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Using quantitative methods to identify insecurity due to unusual business operations

Author

Listed:
  • Antonín Korauš

    (Academy of the Police Force in Bratislava, Slovakia)

  • Miroslav Gombár

    (University of Prešov, Slovakia)

  • Pavel Kelemen

    (University of Prešov, Slovakia)

  • Stanislav Backa

    (University of Prešov, Slovakia)

Abstract

Financial institutions are the first vertical level in the fight against money laundering and to improve security. Therefore, it is essential that tools are available to enable effective detection and analysis of suspicious transactions, or unusual business operations. These, in line with the legislative requirements, report to responsible entities - FIUs representing the second vertical plane in the fight against money laundering. However, special software tools are available for obligated persons, especially for financial institutions that carry out tens of millions of financial transactions a day. These can trigger the alert to most unusual operations. The software automatically creates customer profiles, including expected behavior and executed transactions. Using advanced statistical analyses, it identifies unusual business operations, i.e. financial transactions significantly different from those carried out in the past. It is very useful to apply software support in form of electronic detection of indicators of legalization of crime proceeds. However, the output of such support software requires a more detailed and demanding investigation of the nature of operation and is based on the use of special algorithms based on mathematical and statistical methods. The software builds on the results of scientific research.

Suggested Citation

  • Antonín Korauš & Miroslav Gombár & Pavel Kelemen & Stanislav Backa, 2019. "Using quantitative methods to identify insecurity due to unusual business operations," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1101-1112, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1101-1112
    DOI: 10.9770/jesi.2019.6.3(3)
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    References listed on IDEAS

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    1. G. Mastroleo & G. Facchinetti & Carlo Alberto Magni, 2009. "A proposal for modeling real options through fuzzy expert system," Proyecciones Financieras y Valoración 5842, Master Consultores.
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      More about this item

      Keywords

      security; unusual business operations; crime; money laundering; corruption; legal acts;
      All these keywords.

      JEL classification:

      • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
      • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
      • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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