IE interfaces (산업공학)

Korean Institute of Industrial Engineers (대한산업공학회)
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Scoring models to detect foreign exchange money laundering

외국환 거래의 자금세탁 혐의도 점수모형 개발에 관한 연구

  • Hong, Seong-Ik (Dept. of Computer Science & Industrial System Engineering, Yonsei University) ;
  • Moon, Tae-Hee (Dept. of Computer Science & Industrial System Engineering, Yonsei University) ;
  • Sohn, So-Young (Dept. of Computer Science & Industrial System Engineering, Yonsei University)
  • 홍성익 (연세대학교 정보산업공학과) ;
  • 문태희 (연세대학교 정보산업공학과) ;
  • 손소영 (연세대학교 정보산업공학과)
  • Received : 2005.02.14
  • Accepted : 2005.05.24
  • Published : 2005.09.30
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Abstract

In recent years, the money Laundering crimes are increasing by means of foreign exchange transactions. Our study proposes four scoring models to provide early warning of the laundering in foreign exchange transactions for both inward and outward remittances: logistic regression model, decision tree, neural network, and ensemble model which combines the three models. In terms of accuracy of test data, decision tree model is selected for the inward remittance and an ensemble model for the outward remittance. From our study results, the accumulated number of transaction turns out to be the most important predictor variable. The proposed scoring models deal with the transaction level and is expected to help the bank teller to detect the laundering related transactions in the early stage.

Keywords

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