GraphALM: Active Learning for Detecting Money Laundering Transactions on Blockchain Networks

In recent years, the decentralization, anonymity, and cross-border capabilities of cryptocurrencies have significantly increased their use in money laundering activities. In an era rigorously regulated by enhanced global anti-money laundering (AML) measures, designing an efficient approach to detect potential money laundering in blockchain is essential. In this research, we present GraphALM, an active learning model based on reinforcement learning, aiming to improve the detection performance of money laundering activities in blockchain transactions. This model addresses the challenge of efficiently sampling training data batches to identify illicit activities within the vast and complex dataset of Bitcoin transactions. Additionally, we have constructed a new Realistic and Demand (RD) Bitcoin dataset, augmented with feature uncertainty, to better simulate real-world scenarios. The results of our experiments demonstrate the effectiveness, robustness, and explainability of our proposed model, contributing to the application of active learning strategies in the field of financial regulation within blockchain networks.

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Publication Details

Journal
IEEE Network
Published
2024-09-10
DOI
https://doi.org/10.1109/mnet.2024.3457577
Citations
9
Primary Topic
Blockchain Technology Applications and Security
Type
article
Field-Weighted Citation Impact
7.01

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article

GraphALM: Active Learning for Detecting Money Laundering Transactions on Blockchain Networks

Qianyu Wang, Tianyu Shi, Wei‐Tek Tsai
9 citations
IEEE Network
Blockchain Technology Applications and Security
7.01
article

GraphALM: Active Learning for Detecting Money Laundering Transactions on Blockchain Networks

Qianyu Wang, Tianyu Shi, Wei‐Tek Tsai
article en
9 citations

Abstract

In recent years, the decentralization, anonymity, and cross-border capabilities of cryptocurrencies have significantly increased their use in money laundering activities. In an era rigorously regulated by enhanced global anti-money laundering (AML) measures, designing an efficient approach to detect potential money laundering in blockchain is essential. In this research, we present GraphALM, an active learning model based on reinforcement learning, aiming to improve the detection performance of money laundering activities in blockchain transactions. This model addresses the challenge of efficiently sampling training data batches to identify illicit activities within the vast and complex dataset of Bitcoin transactions. Additionally, we have constructed a new Realistic and Demand (RD) Bitcoin dataset, augmented with feature uncertainty, to better simulate real-world scenarios. The results of our experiments demonstrate the effectiveness, robustness, and explainability of our proposed model, contributing to the application of active learning strategies in the field of financial regulation within blockchain networks.

IEEE NetworkVol. 39(2)
University of Toronto (CA), Fuzhou University (CN), Beihang University (CN)
National Natural Science Foundation of China
Peace, Justice and strong institutions
Openalex Percentile: Top 3%
Blockchain Technology Applications and Security
7.01
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