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Know Your Customer, or KYC, is a critical aspect of compliance, risk management and financial crime prevention for all financial institutions and other regulated businesses.

Operating in an increasingly uncertain global economy, battling ever more sophisticated and tech savvy financial criminals, and feeling the pressure of regulatory scrutiny, strong KYC processes are the frontline of defence for organisations seeking to improve risk mitigation, protect themselves against fraud, corruption and money laundering, and ensure adherence to regulatory obligations.

KYC is also an important aspect of customer experience. Strong KYC checks are key to understanding customer needs, opportunities, and pain points, establishing trust, enhancing experience at every stage of the customer lifecycle, and reducing cost to acquire and serve.

This is your ultimate guide to the what, the why, and the how of KYC.

‍What does KYC mean?

Know You Customer (KYC) refers to the policies and procedures put in place by businesses to manage risk and verify the identities of customers at onboarding stage, and for advanced client lifecycle management – acquire, onboard, originate, monitor retain and grow.

‍Why is KYC important?

Without strong KYC processes, financial institutions and regulated businesses can suffer:

• Increased regulatory and operational complexity, which can result in onboarding times of 100 days
• Escalating risks of financial crime and fraud: UK banks and fintech's alone spend £21.4k per hour fighting financial crime and fraud, pushing the UK's annual compliance bill to £38.3bn (equivalent to GDP of Estonia)
• Inability to meet rising customer expectations: 58% of clients are lost because of slow and complex onboarding
• Fines and penalties: The Financial Conduct Authority (FCA) issued three significant fines to financial institutions for critical compliance failings in 2024 totalling almost $65 million, with total global penalties standing at $4.6 billion.

Importantly, KYC is critical to the delivery of superior client lifecycle management.

KYC processes:

• Build trust by demonstrating a commitment to security and risk management
• Improve customer confidence by mitigating and preventing financial crime
• Allow for more personalised experience through a deep understanding of needs
• Ensure frictionless onboarding for faster time to value
• Help build long terms profitable relationships

Is KYC a legal requirement in the UK?

In the UK, compliance with KYC regulations is monitored by a range of regulatory bodies and government agencies including the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA), National Crime Agency (NCA) and HM Revenue and Customs (HMRC).

Key regulations include:

• The Economic Crime and Corporate Transparency Act 2023
• Financial Services and Markets Act 2023
• Proceeds of Crime Act 2002
• The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

The UK regulatory environment for KYC compliance is aligned with the global standards set by the Financial Action Task Force (FATF).

What is required for KYC verification?

In the UK, financial institutions and regulated entities must collect and verify a range of documents on business customers during KYC processes:

• Proof of identity
• Proof of incorporation
• Tax identification
• Proof of address
• Identity and address verification of all stakeholders, shareholders, ultimate beneficial owners (UBO), and persons with significant control
• Bank statements, income tax returns, annual reports

Advanced KYC processes also include:

• Adverse media monitoring
• Politically Exposed Persons (PEPs) and sanctions checks
• Group structure - identification and visualisation of parent and subsidiary
• companies
• Digital identity verification - biometric comparison, optical character recognition
• Electoral roll and mortality checks
• Credit reference data

What are 5 steps of KYC?

1. Customer Identification

Financial and regulated business must ensure that the individuals and entities they are dealing with are who they claim to be.  

For individuals this typically involves the collection and verification of a variety of official documentation (proof of address, photo identification, passport, driving license, employment information), biometric authentication, and database checks.

For entities, the process involves collecting and verifying a range of information and documentation, including company registration documents, business licenses, director information, proof of address, nature of business and ownership structure (ultimate beneficial owners, shareholders); as well as database searches for potential AML red flags such as sanctions and Politically Exposed Persons (PEPS) lists, and adverse media screening.  

2. Customer Due Diligence (CDD)

Financial and regulated businesses must next carry out CDD-related KYC checks to gather and evaluate additional customer information. The aim is to better understand the nature of the customer’s business, potential risks they pose, and potential involvement in illegal activity.

When carrying out CDD measures, organisations must verify the customer identity, identify and verify beneficial owners, understand the ownership and control structures, access and obtain information pursuant to the purpose and nature of the business relationship, and build risk profiles based on an understanding of the nature and purpose of anticipated transactions.

3. Enhanced Due Diligence (EDD)

In addition, for customers considered to be of high-risk, businesses should undertake enhanced due diligence (EDD) - a risk-based approach to investigation and the gathering of more detailed intelligence.  

