financial problems include $5,793.00 in delinquent credit card debt, and $17,532.00 in delinquent medical bills. A hospital excused more than $10,000.00 of the debt as a Charity Care/Indigent Care adjustment,and Applicant has paid several small medical bills. However, he has done little to satisfy the remaining creditors or otherwise mitigate the security concerns caused by his financial considerations. Clearance is denied.

Example 4:
Applicant ignored two outstanding debts for many years. His relatively recent attempts to repay these debts were not a good-faith effort to repay overdue creditors. In addition, he lied about his financial condition on a Security Clearance Application. Clearance is denied.