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Several regulations and guidelines either recommend or require organizations to conduct negative news screening to manage associated risks. Key examples include:

Anti-Money Laundering (AML) Regulations

AML regulations mandate that organizations, especially financial institutions, perform due diligence on their clients and partners to prevent money laundering and terrorist financing. This involves screening for negative news related to potential clients and associated parties.

Know Your Customer (KYC) Requirements

KYC regulations, enforced globally by financial regulators, require organizations to verify customer identities and assess the risks of their business relationships. Negative news screening is a crucial component of the KYC process, helping to uncover adverse information or associations.

Sanctions and Embargoes

Governments impose sanctions and embargoes on individuals, entities, or countries for political, security, or economic reasons. Organizations must screen their business partners and clients against sanction lists and monitor for any negative news associated with these restricted entities.

Data Protection and Privacy Regulations

Data protection laws, such as the European Union’s General Data Protection Regulation (GDPR), require organizations to safeguard personal information. Negative news screening is essential for identifying potential breaches or security incidents that could jeopardize data protection.

Besides news articles, businesses could also screen other databases for negative news in order to detect risk signals early, such as Chamber of Commerce Data, Sanctions Data;, Politically Exposed Persons (PEP) Data, State-Owned Enterprises (SOE) Data, Black- and Warning lists, Consumer Reviews, PDF documents and Alternative Data (e.g. financial statements).

Organizations can harness technological advancements, such as AI-driven tools and Natural Language Processing (NLP), to analyze massive amounts of global data. These technologies allow companies to proactively identify and mitigate potential risks almost in real-time.

The definition of negative news can vary depending on the organization conducting the screening and the potential impact of threats. However, typical risk signals organizations should be aware of when screening third parties include:

Operational Risk

This involves disruptions or inefficiencies in operations caused by third-party vendors or service providers. For instance, a news report about a significant data breach or cyber-attack disrupting a company’s operations can signal operational risk.

Compliance Risk

This refers to the risk of failing to comply with laws, regulations, or industry standards due to third-party actions. An example is an article reporting allegations of regulatory violations or non-compliance by a third-party entity.

Reputational Risk

This pertains to damage to an organization’s reputation due to the misconduct or negative events associated with third-party vendors or partners. A major data breach compromising customer information and privacy could be an indicator of reputational risk.

Information Security Risk

This includes risks related to data breaches, unauthorized access, or loss of sensitive information because of inadequate security measures or vulnerabilities in third-party systems. For example, a news report about a successful cyber-attack leading to a data breach can indicate information security risk.

Financial Risk

This involves risks of financial losses, fraud, or improper financial practices due to the actions or instability of third-party entities. News articles reporting a significant decline in a company’s financial performance, such as a sharp drop in revenue or profits, can signal financial risk.

Supply Chain Risk

This encompasses risks linked to the supply chain, such as disruptions, quality issues, non-compliance, or unethical practices from third-party suppliers or logistics partners. A news report about a supply chain disruption caused by a natural disaster, political instability, or financial difficulties of a major supplier can indicate supply chain risk.

Legal Risk

This refers to the risk of legal disputes, litigation, or regulatory actions arising from the activities, contracts, or non-compliance of third-party entities. An example is a news article reporting a lawsuit or regulatory investigation involving the company, indicating legal risk.

Negative news screening allows risk managers to pinpoint potential risks across multiple domains, including cybersecurity, environmental impact, social responsibility, financial stability, and regulatory compliance.

Negative news screening involves checking for adverse information about a person or entity before onboarding them. Conversely, negative news monitoring is the process where companies perform ongoing media checks on third parties after onboarding, continuously overseeing them. Both screening and monitoring are crucial for managing risk and maintaining compliance throughout the entire duration of a business relationship.

When organizations actively search for adverse information about potential business partners, this is known as negative news screening. Organizations perform these searches for various reasons. For instance, Payment Service Providers (PSPs) need to screen merchants for negative news prior to onboarding, in compliance with Know Your Customer (KYC) and Anti Money Laundering (AML) regulations.

While the terms are often used interchangeably, both refer to identifying potential risks in media coverage—whether it’s cyber threats, financial fraud, or regulatory violations. The goal? To stay informed, proactive, and ahead of risk before it escalates.

