Intelligent Anti-Money Laundering System for Money Service Business

Abstract

The criminal individuals and organizations in today's world including terrorists have taken advantage of the available financial systems, to launder money from illegal proceeds and for their illegal activities. India is particularly under threat from terrorists and it also has been difficult to track down the finance of criminal elements. Developing effective suspicious activity detection models has drawn more and more interests for supervision agencies and financial institutions in their efforts to combat money laundering.

This paper proposes a suspicious activity recognition method basing on scan statistics; it aims to identify suspicious sequences on transaction level for financial institutions. In order for a more adaptive, intelligent and flexible solution for anti-money laundering, the intelligent agent technology is applied in this research. Several types of agents are proposed and 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.