Is adverse media screening a regulatory requirement?
It is explicitly required in the EU 6AMLD and UK regimes as part of EDD and ongoing monitoring. AUSTRAC expects it as part of EDD and risk assessment for higher-risk customers. FinCEN does not name it specifically but it is universally expected as part of a reasonable CDD program and is reflected in FFIEC examination guidance. In practice, adverse media screening is now baseline for any regulated financial institution.