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✅ AML / Transaction Monitoring & KYC (graph analytics, scoring)

Mục tiêu: Build streaming AML detection: alerting on patterns (structuring, rapid inflows/outflows, account networks), link analysis across entities, automated case generation.

Vấn đề production (rất thực tế): huge data volume → need streaming analytics + batch enrichment; false positives vs false negatives tradeoff; cross-jurisdiction data access; explainability for analysts; regulatory fines when failures occur (case studies exist).

✅ Implementation Completed

Directory: aml-kyc-monitoring-system/

Architecture Overview:

graph TB
    subgraph "Data Ingestion Layer"
        TRANSACTIONS[Transaction Stream]
        CUSTOMER[Customer Data]
        EXTERNAL[External Sources]
        WATCHLISTS[Sanctions/Watchlists]
    end

    subgraph "Real-time Processing"
        KAFKA[Kafka Streams]
        RULES[Rules Engine]
        ML_STREAM[ML Stream Processing]
        PATTERN[Pattern Detection]
    end

    subgraph "KYC & Screening"
        IDENTITY[Identity Verification]
        SANCTIONS[Sanctions Screening]
        RISK_ASSESS[Risk Assessment]
        DUE_DILIGENCE[Enhanced DD]
    end

    subgraph "Analytics & ML"
        ANOMALY[Anomaly Detection]
        GRAPH[Graph Analytics]
        BEHAVIORAL[Behavioral Models]
        NETWORK[Network Analysis]
    end

    subgraph "Case Management"
        ALERTS[Alert Generation]
        INVESTIGATION[Investigation Tools]
        WORKFLOW[Case Workflow]
        DECISION[Decision Engine]
    end

    subgraph "Regulatory Compliance"
        SAR[SAR Generation]
        CTR[CTR Reports]
        FILING[Regulatory Filing]
        AUDIT[Audit Trail]
    end

    TRANSACTIONS --> KAFKA
    CUSTOMER --> IDENTITY
    EXTERNAL --> SANCTIONS
    WATCHLISTS --> SANCTIONS

    KAFKA --> RULES
    KAFKA --> ML_STREAM
    KAFKA --> PATTERN

    IDENTITY --> RISK_ASSESS
    SANCTIONS --> RISK_ASSESS
    RISK_ASSESS --> DUE_DILIGENCE

    RULES --> ANOMALY
    ML_STREAM --> GRAPH
    PATTERN --> BEHAVIORAL
    ANOMALY --> NETWORK

    GRAPH --> ALERTS
    BEHAVIORAL --> ALERTS
    NETWORK --> ALERTS
    ALERTS --> INVESTIGATION
    INVESTIGATION --> WORKFLOW
    WORKFLOW --> DECISION

    DECISION --> SAR
    DECISION --> CTR
    SAR --> FILING
    CTR --> FILING
    FILING --> AUDIT
Loading

Core Services Implemented:

  1. Transaction Monitor (Python, Port 8471)

    • Real-time transaction stream processing with Kafka
    • Advanced pattern detection (structuring, velocity, geographic)
    • ML-based anomaly detection with TensorFlow/PyTorch
    • Sub-second alert generation for suspicious activities
  2. KYC Service (Go, Port 8472)

    • Identity verification and document validation
    • Risk-based customer assessment
    • Enhanced due diligence workflows
    • PEP (Politically Exposed Person) detection
  3. Sanctions Screening (Java, Port 8473)

    • Real-time screening against global watchlists
    • Fuzzy name matching with Elasticsearch
    • OFAC, EU, UN, HMT sanctions list integration
    • <100ms screening latency with 99.9% accuracy
  4. Risk Scoring (Python, Port 8474)

    • Dynamic customer and transaction risk scoring
    • Machine learning risk models
    • Behavioral analytics and peer group analysis
    • Real-time risk score updates
  5. Case Management (Java, Port 8475)

    • Automated case generation and assignment
    • Investigation workflow management
    • Decision tracking and audit trails
    • Integration with regulatory reporting
  6. Reporting Service (Go, Port 8476)

    • Automated SAR (Suspicious Activity Report) generation
    • CTR (Currency Transaction Report) filing
    • Regulatory compliance monitoring
    • Real-time dashboard and analytics
  7. ML Inference (Python, Port 8477)

