A practical reference for commonly used terms in due diligence, public records research, risk management, investigative research, sanctions screening, and background screening.
Use the glossary below to better understand the terminology commonly encountered when evaluating individuals, businesses, transactions, vendors, executives, and other potential areas of risk.
A record of current and prior addresses associated with an individual. Address history can help identify relevant jurisdictions for public records research and assist with identity resolution.
Research of news publications, regulatory releases, public records, and other credible sources for negative or potentially risk-relevant information concerning an individual or organization.
A more comprehensive level of due diligence that typically expands the scope, jurisdictions, sources, or historical lookback beyond a basic review. Advanced due diligence may include deeper public records research, litigation, regulatory matters, adverse media, sanctions, and other investigative components.
An alternate name associated with an individual, such as a former name, maiden name, nickname, spelling variation, or other name under which records may exist. Researching relevant aliases can help identify court or public records that may not appear under an individual’s current name.
Research conducted to identify publicly available information concerning assets associated with an individual or business. Depending on scope and jurisdiction, this may include real property, business interests, UCC filings, liens, and other public records.
The process of reviewing information about an individual or organization to evaluate identity, history, qualifications, legal matters, or other relevant risk factors. The scope and permissible use of background screening can vary depending on its purpose.
Research of bankruptcy court records to identify current or historical bankruptcy matters involving an individual or business.
An initial level of due diligence designed to identify readily available risk indicators and provide a foundational understanding of an individual, business, or transaction. The scope may include identity information, public records, sanctions, litigation, and other core research areas.
The individuals who ultimately own, control, or financially benefit from a business or legal entity, even when ownership is held through other companies or structures.
Research conducted to evaluate a company, its ownership, operations, litigation history, regulatory matters, financial distress indicators, public records, and other potential risks.
Research of corporate registrations, Secretary of State records, ownership information, business affiliations, status, and other publicly available records associated with a company.
Research of civil court records involving individuals or businesses. Matters may include contract disputes, business litigation, employment disputes, fraud allegations, professional disputes, and other non-criminal cases.
Research of criminal court records to identify potentially relevant criminal cases associated with an individual. Research methods and available records vary by jurisdiction.
Outstanding debts or obligations that have been placed with a collection agency or otherwise reported through available commercial or public sources.
A relationship between an individual or organization and another business entity through ownership, management, officer positions, directorships, employment, control, or other documented business connections.
A government filing establishing or registering a legal business entity within a particular jurisdiction.
The recorded standing of a legal entity with the applicable government registration authority. Examples may include active, inactive, dissolved, revoked, withdrawn, or administratively dissolved.
An individual or organization subject to restrictions or prohibitions imposed by a government authority that may limit certain transactions, exports, business relationships, or other activities.
Research conducted through the original or authoritative source of a record, such as a courthouse, government agency, corporate registry, regulatory authority, or official database.
The process of gathering and evaluating information before entering into a business relationship, transaction, investment, partnership, or other significant decision. Due diligence helps identify potential legal, financial, regulatory, reputational, and operational risks.
The process of confirming educational credentials such as attendance, degree, graduation date, or other academic information with an educational institution or authorized source.
A deeper level of research typically used when elevated risk, complexity, jurisdictional exposure, ownership concerns, reputational issues, or other red flags warrant additional review. Enhanced due diligence may involve expanded public records, investigative research, source verification, adverse media, regulatory research, and other targeted inquiries.
Additional research performed when initial findings identify information that requires further clarification, corroboration, or investigation.
The process of referring a potentially significant finding, discrepancy, or risk indicator for additional review or decision-making.
Research focused on executives, founders, owners, directors, or other key individuals whose background, reputation, litigation history, regulatory exposure, or business affiliations may be relevant to a transaction or business relationship.
The Fair Credit Reporting Act is a U.S. federal law governing consumer reports and consumer reporting agencies when information is used for certain permissible purposes, including employment, credit, housing, and other regulated uses.
The possibility of financial loss or instability associated with an individual, company, transaction, or business relationship. Relevant indicators may include bankruptcies, liens, judgments, financial distress, or other publicly available information.