High-risk customers might include, for example, those subject to economic sanctions or operating in countries without adequate AML controls, customers with complex ultimate beneficial ownership structures, companies managed by politically exposed persons (PEPs), businesses operating in countries with significant levels of corruption, criminal or terrorist activity.  

EDD measures include adverse media screening, obtaining additional identifying information, analysing the source of funds, scrutinising Ultimate Beneficial Ownership (UBO) and transaction screening.

4. Ongoing Monitoring

Customer behaviour changes and risk profiles evolve. Ongoing monitoring, sometimes referred to as Continuous Due Diligence, Ongoing Customer Due Diligence (OCDD) or Perpetual Due Diligence (PDD), includes an in-life customer monitoring approach, based upon risk events and triggers for maintaining KYC checks and monitoring customers for the risks they pose related to AML and other financial crimes.

This involves monitoring and evaluating changes in customer profiles, business activities, ownership and organisation structures, legal status as well as sanctions and PEPs watchlists screening, adverse media screening, payment and transaction monitoring.

5. Reporting and regulatory compliance

Financial and regulated businesses have a duty to report suspicious or nefarious activity uncovered during KYC processes. Organisation must submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA) if they know, suspect, or have reasonable grounds for knowing or suspecting, that a customer or potential customer is engaged in, or attempting, money laundering or terrorist financing. 

It is important for financial and regulated business to stay ahead of all regulatory changes and update their KYC policies and processes accordingly.

What are the different types of KYC?

KYC can be broadly categorised into traditional or digital processes:

• Traditional KYC is typically highly-manual and time consuming, involving in-person verification of physical documents.
• Digital KYC also known as eKYC, is digitised and automated form of KYC verification, with the capability to verify customers remotely in a faster, more accurate way compared to traditional KYC processes.

What software can help with KYC?

There are a range of software solutions that can help ensure KYC policies and processes are implemented and conducted effectively. These include third-party data providers, identity verification tools, AML screening solutions, data analytics, and so on.

By far the best solution is a single end-to-end KYC compliance platform that streamlines and optimises the entire KYC process, from initial customer interaction to ongoing monitoring, including KYC and KYB checks, AML, IDV and anti-fraud tools.  

A single KYC orchestration platform integrates the various KYC processes into a unified workflow across the five steps, to remove friction for legitimate customers whilst increasing scrutiny for higher-risk businesses and individuals.

This approach avoids the headaches associated with multiple integrations and supplier contracts, saving time and money, improving accuracy, enhancing compliance, and minimising risk.  

Ready to take your KYC efforts to the next level?

FullCircl is an award-winning KYC orchestration solution designed for businesses seeking to verify and authenticate the identity of customers in the most streamlined and accurate way possible.

• Seamlessly integrate KYC checks, AML screening, advance identity verification, fraud prevention, and credit risks screening
• Automate real-time decision-making with unified workflows for the ultimate risk-based approach to KYC
• Improve onboarding speeds and customer lifecycle experiences whilst reducing cost to acquire and serve.

Contact us to book a demo.

Within regulated industries, the terms KYC (Know Your Customer) and AML (Anti-Money Laundering) are often used interchangeably, but they refer to distinct processes with unique purposes.

Understanding the difference between KYC and AML is critical for businesses to ensure compliance, mitigate illicit activity and financial crime, and maintain a positive reputation in the market.

The origins of AML and KYC can be traced back to the establishment of the U.S. Bank Secrecy Act in 1970, and since then have evolved to become a crucial element of account opening, identity verification, and fraud prevention.

Regulated entities, including banks, financial services, crypto exchanges, gambling operators, e-commerce, and more are required to perform KYC and AML on every customer, navigating cross-jurisdictional nuances in regulation and rising customer expectations.

In this article, we explore the definitions, applications, regulations, and difference between KYC and AML, providing a comprehensive overview to those seeking to understand the processes and how to effectively implement them.

What is KYC?

Know Your Customer, or KYC, is a process that regulated businesses need to implement to verify customer identity.

This involves collecting and analysing personally identifiable information such as name, address, date of birth, and identity documents including passport and driving license. KYC checks are conducted at the beginning of the customer lifecycle, during account opening or customer onboarding. However, ongoing monitoring is also essential to detect any suspicious activity or changes in customer behaviour.

The primary goal of KYC is self-explanatory, to receive, verify, and analyse data on customers to ensure they are who they say they are.

In the context of corporate KYC, or Know Your Business (KYB), the primary goal is to analyse financial reports, credit, beneficial owners, and degree of risk by partnering with another business.

By effectively implementing a robust KYC process, regulated businesses can prevent identity theft, fraud, and other financial crimes by gaining an effective overview of each customer.

