Paper 2023/649

FinTracer: A privacy-preserving mechanism for tracing electronic money

Michael Brand, RMIT University
Hamish Ivey-Law, Australian National University
Tania Churchill, Australian National University
Abstract

Information sharing between financial institutions can uncover complex financial crimes such as money laundering and fraud. However, such information sharing is often not possible due to privacy and commercial considerations, and criminals can exploit this intelligence gap in order to hide their activities by distributing them between institutions, a form of the practice known as ``layering''. We describe an algorithm that allows financial intelligence analysts to trace the flow of funds in suspicious transactions across financial institutions, without this impinging on the privacy of uninvolved individuals and without breaching the tipping off offence provisions between financial institutions. The algorithm is lightweight, allowing it to work even at nation-scale, as well as for it to be used as a building-block in the construction of more sophisticated algorithms for the detection of complex crime typologies within the financial data. We prove the algorithm's scalability by timing measurements done over a full-sized deployment.

Metadata
Available format(s)
PDF
Category
Cryptographic protocols
Publication info
Preprint.
Keywords
anti money launderingfinancial crimegraph analyticshomomorphic encryptionprivate graph analysis
Contact author(s)
michael brand @ rmit edu au
hamish ivey-law @ anu edu au
tania churchill @ anu edu au
History
2023-05-11: approved
2023-05-08: received
See all versions
Short URL
https://ia.cr/2023/649
License
Creative Commons Attribution
CC BY

BibTeX

@misc{cryptoeprint:2023/649,
      author = {Michael Brand and Hamish Ivey-Law and Tania Churchill},
      title = {{FinTracer}: A privacy-preserving mechanism for tracing electronic money},
      howpublished = {Cryptology {ePrint} Archive, Paper 2023/649},
      year = {2023},
      url = {https://eprint.iacr.org/2023/649}
}
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