Screening is a point-in-time check (e.g., before onboarding). Monitoring is an ongoing process, alerting you to new risks as they emerge.

Yes—especially in regulated industries. Financial institutions, for example, are required to include adverse media checks as part of their anti-money laundering (AML) and know-your-customer (KYC) programs.

Typical red flags include:

• Customer complaints
• Financial instability or unpaid debts
• Executive misconduct
• Data breaches or security lapses
• Regulatory enforcement actions

Without the right tools, teams are overwhelmed by irrelevant alerts, suffer from inconsistent risk scoring, and miss critical updates. Manual monitoring is not only inefficient—it’s risky.

Monitoring negative news helps companies proactively detect risk events—like fraud, cyber breaches, ESG issues, and regulatory non-compliance—before they lead to financial or reputational damage.

Yes, all screening cases come with a complete audit trail for compliance and reporting needs.

Yes. Owlin offers API integrations to fit seamlessly into your merchant management ecosystem.

Absolutely. You can analyze past media coverage and regulatory records for a comprehensive risk assessment.

Yes! Easily add screening cases and monitor risks with an intuitive interface—no prior data required.

Owlin helps private equity firms stay ahead of risks and opportunities by delivering customized news updates on their portfolio companies. Whether executive turnover, legal disputes, or favorable earnings coverage, Owlin ensures timely alerts so teams can take action before issues escalate, or leverage good news to time exits or enhance value. This proactive private equity portfolio monitoring improves both risk mitigation and relationship management.

You can search manually through news websites and public databases or automate the process with an adverse media search tool like Owlin. Our platform delivers fast, accurate, contextual insights by continuously scanning millions of global sources in real-time.

Adverse media search plays a key role in meeting AML and KYC obligations—and in avoiding financial and reputational damage. It gives organizations the full story before making high-stakes decisions, from onboarding vendors to reviewing investment partners.

An adverse media search looks for negative press or risk-related news involving a person or company. This includes stories tied to fraud, bribery, lawsuits, sanctions, or regulatory violations.

Companies use adverse media checks to meet regulatory requirements (like AML and KYC) and protect themselves from reputational and financial damage. By detecting risk events early, these checks enable proactive decision-making.

Let’s say your onboarding team is reviewing a new vendor. A credit check might not raise concerns—but an adverse media search could reveal litigation involving fraud or recent news about regulatory violations. This gives your team the full picture before proceeding.

An adverse media check searches for negative or risk-related news about a company or individual to identify potential red flags. It helps compliance teams go beyond basic due diligence to uncover hidden connections to fraud, regulatory breaches, sanctions, or unethical behavior.

Unlike static risk indicators, an adverse media check offers a dynamic, real-time view of risk as it evolves. Owlin’s platform scans global news sources, detects relevant stories, and categorizes risk signals—so your team can react fast and act smart.

Yes. Adverse media checks can help identify signs of money laundering, such as links to criminal organizations or ongoing investigations.

You can run an online adverse media check manually using search engines or databases. But for speed and accuracy, many businesses use automated tools like Owlin’s platform, which continuously scans and analyzes millions of global sources in real-time.

For more information about doing adverse media checks via Google Search, check out our blog: ‘Adverse Media Check? Why a Google Search Isn’t Enough’.

Companies use adverse media checks to meet regulatory requirements (like AML and KYC) and protect themselves from reputational and financial damage. By detecting risk events early, these checks enable proactive decision-making.

Let’s say your onboarding team is reviewing a new merchant. A credit check might not raise concerns—but an adverse media search could reveal litigation involving fraud or recent news about regulatory violations. This gives your team the full picture before proceeding.

An adverse media check searches for negative or risk-related news about a company or individual to identify potential red flags. It helps compliance teams go beyond basic due diligence to uncover hidden connections to fraud, regulatory breaches, sanctions, or unethical behavior.

Unlike static risk indicators, an adverse media check offers a dynamic, real-time view of risk as it evolves. Owlin’s platform scans global news sources, detects relevant stories, and categorizes risk signals—so your team can react fast and act smart.