What is Anti-Money Laundering (AML)

Anti-Money Laundering, or AML, encompasses a broader set of regulations and procedures designed to prevent money laundering and terrorist financing.

AML regulations require regulated businesses to screen individuals and businesses at the point of onboarding, report suspicious activities, monitor transactions, and maintain records to ensure transparency and accountability.

In the context of screening at the point of account opening, onboarding, and point of payment, AML typically involves screening individuals to discover if they are Politically Exposed Persons (PEPs), sanctioned, or possess adverse media.

AML processes are continuous and involve various stages of the customer lifecycle. Regulated businesses must conduct Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) for high-risk customers, and ongoing monitoring to detect and prevent illicit activities. AML compliance is mandatory for all entities involved in financial services.

What is the difference between KYC and AML?

While KYC and AML are often used interchangeable to describe the identity verification and wider financial crime prevention process, KYC serves as a subset as AML.

KYC focuses specifically on verifying a customer’s identity, while AML covers a wider range of activities aimed and preventing money laundering and financial crime.

KYC compliance is the first step of the AML, providing the necessary information for businesses to monitor and assess customer risk.

Once KYC has been successfully performed, AML will then involve screening at the point of onboarding against PEPs, sanctions, adverse media, and watchlists. But the process doesn’t stop there, as customers need to be re-screened to be notified of any changes in risk profile, transactions need to be monitored, and Enhanced Due Diligence (EDD) may be required for higher risk cases.

Understanding not only the differences between KYC and AML but how both processes can work co-operatively leads to numerous benefits, including:

• Integrated compliance: Effectively combining KYC and AML within a compliance framework leads to more efficient data flow, easier analysis, and robust accountability.
• Cross-functional collaboration: In larger organisations, different teams may be responsible for KYC and AML. Understanding the objectives for each and how to split responsibilities leads to more effective collaboration and slick operations.
• Regulatory compliance: As regulation becomes more stringent globally and changes to regulation become more commonplace, understanding how changes impact KYC, AML, or both processes is critical to remaining compliant.

How does KYC and AML implementation differ?

The implementation of KYC and AML can differ significantly depending on the method used by businesses.

For a KYC check to be performed, the business will need access to at least name, address, and date of birth, with the addition of Government approved ID documents to help find a more effective match.

An AML check only requires a name, but it is helpful for the business to also have access to date of birth and address to better narrow down potential matches and reduce false positives.

A KYC check typically used credit information (such as electoral roll, telco, etc.) so plugging into Credit Reference Agency data is a common method. AML on the other hand requires Politically Exposed Persons and Sanctions list, and adverse media so the data sources can vary significantly.

The emergence of data aggregators has become a popular choice for regulated entities as they can plug in to multiple data sources through a single access point, providing access to data required for both KYC and AML.

The responsibility of KYC and AML usually sits with the compliance team, but in bigger organisations they can also be separate responsibilities between MLRO’s, compliance, onboarding, and others, therefore reinforcing the importance of understand the differences.

KYC regulations vs. AML regulations

One of the trickiest parts of navigating KYC and AML is cross-jurisdictional regulation. Whilst all regulation and regulatory bodies have the same goal of preventing financial crime by imposing strict regulation, there are various nuances between regulation that can make compliance difficult for businesses operating in multiple jurisdictions.

Here are some of the most notable regulations:

6th Anti-Money Laundering Directive (6AMLD) – European Union

Effective from 202, 6AMLD increases the number of offences linked to AML and KYC non-compliance, reduces transaction thresholds for fines, and enhances penalties for violations.

Bank Secrecy Act (BSA) – United States

One of the original AML regulations, the BSA was enacted in 1970, requiring financial institutions to maintain records and report suspicious activity to help prevent money laundering.

Patriot Act – United States

Introduced in 2001, the Patriot Act expanded KYC and AML requirements, including Enhanced Due Diligence for foreign accounts and increased cooperation between regulated entities and regulators.

Financial Action Task Force (FATF) Recommendations – Global

FATF sets global standards for AML and counter-terrorist financing (CTF), including guidelines for KYC and processes and Customer Due Diligence (CDD) that local regulators can build regulation from.

Some of the major regulatory bodies include the Financial Conduct Authority (FCA) in the UK, Financial Action Task Force (FATF) globally, Financial Crimes Enforcement Network (FinCEN) in the United States, and the European Banking Authority (EBA) in the European Union.

