Financial institutions increasingly use adverse media information in the public domain to manage regulatory and reputational risk as part of their ongoing customer due diligence process (CDD). These reviews—performed periodically in ad-hoc or scheduled batches—can be tedious and time-consuming, which means that adverse information may only come to light several months after it occurs. In contrast, a continuous surveillance approach providing alerts on a daily basis has the potential to be dramatically more efficient.
But not all solutions are the same, and some FIs have struggled with their attempts at continuous monitoring. Some “software” solutions from legacy providers are actually managed services staffed by massive global investigation teams tasked with processing an overwhelming volume of false positives, often conducted outside the jurisdiction of the firm.