ELEMENT of Compliance – Adverse Media Monitoring
Today’s News Screening Challenges
What once was leading-edge in the world of Know Your Customer regulations and practices has now become an expectation. Adverse Media Monitoring (AMM), otherwise known as negative news screening, is an essential element in identifying risks inherent in a customer, or business associate, relationship. AMM covers news reports, legal and financial filings, social media and blogs, and more. Not all solutions provide adequate support, however. Effective AMM reflects the following challenges:
Reactive risk monitoring
Many risks emerge gradually, through circumstantial mention, well before red flags and investigations are triggered. Risk monitoring must be proactive and ongoing.
A high rate of false positives
Without interpretation technology intelligent enough to accurately identify causes for escalation, the immense daily volume of commentary generates noise and costly false positives.
Limited scope
Associates of customers are not automatically identified, and institutional business partners are neglected in the enterprise’s media monitoring.
Regulators have come to expect AMM practices are in place at financial institutions, placing time pressure on institutions to introduce the latest technology in short order.
BlackSwan’s Approach
BlackSwan’s Adverse Media Monitoring incorporates composite artificial intelligence, big data and business workflow technologies to provide the most comprehensive, accurate and valuable insights to efficiently manage risks identifiable within media. A key emphasis is on reducing false negatives and false positives in media mentions and allowing one’s analysts to more effectively address critical or nuanced situations.
Key Differentiators
Human-like interpretation
Go beyond simple keyword matching in a text passage – interpret an entity’s role in a situation, the nature and severity of the issue, and the involvement of multiple parties, by applying natural language processing and contextual analytics. Enable the system to evaluate cases and reduce research time.
Overarching assessment of truth
Reconcile facts from conflicting accounts, assess the accuracy of different sources, and correctly isolate parties with similar identifying information. Leverage a knowledge graph, data source management, machine learning, and entity resolution to develop the most definitive viewpoint.
Comprehensive information sources
Some solutions rely solely on licensed DBs and public search engines; this leads to information gaps and bias. Instead, access over 80 million sources and billions of passages, going back 7 years. Ensure emerging or buried stories are recognised early.
Composite AI
Layer multiple AI technologies for powerful insights that reflect and enhance the decision-making of subject matter experts. Leverage knowledge graphs, natural language processing, machine learning and more. Automate routine decisions and guide analysts on complex situations.
Intelligent alerts
Machine learning observes and adapts to analysts’ treatment of alerts and, in conjunction with user-defined behavioural weightings, more accurately prioritises future alerts.
Seamless integration with KYC and Risk Management
Benefit from the integrated intelligence and risk management efficiencies of 360° customer assessment and investigation handling in ELEMENT of Compliance or optionally use only AMM - either way integrated with your existing risk and compliance systems and data.
ELEMENT of Compliance monitors, categorizes and prioritises entity-related news, by leveraging Natural Language Processing, Contextual Analytics and Machine Learning.
ELEMENT of Compliance lets analysts define a rating for a media source's general accuracy and reliability.
Additional Features
- Automated screening of not only customers, but all related parties… and their related parties. Expand the network of associates automatically based on joint mention in adverse media.
- Enhanced entity resolution, enabling compilation of all variations of an entity’s identifying information and accurate distinction of similar entities when screening media.
- Customisable AI models, including domain ontologies and knowledge graphs (vocabulary and relationships between concepts), with minimal involvement of technologists.
- Continuous improvement. At our client’s discretion, AI algorithms can continuously monitor the infosphere, outcomes related to adverse media flagging, and analysts’ feedback, in order to improve screening. ELEMENT of Compliance also supports a detailed audit trail of AI model modifications and approvals, for regulatory purposes.
- Cross-language support with automatic language identification.
- Adjustable frequency of information gathering and reviews. Scan media in batch at a set frequency or in real-time.
- Full data lineage retained about each entity. Supports data auditability.
An Integrated Component in Financial Crime Compliance
Adverse Media Monitoring is a core component of BlackSwan Technology’s ELEMENT of Compliance™. The solution addresses the full range of capabilities to support and augment financial crime compliance, including:
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