Adverse Media Screening Practices May 2020 Speakers David Balson - - PowerPoint PPT Presentation

Adverse Media Screening Practices

May 2020

Speakers

Kevin Wolf

Product Strategy Director Dow Jones Risk & Compliance

Henry Williams

Head of Investigations Themis

David Balson

Director of Intelligence Ripjar

Kenneth Gazzaway

Director, EMEA Regional Head of Anti-Bribery & Corruption Compliance MUFG Bank

Gavin Lockhart Mirams

MD Think Tank & Founder Themis

Adverse media screening (AMS)—also known as media monitoring

• r negative news screening — is an important part of customer due

diligence (CDD). AMS is the process in which a customer, or prospective customer, is compared (or "screened") against negative information and data sources AMS allows firms to identify and prevent potential problems before they arise and also helps organizations avoid reputational damage. As part of our drive to help our customers, Dow Jones:

• Completed a global Adverse Media study

conducted in partnership with Themis in September 2019

• As part of this, we conducted an online

survey as well as in depth interviews with key adverse media SMEs and practitioners - a mixture of frontline staff, C-suite leaders and board members.

What is Adverse Media?

• 1. Quality of news sources
• 2. Screening in different languages / jurisdictions
• 3. Volume of alerts
• 4. False positives
• 5. Setting a company wide risk threshold

What are the biggest challenges you face when conducting AMS?

Poll Question

Regulators suggest that adverse media screening either “must” or “should” be completed, and still issue significant fines when firms do not follow this guidance.

Financial Conduct Authority (FCA)

FCA FINE £896,100 on Canara Bank UK 2018

“There was no evidence that money laundering risks or adverse media related to its customers were considered by senior management of Canara during the onboarding process or subsequently.”

FCA FINE £102,163,200 on Standard Chartered Bank 2019

“FCA highlighted that the UAE branches were required—but failed—to repeat due diligence in response to a number of trigger events, including when negative press warranted it. As a result of this and other failings.”

Adverse Media Best Practice Guide

Six Step Recommended Framework:

• 1. Set your risk appetite clearly & perform a risk assessments
• 2. Screen at the right time
• 3. Build checks based on credible, current news sources
• 4. Create and maintain an audit trail
• 5. Use (the right) technology to reduce burdens
• 6. Establish a strong anti-financial crime culture

Help organizations identify special-interest and reputationally exposed persons and entities according to carefully considered categories of risk, enhancing protections against financial crime.

• 1. Set your risk appetite clearly & perform risk assessments
• 2. Screen at the right time
• 3. Build checks based on credible, current news sources
• 4. Create and maintain an audit trail
• 5. Use (the right) technology to reduce burdens
• 6. Establish a strong anti-financial crime culture

Which of these steps would you like to understand more?

Poll Question

Case Studies

Why is this important?

Two cases of how adverse media screening could have helped.

Speakers

Kevin Wolf

Product Strategy Director Dow Jones Risk & Compliance

Henry Williams

Head of Investigations Themis

David Balson

Director of Intelligence Ripjar

Kenneth Gazzaway

Director, EMEA Regional Head of Anti-Bribery & Corruption Compliance MUFG Bank

Gavin Lockhart Mirams

MD Think Tank & Founder Themis

Thank You