Solutions
Credit Risk / AML Compliance
Proactive Risk Management: The Role of Semantic Visions in Compliance, AML/KYC, and Credit Risk
In an increasingly complex regulatory environment, organizations face mounting pressure to ensure compliance with anti-money laundering (AML) laws and regulations. The risk of financial crime, including money laundering and terrorism financing, presents significant challenges for industries such as finance, insurance, and trade.
How Semantic Visions Data Can Help with Compliance and AML
Semantic Visions offers an advanced data analytics solution, enhancing compliance processes by delivering in-depth adverse media screenings. By systematically monitoring global media sources in 12 languages, our tools provide near real-time insights into clients, suppliers, and business partners, allowing for proactive risk management and mitigation. Our platform also enhances credit risk assessments by identifying financial distress signals, debt issues, and other early warning indicators that may impact a company’s creditworthiness.
With Semantic Visions, you can:
- Enhance Due Diligence: Our AI-powered solutions access real-time media coverage that may affect business relationships, enabling in-depth due diligence on customers and partners, revealing potential risks before they escalate.
- Streamline Compliance Efforts: Our advanced algorithms enable efficient monitoring of adverse media, simplifying compliance workflows and making them more effective. The interactive dashboards, updated hourly, support seamless compliance management.
- Stay Compliant with Regulations: Our data solutions align with international standards, such as the Financial Action Task Force (FATF) recommendations, EU AML Directives, and the USA PATRIOT Act. This helps organizations fulfill their regulatory obligations efficiently.
- Mitigate Reputational Risks: By identifying potential red flags among clients and suppliers, our solutions help safeguard your organization’s reputation and prevent costly repercussions.
Real-World Application
Red Lobster Hospitality Credit Risk Monitoring
From March 2023 to September 2024, Semantic Visions detected early financial distress signals for Red Lobster, helping institutions mitigate credit risk before major events occurred.
Key Event – May 2024: Red Lobster filed for Chapter 11 bankruptcy, which Semantic Visions identified months in advance through global media insights in multiple languages. Early detection allowed financial institutions to reassess their exposure and avoid significant losses. Read more>
Adverse Media Screening: A Key Element in Risk Management
Adverse media screening is a proactive risk management tool that involves monitoring various media sources for negative information on clients, suppliers, and business partners. Leveraging advanced data analytics and near real-time insights, Semantic Visions helps organizations identify risks related to financial crimes, compliance issues, and reputational threats.
Major Regulations and Standards Mandating Adverse Media Screening
Semantic Visions supports compliance with several key frameworks and regulations:
- FATF Recommendations: Guidelines to combat money laundering and terrorism financing, including enhanced due diligence for high-risk clients.
- EU AML Directives (4th, 5th, 6th): Requirements for client due diligence, adverse media monitoring, beneficial ownership identification, and risk assessments.
- USA PATRIOT Act & BSA: Mandates Customer Identification Programs (CIP) and encourages adverse media screening for high-risk entities.
- UK Money Laundering Regulations: Requires thorough due diligence, especially for PEPs.
- German Supply Chain Due Diligence Act (LkSG): Emphasizes monitoring human rights and environmental risks, where adverse media checks are vital.
Regulation | Description | Country/Region | Third-Party Data Required? | Applicable Industries | Effective Date |
FATF Recommendations | The Financial Action Task Force (FATF) provides guidelines aimed at combating money laundering and terrorist financing. | International | Yes | Financial Services, Banking | 1990 (latest revision 2012) |
Recommendation 10 | Mandates Customer Due Diligence (CDD), including enhanced due diligence for higher-risk customers, where adverse media screening plays a vital role. | International | Yes | Financial Services, Banking | 2012 |
Recommendation 12 | Addresses Politically Exposed Persons (PEPs) and the necessity of assessing risks related to negative media coverage. | International | Yes | Financial Services, Banking | 2012 |
4th AMLD (Directive (EU) 2015/849) | Requires organizations to perform due diligence on clients, including ongoing monitoring through adverse media searches. | European Union | Yes | Financial Services, Banking, Insurance | June 2015 |
5th AMLD (Directive (EU) 2018/843) | Expands the scope of adverse media screening, particularly in identifying beneficial ownership and monitoring for terrorist financing. | European Union | Yes | Financial Services, Banking, Real Estate | July 2018 |
6th AMLD (Directive (EU) 2018/1673) | Broadens the definition of financial crimes, pushing for enhanced risk assessments involving media-based due diligence. | European Union | Yes | Financial Services, Banking, Legal | December 2020 |
USA PATRIOT Act | Establishes the framework for identifying and monitoring high-risk customers. | United States | Yes | Financial Services, Banking | October 2001 |
Section 326 | Mandates Customer Identification Programs (CIP) for financial institutions, where adverse media screening is implied to assess risks. | United States | Yes | Financial Services, Banking | October 2001 |
Section 311 | Encourages enhanced due diligence for entities identified as high-risk, which includes media checks. | United States | Yes | Financial Services, Banking, Money Services | October 2001 |
Bank Secrecy Act (BSA) | Encourages financial institutions to use adverse media screening as part of their risk-based approach to CDD. | United States | Yes | Financial Services, Banking, Insurance | 1970 (latest revision 2001) |
UK Money Laundering Regulations 2017 | Requires businesses to conduct thorough customer due diligence, especially for higher-risk clients and PEPs. | United Kingdom | Yes | Financial Services, Banking, Legal | June 2017 |
German Supply Chain Due Diligence Act (LkSG) | Emphasizes the need for due diligence in monitoring human rights and environmental risks within supply chains. | Germany | Optional | Manufacturing, Supply Chain, Retail | January 2023 |
NIS2 Directive | Focused on cybersecurity, but may incorporate adverse media screening for third-party risk management. | European Union | Optional | Technology, Telecommunications, Critical Infrastructure | January 2023 |
DORA (Digital Operational Resilience Act) | Aims at enhancing digital resilience, with adverse media screening contributing to overall risk assessments. | European Union | Optional | Financial Services, Technology, Telecommunications | January 2025 |
Real-Time and Historical Data Access
Semantic Visions provides comprehensive coverage, extracting information from multiple global media sources, processed through advanced AI. Our interactive dashboards allow both compliance and credit risk teams to access real-time and historical data, aiding in early detection of financial distress, defaults, and other emerging risks.
Customized Reporting for Compliance Needs
Our solution offers customized reports tailored to client-specific compliance and credit risk needs, supporting effective AML/KYC workflows while also enhancing credit risk management. By providing vital information, these reports help mitigate the risks of financial instability, defaults, or other credit-related issues.
Why Choose Semantic Visions?
- Global Coverage: Multi-language media monitoring across 12 languages ensures comprehensive coverage.
- Industry Expertise: Trusted by leading companies across finance, insurance, and trade.
- AI-Driven Insights: Advanced AI provides insights that drive informed decision-making.
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