All you need to know about Adverse Media Screening
Read a detailed article about adverse media screening and how to be on the cutting edge of regulations without much effort.
Before going to the main topic, let’s first get acquainted with the term adverse media; it is an act of spreading negative and unfavorable news about someone resulting in risking a person’s or an organization’s reputation and expose them to unfavorable circumstances even before the authenticity of the news is confirmed. Once such news spreads, the subject’s reputation is put to stake and it might cause him to suffer unjustly.
Where does adverse media occur? Every day it can be seen on your traditional news channels, blogs or web articles published, and to cover it all, also social media platforms like Reddit, Facebook or Twitter. Adverse media checks are part of the ongoing client risk assessment methodologies and need to be done frequently for clients with high-risk profiles. This is because negative data, for example, a web article accusing a person of scam, can expand their risk rating and lead to filing a Suspicious Activity Report.
Therefore, adverse media screening has become so much important and vital nowadays, especially while outsourcing on the corporate level, but its scope is quite widespread nowadays. It can also be done manually by checking the source of news, its authenticity, the credibility of the client (KYC), but it isn’t always fast, up to date, accurate and might give us false-positives.
This is where adverse media screening software comes in. They provide you with efficient and effective automated operations without the chance of missing any minute detail, easing the pain of data collection and updating manually. It can reveal involvement or association of your client with crimes such as money laundering (or any of the finance-related crimes), drug trafficking, corruption, terrorism, etc. If an individual in question is found involved in any of these activities, firms will be facing legal consequences that can leave a stain on their reputation and eventually affect their business. Automated software powered by artificial intelligence (ML/NLP) lessens the chances of getting false positives and makes the screening process faster. The machine learning algorithms screen through a huge number of media sources to determine the potential dangers and discover all linkages of corporate proprietorship and related sources, including PEPs (Politically Exposed Persons)
Regulatory Datacorp (RDC) and the FinTech FinCrime Exchange (FFE) in New York and London dated December 4, 2018, disclosed the results of a new survey report highlighting the customer/client screening methods of FFE members in the UK, US, and the Netherlands as well as the power of adverse media in assisting them to improve screening methodologies.
“Adverse media screening has long been regarded as a critical element within global banking institutions as a key element to fighting financial crime and reputational risk. We are not surprised to see the Fintech (financial technology) industry now embracing this same imperative.”, said Tom Walsh, CEO of RDC. “What’s also evident from this report is that compliance teams, often with limited resources, are facing challenges concerning the effective use of adverse media. We are working closely with Fintech companies in helping them realize the full potential of this capability in a way that works for them and their unique industry so that together we join in the fight against financial crime.”
The rundown of administrative and supervisory reactions to fintech-related threats keeps on extending. Also, this will keep on tightening up over the coming years as the fintech department and the selection of fintech solutions proceed to expand. Fintech is quickly changing how we handle our finances by progressively offering new types of financial services to the consumers. Fintech advancements have brought down the obstacles for entry, extended financial inclusion, and tested conventional understandings about how the accounting works. Despite the promising opportunities fintech presents to the expanded money related incorporations, it doesn’t ensure that these services offered through fintech are secure, reliable and adept.
Talking in terms of actual places for such practices, Singapore is talked of as the world’s busiest and most advanced business centers, serving as a golden standard for banking and monetary administrations around the globe. Given that status, Singapore puts a solid spotlight on monetary guidelines and assumes a critical job in the worldwide battle against tax evasion, financing of terrorism and illegal operations. The information assurance commitments set out in the PDPA(Personal Data Privacy Act) are straightforward and adaptable, and lined up with worldwide best work on, including APEC’s Cross-Border Privacy Rules (CBPR). Where guidelines had recently been prohibitive towards localization and stockpiling, Singapore’s administration has held onto cloud innovation as an approach to upgrade information security without smothering business development and monetary development.
Some of you might be thinking what KYC, AML or PEP are, so let’s first sort them out; Know Your Client is, as the name suggests, a set of procedures that verify the identity and credibility of your client, as most organizations can encounter serious issues if any such detail that taints or affects the company’s name or reputation is overlooked, hence KYC has significant effects for any firm that has anything to do with money. Most critically of these are banks that use KYC to lessen the amount of fraud. Anti-Money Laundering (AML) is a system of limiting and controlling money laundering activities, it comprises of three main operations; finding, freezing and forfeiting of illegal resources. Again, the same as KYC, it is very critical for banking operations. Both of them are closely related and inter-connected with each other. Politically Exposed Persons are people who are affiliated with politics or who actively participate in statecraft. Such people are more likely to be involved in criminal activities and therefore require more thorough risk assessment before establishing business with them.
Adverse Media Screening software is designed to screen or verify the news/media source for its authenticity and credibility. A team of data scientists, developers, and financial crime professionals together with their efforts, intelligence and knowledge have built such risk management/assessment systems that reduce manual labor, increase productivity and also minimizes room for error that might occur while assessing the risks manually. In addition to that, this software also provides you with services tailored to your business needs.
