Application of Analytics in Improving Efficiency of Transaction Surveillance

Chung Ying Chan

Chapter 7 in Business Analytics:Progress on Applications in Asia Pacific, 2016, pp 166-183 from World Scientific Publishing Co. Pte. Ltd.

Abstract: As regulators in key financial markets tighten regulatory controls on money laundering activities, financial crime risk is a key area for most financial institutions. Many have invested heavily in purchasing transaction surveillance systems, and taken a conservative approach to flagging suspicious transactions. Although this ensures that the chance of missing any suspicious transaction is minimized, the downside is that it generates a huge number of false positive alerts. This is extremely time consuming for transaction surveillance investigators to eliminate, causing a delay in the identification of genuine alerts. Due to close monitoring by regulators, institutions are likely to remain conservative and maintain very low detection thresholds. This paper proposes an analytical solution to enhance surveillance efficiency by risk-scoring system generated alerts, so that high risk alerts can be prioritized for investigation.

Keywords: Business Analytics; Entrepreneurship; Big Data; Information Technology (search for similar items in EconPapers)
JEL-codes: L26 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813149311_0007 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813149311_0007 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813149311_0007

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().