Software vs Money Laundering

At 10:48 AM 9/13/95 -0400, John Young wrote:

>      Can artificial intelligence be used to combat crime by
>      ferreting out money laundering? Officials at law
>      enforcement, defense and intelligence agencies like to
>      think so. They have suggested creating a sophisticated
>      computer program to screen records of the more than
>      700,000 electronic money transfers involving U.S.
>      institutions each day and to flag suspicious ones for
>      further investigation. By using AI, they hope to stop
>      some of the $300 billion in profits from drug deals and
>      other illegal activities that they estimate is laundered
>      world-wide each year. But in a report issued yesterday,
>      the congressional Office of Technology Assessment says
>      any such plan would face considerable obstacles.
>      [Cyberian Joel Reidenberg, an OTA advisor, is quoted.]
>

Not the least of which is that money launderers can use "AI Software" to
generate a stream of real and dummy money transfers that emulates "normal"
money transfers.  Not to mention the fact that monopoly money transfer
networks that can be surveilled by the Feds (FEDWIRE and SWIFT) are not long
for this world.  They will be replaced by encrypted, open, net-based systems.

DCF

"Yes Virginia, one *can* have an encrypted, open system.  In fact, that's
the best way to have an open system."

On Wed, 13 Sep 1995, Duncan Frissell wrote:

> At 10:48 AM 9/13/95 -0400, John Young wrote:
> 
> >      Can artificial intelligence be used to combat crime by
> >      ferreting out money laundering? Officials at law
> >      enforcement, defense and intelligence agencies like to
> >      think so. They have suggested creating a sophisticated
> >      computer program to screen records of the more than
> >      700,000 electronic money transfers involving U.S.
> >      institutions each day and to flag suspicious ones for
> >      further investigation. By using AI, they hope to stop
> >      some of the $300 billion in profits from drug deals and
> >      other illegal activities that they estimate is laundered
> >      world-wide each year. But in a report issued yesterday,
> >      the congressional Office of Technology Assessment says
> >      any such plan would face considerable obstacles.
> >      [Cyberian Joel Reidenberg, an OTA advisor, is quoted.]
> >
> 
> Not the least of which is that money launderers can use "AI Software" to
> generate a stream of real and dummy money transfers that emulates "normal"
> money transfers.  Not to mention the fact that monopoly money transfer
> networks that can be surveilled by the Feds (FEDWIRE and SWIFT) are not long
> for this world.  They will be replaced by encrypted, open, net-based systems.


The article failes to point out that this system - actually one much 
larger in scope already exists as Treasury's FINCEN system, headed by a 
former Army AI expert. FINCEN sifts all the bank transfer manifests and, 
last I looked, had stuck tentacles into other agency's databases to 
further collate and refine its focus - now toward locating potential 
targets.  FINCEN was only supposed to be marshalled for Justice 
Department investigations of suspected money laundering. Next, it'll be 
used to auto-author warrants and indictments. . .