Intelligent money laundering monitoring and detecting system
5
Citation
6
Reference
13
Related Paper
Citation Trend
Abstract:
Criminal elements in today's technology-driven society are using every means available at their disposal to launder the proceeds from their illegal activities. While dedicated efforts are contributed in combating with money laundering (ML) from multi-aspects, without a comprehensive and solid theoretical support, each of them is combating in its own way. To effectively and efficiently prevent and detect such diverse and complex activity, an Anti-Money Laundering (AML) solution should establish comprehensive, solid and fundamental knowledge framework of the monitoring and detecting process. Based on Simons' decision making theory this study proposed an intelligent-agent- oriented solution for money laundering monitoring and detecting process (MLMDP). In order for a more adaptive, intelligent and flexible solution for anti-money laundering, the intelligent agent technology is applied in this research to deal with the complex, dynamic, and distributed MLMDP. Intelligent agents with their properties of autonomy, reactivity and proactivity are well suited for money laundering prevention controls. Several types of agents are proposed and a novel and open multiagent architecture is presented for money laundering monitoring and detecting processes.Keywords:
Money Laundering
Evasion (ethics)
Cite
Financial institutions are the first vertical level in the fight against money laundering and to improve security. Therefore, it is essential that tools are available to enable effective detection and analysis of suspicious transactions, or unusual business operations. These, in line with the legislative requirements, report to responsible entities - FIUs representing the second vertical plane in the fight against money laundering. However, special software tools are available for obligated persons, especially for financial institutions that carry out tens of millions of financial transactions a day. These can trigger the alert to most unusual operations. The software automatically creates customer profiles, including expected behavior and executed transactions. Using advanced statistical analyses, it identifies unusual business operations, i.e. financial transactions significantly different from those carried out in the past. It is very useful to apply software support in form of electronic detection of indicators of legalization of crime proceeds. However, the output of such support software requires a more detailed and demanding investigation of the nature of operation and is based on the use of special algorithms based on mathematical and statistical methods. The software builds on the results of scientific research.
Money Laundering
Legalization
Cite
Citations (7)
Recently, money laundering is becoming more and more sophisticated, it seems to have moved from the personal gain to the cliché of drug trafficking and financing terrorism. This criminal activity poses a serious threat not only to financial institutions but also to the nation. Today, most international financial institutions have been implementing anti-money laundering solutions but traditional investigative techniques consume numerous man-hours. Besides, most of the existing commercial solutions are based on statistics such as means and standard deviations and therefore are not efficient enough, especially for detecting suspicious cases in investment activities. In this paper, we present a case study of applying a knowledge-based solution that combines data mining and natural computing techniques to detect money laundering patterns. This solution is a part of a collaboration project between our research group and an international investment bank.
Money Laundering
Investment
Drug Trafficking
Cite
Citations (70)
This Note is intended as a summary introduction to a few of the means, mechanisms and methods used by non-state actors to generate, and transfer wealth over the Internet. It identifies several vehicles that the Bank could use to enhance its present services. Trends in cyber crime reveal significant growth. Between 1999-2003 in the United States, attacks on computer servers increased by over 530 percent to 137,000 incidents. This is partly attributable to vulnerabilities in software code, which have grown from a total of 500 in 1995 to over 9000 in 2002 (CERT). Developing countries are also being targeted, even as leapfrog technology is implemented. Brazil has seen hacker attacks increase by at least 100 percent yearly since 2005.These growing numbers bear particular importance on the financial sector. The Internet's primary attributes are speed and convenience, which in turn cuts transaction costs and float time. These attributes are doubly attractive to illegal oriented entities, because it decreases exposure and risk. The paper provides an overview of electronic money laundering and its estimated annual volume, through the available means of electronic money laundering. It then reviews the United States initiatives to combat money laundering, and, the proposed action items to enhance anti-E-laundering efforts in the Bank, and terrorist financing, the harmonization and coordination of Regulation, and the Global Payments Systems Mapping Project.
