AI use case

AI for PEP and adverse media screening

AI that continuously scans news, court records, registries and other open sources in many languages for negative information and political exposure linked to customers, counterparties and beneficial owners, discards look alikes, and summarises credible risk for the analyst with the sources attached.

By Len Debets · Last verified 27 September 2026 · 7 public deployments

At least 60%
Reported handling time reduction
Save the Children, vendor claim.
95%
Reported false positive reduction
Scotiabank, vendor claim.
USD 105,000 to USD 800,000
Indicative value per year
A bank running 40,000 adverse media reviews a year across onboarding and periodic reviews. Worked example, see how it is calculated.

What problem does it solve?

Due diligence requires banks to know whether a customer, a director or a beneficial owner is a politically exposed person or has been linked to crime, corruption or other serious wrongdoing. Curated databases cover only part of the world's news, and keyword searches on the open web return pages of irrelevant hits: people with the same name, old stories, opinion pieces.

Analysts read article after article to rule out namesakes, often in languages they do not speak, and the result is inconsistent. Real risk gets missed in the noise, while onboarding and periodic reviews slow down. The quality of the written conclusion, why a hit was or was not relevant, is what auditors check, and it often varies between analysts.

How does it work?

  1. Search broadly. For each subject the system queries curated risk databases, news archives, court and regulatory records and the open web, in the languages that match the subject's footprint.
  2. Disambiguate. Entity resolution compares each article's person or company with the subject's known attributes (age, location, occupation, associated companies) and discards look alikes with a stated reason.
  3. Classify the risk. Relevant articles are classified by risk category (fraud, corruption, sanctions evasion, organised crime) and by credibility and recency of the source.
  4. Summarise with citations. The system writes a short summary of the credible findings, translated where needed, with a link to every source article.
  5. Analyst decides. The analyst confirms relevance and source reliability, records the disposition and decides whether it changes the customer's risk rating; monitoring continues between reviews.
Audience
Employee facing
Autonomy
Copilot
Adoption
Early adopters
Channels
Internal tools

What is it worth?

Benchmarks are computed from the public deployments below: one data point per organization per KPI, with who made each claim.

Value benchmarks for AI for PEP and adverse media screening
KPIMedianReported rangeData pointsClaimed by
Handling time reductionToo few to pool
at least 60%
Not pooled: up to 50%
1plus 1 up to1 vendor
False positive reductionToo few to pool
95%
11 vendor

Value drivers: Compliance quality, Employee productivity, Speed and cycle time, Risk and loss reduction.

Indicative value

A bank running 40,000 adverse media reviews a year across onboarding and periodic reviews

USD 105,000 to USD 800,000

Analyst capacity released per year

How this is calculated

Formula: reviews * minutesPerReview / 60 * timeSaved * costPerHour. The low scenario uses every low input, the high scenario every high input.

InputLowHighBasis
Adverse media reviews per year reviews, reviews per year40,00040,000The reference bank.
Analyst minutes per review today minutesPerReview, minutes per review1540Editorial assumption. Replace with your own time study.
Share of review time saved timeSaved, fraction of review time0.30.5Conservative against the benchmark on this page (Xapien reports that Save the Children cut donor due diligence review times by over 60% with its AI due diligence tool). Replace with results from your own pilot.
Fully loaded analyst cost per hour costPerHour, USD per hour3560Editorial assumption. Replace with your own.

What it leaves out: Counts analyst time only. It leaves out faster onboarding, risk found that manual searches missed, data licence costs and the cost of the platform.

Who already uses it?

7 public deployments, strongest evidence first. Grades: A regulator or audit, B the organization itself, C vendor case study, D anonymous or estimate.

OCBC

Singapore · Banking · 2026

ProductionGrade B

OCBC launched HELIOS in July 2026, an agentic AI platform that gathers intelligence on prospective private banking clients and completes most of the customer due diligence before a relationship manager engages them. OCBC says private banking accounts can now be opened in 15 business days, against an industry median of about six weeks, while relationship managers and review teams keep accountability for judgment and decisions. OCBC plans to extend HELIOS to ongoing monitoring of customer activity to detect changes in risk profiles. Bank of Singapore relationship managers use it in Singapore, Hong Kong and Dubai, with the rollout due to finish in the third quarter of 2026.

No outcome disclosed.

Save the Children

United Kingdom · Cross industry · 2026

ProductionGrade C

Save the Children uses Xapien, an AI supported due diligence platform that produces a report on a prospective donor and surfaces areas of concern early in the report, to vet corporate donors for alignment with its values and for reputational risk. The vendor reports that review times fell by more than 60%, with reports completed in as little as 15 minutes rather than over an afternoon, so the team can vet more donors. The platform is one part of a wider, human led review. It shows the same adverse media job outside banking.

  • Handling time reduction: at least 60%, analyst review time per corporate donor
    "Save the Children uses Xapien to accelerate corporate donor due diligence, cutting review times by over 60%."
    Claimed by: vendor

HSBC

United Kingdom · Banking · 2024

ProductionGrade C

Silent Eight has supplied HSBC with automation for name screening and adverse media alerts, and in February 2024 the two expanded the partnership to automated alert closure for transaction screening, which investigates and resolves payment screening alerts in real time. No outcome figures are disclosed.

No outcome disclosed.

Mashreq

United Arab Emirates · Banking · 2024

AnnouncedGrade C

Mashreq selected Silent Eight in May 2024 to automate the adjudication of name screening and adverse media alerts related to sanctions and anti money laundering requirements. Under the plan, false positives are to be investigated and closed quickly and potential true positives escalated to Mashreq analysts. The announcement is a multi year partnership; no results are disclosed.

