Adverse media or any negative news is any information that exposes a person’s involvement in crimes, however, in AML compliance, adverse media refers to risk-relevant information that is available to the general public. This adverse information could be news of involvement in money laundering, financing terrorism, fraud, tax evasion, human rights abuse and so on.
Adverse information search: sources of risk relevant data
- Conventional and Social Media – Most of risk-related information is found on social media e.g Twitter and Facebook and from conventional news sources like newspapers, putting out thousands of financial crime related negative news every day. As a result, negative news searching here consumes a lot of resources, but with automation, it’s a breeze.
- Designated websites e.g Better Business Bureau – Like Yelp and TripAdvisor, there are websites dedicated to report issues involving corruption, fraud and some other adverse information in organizations. A good example of such websites is the Better Business Bureau (BBB)
- Sanctions Lists – Being listed on a sanctions list means that a company is fraudulent or has shady operations. Major sanctions lists include OFAC sanctions lists, UN consolidated lists, EU consolidated lists and so on. In AML compliance, sanctions lists screening are compulsory for proper customer due diligence.
- Regulatory Filings and Databases –Financial authorities including the US SEC and FinRA regularly release press on disciplinary actions against offending entities every monthly. Most countries and regions like the US have websites dedicated to searching for entities involved in a disciplinary/regulatory action. All it takes to find them is a simple search on any search engine.
- Independent Anti-corruption sources – Most times independent investigators uncover major corruption and fraud involving governments, corporations, and individuals. An example is the Panama paper publication issued by The International Consortium of Investigative Journalist. Other sources include Wikileaks, and Transparency International’s “Corruption Perception Index”.
- International Databases – Interpol Wanted Persons list.
Using software for negative news searchThousands of negative news are published in different languages daily, consequently posing a challenge to manually screen for risk-relevant information, particularly in companies dealing with large numbers of customers every day. Our automated platforms for adverse media searching present a solution to these challenges.
Automated media analysis in several local languages and millions of web pages and thousands of sources analyzed in minutes, Sumsub offers a reliable solution to protect businesses from unwanted connections and fraud.