Adverse Media Screening
What adverse media screening is, what sources to monitor, and how negative news affects KYB decisions.
2 min read
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).
Related: EDD | Watchlist Screening | Ongoing Monitoring