Event-Driven RegTech for Intelligent Financial Crime Detection
DOI:
https://doi.org/10.5281/zenodo.22874717Keywords:
Financial Crime Detection, Event-Driven RegTech, FinCompliance 2.0, Intelligent Compliance Systems, Complex Event Processing, Transaction Monitoring Systems, AI in Financial Compliance, Fraud Detection Analytics, Dynamic Compliance Monitoring, Regulatory Technology Systems, Real-Time Compliance Analytics, Financial Risk Detection, Adaptive Compliance Rules, Automated Crime Detection, Data Stream Processing, Behavioral Risk Analytics, Cloud-Based Compliance, Big Data in Finance, IoT-Driven Compliance, Predictive Financial Security.Abstract
Financial crime detection and prevention remain a challenging yet vital element in the fight against criminal activity. Increasing volumes of transactions and major technological innovations such as cloud computing, big data, the Internet of Things (IoT), artificial intelligence, and blockchain have led to the theoretical exploration of event-driven regulatory technology (RegTech) – a new regulatory-compliance paradigm that focuses on dynamic regulatory monitoring of complex event-processing systems in various domains. Built upon the concept of event-driven RegTech, FinCompliance 2.0 represents an intelligent compliance architecture that is designed to facilitate the automatic detection of financial crimes with minimal human involvement. The architecture is constructed as a combination of an event processing layer, flexible compliance rules, and intelligent detection mechanisms. The effectiveness of the intelligent detection methods is evaluated using several benchmark datasets from the financial domain, and results reveal that their performance is on par with state-of-the-art algorithms.
The growing trend of processing massive amounts of transactional data via complex event-processing (CEP) systems has not only increased the volume of data streams and elevated the incidence of financial crimes, but has also created new business opportunities for malicious actors. Surveillance and preventive measures are often implemented around static rules; however, financial crimes can persist undetected for long periods precisely because of obliviousness to the absence of detectors for known patterns or the disregard of evolving knowledge, which includes changing actors and behaviours, evolving landscapes and challenges, and so on. In recent years, new advances in cloud computing, big data, and IoT technologies have led to the exploration of event-driven monetary supervision management and event-driven RegTech, on the basis of event-related concepts for regulatory compliance and acting monitoring.
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Data Availability Statement
The study uses publicly available benchmark datasets for credit card fraud detection and money laundering event detection referenced within the article. No new data were generated. Further information is available from the author on reasonable request.
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