Adverse Media Screening Process | AML UAE

Introduction

This tutorial outlines the adverse media screening process, a crucial component in customer due diligence (CDD) to identify potential risks associated with new customers. By understanding this process, businesses can mitigate the risks of onboarding individuals involved in financial crimes, such as money laundering.

Step 1: Understand Adverse Media Screening

Adverse media screening involves researching a customer’s background to identify any negative associations that may indicate involvement in financial crimes. It typically involves:

• Collecting government-issued identity documents (e.g., passport, Emirates ID).
• Matching the information in these documents with findings from adverse media searches to confirm true hits or false positives.

Step 2: Conduct Research Using Search Engines

To begin adverse media screening, utilize multiple search engines. Follow these steps:

1. Choose a Search Engine: Use popular search engines like Google or Bing.
2. Search for the Customer's Name: Enter the full name of the individual along with specific keyword strings. Example search strings include:
   • launder OR fraud OR bribe OR corrupt OR arrest OR blackmail OR breach OR convict OR court case OR embezzle OR extort OR felon OR fined OR guilty
   • illegal OR imprisonment OR jail OR kickback OR litigate OR mafia OR murder OR prosecute OR terrorism OR theft OR unlawful OR verdict OR politic OR sanctions
3. Review Search Results: Analyze the results for any negative media associated with the individual.

Practical Tip

Adapt keyword strings based on your organization's risk assessment framework to ensure a comprehensive search.

Step 3: Utilize Screening Software

Using specialized software can streamline the adverse media screening process:

1. Select Appropriate Software: Choose a tool known for its quality and extensive database.
2. Input Customer Information: Enter the individual’s name into the software.
3. Review Results: The software will provide a report detailing any adverse media related to the individual along with sources.

Common Pitfall

Always verify the credibility of the sources provided by the software to ensure accurate information.

Step 4: Research Through Social Media Platforms

Social media can provide valuable insights into a customer's background. Follow these steps:

1. Choose Social Media Platforms: Focus on LinkedIn, Facebook, and Instagram.
2. Search for the Individual: Look up the person's profile using their name.
3. Verify Profile Details: Check for negative associations by:
   • Looking for tags in negative posts.
   • Searching for negative hashtags or pages related to the individual.

Practical Advice

Be cautious about the context of negative posts; not all mentions imply wrongdoing.

Step 5: Take Action Based on Screening Results

How you proceed after adverse media screening depends on your findings:

1. If a Match is Found:

   • Evaluate the nature and severity of the negative news.
   • Classify the customer as "high-risk" based on all risk parameters.
   • Apply Enhanced Due Diligence (EDD) measures.

2. If No Match or False Match:

   • You can proceed to onboard the customer.
   • Ensure that the decision is based on a holistic view of the customer’s identification details and transaction parameters.

Conclusion

Adverse media screening is a vital step in customer due diligence that helps businesses identify potential risks associated with onboarding new clients. By utilizing search engines, screening software, and social media, organizations can effectively gather necessary information. Remember to take informed actions based on the screening results to maintain compliance and safeguard against financial crimes. For further implementation, consider integrating these processes into your standard operating procedures.