In ‘Transforming Adverse Media Screening - A New Paradigm Powered by AI’, Celent advises financial institutions (FIs) on how to adopt the latest technology as part of an effective anti-money laundering (AML) solution.
Adverse media screening involves checking third-party data sources for negative news relating to an individual or company. Effective scanning is essential to proactive and efficient management of potential customer risks in relation to AML activity. But traditional technology is proving ineffective in scanning the rapidly expanding universe of data, limiting its application to known high-risk actors. To successfully fight financial crime in the digital era, FIs must widen the search while also improving its efficacy, says Celent.
At Fourthline, extensive adverse media screening is incorporated in our Politically Exposed Persons (PEP) and sanction checks. PEP checks relate to a person who potentially presents a higher risk of involvement in bribery or corruption due to their position – a prominent public role - and therefore the influence they hold. Governments and authorities publish sanctions lists to highlight individuals, organizations or entities that are known to be associated with illegal activity.
Celent notes the challenge facing banks in finding resources with expertise in both AML and AI and machine learning technology. Most banks are now seeking external support through anti-fraud solutions like Fourthline’s, in an approach that can accelerate time to benefit as well as minimizing costs and risks. Fourthline is included as an example of an AML application in the 'Considarations for Adoption'section of the report.