The FinCEN AI System: Finding Financial Crimes in a Large Database of Cash Transactions

  • H. G. Goldberg
  • T. E. Senator


This chapter discusses the FinCEN Artificial Intelligence System (FAIS) and its continued development as a case-study of AI analysis of a financial database. We first present a brief description of the system, along with an update of what has been accomplished since the system was reported in (Senator, 1995). The version of FAIS reported there is V2.0, which has been in operation since December 1994. We next discuss some generally applicable conclusions regarding knowledge discovery in databases (KDD), in particular, the essential role of data preparation and database transformation steps in knowledge discovery systems. Finally, we discuss our plans for system improvements and future development in the context of an expanded agency mission, including not only incremental changes but also a major redesign, referred to as V3.0 of FAIS.


Knowledge Discovery Credit Union Money Laundering Retail Business Real Database 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Fayyad, U. M., Piatetsky-Shapiro, G., Smyth, P. (1996) From data mining to knowledge discovery — an overview. In: U. M. Fayyad, G. Piatetsky-Shapiro, P. Smyth, R. Uthurusamy (Eds.) Advances in Knowledge Discovery and Data Mining, 1–34. AAAI Press/MIT Press, Menlo Park, CA.Google Scholar
  2. Goldberg, H. G., Senator, T. E. (1995) Restructuring databases for knowledge discovery by consolidation and link analysis. Proceedings of the First International Conference on Knowledge Discovery & Data Mining (KDD-95), 136–141. AAAI, Menlo Park, CA.Google Scholar
  3. Hernandez, M. A., Stolfo, S. J. (1995) A Generalization of Band Joins and The Merge/ Purge Problem. Department of Computer Science, Columbia University, New York, NY.Google Scholar
  4. Piatetsky-Shapiro, G., Matheus, C., Smyth, P., Uthurusamy, R. (1994) KDD-93: Progress and challenges in knowledge discovery in databases. AI Magazine, 15(3), 77–81, AAAI, Menlo Park, CA.Google Scholar
  5. Senator, T. E., Goldberg, H. G., Wooton, J., Cottini, M. A., Khan, A. F. U., Klinger, C. D., Llamas, W. M., Marrone, M. P., Wong, R. W. H. (1995) The FinCEN artificial intelligence system: identifying potential money laundering from reports of large cash transactions. AI Magazine, 16(4), 21–39, AAAI, Menlo Park, CA.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • H. G. Goldberg
    • 1
  • T. E. Senator
    • 2
  1. 1.US Department of the TreasuryUSA
  2. 2.National Association of Securities DealersUSA

Personalised recommendations