Yes—Owlin is recognized as a Category Leader in the Adverse Media Quadrant by Chartis Research, a respected authority in risk technology analysis. This recognition speaks volumes about the clarity, reliability, and innovation behind our solution.

Chartis highlighted Owlin’s strength in processing vast amounts of unstructured data with high accuracy, leveraging advanced AI and GenAI models. Whether you’re monitoring third parties, staying ahead of compliance obligations, or protecting your organization’s reputation, Owlin delivers the insights that matter—clearly and consistently.

Yes—Owlin screens and analyzes adverse media in multiple languages, including English, Spanish, French, Chinese, Arabic, and more. Our AI models understand linguistic nuances, regional expressions, and contextual cues, ensuring nothing gets lost in translation.

This multilingual capability is essential for global businesses that manage third-party relationships across borders. Whether a critical news item breaks in Tokyo or Buenos Aires, Owlin catches it and delivers it to your dashboard with context, clarity, and confidence.

KYC processes are designed to verify identity and assess risk—but static data only goes so far. Adverse media screening (and monitoring) adds a dynamic, real-world layer by detecting new risks and shifts in reputation that affect whether a customer remains trustworthy. This way, adverse media screening:

• Validates risk assessments during onboarding
• Allows organizations to stay informed of new developments that might impact customer relationships
• Helps companies meet regulatory expectations for perpetual KYC (pKYC)

With Owlin, KYC becomes more than a checkbox. It evolves into a living, breathing process that adapts to the world in real-time.

Adverse media offers a broader view of an individual or entity’s risk profile than financial records alone. In AML checks, it helps identify ties to criminal organizations, ongoing investigations, sanctions, or unethical behavior that might not show up in traditional databases. By using adverse media insights, compliance teams can:

• Detect early signs of money laundering activity.
• Respond to red flags in real-time
• Avoid onboarding high-risk clients unknowingly

Owlin’s platform enhances AML checks by flagging suspicious activity as it emerges across jurisdictions and industries.

Owlin uses advanced AI and Natural Language Processing (NLP) to detect, analyze, and categorize risk-relevant news and media in real-time. Unlike basic keyword searches, our models understand context—flagging whether a company is linked to fraud, litigation, regulatory scrutiny, or other risk events.

By automating the process, Owlin eliminates the noise of irrelevant mentions and delivers focused, explainable insights to your team. Whether you’re onboarding a new customer or reviewing an existing partner, Owlin ensures you’re always a step ahead of emerging threats.

Owlin empowers compliance teams to answer the most important question: “Would I onboard or retain this company as a merchant, vendor, client, or counterparty today?” Our AI-powered solution continuously delivers context-rich insights from over three million sources in multiple languages. This helps you:

• Conduct deeper due diligence during onboarding
• Monitor business relationships with real-time risk alerts
• Save time by reducing manual review work
• Comply with pKYC, AML, and third-party risk requirements

Owlin fits seamlessly into your existing workflows and enhances the signal-to-noise ratio by surfacing what truly matters.

Adverse media screening is essential to modern compliance frameworks because it highlights the risks that static documents like financial records alone can’t reveal—fraud allegations, regulatory breaches, or links to criminal activity.

Whether onboarding a new client or managing existing third-party relationships, timely insights from adverse media sources can make the difference between proactive protection and reactive damage control. Moreover, with regulatory expectations rising, screening for adverse media isn’t just a best practice—it’s a necessity.

Adverse media screening is the process of scanning news sources to detect early warning signals about potential partners, clients, vendors, or counterparties. It goes beyond the static data of traditional due diligence, tapping into real-time narratives that reveal reputational red flags—from fraud and corruption to sanctions and criminal activity.

Although regulations may not always provide explicit guidance on an adverse media check as they do for sanctions or politically exposed persons (PEPs), it’s increasingly recognized as a crucial component of a strong AML, KYC strategy.

When screening and monitoring adverse media, businesses watch for red flags indicating potential risks. Common examples include:

• Customer dissatisfaction – Negative reviews or complaints about a company’s service.
• Fraud allegations – Reports implicating executives or board members in fraudulent activities.
• Security breaches – News of data leaks, cyberattacks, or compromised systems.
• Financial misconduct – Claims that a company fails to pay suppliers or meet financial obligations.

