Unlock Our Latest Cutting-Edge Source of Funds Solution --> Discover more
New: 2024 Money Laundering and Financial Crime Report --> Read the full report
We're a multiple award-winning firm and one of the fastest-growing tech companies in the UK - find out how we got to where we are today.
We are always looking for talented individuals to join our growing team - if you are highly motivated with a positive attitude we want to hear from you.
Discover the latest events we will be hosting, exhibiting, and attending, where you can learn more about our industry-leading digital compliance solutions.
In our report, we’ve uncovered and illustrated worldwide data to determine which ‘anti-money laundering (AML) events’ are most popular around the world and in each country.
Discover key industry news and insights with our latest resources, including whitepapers, press releases, and video content.
Read all our latest news and views plus all the latest on what's going on in the industry.
Including FAQs, a glossary of terms and information on how to use our award-winning system, our help centre should tell you everything you need to know.
Find out how we have helped some of the UK's leading law, accountancy, finance, insurance, property and investment firms transform their businesses with our award-winning products and services.
It’s often wrongly assumed that adverse media only includes negative information from traditional sources of news, such as national and local newspapers or TV and radio broadcasts.
Both the media itself and the way we consume it has
changed rapidly in recent years, so proper adverse media checks should reflect
this. That means they need to consider information found in unstructured sources as well, such as social media,
online forums and the public databases of large international organisations
Take a look
at this list of potential adverse media
sources, to get an idea of where you might find negative information:
National newspapers, like The Guardian, The Financial Times, The Daily
Mail or The Sun
TV news channels, such as BBC News, ITV News and Channel 4 News
Social media platforms like Facebook, Twitter or LinkedIn
Online forums, for example Quora or Reddit
Blogs belonging to both businesses and individuals
Databases maintained by regulatory bodies like the FATF
A thoroughly executed adverse media screening can
flag up all kinds of negative
information, like a criminal recordor historic sanction. Here are a few
key adverse media examples, or
things you might uncover about a potential client or customer:
Involvement in terrorism financing
A history of financial crime
Appearing on a sanctions list, past or present
Accusations of fraud
Involvement with cybercrime
A history of violent or sexual crimes
Even if your adverse
media report doesn’t return these more extreme kinds of negative news, your
screening tool might raise other red flags – such as reputational damage or industry
rumours. These are more likely to be found in news outlets, or the
unstructured sources we mentioned above, like blogs.
SmartSearch carries out adverse media searches on any client which shows up with sanctions, special interest persons (SIPs), politically exposed persons (PEPs), or anything else that could jeopardize the financial integrity of your business.
An adverse media search is the lengthy process of checking public records (including newspaper archives, databases, and the unstructured sources we mentioned previously) for your prospective client’s name and address.
These checks are essentially a form of risk-assessment; they will help you to identify whether your client is a liability, and if they could endanger the security of your business.
As there’s no standardised way of doing this; it’s almost impossible to carry out an exhaustive adverse media search manually, even with a great deal of time. That’s why at SmartSearch, we use automated checks to get the best possible results. If there’s a match with your potential customer, a more detailed manual analysis then takes place.
While adverse media screening is vital in making sure that your business is AML compliant, and doing your due diligence, there are several pitfalls to be aware of. Here are the key things to bear in mind:
- There’s more “fake news” circulating the media than ever before, so it can sometimes be difficult to work out what a credible and trustworthy news source looks like.
- Manual adverse media checks can be very time consuming, if you try to carry them out yourself. It’s difficult to know that you’ve covered all bases, unless you have a sophisticated system in place for this kind of screening.
- Your business might not have access to all the records you need to search, in order to carry out your adverse media checks thoroughly.
- There could be news coverage about your potential client or customer which is published in a different country. In these cases, the language barrier can also prove to be a problem.
According to the FATF Recommendations, ‘financial institutions should understand the client’s reputation, including if they were previously investigated for money laundering, terrorist financing or if they faced regulatory penalties.’ SmartSearch provides a full-service AML solution, including extensive adverse media checks, which can help you to comply with these recommendations.
If we do find any negative information surrounding your client in public data sources, we’ll build a comprehensive adverse media profile. We’ll then pass this information on to you, so that you’re able to do Enhanced Customer Due Diligence – but we can help with this too.
We don’t just look for historic adverse media either, but continue to carry out these checks as part of the ongoing monitoring process, especially in the case of clients who are high-risk.