No outcome disclosed.

Deutsche Bank

Germany · Banking · 2020

ProductionGrade C

Deutsche Bank used WorkFusion's AI automation for screening work in anti money laundering, including adverse media monitoring and PEP checks for new accounts and refresh screenings, which had required large teams to scan news reports manually. For the KYC programme as a whole, the vendor reports shorter handling times, about 25,000 cases handled per quarter and tens of thousands of hours saved each year.

  • Handling time reduction: up to 50%, range of 25 to 50%, across the whole KYC programme (screening and document processing)
    "25–50% reduction in handling time"
    Claimed by: vendor

Scotiabank

Canada · Banking · 2020

ProductionGrade C

Scotiabank automated its adverse media monitoring (negative news search) for anti money laundering with WorkFusion, applying the vendor's intelligent automation to the analysis and disposition of adverse media. The vendor reports a sharp fall in false positives, wider media search coverage (30 articles per name instead of 20) and the equivalent of more than a hundred compliance analysts freed for other work.

  • False positive reduction: 95%
    "95% reduction in false positives"
    Claimed by: vendor

Santander UK

United Kingdom · Banking · 2019

ProductionGrade C

Santander UK used ComplyAdvantage's adverse media screening, delivered through an API, as part of a digital onboarding proposition for corporate and SME customers, and screens every entity linked to an onboarding case. The vendor reports that the onboarding cycle fell from 12 days to 2 days on average; the figure covers the whole onboarding process, not the screening step alone.

No outcome disclosed.

How do you implement it?

A model agnostic playbook: what to prepare, the order to build in, and what goes wrong.

Data you need

  • Subject attributes for disambiguation (date of birth, nationality, addresses, related companies)
  • Licensed news and risk data sources, plus rules for which open web sources count as credible
  • The bank's adverse media risk taxonomy and materiality criteria
  • Historical dispositions to measure false positive rates

Systems to integrate

  • KYC and customer due diligence system
  • Screening engine and PEP database
  • News and risk data providers
  • Case management and customer risk rating

Complexity: Medium

Retrieval and summarisation are mature. The hard parts are reliable disambiguation of common names, licensed access to news content, and keeping the analyst accountable for the conclusion.

  1. 1

    Define what counts as adverse

    Write down the risk categories, how old a story may be, and which sources count as credible, with examples. The model can only be as consistent as the policy.

  2. 2

    Get disambiguation right

    Measure how often the system wrongly matches or wrongly discards a namesake on a labelled sample, per language and naming culture, before analysts rely on it.

  3. 3

    Summaries with sources, never without

    Require a link to every source in the summary and reject any claim that is not supported by a retrieved article.

  4. 4

    Pilot on periodic reviews

    Start with periodic reviews of existing customers, where time pressure is lower, then extend to onboarding and continuous monitoring.

Guardrails

  • Every finding links to its source; unsupported statements are rejected
  • Adverse media changes a risk rating only after an analyst confirms relevance and reliability
  • Bias testing across names, nationalities and languages for both false hits and misses
  • Source articles and dispositions retained for audit
  • Licence terms respected for every news source

KPIs to instrument

  • Hits per subject presented to analysts, before and after
  • Share of analyst overturned discards and matches on a labelled sample
  • Review time per subject
  • Material findings per thousand reviews
  • Miss rate on a known test set of adverse subjects

Human in the loop

The system searches, filters and summarises; the analyst decides whether a finding is about the subject, whether it is credible and whether it matters. Changes to risk rating or relationship decisions stay with named people.

Common failure modes

Namesake contamination
A common name links a customer to someone else's crimes. Require multiple matching attributes and show them in the summary.
Language and culture bias
Disambiguation works well for some naming conventions and badly for others. Measure performance per language and naming culture.
Summary replaces reading
Analysts stop opening sources. Sample decisions against the source articles and keep the analyst's conclusion in their own words.

What are the risks and rules?

EU AI Act

Minimal risk

Adverse media and PEP screening for due diligence is not listed in Annex III. It processes personal data, including data about alleged offences, so GDPR Article 10 and national AML law govern what may be collected and how long it is kept.

Guidance

Controls to put in place

  • Written adverse media policy with risk categories, recency and source credibility rules
  • Source links and analyst disposition retained for every finding
  • Bias and accuracy testing per language and naming culture
  • Human decision on any change to a risk rating or relationship

Frequently asked questions

Is adverse media proof of risk?
No. It is an input to a risk decision. The analyst checks that the article is about the customer, that the source is credible and that the allegation is material before it changes a rating.
How does AI reduce adverse media false positives?
Mostly through disambiguation: comparing ages, locations, occupations and related companies in the article with what the bank knows about the customer, and discarding namesakes with a stated reason. Measure it on a labelled sample in every language you screen.
What about bias against certain names?
It is a real risk. Names that are common in a community, or that are transliterated from another script in several ways, can produce more false hits and so more manual scrutiny for some customers. Test false hit and miss rates per naming culture and language, and fix the gaps before scaling.

How to cite this page

Blits.ai AI Use Case Library, "AI for PEP and adverse media screening", last verified 27 September 2026, https://www.blits.ai/ai-use-cases/pep-and-adverse-media-screening. Licensed under CC BY 4.0. Method: how we verify use cases.

Changelog
  • 27 September 2026: First published

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