Anti-Money Laundering Systems Using Deep Learning

Abstract

In this paper, we focused on using deep learning methods for detecting money laundering in financial transaction networks, in order to demonstrate that it can be used as a complement or instead of the more commonly used rule based systems and conventional Anti-Money Laundering (AML) systems. The paper explores the pivotal role played by Anti-Money Laundering (AML) activities in the global financial industry. It underscores the drawbacks of conventional AML systems, which exhibit high rates of false positives and lack the sophistication to uncover intricate money laundering schemes. To tackle these challenges, the paper proposes an advanced AML system that capitalizes on link analysis using Deep Learning techniques. At the heart of this system lies the utilization of centrality algorithms like Degree Centrality, Closeness Centrality, Betweenness Centrality, and PageRank. These algorithms enhance the system’s capability to identify suspicious activities by examining the influence and interconnections within networks of financial transactions The significance of Anti-Money Laundering (AML) efforts within the global financial sector is discussed in this paper. It highlights the limitations of traditional AML systems. The results showed the practicality and superiority of the new implementation of the GCN model with it being a preferable method for connectively structured data, meaning that a transaction or account is analyzed in the context of its financial environment. In addition, the paper delves into the prospects of Anti-Money Laundering (AML) efforts, proposing the integration of emerging technologies such as Deep Learning and Centrality Algorithms. This integration holds promise for enhancing the effectiveness of AML systems by refining their capabilities.