What are the risks that KYC addresses vs. AML? (H4)

As KYC is used to verify the identity of customers, some of the key risks it identifies are:

• Identity theft: KYC processes verify the identity of customers through documents and data, ensuring they are who they claim to be.
• Fraud: By verifying customer information and conducting due diligence, KYC helps detect and prevent fraudulent activities and accounts.
• Operational risks: Effective KYC procedures streamline customer onboarding, improving operational efficiency and providing customers with a slick onboarding experience.

In contrast, some of the risk AML addresses are:

• Money laundering: AML processes identity high-risk individuals, monitor transactions and report suspicious activities, helping to detect and prevent money laundering.
• Terrorist financing: AML regulations require regulated businesses to identity and report transactions that may be linked to terrorist financing.
• Reputational risk: Adhering to AML regulations and identifying bad actors that you shouldn’t be doing business with help protect an organisation’s reputation.

This further strengthens the case to understand the differences between KYC and AML, as both processes help identity different risks posed to businesses but also by having the two processes work harmoniously bolsters compliance efforts.

Are there any technologies that support both KYC and AML?

As demand for secure KYC and AML has grown from regulators and customers alike, the pressure on regulated entities has risen to perform robust KYC and AML as efficiently as possible.

That’s where the emergence of data aggregation platforms and specialist RegTech firms has been established as a key player in the market.

Businesses such as FullCircl provide automated, real-time KYC software and AML solutions to assist regulated businesses in the constant fight against financial crime.

With a data agnostic approach and single access point, regulated businesses can customise the KYC and AML process, ensuring that not only regulatory obligations are met by integrating to leading data sources, but also that customers are given the best possible onboarding journey with real-time checks.

Want to discover more on enhancing your KYC and AML process? Speak to the team today.

Let’s put it out there right from the start – your Customer Lifecycle Management (CLM) journey has become increasingly complex, expensive, and difficult to navigate.

You’re not alone. After all, we live and work in a time of never-ending change.

The challenges facing financial institutions (FIs) continue to multiply and evolve – shifting economic and geopolitical conditions, growing regulation and operational complexity, intense competition, fast-paced technological advancement, escalating financial crime and fraud risks, credit risks, a volatile talent market. And of course, a profound shift in customer expectations and a fundamental reshaping of how financial institutions must interact with their customers across every stage of the lifecycle.

In the face of all these challenges, FIs must be on the lookout for emerging opportunities to grow and retain a profitable customer base. Opportunities that go beyond traditional technology integrations and instead deliver a truly unified CLM approach that empowers them to be more adaptive, responsive, and agile to the pace of change.

The status quo is unsustainable. It's costing banks an average of $20,000-$30,000 to onboard new commercial customers, and a further $25,000 can be lost due to delays in acquiring new them.  Meanwhile FI’s are shouldering a global financial crime compliance cost of $206.1bn, plus a staggering £38.4 billion regulatory compliance price tag.

It’s time to embed intelligence everywhere and usher in a new era of Client Lifecycle Management.

Is there a better way to serve clients throughout the lifecycle?

Before we get to that, let’s first understand what we mean by CLM and why it’s so important for financial institutions.

Client Lifecycle Management, or CLM, refers to how FIs manage the end-to-end client relationship, from acquisition and initial onboarding to ongoing interactions and due diligence monitoring. At each stage, ensuring clients receive a compliant, smooth and personalised experience.  CLM is important because, when done well, it enables FIs to attract more of the right clients, improve retention, build trust and loyalty, mitigate risks and ultimately enhance both profitability and regulatory compliance.

So why is a new approach needed?

We’ve mentioned the diverse range of emerging challenges facing FIs. But then add to that the compounding impact of outdated technology, disparate processes, risks of human error, siloed data, lack of a single client view, and an inability to create more value and operationalise the huge amounts of data FIs have access to.

No wonder CLM journeys are increasingly complex, expensive and difficult to navigate.

What does the future of CLM look like?

The future is a recalibrated CLM strategy that moves financial institutions from manual and inefficient processes to a data-driven, AI-powered and automated approach. One that addresses all their key challenges, unlocks significant value, improves operational efficacy, and frees up human capital for strategic decision making.

Marc Benioff famously said, “data is the new gold”. For FIs, nowhere is that statement more relevant right now than in the transformation of their CLM strategy.

Think the leveraging of deep data resources and advanced AI for transformative insights that enable smarter, faster decision making, enhanced regulatory compliance, proactive continuous risk management, and the delivery of highly-personalised experiences. Whilst at the same time bringing down the cost to acquire and serve, eliminating duplication of effort and manual processes, and improving agility and competitiveness in an ever-changing regulatory landscape.

