2025年1月17日星期五

COMP 5569 Guest talk for detecting fraud and money laundering activities

Dr. Walter Fung invited Mr. Tony Tse to share “Fraud, Money Laundering and Terrorist Financing – Implication for Society – Teaching and Research Opportunities” with his student in COMP 5569 – Fintech Regulation and Compliance on 17th Jan 2025. We took a photo with Tony for memory. 


Mr. Tony Tse has left the Police force and working for business as related to cryptocurrency. And tonight’s talk entitled “What is an effective automated detection system to detect fraud and money laundering activities.” Firstly, Mr. Tse briefed financial institutions which spent millions to incorporate automated detection system (ADS) to detect suspicious activities within accounts.


Then he introduced some practices such as transaction monitoring.  Firstly we needed to understand clients’ portfolio. And then he briefed the history on use of legal persons and arrangements from 1980 to 2019. After 2019 COVID period, virtual banks were introduced.


After that we discussed large fund and fast movement between bank accounts and different locations (especially cross-border transaction). Dr. Walter Fung also gave comments on smurfing and structuring transactions.


“While an effective ADS should generate true positive alert, in reality many false-positive alert was generated.” Said by Tony. It included cash kitting / circular flow of fund and U turn transaction. Finally, he introduced some of the techniques used by criminals to bypass this automated detection system.


Loan Fraud / Bankruptcy Fraud were also discussed.


Lastly, he explained the mechanism of e-shopping fraud.  Dr. Walter Fung developed this course is very useful and meaningful!

Reference

COMP, PolyU - https://www.polyu.edu.hk/comp/


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