A Case Study on Multi-Countries Money Laundering Scheme and A Proposed Automatic Detection System

Abstract

This paper presents a case study on the Franco-Israeli syndicates orchestrating their cross-continental money laundering schemes. These money laundering schemes have been operating for over two decades, ever since China’s entry to the World Trade Organization in 2001. The paper reviews the operation of the money laundering schemes in detail and highlights the difficulties encountered by bankers and investigators in unearthing and investigating criminal activities within the banking systems. The paper then proposes an automatic anti-money laundering system, which is expected to address these difficulties. Preliminary experimental results show that the system successfully identifies the crux of these money laundering syndicates within a few days’ time, something which usually takes years of investigation to track down the suspects using traditional methods, as well as its ability to initiate pre-warning procedures to the banks and law enforcement agencies once suspicious transaction clusters are found. The paper concludes with a discussion on the legal implications encompassing the evidence projected by this system.