I am unaware of there being such a residency requirement.
However, I know that anyone applying for a residence permit or is in the process of getting a work visa is subjected to a background check.
This is done discreetly with the applicant none the wiser.
Having said that I have heard that the authorities here now require proof of a clean criminal record which is perhaps what you have been doing. It is the first instance, I know of, of a white-collar worker having to go through this process. It is being applied more to blue-collar laborers.