DEFINITION
Adverse Media Screening
Adverse media screening involves searching public information sources and databases for any negative news or media coverage about a client that may indicate involvement in criminal activity or reputational risk issues.
Unlike PEP and sanctions screenings, adverse media screenings are not enforced in most jurisdictions. However, they are seen as invaluable to make a more robust KYC/KYB framework.
Synonyms
Negative news screening
Acronyms
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Synonyms
Negative news screening
Acronyms
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Examples
A person submits an application to open a new bank account. The bank in question runs all the preliminary KYC checks and finds no red flags. However, after an adverse media screening on the potential client, the bank finds prior allegations of corruption. Not wanting to damage their reputation or potentially aid in further financial crime, the bank declines the relationship.
FAQ
What sources are used for adverse media screening?
Adverse media screenings can cover global news outlets, legal databases, sanction lists, and other public sources in many different languages. Financial institutions can also use specialised KYC databases to better streamline the process.
How far back do adverse media searches typically go?
Many banks screen at least 5-10 years back. However, if the client is seen as a high risk, longer periods can be used.
Should adverse media screening be done only during onboarding or throughout the client lifecycle?
Continuous or periodic screening is recommended to identify new adverse information over the course of the relationship. This ensures that up-to-date information is used for both decision-making and compliance concerns.
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