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The complexity and interconnectivity of entities involved in money laundering demand investigative reasoning over graph-structured data. This paper explores the use of large language models (LLMs) as reasoning engines over localized…

Machine Learning · Computer Science 2026-05-12 Erfan Pirmorad

Money laundering is a profound global problem. Nonetheless, there is little scientific literature on statistical and machine learning methods for anti-money laundering. In this paper, we focus on anti-money laundering in banks and provide…

Machine Learning · Statistics 2023-03-22 Rasmus Jensen , Alexandros Iosifidis

Money laundering is the process that intends to legalize the income derived from illicit activities, thus facilitating their entry into the monetary flow of the economy without jeopardizing their source. It is crucial to identify such…

Social and Information Networks · Computer Science 2025-07-10 Zhihua Tian , Yuan Ding , Wenjie Qu , Xiang Yu , Enchao Gong , Jian Liu , Kui Ren

Current anti-money laundering (AML) systems, predominantly rule-based, exhibit notable shortcomings in efficiently and precisely detecting instances of money laundering. As a result, there has been a recent surge toward exploring…

Machine Learning · Computer Science 2023-07-26 Fredrik Johannessen , Martin Jullum

Financial institutions are required by regulation to report suspicious financial transactions related to money laundering. Therefore, they need to constantly monitor vast amounts of incoming and outgoing transactions. A particular challenge…

Machine Learning · Computer Science 2025-08-25 Bruno Deprez , Wei Wei , Wouter Verbeke , Bart Baesens , Kevin Mets , Tim Verdonck

This research explores the opportunities for the application of network analytic techniques to prevent money laundering. We worked on real world data by analyzing the central database of a factoring company, mainly operating in Italy, over…

Social and Information Networks · Computer Science 2021-05-13 A. Fronzetti Colladon , E. Remondi

We present a method to detect departures from business-justified workflows among support agents. Our goal is to assist auditors in identifying agent actions that cannot be explained by the activity within their surrounding context, where…

Cryptography and Security · Computer Science 2024-11-06 Birkett Huber , Casper Neo , Keiran Sampson , Alex Kantchelian , Brett Ksobiech , Yanis Pavlidis

With the deep integration of the travel and energy industries, cross-industry supply chain finance has gradually become a high-risk field of hidden money laundering incidents. For this reason, this work proposes a graph-driven…

Machine Learning · Computer Science 2026-05-20 Rong Liu , Xiaojun Xiao , Zhanqing Su

The detection of fraud in accounting data is a long-standing challenge in financial statement audits. Nowadays, the majority of applied techniques refer to handcrafted rules derived from known fraud scenarios. While fairly successful, these…

Machine Learning · Computer Science 2019-08-05 Marco Schreyer , Timur Sattarov , Christian Schulze , Bernd Reimer , Damian Borth

In this paper, we present "Graph Feature Preprocessor", a software library for detecting typical money laundering patterns in financial transaction graphs in real time. These patterns are used to produce a rich set of transaction features…

Financial risks can propagate across both tightly coupled temporal and spatial dimensions, posing significant threats to financial stability. Moreover, risks embedded in unlabeled data are often difficult to detect. To address these…

Risk Management · Quantitative Finance 2025-02-21 Guanyuan Yu , Qing Li , Yu Zhao , Jun Wang , YiJun Chen , Shaolei Chen

Financial fraud detection is essential to safeguard billions of dollars, yet the intertwined entities and fast-changing transaction behaviors in modern financial systems routinely defeat conventional machine learning models. Recent…

Machine Learning · Computer Science 2025-08-29 Zeyue Zhang , Lin Song , Erkang Bao , Xiaoling Lv , Xinyue Wang

As the availability of financial services online continues to grow, the incidence of fraud has surged correspondingly. Fraudsters continually seek new and innovative ways to circumvent the detection algorithms in place. Traditionally, fraud…

Machine Learning · Computer Science 2024-11-25 Prashank Kadam

Financial fraud detection in real-world scenarios presents significant challenges due to the subtlety and dispersion of evidence across complex, multi-year financial disclosures. In this work, we introduce a novel multi-agent reasoning…

Artificial Intelligence · Computer Science 2025-10-02 Songran Bai , Bingzhe Wu , Yiwei Zhang , Chengke Wu , Xiaolong Zheng , Yaze Yuan , Ke Wu , Jianqiang Li

Today, money laundering poses a serious threat not only to financial institutions but also to the nation. This criminal activity is becoming more and more sophisticated and seems to have moved from the clichy of drug trafficking to…

Databases · Computer Science 2016-09-06 Nhien-An Le-Khac , Sammer Markos , Tahar Kechadi

Combating money laundering has become increasingly complex with the rise of cybercrime and digitalization of financial transactions. Graph-based machine learning techniques have emerged as promising tools for Anti-Money Laundering (AML)…

Cryptography and Security · Computer Science 2024-11-12 Fabrianne Effendi , Anupam Chattopadhyay

Detecting anomalies has become increasingly critical to the financial service industry. Anomalous events are often indicative of illegal activities such as fraud, identity theft, network intrusion, account takeover, and money laundering.…

Machine Learning · Computer Science 2021-01-06 Hongda Shen , Eren Kursun

In the age of digital finance, detecting fraudulent transactions and money laundering is critical for financial institutions. This paper presents a scalable and efficient solution using Big Data tools and machine learning models. We utilize…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-06-04 Chen Liu , Hengyu Tang , Zhixiao Yang , Ke Zhou , Sangwhan Cha

Money laundering presents a pervasive challenge, burdening society by financing illegal activities. The use of network information is increasingly being explored to effectively combat money laundering, given it involves connected parties.…

Social and Information Networks · Computer Science 2025-10-09 Bruno Deprez , Toon Vanderschueren , Bart Baesens , Tim Verdonck , Wouter Verbeke

Money laundering detection faces challenges due to excessive false positives and inadequate adaptation to sophisticated multi-stage schemes that exploit modern financial networks. Graph analytics and AI are promising tools, but they…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-04-15 Haojie Ye , Arjun Laxman , Yichao Yuan , Krisztian Flautner , Nishil Talati