There’s a lot that goes into running a financial business, and it can be tough to keep up with things as a business grows. As more people come into a financial organization and more contracts get signed with business partners, trying to stay on top of who is doing what and where can be a challenge.

Unfortunately, in all of the excitement of business growth, it can also be easy for relationships to get formed with individuals and companies that may be unsavory. People and entities with a criminal history or business partners who have a record of committing fraud can find their way into your good graces. This is almost certainly a recipe for trouble, both for your business and with financial regulators.

Looking for Adverse Media

To help combat these kinds of relationships from forming, financial business owners are encouraged to look for adverse media. Adverse media is any type of knowledge that you can find in sources like news reports regarding the history of individuals and entities with which you do business.

Adverse media plays a part in upholding Know Your Business (KYB) verification. KYB is a standard protocol used in the financial industry to determine whether a business partner has been involved in financial crimes that include money laundering and fraud. This is also part of Anti-Money Laundering (AML) regulations as set by the Financial Industry Regulatory Authority (FINRA).

How to Find Adverse Media

Adverse media can be sought out in several ways, including through the use of automated Know Your Business Verification tools. These tools use software that scans through a variety of media sources to look for keywords that may indicate a questionable history. The use of automated Know Your Business verification tools can save time versus manually combing through media, and it may also capture information that can be missed through human review. Visit this website if you need automated know your business verification tools.

Adverse Media Use in Hiring Practices

Companies also look for adverse media when hiring. More and more, resources like social media platforms are used to search out adverse media to avoid onboarding a new hire with a questionable past.

The point is not to discriminate against qualified workers, but instead, it is to protect the interests of the hiring company against bad actors who may have a history of making poor financial decisions. These are individuals who should be discouraged from working in the financial industry in most cases.

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