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.
Related terms: Address History, Identity Resolution, Record Matching
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.
Related terms: UCC Filing, Property Records, Business Affiliations
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.
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.
Research of criminal court records to identify potentially relevant criminal cases associated with an individual. Research methods and available records vary by jurisdiction.
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.
The process of reviewing a company’s financial condition, performance, obligations, and related records to better understand its financial health and identify potential risks. Financial due diligence may include analysis of revenue, expenses, profitability, cash flow, debt, liabilities, assets, financial statements, and other relevant financial information.
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.
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.
Research conducted in connection with mergers and acquisitions to evaluate companies, owners, executives, counterparties, and other key stakeholders involved in a transaction.
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.