Whether assessing counterparties, clients, vendors, suppliers, competitors, or even their reputation, companies can rely on adverse media insights to mitigate financial, operational, regulatory, and reputational risks.

AI automates risk tracking across global data sources, reducing manual effort while delivering real-time insights for faster, more intelligent decision-making.

Yes. Our solution for Banks enables the swift generation of audit trails for each onboarding case and monitoring alert response, ensuring transparency and compliance.

Owlin offers a rich API suite that allows you to load your data into our platform securely and scalable. This will enable you to enrich the company profiles that interest you.

Our solutions for banks set themselves apart with their seamless integration capabilities with existing tools and systems banks utilize. Recognizing that many users already have numerous tools to perform their tasks, our solutions seamlessly integrate with these systems, ensuring a smooth transition and enhancing user experience.

AI automates ESG risk screening, analyzes vast amounts of global data, and provides real-time alerts—reducing manual effort and improving decision-making.

Proactive ESG risk management helps businesses stay compliant, avoid reputational damage, and prevent disruptions caused by ESG-related risks.

Supply chains face a variety of environmental, social, and governance (ESG) risks that can impact operations, reputation, and compliance. Here are six key examples:

• Environmental Violations – Suppliers engaging in illegal deforestation, excessive carbon emissions, or improper waste disposal can create regulatory and reputational risks.
• Labor Rights Issues – Poor working conditions, child labor, or unfair wages at supplier facilities can lead to legal consequences and brand damage.
• Corruption & Bribery – Unethical business practices, such as bribery or fraud within the supply chain, can result in legal penalties and loss of stakeholder trust.
• Regulatory Non-Compliance – Suppliers failing to meet environmental, labor, or industry-specific regulations can disrupt operations and lead to costly fines.
• Human Rights Violations – Forced labor, unsafe work environments, or discrimination in supplier operations can result in significant reputational and legal challenges.
• Climate Change Impact – Extreme weather events, resource scarcity, or rising operational costs due to climate regulations can threaten supply chain stability.

Yes, it does. Our solutions for payment service providers allow you to generate audit trails for each onboarding case quickly.

At Owlin we recognize that many users already have many tools to perform their tasks. Therefore, Owlin for PSPs distinguishes itself with seamless integration capabilities into existing tools and systems PSPs utilize.

Certainly! Enhance collaboration by annotating and sharing onboarding cases seamlessly with team members. Moreover, user-generated queries can be saved, transferred, or delegated to colleagues, fostering streamlined teamwork.

Our advanced algorithms continuously scan over 3 million mainstream and niche sources across multiple languages in almost real-time. Harnessing the power of AI, specifically Natural Language Processing (NLP), we present pertinent signals through graphs and alerts, enabling you to focus on critical information.

Our process involves cutting-edge algorithms that tirelessly scan through over 3 million sources, including both mainstream and niche outlets, across multiple languages, nearly in real-time. Powered by AI, particularly Natural Language Processing (NLP), we distill relevant signals into easily digestible graphs and alerts, allowing users to concentrate on vital information.

AI-powered tools automate risk tracking across global sources, reducing manual effort while delivering real-time insights to enhance decision-making.

Effective supplier risk management prevents costly disruptions by ensuring compliance, mitigating financial losses, and protecting brand reputation.

Supplier risk monitoring involves the continuous assessment of suppliers to detect potential financial, regulatory, or reputational threats that could impact your business.

AI automates risk monitoring and screening across global data sources, reducing manual effort while providing real-time insights for faster decision-making.

Proactive third-party risk management prevents financial losses, ensures regulatory compliance, and protects organizations from vendor-related disruptions.

Third-party risk monitoring involves continuously assessing vendors, suppliers, and partners for risks to protect your business.

AI automates risk tracking across global data sources, reducing manual effort while delivering real-time insights for faster, more intelligent decision-making.

Counterparty risk monitoring is the continuous assessment of financial, regulatory, and reputational risks associated with counterparties, ensuring businesses remain compliant and resilient.