Research of criminal proceedings filed in United States federal courts involving an individual.
Information that may suggest financial difficulty or instability, such as bankruptcy, judgments, tax liens, collections, certain UCC filings, or other relevant financial public records.
Research focused on publicly available or commercially available indicators of potential financial concern, which may include bankruptcy, liens, judgments, UCC filings, collections, and business credit information.
Economic, financial, trade, or other restrictions imposed by governments or international authorities against designated countries, organizations, entities, vessels, or individuals.
Records created, maintained, or made available by governmental agencies, courts, regulatory authorities, corporate registries, and other public bodies.
A vendor, supplier, contractor, business partner, intermediary, or other external party whose relationship, ownership, geography, activities, access, regulatory exposure, or other characteristics may warrant enhanced due diligence.
A prior ownership, management, officer, director, employment, or other documented relationship between an individual and a business organization.
The process of confirming that an individual is who they claim to be by reviewing identifying information and reliable sources.
A deeper form of due diligence that combines public records, open-source research, litigation, regulatory information, media research, business affiliations, and other sources to develop a more complete understanding of potential risk.
The structured collection and analysis of information from public records, open sources, regulatory databases, court records, media, business records, and other relevant sources.
Research designed to identify court judgments, tax liens, and other publicly recorded claims that may indicate financial obligations, disputes, or potential risk.
The geographic area, government authority, or court system having legal authority over a particular person, entity, matter, or record.
Research conducted within specific geographic or legal jurisdictions identified as relevant to the subject based on addresses, business registrations, litigation history, or other information.
An owner, executive, manager, director, founder, controlling person, or other individual whose role or influence may be significant to understanding a business or business relationship.
Processes used to verify a business, understand its ownership and operations, and evaluate potential regulatory, financial, fraud, or reputational risks.
Processes used to verify the identity of customers and assess potential risks associated with establishing or maintaining a business relationship.
The possibility of loss, liability, disruption, or reputational harm resulting from litigation, regulatory matters, contractual disputes, legal violations, or other legal issues.
A legal claim or recorded interest against property or assets that may secure payment of a debt or obligation.
The record of lawsuits or other court proceedings involving an individual or organization over a defined period of time.
The process of searching court records to identify civil or other legal proceedings involving an individual, organization, or related party.
Research conducted in connection with mergers and acquisitions to evaluate companies, owners, executives, counterparties, and other key stakeholders involved in a transaction.
Research of news publications, trade publications, online sources, press releases, and other available media to identify information relevant to an individual, company, or business relationship.
Publicly available news, reports, publications, or other credible information that may raise concerns regarding an individual or organization. Negative media and adverse media are often used interchangeably.
Due diligence conducted for purposes that do not fall within the consumer-reporting uses regulated by the Fair Credit Reporting Act. Examples may include certain business transactions, investments, mergers and acquisitions, vendor relationships, and other commercial due diligence purposes.
The Office of Foreign Assets Control is a division of the U.S. Department of the Treasury responsible for administering and enforcing economic and trade sanctions.
The periodic or continuous review of individuals, businesses, vendors, or other parties for new risk indicators, such as sanctions, regulatory actions, litigation, adverse media, or other developments.
Information collected and analyzed from publicly accessible sources, including websites, news publications, government records, social media, corporate information, and other open sources.
The possibility of loss or disruption resulting from failures involving people, processes, systems, vendors, internal controls, or other operational factors.
An individual who holds or has held a prominent public function, or who may have a close relationship with such an individual. PEP identification is commonly used as part of anti-corruption, financial crime, and enhanced due diligence processes.
Research performed in connection with private equity investments to evaluate companies, management teams, founders, owners, and other stakeholders for legal, regulatory, reputational, and operational risk.
The process of confirming whether an individual holds a professional license or credential and reviewing available information regarding its status, issuing authority, or disciplinary history.
The collection and analysis of information maintained by courts, government agencies, regulatory bodies, corporate registries, and other public sources.
A review performed to assess whether research was completed according to the required scope, relevant sources were addressed, findings were appropriately documented, and the resulting information is presented accurately and consistently.
