Financial institutions may be used unwittingly as intermediaries for money laundering activities, a process to conceal the true source of funds that were originally derived from criminal activity. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot) Act, which amends the Bank Secrecy Act (BSA), was adopted in response to the September 11 terrorist attacks. The Patriot Act is intended to strengthen U.S. measures to prevent, detect, and prosecute international money laundering and the financing of terrorism for which it requires financial institution to implement an effective anti-money laundering (AML) program.
AML program, which includes a compliance program (e.g., policies, procedures, compliance officer to monitor the program, training, and independent audit to test and verify the program) as well as ad-hoc activities to investigate and report suspicious activities, is increasingly supplemented by computing technology to monitor a vast amount of transactions to facilitate identification of possible suspicious transaction activities.
In this talk, I am going to discuss statistical framework to aid the prevention and detection