Statistics Seminar:: Statistical Methodology to Combat Money Laundering

GUEST LECTURER
Dr. Agus Sudjianto

AFFILIATION
Senior Vice President, Risk Management Quality & Productivity Executive, Bank of America

ABSTRACT
Financial institutions may be used unwittingly as intermediaries for money laundering activities, a process to conceal the true source of funds that were originally derived from criminal activity. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot) Act, which amends the Bank Secrecy Act (BSA), was adopted in response to the September 11 terrorist attacks. The Patriot Act is intended to strengthen U.S. measures to prevent, detect, and prosecute international money laundering and the financing of terrorism for which it requires financial institution to implement an effective anti-money laundering (AML) program.
AML program, which includes a compliance program (e.g., policies, procedures, compliance officer to monitor the program, training, and independent audit to test and verify the program) as well as ad-hoc activities to investigate and report suspicious activities, is increasingly supplemented by computing technology to monitor a vast amount of transactions to facilitate identification of possible suspicious transaction activities.
In this talk, I am going to discuss statistical framework to aid the prevention and detection¾identification, investigation, and reporting¾of suspicious activities to combat potential money laundering. Unique challenges to apply statistical methodologies to AML will be discussed to stimulate further research.

Biography
Dr. Agus Sudjianto is the Risk Management Quality & Productivity Executive for Bank of America where he manages a team responsible for driving strategic change enabling the improvement, creation, and implementation of risk management solutions. Working together with Bank of America’s Anti-Money Laundering (AML) experts, he leads the development of new analytical techniques to prevent and detect potential money laundering. Prior to joining Bank of America, Dr. Sudjianto spent 14 years with Ford Motor Company in Dearborn, MI where he held various technical and management positions including managing engineering groups responsible for engine system design and computer-aided engineering. His area of interest and expertise includes statistical methodology in engineering and risk management. He has published numerous technical papers in both statistics and engineering journals. He holds Masters and Ph.D from Massachusetts Institute of Technology and Wayne State University.

DATE & TIME
Wednesday, April 27, 2005 -- 12:00 PM

DURATION
1 hour

LOCATION
228 ISyE Main Building

CONTACT PERSON
roshan@isye.gatech.edu