The COVID-19 pandemic brought much negative impact on individuals and institutions in many social sectors. Companies now place more importance on risk management. The failure of recognising possible dangers of money laundering and terrorist financial risk may cause major disasters. Adverse media monitoring gives organizations useful insights into the range of possible threats regulatory, reputational, financial, and strategic risks—including an elevated risk of financial fraud and corruption risk. Adverse media is an important part of the anti-money laundering and KYC processes dealing with companies.
What is Adverse Media?
Adverse media or negative news entails much more than conventional news, for example, television, radio or print. Information on individuals is extracted from a range of sources which includes website entries, blogs and other media sources. Monitoring adverse media can help companies recognise potential risk issues – such as financial fraud, money laundering, trafficking of drugs organised crime or bribery that affect the capability to minimise and avoid regulatory repercussions which can significantly damage its credibility for the public.
What is Adverse Media screening?
Adverse media screening is one of the most important things for a company to check for. This involves searching for negative news about an individual or business. Knowing your client’s past criminal activities will reduce your company’s risk of money laundering. The method of customer on-boarding and ongoing automated screening from a vendor database can be a part of KYC and Anti-Money Laundering (AML). Adverse media screening services offer in real-time, alerts and regulatory notices high-quality, globally curated, adverse media content. Users can access consumer financing reports from the database as well.
The Financial Action Task Force (FATF) is an independent multilateral body that develops and promote policies to protect the global financial system against money laundering and etc. FATF points out that adverse media restrictions for companies are important and states that high-risk clients must improve Due Diligence and carry out adverse Know Your Client Due Diligence Purposes
How COVID-19 Affected Adverse Media Screening?
In the Covid-19 pandemic, financial crime continues to rise. Information changes quicker than regular to access the updated data. However, the more criminals are found the more adverse media there is. Hence, it has become more complex for businesses to check thousands of news that are written in a different language. Adverse media screening tools is more essential than ever.
Due to Covid 19, businesses continue their operations by working to control cash money laundering and terrorist financing risk to continue to work. Criminals quickly become opportunities for these issues. Hence, even though the coronavirus is having such a major financial impact, anti-money laundering companies have great implications and responsibilities to take adequate security precautions properly to perform KYC Due Diligence.
Advantages of Adverse Media Screening in COVID-19 Pandemic?
Banks and financial companies often conduct adverse media screening with manual filtering searches in the public domain. These searches are error-prone and time-intensive, also known as keyword searches. Quick and reliable data collection is possible by Adverse Media Screening.
Another advantage that differs adverse media screening software from such searches is that it can access the compatible details of the customer. Manual searches, including searches for keywords, lead to erroneous and incompatible search results. They detect all the data to which a customer refers to even though the customer is not acting.
How Intellinz help Adverse Media Screening?
With the rise in usage of social media and the internet. There is nothing to stop negative news from spreading at an alarming rate.
Intellinz uses this phenomenon to capture and trace the source of the spread with EBOS Reputation.
Giving you insight into prolific individuals, reputable brands and lets you stay on top of what’s happening around the world!
Intellinz can help you find out who is talking about anyone on the entire web, monitor news, blogs, digital media & social networks. We can use our business intelligence platform to scan for any positive or negative news about potential stakeholders with Intellinz.