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Abstract
Financial crimes like terrorism financing and money laundering can have real
impacts on society, including the abuse and mismanagement of public funds,
increase in societal problems such as drug trafficking and illicit gambling
with attendant economic costs, and loss of innocent lives in the case of
terrorism activities. Complex financial crimes can be hard to detect primarily
because data related to different pieces of the overall puzzle is usually
distributed across a network of financial institutions, regulators, and
law-enforcement agencies and they cannot be easily shared due to privacy
constraints. Recent advances in Privacy-Preserving Data Matching and Machine
Learning provide an opportunity for regulators and the financial industry to
come together to solve the risk-discovery problem with technology. This paper
provides a survey of the financial intelligence landscape and where
opportunities lie for privacy technologies to improve the state-of-the-art in
financial-crime detection.