Adverse Media Screening

Adverse media screening (also called negative news screening) is the process of monitoring news sources and public records for negative information about individuals or entities.

What Adverse Media Includes

Financial crimes: Fraud, embezzlement, money laundering allegations
Regulatory actions: Fines, enforcement orders, license revocations
Criminal activity: Arrests, indictments, convictions
Corruption: Bribery, public corruption allegations
Sanctions/terrorism: Connections to sanctioned parties or terrorist organizations
Reputation risks: Lawsuits, controversies, ethical concerns

Adverse Media in KYB

For KYB, adverse media screening covers:

The business entity
Beneficial owners
Key executives and directors
Related parties (depending on risk level)

When to Screen

At Onboarding

Check for existing negative information before establishing the relationship.

Ongoing Monitoring

News about existing customers can surface at any time—ongoing monitoring catches new adverse information.

Acting on Adverse Media

Adverse media doesn't automatically mean rejection. Consider:

Credibility: Is the source reliable?
Relevance: Is the information material to the relationship?
Recency: How old is the information?
Disposition: Was the matter resolved?

Significant adverse media typically triggers enhanced due diligence (EDD).