Navigate cost and complexity - the benefits of intelligence everywhere CLM at every stage of the customer journey

• Acquire: Identify, visualise, and target the entire customer universe through advanced market intelligence, automated customer insights, and the delivery of highly-relevant engagement signals. Augment CRM environments with real-time data orchestration to improve prospecting and enhance sales and marketing interactions.
• Onboard: Orchestrate workflows, automate customer validation activities, execute KYC, KYB, and AML screening, and verify client identity all in one place. Perfectly balance customer experience and regulatory compliance, to reduce attrition, bringing down cost and time to acquire, eliminate the risk of errors, and meet demanding expectations.
• Originate: A streamlined application process that improves both efficiency and customer experience. Automate product applications, credit decisioning and underwriting, structure deals and documentation, and manage approvals and closing – streamline processes and reduce time to service and funding.
• Monitor: Leverage automation, real-time insights, and rules-based decisioning to proactively monitor and manage risk, improve experiences, and achieve continuous compliance. Seamlessly maintain real time 360-degree record of every customer, track portfolio and UBO changes, monitor AML compliance, stay ahead of sanctions screening, assess credit continuously, and maintain a complete audit trail.
• Retain: Enhance personalised support, proactive communication, and understanding the evolving needs of customers. Pivot quickly, aligning service delivery and interactions to changing requirements and market dynamics. Move from reactive to proactive account management, unlocking new opportunities to add value while reducing risk.
• Grow: Track customer progress, deepen relationships, expand the product footprint via relevant upsell and cross-sell, predict future needs, and enable next-level personalised experiences that foster trust and lasting loyalty.

The critical importance of reinventing onboarding

Nowhere is an intelligence everywhere approach to CLM more impactful than at onboarding stage.

With traditional banks facing off against their digitally-enabled challengers, improving the customer onboarding experience is key to sustainable, profitable growth.

Recent research uncovered that 38% of all new banking customers abandon the onboarding process if it takes too long. This is backed by our own research.

In our 2025 State of IDV report, we revealed the rate of abandoned sign-ups is potentially 2.9x greater than FIs estimate. The most common reason for this appears to be a total focus on regulatory compliance at the expense of customer experience; an imbalance could that be costing them dearly.

An intelligence everywhere approach creates a “wow factor” first impression - setting the tone, building trust, and defining the experience customers can expect to receive throughout the life of their customer relationship.

Wave goodbye to manual and cumbersome onboarding by automating the entire corporate onboarding process. Intelligence everywhere means FIs can meet regulatory compliance obligations whilst maintaining complete oversight and control over the experience the customer receives.

Welcome to a unified, data and AI-powered CLM platform that significantly accelerates the customer screening and verification process. Advanced data orchestration incorporating KYC, KYB, PEPs, sanctions, adverse media, email risk checks and identity verification allows FIs to manage all onboarding checks in one place - seamlessly guiding customers through onboarding in the most frictionless way possible. This reduces manual efforts and allows FIs to onboard more customers in less time, without compromising on either compliance or customer experience.

Proof of concepts already exists

Santander has seen a 75% decrease in onboarding effort by moving to a fully-digital journey, with time to onboard reduced from 14 to 5 days thanks to pre-population of customer data.

Metro Bank have automated business account opening to achieve an average opening time of just 15 minutes. They now onboard 11,200 new customers per year with 80% of applications going straight-through. On top of this, they were able to identify 14% more critical risk issues than their previous manual process, and were able to reduce average case time from 200 minutes to 8 minutes – a 94% improvement.

After automating much of their onboarding processes, Tide achieved a 72% increase in the number of SME applications processed in a 12 month period. Powered by advanced data orchestration, Tide can easily qualify applications and assign the right products based on the specific needs of SME customers, whilst limiting lengthy applications processes and delivering a personalised experience. In fact, application forms are now populated in under 2 minutes. This has contributed to a 90% increase in revenue.

ThinCats likewise adopted an intelligence everywhere approach to transform traditionally lengthy access to funding processes. As a result, they have achieved a 60% reduction in data entry and manual input time, and 166 minutes of total time savings per lending journey.

Are you ready for a new era of intelligence everywhere CLM?

CLM is a battleground for financial institutions in 2025.

The ultimate winners will be those that grasp the opportunity to redefine the path, and in doing so create better customer experiences at scale without compromising on compliance.

As a recent McKinsey report highlighted. “You’ve got to really be thoughtful about how and where to spend to get the most bang for the buck, particularly as it relates to tech.”

FI’s are being buffeted by a broad range of challenges, many of which are moving at pace and forcing them to evolve quickly. Those that invest in intelligence everywhere will reduce the cost and complexity of customer lifecycle management, thereby simultaneously boosting profitability, customer experience, and compliance.

