Losing the War Against Dirty Money: Rethinking Global Standards on Preventing Money Laundering and Terrorism Financing

Following a brief overview in Part I.A of the overall system to prevent money laundering, Part I.B describes the role of the private sector, which is to identify customers, create a profile of their legitimate activities, keep detailed records of clients and their transactions, monitor their transactions to see if they conform to their profile, examine further any unusual transactions, and report to the government any suspicious transactions. Part I.C continues the description of the preventive measures system by describing the government\u27s role, which is to assist the private sector in identifying suspicious transactions, ensure compliance with the preventive measures requirements, and analyze suspicious transaction reports to determine those that should be investigated. Parts I.D and I.E examine the effectiveness of this system. Part I.D discusses successes and failures in the private sector\u27s role. Borrowing from theory concerning the effectiveness of private sector unfunded mandates, this Part reviews why many aspects of the system are failing, focusing on the subjectivity of the mandate, the disincentives to comply, and the lack of comprehensive data on client identification and transactions. It notes that the system includes an inherent contradiction: the public sector is tasked with informing the private sector how best to detect launderers and terrorists, but to do so could act as a road map on how to avoid detection should such information fall into the wrong hands. Part I.D discusses how financial institutions do not and cannot use scientifically tested statistical means to determine if a particular client or set of transactions is more likely than others to indicate criminal activity. Part I.D then turns to a discussion of a few issues regarding the impact the system has but that are not related to effectiveness, followed by a summary and analysis of how flaws might be addressed. Part I.E continues by discussing the successes and failures in the public sector\u27s role. It reviews why the system is failing, focusing on the lack of assistance to the private sector in and the lack of necessary data on client identification and transactions. It also discusses how financial intelligence units, like financial institutions, do not and cannot use scientifically tested statistical means to determine probabilities of criminal activity. Part I concludes with a summary and analysis tying both private and public roles together. Part II then turns to a review of certain current techniques for selecting income tax returns for audit. After an overview of the system, Part II first discusses the limited role of the private sector in providing tax administrators with information, comparing this to the far greater role the private sector plays in implementing preventive measures. Next, this Part turns to consider how tax administrators, particularly the U.S. Internal Revenue Service, select taxpayers for audit, comparing this to the role of both the private and public sectors in implementing preventive measures. It focuses on how some tax administrations use scientifically tested statistical means to determine probabilities of tax evasion. Part II then suggests how flaws in both private and public roles of implementing money laundering and terrorism financing preventive measures might be theoretically addressed by borrowing from the experience of tax administration. Part II concludes with a short summary and analysis that relates these conclusions to the preventive measures system. Referring to the analyses in Parts I and II, Part III suggests changes to the current preventive measures standard. It suggests that financial intelligence units should be uniquely tasked with analyzing and selecting clients and transactions for further investigation for money laundering and terrorism financing. The private sector\u27s role should be restricted to identifying customers, creating an initial profile of their legitimate activities, and reporting such information and all client transactions to financial intelligence units

Beyond Risk Profiling: Achieving better investment outcomes for consumers and industry

In the wake of the Retail Distribution Review, there remain fundamental questions about how best to support consumers to make sound investment decisions, particularly those with modest amounts of money to invest, for whom a poor investment decision may have a disproportionate adverse impact. The advent of new pension freedoms from April 2015, which give people more choice and flexibility about how they use their retirement savings, adds further impetus to the issue. To help inform policy and practice on this important subject, in June 2015 we brought together consumer and industry experts to explore possible new approaches to improve risk profiling and investment decision-making

The state-of-the-art in personalized recommender systems for social networking

With the explosion of Web 2.0 application such as blogs, social and professional networks, and various other types of social media, the rich online information and various new sources of knowledge flood users and hence pose a great challenge in terms of information overload. It is critical to use intelligent agent software systems to assist users in finding the right information from an abundance of Web data. Recommender systems can help users deal with information overload problem efficiently by suggesting items (e.g., information and products) that match users’ personal interests. The recommender technology has been successfully employed in many applications such as recommending films, music, books, etc. The purpose of this report is to give an overview of existing technologies for building personalized recommender systems in social networking environment, to propose a research direction for addressing user profiling and cold start problems by exploiting user-generated content newly available in Web 2.0

On content-based recommendation and user privacy in social-tagging systems

Recommendation systems and content filtering approaches based on annotations and ratings, essentially rely on users expressing their preferences and interests through their actions, in order to provide personalised content. This activity, in which users engage collectively has been named social tagging, and it is one of the most popular in which users engage online, and although it has opened new possibilities for application interoperability on the semantic web, it is also posing new privacy threats. It, in fact, consists of describing online or offline resources by using free-text labels (i.e. tags), therefore exposing the user profile and activity to privacy attacks. Users, as a result, may wish to adopt a privacy-enhancing strategy in order not to reveal their interests completely. Tag forgery is a privacy enhancing technology consisting of generating tags for categories or resources that do not reflect the user's actual preferences. By modifying their profile, tag forgery may have a negative impact on the quality of the recommendation system, thus protecting user privacy to a certain extent but at the expenses of utility loss. The impact of tag forgery on content-based recommendation is, therefore, investigated in a real-world application scenario where different forgery strategies are evaluated, and the consequent loss in utility is measured and compared.Peer ReviewedPostprint (author’s final draft

Semantic user profiling techniques for personalised multimedia recommendation

Due to the explosion of news materials available through broadcast and other channels, there is an increasing need for personalised news video retrieval. In this work, we introduce a semantic-based user modelling technique to capture users’ evolving information needs. Our approach exploits implicit user interaction to capture long-term user interests in a profile. The organised interests are used to retrieve and recommend news stories to the users. In this paper, we exploit the Linked Open Data Cloud to identify similar news stories that match the users’ interest. We evaluate various recommendation parameters by introducing a simulation-based evaluation scheme

SPEIR: Scottish Portals for Education, Information and Research. Final Project Report: Elements and Future Development Requirements of a Common Information Environment for Scotland

The SPEIR (Scottish Portals for Education, Information and Research) project was funded by the Scottish Library and Information Council (SLIC). It ran from February 2003 to September 2004, slightly longer than the 18 months originally scheduled and was managed by the Centre for Digital Library Research (CDLR). With SLIC's agreement, community stakeholders were represented in the project by the Confederation of Scottish Mini-Cooperatives (CoSMiC), an organisation whose members include SLIC, the National Library of Scotland (NLS), the Scottish Further Education Unit (SFEU), the Scottish Confederation of University and Research Libraries (SCURL), regional cooperatives such as the Ayrshire Libraries Forum (ALF)1, and representatives from the Museums and Archives communities in Scotland. Aims; A Common Information Environment For Scotland The aims of the project were to: o Conduct basic research into the distributed information infrastructure requirements of the Scottish Cultural Portal pilot and the public library CAIRNS integration proposal; o Develop associated pilot facilities by enhancing existing facilities or developing new ones; o Ensure that both infrastructure proposals and pilot facilities were sufficiently generic to be utilised in support of other portals developed by the Scottish information community; o Ensure the interoperability of infrastructural elements beyond Scotland through adherence to established or developing national and international standards. Since the Scottish information landscape is taken by CoSMiC members to encompass relevant activities in Archives, Libraries, Museums, and related domains, the project was, in essence, concerned with identifying, researching, and developing the elements of an internationally interoperable common information environment for Scotland, and of determining the best path for future progress