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Wolfsberg Group offers guidance on use of negative news to assess financial crime risk | Thomson Reuters Regulatory Intelligence and Compliance Learning

Financial firms should screen for negative news about their prospective clients as part of a comprehensive due diligence review

The process of screening for negative news stories about customers to assess the financial crime risk they pose should be effective and efficient, risk-based, and tailored to legal and regulatory requirements in the jurisdiction in which an institution operates, a bank-industry anti-money laundering (AML) group in its latest guidance report.

The paper from the Wolfsberg Group of 13 major international banks comes as many financial institutions are struggling with how to address customers in Russia who have not yet been sanctioned but might be targeted by the US government and its allies due to their ties to Russian government.

In its paper, presented as a series of Frequently Asked Questions (FAQs), the Wolfsberg Group states: “While there remain some limitations and challenges pertaining to broad…

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