Manually tracking vendor risks across multiple sources and languages is challenging. AI-powered solutions, like Natural Language Processing (NLP), automate this process by continuously scanning global news, adverse media, regulatory updates, and more. This ensures organizations can efficiently monitor multiple vendors in real time and uncover critical insights that might otherwise be missed.

Proactive vendor monitoring helps organizations mitigate risks across compliance, reputation, operations, and finances. By staying informed about potential red flags, businesses can make confident, data-driven decisions to protect their interests and maintain strong, secure vendor relationships.

Vendor Risk Monitoring is the continuous assessment of your vendors to identify potential risks that could impact your organization. It is a key component of a comprehensive vendor risk management strategy, helping businesses stay ahead of emerging threats.

PSPs can use consumer reviews to monitor their merchants’ performance. Negative product or service reviews, order fulfillment delays, disputed transactions, and complaints about a merchant’s business practices indicate a potential problem. By keeping an eye on customer reviews, PSPs can help ensure they are not exposed to undue risk and can take the necessary steps to protect their finances.

PSPs can use adverse media signals to monitor their merchants’ performance. These signals include indicators such as financial distress, regulatory investigations, and layoffs or downsizing, all of which can be used to identify potential issues with a merchant. By being aware of these signals, PSPs can help ensure they are not exposed to undue risk and can take the necessary steps to protect themselves.

Merchant risk can take many forms:

• Merchant Bankruptcy Risk occurs when a merchant cannot repay debts due to bankruptcy. 
• Excessive Chargeback Risk is a type of risk that occurs when a credit card provider demands that the merchant cover the loss on a fraudulent or disputed transaction.
• Collusive/Fraudulent Risk occurs when a merchant commits fraud using its customers’ (cardholder) accounts and/or personal information. 
• Money Laundering/Counter-Terrorism Financing Risk occurs when a merchant processes suspect/ non-vetted transactions on behalf of another business.

PSPs face several challenges when it comes to monitoring merchants. This includes monitoring large, diverse portfolios and not always knowing where to look for signs of financial distress or fraudulent activity. Additionally, PSPs must be able to access and read all the necessary information about their merchants, including any bankruptcies or other red flags. It can be challenging when the data is written in a foreign language. Furthermore, much of this information is not easily accessible, and labor-intensive retrieval from non-standard media can be required to find it. These factors can make it difficult for PSPs to monitor their merchant portfolios effectively, but it is an essential part of their due diligence process.

There are two main reasons for PSPs to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD3 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks. 

Secondly, PSPs must monitor merchants to mitigate the risk of their merchant portfolio. This is especially critical in the underwriting process, in which PSPs accept liability and guarantee payment in the event of fraud. In addition, the PSP is responsible for refunding customers with outstanding orders or payments if a merchant goes bankrupt. Therefore, PSPS must monitor merchants for any signs of financial distress or other red flags that may lead to a merchant defaulting on their payments. Owlin can also help to detect leading risk signals from alternative data sources, such as consumer reviews, to de-risk ahead of an adverse event occurring.

While the terms are often used interchangeably, both refer to identifying potential risks in media coverage—whether it’s cyber threats, financial fraud, or regulatory violations. The goal? To stay informed, proactive, and ahead of risk before it escalates.

Adverse Media Screening → A one-time check conducted before onboarding a client, merchant, or vendor.

Adverse Media Monitoring → Ongoing tracking of risk-related media signals, ensuring continuous oversight of third parties.

Yes, in many industries companies are obligated to conduct adverse media checks. Regulatory bodies mandate financial institutions to implement robust KYC and AML programs, often requiring adverse media checks as part of due diligence.

The definition of adverse media varies by industry, but common red flags include:

• Customer complaints signaling service issues
• Reports of fraud or misconduct involving executives
• News of security breaches, such as data leaks or cyberattacks
• Allegations of financial mismanagement, unpaid suppliers, or regulatory violations

Adverse media screening sounds simple—until you’re buried under an avalanche of alerts. Many compliance teams and risk professionals struggle to separate real threats from noise, leading to wasted time, unnecessary escalations, and operational inefficiencies.

In an era of fake news, misinformation, and rapidly shifting media landscapes, finding trustworthy, relevant information about a counterparty is no small task. The stakes are high: miss a critical news update, and you risk regulatory non-compliance; track too many irrelevant sources, and you drown in data overload.

