American CBA LLC

A BSA negative news search refers to the process of reviewing news, media reports, and public sources to identify adverse information related to a customer or business. This search is a key component of enhanced due diligence (EDD) for high-risk clients under the Bank Secrecy Act (BSA) compliance framework. It aims to uncover negative media coverage, legal issues, or reputational risks that may indicate involvement in financial crime, fraud, or regulatory violations.

Here are the key elements of conducting a BSA negative news search:

Key Learning Objectives:

1. Review of Public Sources: The search typically involves scanning news websites, online databases, regulatory reports, and legal case files for mentions of a customer or their business in a negative light.
2. Media and Legal Reviews: Look for mentions of the entity in connection with lawsuits, criminal investigations, sanctions, or allegations of financial misconduct, such as money laundering or fraud.
3. Social Media and Online Presence: Social media profiles and online forums may provide insights into reputational concerns or public complaints.
4. Continuous Monitoring: Since high-risk clients often require ongoing surveillance, a negative news search should be conducted periodically to stay updated on any new developments.
5. Reporting: Any negative findings from these searches are typically reported internally and may require additional investigation or action, such as filing a Suspicious Activity Report (SAR).