Privacy-preserving Anti-Money Laundering using Secure Multi-Party Computation
conference paper
Money laundering is a serious financial crime where criminals aim to conceal the illegal source of their money via a series of transactions. Although banks have an obligation to monitor transactions, it is difficult to track these illicit money flows since they typically span over multiple banks, which cannot share this information due to privacy concerns. We present secure risk propagation, a novel efficient algorithm for money laundering detection across banks without violating privacy concerns. In this algorithm, each account is assigned a risk score, which is then propagated through the transaction network. In this article we present two results. Firstly, using data from a large Dutch bank, we show that it is possible to detect unusual activity using this model, with cash.
TNO Identifier
1002745
Source title
Financial Cryptography and Data Security 2024
Pages
1-19
Files
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