A Case Study on Multi-Countries Money Laundering Scheme and A Proposed Automatic Detection System

Authors

  • Xiao Tan https://orcid.org/0000-0003-0191-9185
  • Tsz-Fung Tony Tse Hong Kong Police Force, China
  • Siu Ming Yiu Dept of Computer Science, University of Hong Kong, China
  • Hiu-Man Human Lam Department of Justice, Hong Kong, China

DOI:

https://doi.org/10.34190/iccws.19.1.1984

Keywords:

Cross-continental money laundering, Investigation difficulties, Legal challenges, Automatic AML detection

Abstract

This paper presents a case study on the Franco-Israeli syndicates orchestrating their cross-continental money laundering schemes.  These money laundering schemes have been operating for over two decades, ever since China’s entry to the World Trade Organization in 2001.  The paper reviews the operation of the money laundering schemes in detail and highlights the difficulties encountered by bankers and investigators in unearthing and investigating criminal activities within the banking systems.  The paper then proposes an automatic anti-money laundering system, which is expected to address these difficulties. Preliminary experimental results show that the system successfully identifies the crux of these money laundering syndicates within a few days’ time, something which usually takes years of investigation to track down the suspects using traditional methods, as well as its ability to initiate pre-warning procedures to the banks and law enforcement agencies once suspicious transaction clusters are found.  The paper concludes with  a discussion on the legal implications encompassing the evidence projected by this system.

Author Biographies

Xiao Tan

Xiao Tan is a PhD student of computing science at University of Hong Kong, Hong Kong. Before that, she received her Master of Science in computer sciences from University of Hong Kong in 2019. She is a member of Institute of Electrical and Electronics Engineers (“IEEE”), and have been working in Finance IT domain for 16 years, mainly in banking and insurance companies, crossing Singapore, Hongkong, Japan, Australia etc, as a business analyst, system analyst, and scrum master.

Tsz-Fung Tony Tse, Hong Kong Police Force, China

Mr. TSE Tsz-fung, Tony, Chief Inspector of the Hong Kong Police Force, member of the Money Laundering Expert Cadre, specialized in financial investigation and policy drafting work.  Tony was a key member in the coordination and compilation of the 2nd Hong Kong Money Laundering and Terrorist Financing Risk Assessment Report. 

Siu Ming Yiu, Dept of Computer Science, University of Hong Kong, China

Professor Siu Ming Yiu received a BSc in Computer Science from the Chinese University of Hong Kong, a MS in Computer and Information Science from Temple University, and a PhD in Computer Science from The University of Hong Kong. He Published 100+ papers in referred journals and conferences (Google Scholar statistics: Citations (8627), h-index (41), i10-index (98)).

Hiu-Man Human Lam, Department of Justice, Hong Kong, China

Ms Human HM LAM is a Senior Public Prosecutor of the Department of Justice in Hong Kong.  She is a Certified Public Accountant and a qualified assessor of the Asia/Pacific Group and FATF on Money Laundering.  As a court advocate, she prosecutes criminal trials and appeals at all level of courts.

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Published

2024-03-21