Adverse Media Screening Check

Learn how to run adverse media screening checks to identify potential risks associated with businesses

The Adverse Media Screening check helps identify potential risks by analyzing news articles, media coverage, and customer reviews related to a business. This guide explains how to run the check, what data to provide, and how to interpret the results.

Overview

The check searches through various news sources and review platforms to identify:

• Negative news coverage
• Regulatory investigations
• Legal proceedings
• Customer complaints
• Reputational issues

Running the Check

API Endpoint

POST https://api.parcha.ai/runCheck

Request Parameters

agent_key · string · required

Use "public-bdd" for business due diligence checks.

check_id · string · required

Use "kyb.adverse_media_check" for adverse media screening.

kyb_schema · object · required

The business information for screening.

Show KYB Schema Properties

id · string · required

A unique identifier for this check case.

self_attested_data · object · required

business_name · string · required

The legal name of the business to screen.

address_of_incorporation · object

country_code · string

The country code where the business is incorporated (ISO 3166-1 alpha-2).

address_of_operation · object

country_code · string

The country code where the business operates (ISO 3166-1 alpha-2).

incorporation_date · string

The business’s incorporation date (YYYY-MM-DD format).

customer_countries · array

List of country codes where the business has customers.

Example Request

cURL

curl -X POST 'https://api.parcha.ai/runCheck' \
-H 'Authorization: Bearer YOUR_API_KEY' \
-H 'Content-Type: application/json' \
-d '{
  "agent_key": "public-bdd",
  "check_id": "kyb.adverse_media_check",
  "kyb_schema": {
    "id": "adverse-media-check-001",
    "self_attested_data": {
      "business_name": "Acme Corp",
      "address_of_incorporation": {
        "country_code": "US"
      },
      "address_of_operation": {
        "country_code": "US"
      },
      "incorporation_date": "2020-01-15",
      "customer_countries": ["US", "CA", "GB"]
    }
  }
}'

Initial Response

{
  "id": "check-abc123",
  "status": "PENDING",
  "created_at": "2024-02-15T10:30:00Z",
  "updated_at": "2024-02-15T10:30:00Z",
  "agent_id": "public-bdd",
  "input_payload": {
    // Original request payload
  }
}

Check Process

The adverse media screening check follows these steps:

1. Data Collection

   • Searches news archives and media databases
   • Analyzes customer review platforms
   • Gathers information from business registries

2. Match Analysis

   • Compares business names and aliases
   • Validates geographic relevance
   • Checks temporal relevance (based on incorporation date)
   • Evaluates source credibility

3. Risk Assessment

   • Categorizes findings by severity
   • Analyzes impact on business operations
   • Evaluates reputational risk

Check Results

Once the check is complete, you can retrieve the results using the check ID. The results will include:

Response Structure

{
  type: "KYBAdverseMediaScreeningCheckResult";
  verified_adverse_media_hits: Array<AnnotatedNewsArticle> | null;
  verified_adverse_review_hits: Array<AnnotatedCustomerReview> | null;
  passed: boolean;
}

type AnnotatedNewsArticle = {
  article_id: string | null;
  source_url: string | null;
  source_name: string | null;
  title: string | null;
  text_content: string | null;
  publication_date: string | null;
  article_type: string | null;
  article_metadata: {
    who: {
      perpetrators: Array<{
        business_name: string | null;
      }> | null;
    } | null;
    what: string | null;
  } | null;
}

type AnnotatedCustomerReview = {
  review_id: string | null;
  source_url: string | null;
  source_name: string | null;
  title: string | null;
  text_content: string | null;
  publication_date: string | null;
  rating: number | null;
  review_metadata: {
    sentiment: string | null;
    topics: Array<string> | null;
  } | null;
}

Example Result

{
  "type": "KYBAdverseMediaScreeningCheckResult",
  "verified_adverse_media_hits": [
    {
      "article_id": "news123",
      "source_url": "https://example.com/article1",
      "source_name": "Business News Daily",
      "title": "Company XYZ Faces Regulatory Investigation",
      "text_content": "Company XYZ is under investigation for potential compliance violations...",
      "publication_date": "2024-01-15",
      "article_type": "News",
      "article_metadata": {
        "who": {
          "perpetrators": [
            {
              "business_name": "Company XYZ"
            }
          ]
        },
        "what": "Regulatory compliance investigation regarding financial reporting practices"
      }
    }
  ],
  "verified_adverse_review_hits": [
    {
      "review_id": "review456",
      "source_url": "https://reviews.example.com/xyz",
      "source_name": "Business Reviews",
      "title": "Poor Customer Service Experience",
      "text_content": "Extremely dissatisfied with the service quality and response time...",
      "publication_date": "2024-02-01",
      "rating": 1,
      "review_metadata": {
        "sentiment": "negative",
        "topics": ["customer service", "response time", "quality"]
      }
    }
  ],
  "passed": false
}

Risk Categories

The check evaluates findings across different risk levels:

High Risk

• Criminal activities
• Regulatory violations
• Major legal issues
• Severe financial problems
• Significant fraud allegations

Medium Risk

• Customer complaints
• Service issues
• Minor legal disputes
• Operational problems
• Negative reviews

Low Risk

• Isolated incidents
• Minor complaints
• Resolved issues
• Historical events
• Non-material concerns

Best Practices

1. Provide Accurate Business Information

   • Use the legal business name
   • Include all known operating countries
   • Specify accurate incorporation date

2. Consider Time Frames

   • Recent events (within 1 year) are most relevant
   • Historical events may require context
   • Consider the business’s age when evaluating findings

3. Evaluate Results Holistically

   • Consider the credibility of sources
   • Look for patterns in findings
   • Assess the severity and frequency of issues

4. Follow Up Actions

   • Document significant findings
   • Investigate serious allegations
   • Consider additional due diligence if needed

Error Handling

Common errors and their solutions:

Error Code	Description	Solution
400	Missing required fields	Ensure all required fields are provided in the payload
401	Invalid API key	Check your API key is valid and has necessary permissions
429	Rate limit exceeded	Implement appropriate request rate limiting
500	Internal server error	Retry the request after a short delay

Limitations

• The check only covers publicly available information
• Results may vary based on the availability of data in different jurisdictions
• Some sources may have delayed reporting of incidents
• Coverage may be limited in certain geographic regions

Support

If you encounter any issues or need assistance:

• Email: [e-mail]
• Documentation: https://docs.parcha.ai
• API Status: https://status.parcha.ai