Adverse media
negative news
Other languages: Deutsch · Français · Español
Publicly available reports about a person or company that point to money-laundering, corruption or other risks.
Adverse media hits are not proof, but a reason for further enquiries.
In practice
In a family office, checking negative media reports is part of onboarding and of every periodic review – for family members in key roles as well as for companies whose sale created the wealth. A triage in three steps has proven useful: does the report really concern this person, is the allegation relevant to money laundering, and how reliable is the source? Every decision is recorded with date and reasoning, even when a hit is dismissed.
Distinctions and common mistakes
Adverse media must be distinguished from sanctions and PEP lists: lists produce clear hits, media reports produce indications that have to be weighed. Typical mistakes are searching in one language only although the family is active in several countries, overlooking reports about former company names or business partners, and dismissing a hit without documented reasons. The opposite is just as problematic: treating unverified claims from blogs or forums as facts.
Relevant in: EU-wide
Related terms
- Screening
- Checking persons and companies against sanctions lists, PEP databases and negative media reports.
- Politically exposed person
- A person who holds or has held a prominent public function, as well as their family members and persons known to be close associates.
- Risk-based approach
- Principle under which the scope and depth of due diligence depend on the specific money-laundering risk.
Mentioned in these guides
- Building the risk profile of a business relationshipStep by step to a robust risk profile: business profile, risk factors, weighting, reasoning and the triggers for a reassessment in a family office.