Designing a relational model to identify relationships between suspicious customers in anti-money laundering (AML) using social network analysis (SNA)

Abdul Khalique Shaikh*, Malik Al-Shamli, Amril Nazir

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

The stability of the economy and political system of any country highly depends on the policy of anti-money laundering (AML). If government policies are incapable of handling money laundering activities in an appropriate way, the control of the economy can be transferred to criminals. The current literature provides various technical solutions, such as clustering-based anomaly detection techniques, rule-based systems, and a decision tree algorithm, to control such activities that can aid in identifying suspicious customers or transactions. However, the literature provides no effective and appropriate solutions that could aid in identifying relationships between suspicious customers or transactions. The current challenge in the field is to identify associated links between suspicious customers who are involved in money laundering. To consider this challenge, this paper discusses the challenges associated with identifying relationships such as business and family relationships and proposes a model to identify links between suspicious customers using social network analysis (SNA). The proposed model aims to identify various mafias and groups involved in money laundering activities, thereby aiding in preventing money laundering activities and potential terrorist financing. The proposed model is based on relational data of customer profiles and social networking functions metrics to identify suspicious customers and transactions. A series of experiments are conducted with financial data, and the results of these experiments show promising results for financial institutions who can gain real benefits from the proposed model.

Original languageEnglish
Article number20
JournalJournal of Big Data
Volume8
Issue number1
DOIs
Publication statusPublished - Dec 2021
Externally publishedYes

Keywords

  • Anti-money laundering
  • Customer profile
  • Relational analysis
  • Relationships
  • Social network analysis

ASJC Scopus subject areas

  • Information Systems
  • Hardware and Architecture
  • Computer Networks and Communications
  • Information Systems and Management

Cite this