The process of evaluating available identifiers to determine whether a particular public record is reasonably associated with the person or organization being researched.
Information identified during due diligence that may warrant additional review, clarification, investigation, or consideration by the organization making the underlying business decision.
An enforcement, disciplinary, administrative, licensing, or other formal action taken by a regulatory or governmental authority against an individual or organization.
Research of regulatory agencies, enforcement databases, disciplinary records, government releases, and related sources for information concerning an individual or organization.
Research designed to identify publicly available information that may affect perceptions of an individual or organization, including adverse media, controversies, allegations, regulatory matters, and other relevant information.
The possibility that negative information, conduct, associations, public controversy, or other events may harm the reputation or business relationships of an individual or organization.
An individual, business, organization, vessel, or other party subject to sanctions, export restrictions, debarment, exclusion, or other government-imposed limitations.
The process of comparing individuals or organizations against applicable sanctions, denied-party, debarment, exclusion, or other government-maintained restricted-party lists.
An approach in which the depth and scope of due diligence are adjusted according to the nature and level of potential risk associated with the individual, entity, transaction, or business relationship.
A record appearing within the U.S. federal System for Award Management indicating that an individual or organization is excluded from certain federal contracting or assistance activities.
Legal or economic restrictions imposed by governments or international authorities against specified countries, organizations, entities, or individuals.
The process of comparing individuals, organizations, owners, or other relevant parties against sanctions lists maintained by government agencies or international authorities.
Research of state-level business registration records to identify information such as legal name, entity type, formation date, status, registered agent, officers, managers, addresses, and other available corporate details.
Research of publicly accessible social media information for content or associations potentially relevant to an investigative due diligence review.
The process of confirming information through an authoritative, direct, or otherwise reliable source rather than relying solely on aggregated or unverified data.
A search of available court records across a state-level court system or statewide repository. Coverage, completeness, record types, and accessibility vary by jurisdiction.
A legal claim asserted by a governmental taxing authority relating to unpaid taxes. Availability and reporting of tax lien information vary by jurisdiction and source.
An outside individual, company, vendor, supplier, contractor, consultant, intermediary, partner, or other organization involved in a business relationship.
The process of researching and evaluating an outside company or individual before or during a business relationship to identify potential ownership, legal, regulatory, financial, sanctions, or reputational concerns.
Potential legal, financial, regulatory, operational, cybersecurity, reputational, or other exposure arising from an organization’s relationships with external parties.
The processes organizations use to identify, assess, manage, monitor, and respond to risks associated with vendors, suppliers, contractors, consultants, service providers, and other external parties.
A filing made under the Uniform Commercial Code that may document a secured party’s interest in certain business or personal property. UCC filings are commonly reviewed during business and financial-risk research.
The individual or individuals who ultimately own or control a legal entity, directly or indirectly, including through intermediate companies or ownership structures.
Research conducted on a vendor or supplier to better understand its identity, ownership, legal history, financial-risk indicators, regulatory history, sanctions exposure, reputation, and other relevant risk factors.
Potential financial, legal, regulatory, operational, reputational, security, or other exposure arising from the use of an outside vendor or service provider.
The process of reviewing vendors or prospective vendors using selected verification, public-record, sanctions, regulatory, commercial, and investigative research sources.
The process of confirming information through a reliable or authoritative source.
A list maintained by a government agency, regulatory authority, international organization, or other authorized body identifying individuals or organizations associated with sanctions, exclusions, restrictions, enforcement concerns, or other specified risks.
The process of comparing an individual, company, owner, principal, or other party against applicable government, regulatory, sanctions, exclusion, denied-party, or other watchlists.
The information provided in this glossary is for general educational and informational purposes only. Definitions are intended to provide a general understanding of commonly used terms and may vary depending on jurisdiction, industry, source, and specific circumstances.
True Court Screening Solutions does not provide legal advice in any capacity, and nothing on this page should be interpreted as legal guidance or a substitute for advice from qualified legal counsel.
Organizations and individuals should consult appropriate legal or compliance professionals when evaluating specific legal, regulatory, or compliance requirements.
