Analysis of money laundering utility and path of agent nodes based on cost constraints

Traditional network theories,such as shortest distance,the minimum cost,minimum fee and maximum flow,are regarded as outdated for researching on money laundering behavior in financial network after analyzing three stages of money laundering.Two methods of computing money laundering path were developed based on behavior finance and complex network theories which take into account money transferring times and its possibilities.Simulation results show that with high transaction cost,money launderers prefer to end the process of money transfers with less frequency instead of endless safe transaction.The results also show that with reducing transaction cost,money launderers end the transaction based on the rules of utility maximum and cost minimum,and that even if they do not need to pay for subsequent transaction cost,money launderers also follow the rule of utility maximum instead of endlessness transaction.