Manually monitoring millions of unstructured data points across global sources is not only complex but also expensive and unsustainable. Without the right technology, organizations face:

• An overwhelming volume of false positives
•  Inconsistent risk assessments due to unreliable sources
•  Slow response times that expose businesses to risk

The right AI-powered risk intelligence can transform adverse media screening from a manual, reactive process into a smart, proactive strategy—helping businesses focus on what matters most without getting lost in the noise.

Businesses need to know who they’re working with—whether it’s clients, merchants, or vendors. Adverse media monitoring helps organizations identify early risk signals by tracking news indicating risk events such as cybersecurity threats, ESG violations, financial instability, AML-CTF concerns, and regulatory compliance issues. With adverse media insights, companies can mitigate risk before it becomes reputational or financial damage.

Certainly! Owlin offers integrations, enabling you to enrich the Owlin platform with your data and establish a centralized hub of essential intelligence.

Absolutely. Owlin Monitoring stands out with its seamless integration capabilities with existing tools and systems. Recognizing that many users already utilize numerous tools to perform their tasks, Owlin Monitoring effortlessly integrates with these systems, ensuring a smooth transition and enhancing the overall user experience. Frequent systems we integrate with are Fitch Solutions, Aprovall, and Venminder.

Owlin employs advanced algorithms to continuously scan over 3 million mainstream and niche sources across multiple languages almost in real-time. Harnessing the power of AI, particularly Natural Language Processing (NLP), Owlin presents relevant signals through intuitive graphs and alerts, enabling users to focus on critical information.

Yes, it is a self-service solution. We don’t require query knowledge or any technical knowledge to get the insights ready for you, Unlike other platforms that necessitate prior knowledge of a company before initiating searches, Owlin provides a user-friendly self-service platform, allowing users to add cases (companies) themselves.

Yes, each case processed through Owlin Screening generates an exhaustive audit trail tracking every action in the screening process. It saves time during internal audits, regulatory reporting, and audits, streamlining the overall process and ensuring transparency and compliance.

Yes. Owlin Screening sets itself apart with its seamless integration capabilities with existing tools and systems. Recognizing that many users already have numerous tools to perform their tasks, Owlin Screening seamlessly integrates with these systems, ensuring a smooth transition and enhancing user experience.

The Owlin database consists of hundreds of lists from jurisdictions worldwide, such as:

• Watchlist from financial regulatory bodies such as Bafin (Germany), MAS (Singapore), FCA (United Kingdom), among others;
• Wanted lists from renowned law enforcement agencies, such as the FBI (Federal Bureau of Investigation), DEA (Drug Enforcement Administration), and DIA (Defense Intelligence Agency);
• Sanctions Lists include the United Nations Security Council Consolidated lists, the European Union lists, and the OFAC SDN / OFAC Consolidated lists (USA).

Are you interested in a particular list? It is likely part of our sources. If you want to know more, please contact us via our contact form or schedule a free demo to verify.

Yes, with Owlin screening you can check companies for historical news data. 

Yes, it is indeed a self-service solution. Unlike other platforms requiring prior knowledge of a company before initiating searches, Owlin provides a self-service platform, allowing its users to add screening cases (companies) themselves.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

There are two main reasons for Payment Service Providers (PSPs) to monitor their merchants. Firstly, they must comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations like PSD2 in the EU. This monitoring goes beyond just preventing fraud; it is a duty to assess, detect, and prevent any risks associated with payments and account access. This involves transaction and risk monitoring to ensure that all relevant regulations are followed and that the payment service provider is not exposed to undue risks.

Secondly, Payment service providers (PSPs) must monitor merchants to mitigate the risk of their merchant portfolio. This is especially critical in the underwriting process, in which PSPs accept liability and guarantee payment in the event of fraud. In addition, the PSP is responsible for refunding customers with outstanding orders or payments if a merchant goes bankrupt. Therefore, PSPS must monitor merchants for any signs of financial distress or other red flags that may lead to a merchant defaulting on their payments. Owlin can also help to detect leading risk signals from alternative data sources, such as customer reviews, to de-risk ahead of an adverse event occurring.