Discover how nCino and FullCircl are powering a new era in financial services, reimagining client lifecycle management.

In February, the Competition and Markets Authority (CMA) published its latest banking survey results.  

The survey demonstrates how customers rate the quality of services provided by their bank, with the aim of promoting competitiveness, transparency, and continuous improvement across the sector.  

The February 2025 CMA banking survey results

Chase UK topped the latest survey closely followed by Starling and Monzo. Repeating a trend witnessed over the last three years, digital banks continue to dominate thanks to their superior performance in terms of overall customer service attributed to their use of technology.  

Neobanks/digital banks in general have done well in terms of overall customer satisfaction, despite accounting for just 6% of UK primary banking relationships. However, major high street banks have not achieved top five spots in this survey with Co-operative Bank, Virgin Money and the Royal Bank of Scotland ranked the worst in the table.  

So, how can banks improve their scores?

Leveraging Technology to Improve CMA Rankings

As the industry evolves throughout 2025 and beyond, banks must position themselves as customer first, streamlined, and intelligent if they are to improve their rankings and outperform their peers.  

They must harness data to enhance customer experiences and implement advances in technology to streamline workflows and drive operational efficiency. As well as embrace modern solutions to transform, personalise, and enhance every stage of the customer lifecycle – from acquisition to onboarding, and retention.

In doing so they will stay competitive, drive continuous improvement, meet the rising demands of customers, and most importantly boost growth, both for themselves and the wider UK economy.

Boost your banks ranking ahead of the August 2025 CMA survey.

FullCircl’s latest whitepaper examines both proven opportunities as well as trending strategies banks can harness to improve their ranking and outperform in future CMA surveys.  

From digital banking platforms and Customer Relationship Management (CRM) data integrations, to AI, Machine Learning, Natural Language Processing and data analytics. Market beating approaches to Customer Due Diligence (CDD) and regulatory compliance, to the latest advances in Digital Identity Verification (IDV), explore

how to boost your ranking ahead of the August 2025 survey.

Download your free copy of this guide now and access key competition enhancing strategies including how to:

• Combine human and digital for improved customer experiences
• Improve financial literacy and access to products/services
• Integrate Customer Lifecycle Management (CLM) for improved journeys
• Implement ESG considerations into decision making
• Drive improved onboarding efficiency

Introduction to Adverse Media Screening

In the ever-evolving regulatory landscape, financial institutions and businesses must implement stringent measures to mitigate risks associated with illicit activity. One essential component of this process is adverse media screening as part of a wider AML program. This practice involves monitoring news sources, social media, and other publicly available information to identify negative information about individuals or entities that may indicate involvement in criminal activity.

Adverse media screening plays a crucial role in Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance frameworks. By proactively identifying high-risk individuals and organisations, businesses can strengthen their risk assessment capabilities and prevent potential financial or reputational damage.

Why Adverse Media Screening Is Important

Regulatory bodies such as the Financial Action Task Force (FATF), as well as localised regulators, expect companies to conduct Customer Cue Diligence (CDD) processes to mitigate financial crime risks. Adverse media screening strategies help institutions identify threats linked to Politically Exposed Persons (PEPs) and sanctions, fraudsters, and entities involved in human trafficking, money laundering, and other predicate offenses.

Without a comprehensive adverse media check, organisations risk unknowingly facilitating suspicious activity or engaging with compromised entities. Effective screening ensures compliance with AML regulations, protects brand reputation, and strengthens risk-based approaches to customer due diligence.

Challenges With Adverse Media Screening

Despite its significance, adverse media screening comes with challenges, including:

• Volume of Data: Millions of articles, blog posts, and social media updates appear daily, making it difficult to filter out relevant negative news screening information.
• False Positives: Overly broad searches can flag irrelevant results, wasting time and resources.
• Language Barriers: Global searches require multi-language coverage to detect risks across jurisdictions.
• Timeliness: Delays in identifying risk-relevant data can expose businesses to financial crime threats.
• Verification: Ensuring the credibility of adverse media searches is critical to avoiding reputational damage from unreliable sources.

Steps to Conducting an Adverse Media Screening

To ensure effective adverse media screening, businesses should follow a structured approach:

Define Screening Criteria

Develop clear criteria for screening based on industry regulations, risk profiles, and compliance requirements. This includes determining key triggers such as involvement in fraud, terrorism financing, or corruption.

Conduct Comprehensive Searches

Use multiple news sources, including mainstream media, government databases, and social media platforms, to gather information about a subject. Searching for adverse media across various platforms ensures a well-rounded risk analysis.

