Intelligent Anti-Money Laundering Systems Development for the Korea Financial Intelligence Unit

This case study shows constructing the knowledge-based system using a rule-based approach for detecting transactions regarding money laundering in the Korea Financial Intelligence Unit (KoFIU). To better manage the explosive increment of low risk suspicious transactions reporting from financial institutions and to conjugate data converged into the KoFIU from various organizations, the adoption of a knowledge-based system is definitely required. We designed and constructed the knowledge-based system for anti-money laundering by committing experts of each specific financial industry co-worked with a knowledge engineer. The outcome of the knowledge base implementation shows that the knowledge-based system is filtering STRs in the primary analysis step efficiently and so has made great contribution to improve efficiency and effectiveness of the analysis process. It can be said that establishing the foundation of the knowledge base under the entire framework of the knowledge-based system for consideration of knowledge creation and management is indeed valuable.