Statistical Intelligence Units

Abstract

A brief discussion of the role statistical analysis in anti-money laundering (AML) surveillance is presented. Surveillance monitoring of financial transactions is becoming increasingly complex, required the use of sophisticated automated tools to complement manual efforts in the AML sphere. This article discusses some potential applications of statistical tools to detect suspicious transactions from a population of seemingly innocuous ones. Furthermore, the role of statistical tests to "validate," in the quantitative sense, some facets of automated monitoring is also discussed. The role of statistics (and statistical policy) in AML applications concludes the discussion.

Keywords: Anti-money laundering, Suspicious, Outliers, Validation, Statistical policy

JEL Classification: C10, C12, D81