Verify and Analyse Results

Not all flagged negative information is relevant. Companies should validate results by cross-checking sources, assessing credibility, and confirming context before taking action.

Report and Document Findings

All findings should be documented in compliance reports, with risk ratings assigned based on severity and likelihood of involvement in illicit activity.

Best Practices for Adverse Media Screening

To enhance adverse media screening efforts, organisations should adopt these best practices:

Leveraging AI and Automation

Using automated adverse media screening software significantly improves efficiency by filtering real-time data, reducing manual effort, and minimising false positives. AI-driven solutions can also provide continuous monitoring for updated risk insights.

Applying a Risk-Based Approach

Not all negative news carries the same weight. A risk-based approach prioritises high-risk entities while ensuring low-risk individuals are not excessively scrutinised.

Ongoing Monitoring and Re-Screening

A one-time check is insufficient. Organisations should establish continuous monitoring frameworks to detect emerging risks over time.

Integrating Human Expertise

While automation is essential, human oversight remains crucial. Analysts must review flagged adverse media cases to assess nuances and prevent misinterpretations.

Ensuring Global and Multi-Language Coverage

To mitigate cross-border risks, screening should encompass global media coverage in multiple languages, considering regional differences in reporting and regulatory requirements.

Expanding Coverage to Non-Traditional Media

Beyond traditional news sources, organisations should monitor blogs, online forums, and other alternative media to detect early warnings of illicit activity that may not be covered by mainstream outlets.

Training and Awareness for Compliance Teams

Adverse media screening is most effective when compliance teams are well-trained in recognising key risk indicators. Regular training ensures teams stay updated on emerging threats and regulatory expectations.

Benefits of Adverse Media Screening Best Practices

Implementing these best practices offers numerous advantages:

• Faster Onboarding: Automating screening reduces delays in customer verification.
• Reduced Compliance Workload: AI and automation decrease manual review time, allowing compliance teams to focus on high-priority cases.
• Enhanced Risk Management: Proactive screening prevents financial crimes before they impact the organisation.
• Regulatory Compliance: Adhering to best practices ensures alignment with AML and KYC regulations.
• Better Decision-Making: A comprehensive screening process leads to more informed decisions regarding partnerships, clients, and third parties.
• Improved Fraud Prevention: Early identification of suspicious activity minimises potential financial losses due to fraud and other financial crimes.

Using Automated Adverse Media Screening Software

Manual screening methods are no longer sufficient given the vast amount of online information. Adverse media screening AML solutions powered by AI provide real-time, accurate, and scalable results. These tools integrate seamlessly into existing compliance infrastructures, offering continuous monitoring of risk profiles and reducing false positives.

When selecting a screening solution, businesses should consider:

• Data Coverage: Ensure the tool covers global media coverage and multi-language sources.
• Customisable Risk Filters: The ability to tailor searches to business-specific risks.
• Integration with Existing Systems: Seamless compatibility with KYC and AML frameworks.
• Ongoing Updates: The tool should offer regular updates to capture the latest threats and regulatory changes.

Adverse media screening with FullCircl

FullCircl provides cutting-edge adverse media screening solutions as part of wider AML screening, KYC software, identity verification, and fraud prevention, that enhance due diligence processes, streamline compliance, and safeguard businesses from emerging threats. Contact us today to learn how our technology can help you implement best practices and strengthen your risk management framework.

In January, the W2 by FullCircl team headed to ICE Barcelona 2025, the premier global event for the gaming and betting industry.

Bigger and better than ever, this year’s show was a powerful platform for FullCircl to demonstrate our commitment to providing the industry with best-in-class solutions to onboard players compliantly and efficiently. And demonstrate the transformational impact our market-leading financial vulnerability checks are already having when it comes to helping operators minimise player intrusion, whilst staying firmly in the compliance lane.

It was great to witness the increased focus on safer gambling, and positive shift in the market’s view on responsible player onboarding. It was also enlightening to have so much open dialogue with operators on the future regulatory landscape, and the role of technology in helping operators balance compliance and player experience.

The event was literally buzzing - we loved every minute.  

So to keep the excitement going, here are my top five takeaways from the event.  

1. Player safety does not have to come at the cost of player experience

ICE 2025 demonstrated a positive shift in operator outlook to responsible onboarding, and the embracing of enhanced player safety measures. A key concern amongst operators was how to increase visibility of a player’s financial situation and lifestyle vulnerabilities without being obtrusive or damaging the player experience.

Moving forward, to tackle this challenge operators increasingly recognise the need for a more strategic approach to player vulnerability.  

