Deep Learning Intelligence Platform – Addressing the KYC AML Terrorism Financing Challenge Dr. Jerry A. Smith.
From the post:
Terrorism impacts our lives each and every day; whether directly through acts of violence by terrorists, reduced liberties from new anti-terrorism laws, or increased taxes to support counter terrorism activities. A vital component of terrorism is the means through which these activities are financed, through legal and illicit financial activities. Recognizing the necessity to limit these financial activities in order to reduce terrorism, many nation states have agreed to a framework of global regulations, some of which have been realized through regulatory programs such as the Bank Secrecy Act (BSA).
As part of the BSA (an other similar regulations), governed financial services institutions are required to determine if the financial transactions of a person or entity is related to financing terrorism. This is a specific report requirement found in Response 30, of Section 2, in the FinCEN Suspicious Activity Report (SAR). For every financial transaction moving through a given banking system, the institution need to determine if it is suspicious and, if so, is it part of a larger terrorist activity. In the event that it is, the financial services institution is required to immediately file a SAR and call FinCEN.
The process of determining if a financial transaction is terrorism related is not merely a compliance issue, but a national security imperative. No solution exist today that adequately addresses this requirement. As such, I was asked to speak on the issue as a data scientist practicing in the private intelligence community. These are some of the relevant points from that discussion.
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Jerry has a great outline of the capabilities you will need for tracking government/terrorist financing. Depending upon your client’s interest, you may be required to monitor data flows in order to trigger the filing of a SAR and calling FinCEN or to avoid triggering the filing of a SAR and calling FinCEN. For either goal the tools and techniques are largely the same.
Or for monitoring government funding for torture or groups to carry out atrocities on its behalf. Same data mining techniques apply.
Have you ever noticed that government data leaks rarely involve financial records? Thinking of the consequences of the accounts payable ledger that listed all the organizations and people paid by the Bush administration, sans all the SS and retirement recipients.
That would be near the top of my most wanted data leaks list.
You?