The Research On The Anti-Money Laundering Mechanism And The Detecting Methodology

The anti-money laundering action is still in the stage of initial developments compare to the long history of the developments of the money laundering activity, and the negative impacts of the money laundering activity has permeated all levels of society. The anti-money laundering action has become a major multi-disciplinary issue that covers legal, social, Economic, financial, management and many others. In fact, the "dynamic" nature of the money-laundering activity leads to a game between the money laundering activity and the anti-money laundering action, yet the lack of supervision methods lead to the problem of positive externality for anti-money laundering regulators, so that it is difficult for both the regulators and the regulated institutions to build up a universal regulatory system. Moreover, the anti-money laundering regulators have difficulties to deal with the growing scale of the large and suspicious transactions report system, with the fact that the money-laundering activity can easily circumvent the anti-money laundering detection in many ways.Based on the researches in the aspects of the evolution of the money laundering activity, the implementation process of the anti-money laundering actions, the structure of the anti-money laundering monitoring system and the developments of data mining technology. This paper from the perspective of finance believes that an effective long-term anti-money laundering regulatory system requires the implementation of laws and regulations as its foundation, it also requires to:On the one hand, establishing a"top-down"regulatory system, which fixes the responsibilities of regulatory agencies and regulated institutions, as well as to establish a regulatory mechanism of risk control that provides the obligations for the regulated institutions. Moreover, the regulators should emphasize social anti-money laundering awareness, and to introduce incentive mechanisms in order to eliminate the problem of positive externality. Therefore, establish a highly uniformed anti-money laundering regulatory system with legal supports that is able to provide high penalty cost on the money-laundering activity.On the other hand, using the developments of data mining technology to study on the data processing algorithms and the models in this field. Therefore, to establish the money laundering detection system that based on data mining technology, which focus on the behavioral characteristics of the money laundering activity, as well as to provide criteria and guidelines for the anti-money laundering actions, and to provide technical supports to solve the circumvent problem of the money-laundering activity.