What is adverse media?

Modified on Tue, 21 Jul at 12:49 PM

Adverse media is public information that links a person or business to serious issues like fraud, money laundering, corruption or regulatory breaches, and it can appear in news articles, official notices, court reports, blogs or social media. Companies use adverse media checks as part of their KYC and AML processes to spot early warning signs of financial crime or reputational risk and decide whether to onboard, monitor more closely, or exit a relationship.


The Red Flag Alert adverse media dataset is a state of the art, real-time structured data feed of companies and individuals subject to adverse media. Monitoring thousands of news sources, business and trade journals, in addition to local, regional and national newspapers, the adverse media feed isolates and highlights any entities subject to a range of adverse media.

 

The adverse media is categorised by risk type, and encompasses media relating to accusations, arrest, trial and exoneration. Risk type includes a granular breakdown into 14 different categories, 8 of which cover all FATF, or EU Money Laundering Directive, predicate offenses. Adverse media profiles are enhanced by additional identifying information (location; media text; date of birth, publication date) when available.


Adverse media reports will show in the special events tab if there have been any media reports reflecting the company or its financial health in a negative way.


To find out more about performing PSAM checks with Red Flag Alert, click here



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