Tons of data/content is published online every day. This makes finding what is relevant in all of that unstructured content almost impossible, mainly because of its volume and complexity. Realtime checking of news content utilizing a Machine Learning and Natural Language Processing fueled intelligent news platform implies that investigators can assemble adaptable substance, supposition, and classification-based searches to reveal both past, present, and future reputational hazard situations as they develop.
Now that the issue is clearer to the readers, moving on to our product that is BASIS ID, you might be thinking what does this software offer that others don’t? Why should we prefer it over others? You’ll have your answers just some words away.
Continuing with the flow of the topic, it is an adverse media screening software but it also offers a wide variety of other related solutions as well. The verification through BASIS ID is done in the minimum time possible, and the verification software can be integrated within a day. Naturally, every customer wants accurate results as fast as it can be, so BASIS ID looks after that properly. The customers are welcomed with excellent customer service; providing every customer with an account manager that answers their queries and responds to their problems. They offer the best price after a thorough study of the case, according to the customer’s requirement. They provide a full legal compliance to their clients pointing to the fact that BASIS ID successfully passed an audit by BIG4 and owns a package of documents ready to be presented to any monetary authority, meaning that they conform to all the regulatory standards as might be required for any organization, both on national and international level. It provides full compliance with the regulatory requirements and offer consulting services as well.
Many of the attractive features of BASIS ID include; Document proofing that is, asserting the documents like National Identity Card, domicile, passport, degree certificates, etc. are genuine, conducting liveness check that is, confirming that the person they are interacting with is real and not a fake/robot, biometric facial recognition and matching that can be used anywhere for security checks, address validation that checks whether a given location exists or not and it also includes OCR, multi-registration detection that checks if a person has been registered with multiple identities in the same department and adverse media screening. It is a customizable solution for legal compliance and fraud detection, that allows to satisfy the requirements of regulatory authorities.
Of all these services, Adverse media screening is our focus and point of interest here. With its KYC/AML support, it manages personal data and performs the processing of the identity dataset and provides powerful personal data management tools, automatic documents, and biometric verification let the customer gain access to the service faster, giving you enhanced due diligence with its up to date operations.
Adverse media and watchlist screening gets enhanced using BASIS ID. In sync with the changing AML/CTF regulations, a comprehensive sanction list coverage is monitored in real-time covering 230 countries and 42820 sources, allowing you to tailor your screening to your needs: configure your threshold settings, risk score (4 risk stages), matching and acceptance criteria. It compiles and extracts various datasheets for the ease of statistical analysis and regulatory reporting.
Its Fuzzy matching search capability allows optimization for the reduction of false-positives and coverage in-line with your risk-based approach. Its comprehensive profiles are enhanced with the most up to date Adverse Media and information on Politically Exposed Persons (PEPs), providing you with application risk scoring, red flag notifications, and screening criteria rulesets. Ongoing and periodic screening ensures compliance and risk mitigation throughout the business relationship. Its custom blacklists allow you to create custom parameters for access to the service, filtering out the parameters that are not relevant to your case.
BASIS ID’s infrastructure is built in full conformity with the global and local regulatory requirements including FATF (Financial Action Task Force), MAS (Monetary Authority of Singapore), GDPR (General Data Protection Regulation), FINMA (The Swiss Financial Market Supervisory Authority ), FCA (Financial Conduct Authority), and CySEC (The Cyprus Securities and Exchange Commission). They operate at the forefront of Data Protection and regulatory legislation all around the globe. The System is designed to constantly monitor or look for the relevance of the existing users’ data. In case of any violation of the requirements you set for users, you will get notified of such and will be able to efficiently react with necessary actions taken. The platform gives an adaptable confirmation process permitting both programmed and manual modes. Manual mode may incorporate post-control empowering their Clients to settle on an ultimate choice on client onboarding. They can give special case-to-case answers to any business.
BASIS ID not only focuses on expanding its services, but it also pays great attention to its customer’s experience and satisfaction. BASIS ID is flexible and can provide programs for multiple countries and products, which saves customers from the pain of going through the same tedious process, again and again, while charging no additional fees except for the performed verifications. To increase conversion, BASIS ID can use SMS, email and retargeting to encourage completing the verification. You can also get updates and alerts by email or notifications on our dashboard.
Summing up our debate on the topic, BASIS ID is a handy and innovative product that gives you an adaptable and user-friendly mobile and web application that simply embeds the contemporary widget with a friendly user interface and lets you observe the verifications inside the convenient BASIS ID panel. As the integration via an API is supported, companies can collect the data themselves, and import the elements for processing and export the results.
As already discussed, it provides great flexibility and vast customization for your specific business needs. BASIS ID is offered as a white-label solution with the implementation of the elements and functions that are required for the collection and processing of your data. So, it makes the usage easier for anyone with little knowledge of such things.