Money Laundering
Hacker
Cite
Citations (7)
Money Laundering
Petabyte
Electronic money
Cite
Citations (3)
In order to track money laundering and terrorist funding, banks have to create risk profiles of their clients. Banks that want to do business in the United States have to implement a worldwide Know Your Customer (KYC) program, partially based on the Patriot Act. Implementing a KYC policy, however, raises several problems and seems to be neither effective nor efficient in tracking money laundering and terrorist funding. Given problems regarding the identification of individuals, it is not too difficult for criminals and terrorists to avoid being detected by certain types of screening. In this contribution, the way risk profiling strategies are implemented in practice are discussed, including the problems this may raise.
Money Laundering
Profiling (computer programming)
Cite
Citations (1)
Commonwealth
Firepower
Cite
Citations (5)
Reviews briefly the apparent inevitability of growth in electronic trade; the constraining factors seem to be security risks such as problems of transparency and symmetry of information, the need for defence from intrusive technologies and against threats from fraud, embezzlement, counterfeiting, false identities and privacy. Relates e‐trade to the preferences of money launderers for the internet because of its low transparency, multiplier effects, low control, and high risks. Outlines three types of strategy for confronting money laundering: adapting current procedures, developing countering IT techniques like encryption, and singling out possible patterns of suspicious transactions for intermediaries’ consideration. Concludes that existing machinery cannot be expected to curb the transition to an electronic future, and that a combination of strategies is necessary.
Money Laundering
Embezzlement
Electronic money
Cite
Citations (3)
Today, money laundering (ML) poses a serious threat not only to financial institutions but also to the nations. This criminal activity is becoming more and more sophisticated and seems to have moved from the clichy of drug trafficking to financing terrorism and surely not forgetting personal gain. Most of the financial institutions internationally have been implementing anti-money laundering solutions (AML) to fight investment fraud activities. In AML, the customer identification is an important task which helps AML experts to monitor customer habits: some being customer domicile, transactions that they are involved in etc. However, simple query tools provided by current DBMS as well as naive approaches in customer searching may produce incorrect and ambiguous results and their processing time is also very high due to the complexity of the database system architecture. In this paper, we present a new approach for identifying customers registered in an investment bank. This approach is developed as a tool that allows AML experts to quickly identify customers who are managed independently across separate databases. It is tested on real-world datasets, which are real and large financial datasets. Some preliminary experimental results show that this new approach is efficient and effective.
Money Laundering
Identification
Investment
Cite
Citations (15)
Cryptographic forms of money are advanced methods for payment and utilized by people or groups. Most digital forms of money aren't controlled by national governments. They're considered as elective money mediums of budgetary trade that exist outside the limits of state financial arrangement. The purpose of this review article is to analyze the cryptographic forms of money, its industry analysis, and its government regulation. This paper additionally focuses on the security issues and threats faced by clients making transactions, utilizing virtual monetary standards and the procedures to diminish those risk and threats. The gauge is given to the development of risk and threats to national security, contending laundering of criminal currency and violence financing, and those are shaped beneath the conditions of the increasing awareness in Cryptocurrency. This paper gives the consequences of an orderly audit of 21 coins with their market capitalization and supply. We review the current vulnerabilities in Cryptocurrency and its hidden significant innovations, for example, Blockchain and POW based protocol convention. These vulnerabilities prompt the execution of different security dangers to the ordinary use of Bitcoin. Besides, we show current security and anonymity contemplations in Cryptocurrency and examine the threats related to privacy for cryptocurrency users alongside the investigation of the current security measures. At last, we summarize the basic challenges and threats then provide solutions for future research towards provisioning stringent security and protection systems for digital money
Money Laundering
Digital currency
Cite
Citations (0)
Criminal elements in today's technology-driven society are using every means available at their disposal to launder the proceeds from their illegal activities. While many anti-money laundering solutions have been in place for some time within the financial community, they cannot adapt to the ever-changing risk and methods in relation to money laundering. In order for a more adaptive, intelligent and flexible solution for anti-money laundering, the intelligent agent technology is applied in this research. Intelligent agents with their properties of autonomy, reactivity and proactivity are well suited for money laundering prevention controls. Several types of agents are proposed and a novel and open multi-agent architecture is presented for anti-money laundering. A prototype system for money laundering detection is also developed to demonstrate the advances of the proposed system architecture and business value
Money Laundering
Cite
Citations (21)