Re: Software vs Money Laundering

[Peter F Cassidy <pcassidy@world.std.com>]

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. . .