Regulators now require OSINT – what next for AML and CDD?

The regulators have called for the use of open source internet and social media checks (OSINT) in anti-money laundering (AML), enhanced customer due diligence (CDD) and conduct surveillance measures. So, if the regulators require OSINT – what are financial institutions doing to meet these regulatory guidelines?

The European Banking Authority states that enhanced due diligence (EDD) measures include “carrying out open source or adverse media searches” [EBA, p.2]. By using OSINT, banks can build a more complete customer profile, including the source of the customer’s wealth and information on any associations the customer may have in different jurisdictions.

OSINT can also bridge the gap when dealing with PEPs and high-risk customers, according to the FCA’s Financial Crime Guide “using, where available… open source internet checks to supplement commercially available databases.” [FCA, p. 186] OSINT analyses all publicly available information on the Internet and should be used to complement existing processes. This is a mean feat for in-house teams, which is where technology helps.

Our unique blend of OSINT, machine learning and natural language processing enables us to dig deeper and faster into people, entities and networks. Coupled with advanced analytics and deep industry expertise, we provide zero false positives and complete customer profiles.

The use of OSINT stretches beyond customers. In the US, FINRA have highlighted its use in conduct surveillance and monitoring employees. “Monitoring traders, registered representatives, employees…structured data and unstructured data…social media profiles and other communications”. [FINRA]. Here, OSINT and social media screening can pinpoint people risk faster, for instance by uncovering aliases and cached data, helping to protect firms in the digital era.

Financial institutions use our open source enhanced due diligence to strengthen their compliance programmes. Make sure you have a defensible position back to the regulator.

Schedule a call with our team today to discuss OSINT due diligence, or build a no-obligation estimate using our pricing tool.


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Neotas Enhanced Due Diligence

Neotas Enhanced Due Diligence covers 600Bn+ Archived web pages, 1.8Bn+ court records, 198M+ Corporate records, Global Social Media platforms, and more than 40,000 Media sources from over 100 countries to help you screen & manage risks.

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