The Wolfsberg Group has published a Frequently Asked Questions (FAQs) on how undertaking screening for negative news and other forms of adverse information can enhance financial institutions’ awareness of potential financial crime risk posed by both existing and prospective customers.
The FAQs by the association of global banks that aims to develop frameworks and guidance for the management of financial crime risks – particularly with respect to policies for know your customer (KYC), anti-money laundering and counter financing of terrorism (AML/CFT) – aims to set out relevant considerations that financial institutions may find useful in setting out standards.
Risk-based approach
The guidelines look at the application of negative news screening (NNS) as part of a risk-based approach to AML/CFT standards.
They also discuss the documentation of a risk-based approach to NNS, taking into account the legal and regulatory requirements in the jurisdictions in which financial institutions operate.
Effectiveness and efficiency
The FAQ’s provide guidance on assessing the reliability of NNS sources and the materiality of NNS results as well as the configuration of screening systems, alert management, and associated governance.
Ensuring that NNS processes are both effective and efficient is also considered in the group’s guidelines.
The Wolfsberg Group’s Negative News Screening FAQs can be found here.
Categories: Trade Based Financial crimes News
Related Articles
-
Washington continues blitz on third-country entities linked to sanctions evasion
-
Australia focusing even more on TBML with new multi-agency taskforce
-
FATF updates guidance on beneficial ownership
-
AfDB and CoDA launch US$5.9 million project to address financial crime, money laundering and tax avoidance