Negative News & Compliance: Identifying Adverse Media Via Tech
Any financial services or fintech company should already know just how critical it is to identify negative news during a customer’s due diligence process. If news gets out that a client or customer was involved in a financial crime, then it’s important to be able to quickly assess the story and the client’s background and…
Any financial services or fintech company should already know just how critical it is to identify negative news during a customer’s due diligence process. If news gets out that a client or customer was involved in a financial crime, then it’s important to be able to quickly assess the story and the client’s background and protect the business from any damage.
In our latest chat series, ‘Spilling the Tea with Compliance’, Payoneer’s Deputy Chief Compliance Officer, Micheal Sheehy sat down with industry experts Karla Worley, VP Business Development at RDC along with Hugo Veazey, Director of Anti-Financial Crimes at RDC to discuss negative news, also known as adverse media and how fintechs are adapting to identifying negative news via today’s advanced technologies.
What is Negative News Screening?
Negative news or adverse media is known as unfavorable information found across a variety of news sources in which a customer of a financial services institution has been involved in misconduct or a financial crime such as money laundering, fraud and terrorism financing. Negative news checks are typically part of a screening process for a financial institution’s client against news articles revealing their crime.
The screening typically begins from the very start of the business relationship and is part of the ongoing KYC regulations that all financial institutions must abide by. The purpose of these screenings is to mitigate any potential threats posed by criminals wanting to use the institution’s financial services, and to safeguard the institution’s reputation.
Identifying Negative News via Automation
With today’s advanced and digital technologies, KYC analysts and compliance officers have easy and quick access to tons of news articles, blogs, social media pages and more that can reveal data on a financial institution’s customer. In fact, artificial intelligence and automation has offered a huge breakthrough in capturing data on a customer’s news story and providing compliance officers with categorized alerts that’s important to them.
Whether it be money laundering, bribery, fraud, human trafficking or others, organizations like RDC and software tools are both helping financial institutions and fintechs to easily categorize the risk and capture the information quickly. Screening for negative news can also be set-up to run automatically at a specific time or date allowing more flexibility for compliance officers.
Related resources
-
How to manage Value Added Tax (VAT)
The quick & easy guide to managing VAT If you’re an eSeller looking to grow your business globally, it’s essential to understand the effects of Value Added Tax (VAT) on your operations. In the US, VAT is similar to sales tax, with one key distinction: sales tax is only charged at the point of sale,…
-
A (very) short guide to understanding currency risk
As a business that operates across borders, you may have experienced the impact of currency fluctuations on your bottom line. This is known as currency risk, and it’s important to understand it in order to minimize its impact. Let’s start with the basics: What is currency risk? Currency risk is the risk that changes in…
-
Guide to structuring your US entity and corporate tax compliance
As the world turns it back on pandemic restrictions and lockdowns, more and more businesses are not only striving to get back on their feet but also expand into newer and unchartered territories. While there are many ways to expand your business internationally, the most preferred is the direct route of incorporating your business in…
-
12 compliance questions to ask your payout provider
Your straightforward guide to understandingthe laws and regulations for payouts and how to achieve complete peace of mind.
-
What is tax form collection and automation?
Collecting tax forms is an essential process for marketplace business owners. In this article, we’ll discuss why it matters, how to do it efficiently, and how automation can improve the tax form collection process.
-
Key EU regulations impacting the payments space — are you in compliance?
New and updated EU regulations impacting the payment space have been issued in recent years. Ensure your business is compliant with this helpful guide.
-
Unleashing your business’s potential in Pakistan: expert insights and strategies
Are you looking for opportunities to grow across borders? Then you’ve come to the right place. Sleek gives us expert tips to grow your business in Pakistan. Keep reading to learn how to set up shop in Hong Kong. And how Payoneer can help you bring money back to Pakistan.
-
Business taxes: What are the main types & how do they work?
As a business owner, it’s important to understand the tax landscape in order to maintain financial stability and contribute to the larger economy. This article covers the main types of business taxes in the US, how they work, how to file them, and tips for managing your financial liability around tax payments. By the end,…
-
US sales tax guide for international sellers
A few things have changed recently regarding US sales tax laws. As an international seller, we know you have questions. Need information on nexus? Registration? Exemptions? Read through our simple US sales tax guide for international sellers.
-
Managing risks and compliance in online marketplaces
In today’s online marketplace, risk management and compliance are crucial for securing transactions and building trust. This article explores the significance of risk management and compliance in online marketplaces, including effective strategies to mitigate risks and ensure compliance.
Latest articles
-
Benefits of hiring an independent contractor
A quick and easy-to-understand guide covering seven of the most important benefits of hiring an independent contractor.
-
AOR vs EOR: How are they different?
Our latest guide breaks down the key differences so you know exactly when to use each—whether you’re scaling with freelancers or full-time talent.
-
How to onboard contractors
Knowing how to onboard contractors isn’t just paperwork. It sets the tone for the entire working relationship. Get it right from day one, and the rest falls into place.
-
What contractor paperwork do I need?
Contractor paperwork can be incredibly complex, but we’ve got the answers for you here.
-
What is a contractor NDA?
You want to ensure that your IP and proprietary software stay safe? You need a contractor NDA that stands up to scrutiny. Learn more about this in the article
-
1099 termination letter template
Need to end a contractor relationship the right way? This 1099 termination letter template gives you a clear, compliant starting point, plus helpful guidance.
Disclaimer
Nothing herein should be construed as if Payoneer Inc. or its affiliates are soliciting or inviting any person outside the jurisdiction where it operates/is licensed to engage in payment services provided by Payoneer Inc. or its affiliates, unless permitted by applicable laws. Any products/services availability are subject to customer’s eligibility. Not all products/services are available in all jurisdictions in the same manner. Depending on your eligibility, you may be offered with the Corporate Purchasing Mastercard, issued by First Century Bank, N.A., under a license by Mastercard® and provided to you by Payoneer Inc., or the Payoneer Business Premium Debit Mastercard®, issued and provided from Ireland by Payoneer Europe Limited under a license by Mastercard. The Payoneer Business Premium Debit Mastercard® cannot be used at merchants or ATMs in Hong Kong or for HKD payments. If you are located in the EEA, all Payoneer Services will be provided to you by Payoneer Europe Limited, trading as Payoneer and regulated by the Central Bank of Ireland.
The information in this document is intended to be of a general nature and does not constitute legal advice. While we have endeavored to ensure that the information is up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability or suitability of the information. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever incurred in connection with the information provided.
