Adverse media screening — also known as negative news screening — is the process of searching publicly available information, such as news articles, court records, regulatory announcements, and other open-source data, to identify any negative information about a customer that could indicate a higher risk of financial crime. This might include news reports linking a customer to corruption, fraud, criminal investigations, sanctions violations, or terrorist activity. It is a key tool for identifying risks that formal identity checks and sanctions screening alone would not reveal.
EU regulatory guidance, including EBA Risk Factor Guidelines, recognises adverse media as an important input into customer risk assessments. Obliged entities are expected to conduct adverse media screening at onboarding and on a periodic basis throughout the relationship, with higher-risk customers screened more frequently. A negative news finding does not automatically disqualify a customer — it is a trigger for further investigation and enhanced scrutiny — but if the finding is serious and cannot be satisfactorily explained, it may lead to the business declining or exiting the relationship and potentially filing a SAR.
The screening itself can be done by using public search tools (Google) or paid applications (Worldcheck etc.). While the specific screening applications are generally better accepted by regulators, public search tools can done similar job, even though it requires more attention and investigation of results.
