Adverse media screening is emerging as a critical part of anti-money laundering (AML) compliance. Sometimes referred to as negative news screening, this process involves analysing publicly available information—from news outlets to government lists—for any signs of a third party’s involvement in financial crime. It serves as a vital tool in identifying potential red flags early in customer or third-party relationships.
MCO (MyComplianceOffice), which unifies key compliance functions in a single system, recently offered guidance on managing adverse media screening.
Adverse media covers a wide range of sources including traditional newspapers, blogs, legal records, and digital publications. The content might include allegations of fraud, corruption, money laundering, or even links to terrorism financing. As part of a firm’s customer due diligence (CDD), financial institutions are expected to screen for and assess such information to gauge client risk levels.
A key component of effective adverse media screening lies in the quality of the data sources, MCO explained. Firms must prioritise trusted and verified media that follow strong editorial and fact-checking protocols. Relying on unverified content—such as social media posts or anonymous blogs—can result in misleading assessments or name-matching errors.
Negative news is often a primary indicator of heightened risk, especially when considered alongside other risk factors, it said. Screening adverse media is essential not only for onboarding but also for ongoing third-party assessments. When overlooked, it can expose firms to reputational damage and steep regulatory fines.
However, the task is far from simple. Firms must sift through massive volumes of global media content, much of which is irrelevant or inaccurate. The challenge is further complicated by multilingual publications and the risk of false positives, which can divert compliance teams’ attention from genuine threats.
Effective screening requires a structured, data-driven approach, MCO added. Institutions should define risk profiles and implement rules for categorising relationships as low, medium, or high risk. Automated alerts, search precision, and reliable data sources can significantly improve efficiency and accuracy. Being able to evaluate the date, origin and context of news items is also crucial for minimising both false positives and missed risks.
To stay ahead, institutions are advised to adopt several best practices. These include integrating adverse media checks into risk-based frameworks, automating screenings, ensuring coverage across languages and geographies, and setting up continuous monitoring systems. Moreover, organisations must validate the accuracy of flagged content, escalate findings appropriately, and document all decisions to maintain a defensible audit trail.
An example of a comprehensive solution is MCO, which offers an advanced Third-Party Screening platform. Part of its Know Your Third Party suite, the tool enables financial institutions to screen clients and related entities—such as ultimate beneficial owners (UBOs), directors, and intermediaries—for negative news, PEPs and sanctions data. The system leverages trusted sources like Factiva and World-Check to deliver reliable insights.
For more information about adverse media screening, read the full story here.
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