KYC

Screening

Screening is a broad term encompassing the process of searching for a particular element of risk within a counterparty. In today’s digital world, screening often involves the use of an automated software tool which minimizes manual work. From the results of a search, existing and potential issues can be identified and flagged, and if needed, analysts can further investigate for validation.Types of risks that are screened include:• Adverse Media• Politically Exposed Person (PEP)• SanctionsBut if the screening is to be super thorough, then companies should also screen for these additional items:• Watchlists• Fitness and Probity listsAdverse MediaAdverse Media is a broad term for any negative coverage about a counterparty that is published in the media. This can include reporting on and allegations of a counterparty’s involvement with illegal activities such as but not limited to money laundering, exposure to sanctions and corruption.Adverse Media ScreeningAdverse Media Screening is the search for adverse media and negative news about a person or a business. A critical part of KYC processes, Adverse Media Screening allows organizations to see if there will be any potential issues with a counterparty before the start of the business relationship. Sources that are searched typically include news sources, business and trade journals, local / regional / national newspapers.

Recommendations

This might interest you:

Explore other KYC terminology in Avallone's KYC dictionary.