The FATF proposals recommend that negative media searches should be conducted as part of an enhanced due diligence process and that, if a client is mentioned negatively in the media, appropriate action should be taken by creating risk scenarios in response.
Negative Media or negative news is defined as any negative information found in news sources, both "traditional" news sources such as newspapers and magazines, as well as social media or other media in electronic form. Doing business with individuals or companies with a Negative Media profile can be a risk situation.
Negative Media checks can reveal whether potential clients are involved in money laundering, financial fraud, drug trafficking, organized crime, financial terrorism and other crimes that increase financial and risk exposure. The fact that no sanctions or penalties have been imposed for these crimes does not necessarily indicate that there is no relationship with this crime. The existence of these suspicions about the institution or person and the existence of news and allegations of related crimes also require us to take measures. In case of working with customers who show that they are involved in any crime, the reputation of organizations can be seriously threatened.
To gain a deeper understanding of their customer base, regulated entities should use high-tech automated compliance tools that can customize searches based on customer risk profiles and regulatory requirements.
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