Leaders are already harnessing the power of data orchestration to combine a range of checks - from CCJs, IVA, bankruptcy, debt and credit data, to income, affordability checks, and vulnerability indicators – and delivering responsible onboarding at pace and scale.

The goal for 2025 is informed, cost efficient, and agile player safety decision-making impacting player experience. Our conversations at ICE certainly point towards operators seizing the opportunities such an approach brings, in terms of competitive advantage and enhanced regulatory compliance.

Bringing me nicely to point two…

2. Operators must continue to navigate a rapidly-changing regulatory global landscape

Much of the conversation was focused on global variance in regulation - and how operators can navigate this. As well as the future regulatory changes on the horizon and how they might impact player experience and operational efficiency.

Striking a balance between industry growth and protection of consumers remains the focus of regulation in the UK. The UK Gambling Commission (UKGC)’s core objectives are to prevent gambling-related crime, ensure fair and open gambling practices, and protect vulnerable individuals from harm; most recently bringing in new regulatory requirements around vulnerability checks. This is in addition to intensified efforts to ensure operators adhere to anti-money laundering and fair gaming rules.

The global regulatory pattern is, however, quite diverse. The US and Canada operate a patchwork of rules and regulations on a state or province-wide basis. EU countries operate under strict regulations to ensure consumer protection and fair play. Whilst emerging markets such as Brazil, Peru and Nigeria are still laying the foundations of their own regulatory frameworks to ensure player protection without damaging market integrity and growth.

For operators however, one thing remains constant – balancing regulatory compliance with player experience. Compliance teams are seeking new opportunities to accomplish this, and a greater spotlight is being shone on the role of technology in striking a workable balance – bringing legislative responsibilities in step with the creation of safe, enjoyable, efficient, and socially-responsible betting experiences.

3. New markets offer exciting new opportunities

Latin America is becoming a hotspot for investment. Countries like Brazil, Peru, and Mexico are seeing significant traction, particularly in sports betting - fuelled by emerging online platforms and government lotteries.  

Speaking of sports betting, the US legalisation of this market continues to grow, with 39 states now operating legal sports betting.

Africa continues to offer an expanding gaming and betting market, whilst the Middle East is an emerging iGaming hub.

These new markets present great opportunities for established and new operators alike - if they can overcome regulatory challenges and embrace the latest advances in technology to deliver differentiated, yet safe, player engagement strategies.

4. The adoption of AI remains a hot topic

Unsurprisingly, AI was a big focus of discussion, both in seminar sessions and on the exhibition floor.

AI is quickly reshaping the industry, providing operators with powerful new capabilities to streamline operations, drive cost efficiencies, enhance player experiences, and boost profitability.

However, it was rightly pointed out that successful implementation relies on strong partnerships between innovators and operators.  For me, perhaps the most exciting aspect is how partnerships with technology vendors can not only improve the player experience but also massively increase operator understanding of players’ wants and needs – vital to driving engagement, growth and of course player safety.

AI-powered data orchestration is fast becoming a game changer for operators – offering opportunities to drive revenue growth, optimise experiences, and enhance compliance at every stage of the player lifecycle – player attraction, onboarding, and retention in a competitive market.

Operators who fail to embrace AI and the vast opportunities of data-driven decision-making risk falling behind in 2025.

5. Digital Identity Verification is reshaping approaches to player onboarding

Fraudsters continue to target the gaming and betting industry, using stolen player identities or creating fake ID documents to create new player accounts. Operators must also contend with KYC, AML and player safety regulations.

Combine these challenges with rising player expectations for instant access to gaming and betting services and it’s no wonder digital identity verification (IDV) is become a game changer in terms of player onboarding.

By leveraging and matching data from a wide range of sources, operator scan verify player age and identity without compromising on experience or over burdening compliance teams.  

The opportunity to access thousands of globally-accepted identity documents and authenticate with biometric-powered verification techniques such as facial recognition, optical character recognition, and liveness technology not only serves to deter fraudsters, but also provides your players with frictionless, faster onboarding journeys that create a positive and engaging first impression.

This is an area of huge investment - one to watch in 2025.

Remain compliant and keep players engaged with FullCircl

W2 by FullCircl is used by some of the biggest gambling operators including Entain, Novibet, and Fitzdares , helping balance revenue generation and regulatory compliance with player protection and the delivery of superior experiences. Get in touch with a member of our team to:

• Explore our cutting-edge tools for seamless customer onboarding and enhanced regulatory compliance
• Stay ahead of regulations and remove player friction with our new financial vulnerability checks
• Understand how you can harness data orchestration to reduce risk and improve efficiency