While sanctions screening has always been important, it’s now a core focus for those in local government due to multiple sanctions against those in authority and senior businesspeople in Russia and Belarus since the invasion of Ukraine.
When local authorities consider sanctions screening they focus on obtaining sanctions lists, increasingly along with politically exposed person (PEP) and relatives & close associates (RCAs) data for a more comprehensive sanctions screening process.
PEPs are those who have been entrusted with a prominent public function, and are usually senior politicians, civil servants or members of the judiciary. Whereas RCAs can be spouses, partners, children, parents, cousins, uncles, aunts and close friends of the PEP – people who may be vulnerable to bribery, blackmail and corruption due to their relationship with someone in a position of authority and influence.
However, it’s important that another valuable addition to these sanctions screening processes be considered – automated adverse media checks.
Automated adverse media screening enables councils to keep abreast of the latest news and alerts, in real-time, on any arrests or court cases, for example, against users of their services. They may be PEPs and RCAs, along with others who could have potential negative regulatory, financial, or reputational consequences to their organisation.
Checking for negative news on an individual or business, even if they may not appear on any international watchlist, is vital to obtain the most accurate risk profile of those using your services in an age of increasing fraud. It also supports best practice due diligence for know your citizen (KYC), know your business (KYB) – possible suppliers and partners – and anti-money laundering (AML).
It’s critical that the tools used to undertake adverse media checks scan the credible global news media for maximum reach, such as newspapers, magazines, TV, social media, radio, and press releases. This way signs of money laundering, financial fraud, drug trafficking, financial threats or organised crime, terrorism, cybercrime, violent or sexual crimes, and appearances on past or present sanctions lists worldwide can be identified and acted on.
If there is adverse news against any user of your services they should be ranked as high risk, with further due diligence required, which may lead to the termination of the relationship. Also, adverse media checks shouldn’t only be used to monitor existing users, but for best practice due diligence at the user onboarding stage.
Adverse media checks should always be delivered as part of a wider identity verification process. For best practice sanctions screening and fraud prevention those in local government should access a software-as-a-service (SaaS) electronic identity verification (eIDV) tool. Such a service can deliver a full ID verification offering that combines global sanctions data with PEP, RCA data and adverse media checks. Being SaaS, this scalable easy to deploy platform is additionally able to support cross-checks against an individual’s contact data in real-time as they complete an online application process or checkout, while ensuring the user experience isn’t compromised. It does this by matching the name, address, date of birth, email, or phone number against reputable global streams, such as government agency, credit agency and utility records, along with mortality screening checks, to effectively confirm the ID of an individual. At the same time the platform should highlight any errors in the data, such as a typo in the address, which can be easily corrected.
SaaS tools, which can be accessed instantly through the internet, are set to revolutionise how ID verification and sanctions checks take place. The efficiencies, speed, accessibility, flexibility and cost benefits afforded by SaaS are game changing. Local councils can plug in and benefit immediately.
Automated adverse media checks are a must have to ensure best practice due diligence, prevent costly fraud and protect brand reputation, as part of any sanctions screening, wider ID verification and counter fraud efforts. For maximum impact adverse media checks should be accessed using a full service easy to use SaaS eIDV platform.
Barley Laing is UK managing director at Melissa.