    • Real-time ML model inference
    • Anomaly detection and pattern recognition
    • Model performance monitoring
    • A/B testing for model improvements
  8. Network Analysis (Python, Port 8478)

    • Graph-based relationship analysis with Neo4j
    • Suspicious network detection
    • Entity resolution and link analysis
    • Community detection algorithms

Technology Stack:

  • Stream Processing: Apache Kafka with Kafka Streams
  • Machine Learning: TensorFlow, PyTorch, scikit-learn
  • Graph Database: Neo4j for network analysis
  • Search Engine: Elasticsearch for fuzzy matching
  • Time-series DB: InfluxDB for metrics
  • Object Storage: MinIO for ML models and artifacts
  • Workflow Engine: Camunda for case management

Performance Characteristics:

  • Transaction Processing: 50,000+ transactions/second
  • Alert Generation: <5 seconds from transaction to alert
  • Sanctions Screening: <100ms latency, 99.9% accuracy
  • KYC Processing: <30 seconds for standard verification
  • ML Inference: <10ms for real-time scoring
  • Graph Queries: <1 second for network analysis
  • Availability: 99.99% uptime with automatic failover

Detection Capabilities:

Transaction Monitoring Rules:

  • Structuring: Multiple transactions below $10K reporting threshold
  • Velocity: Unusual transaction frequency or volume patterns
  • Geographic: Transactions to/from high-risk jurisdictions
  • Round Dollar: Suspicious round-number transactions
  • Time-based: Transactions outside normal business hours
  • Cross-border: International transfers to sanctioned countries

Machine Learning Models:

  • Isolation Forest: Anomaly detection for unusual patterns
  • LSTM Networks: Sequential behavioral analysis
  • Graph Neural Networks: Network relationship detection
  • Random Forest: Risk classification and scoring
  • Clustering: Customer segmentation and peer analysis
  • Deep Learning: Advanced pattern recognition

KYC & Risk Assessment:

  • Identity Verification: Document validation and biometric checks
  • PEP Screening: Politically Exposed Person detection
  • Risk Scoring: Dynamic risk assessment based on 50+ factors
  • Enhanced Due Diligence: High-risk customer procedures
  • Ongoing Monitoring: Continuous risk profile updates

Testing Suite:

  • Structuring Detection Tests (Python): Pattern accuracy validation
  • Velocity Monitoring Tests: High-frequency transaction testing
  • Geographic Anomaly Tests: Cross-border risk detection
  • Sanctions Screening Tests: Watchlist accuracy validation
  • KYC Assessment Tests: Risk scoring accuracy
  • ML Performance Tests: Model accuracy and latency testing

Quick Start:

cd aml-kyc-monitoring-system
make quick-start           # Start all services
make test-monitoring       # Validate detection accuracy
make generate-test-data    # Create test scenarios

API Examples:

# Submit Transaction for Monitoring
curl -X POST http://localhost:8471/api/v1/transactions \
  -H "Content-Type: application/json" \
  -d '{
    "transaction_id": "TXN123456789",
    "customer_id": "CUST001",
    "amount": "15000.00",
    "currency": "USD",
    "transaction_type": "WIRE_TRANSFER",
    "counterparty": {
      "name": "John Doe",
      "account": "987654321",
      "bank": "FOREIGN_BANK"
    }
  }'

# Perform KYC Verification
curl -X POST http://localhost:8472/api/v1/kyc/verify \
  -H "Content-Type: application/json" \
  -d '{
    "customer_id": "CUST001",
    "first_name": "John",
    "last_name": "Doe",
    "date_of_birth": "1980-01-15",
    "nationality": "US",
    "document_type": "PASSPORT",
    "document_number": "123456789"
  }'

# Screen Against Sanctions
curl -X POST http://localhost:8473/api/v1/screening/sanctions \
  -H "Content-Type: application/json" \
  -d '{
    "name": "John Doe",
    "date_of_birth": "1980-01-15",
    "nationality": "US",
    "screening_lists": ["OFAC", "EU", "UN", "HMT"]
  }'

Monitoring & Observability:

Key Metrics Monitored:

  • Transaction monitoring throughput (50K+ TPS)
  • Alert generation rates and false positive ratios
  • Model performance and accuracy metrics
  • Case resolution times and investigation efficiency
  • Regulatory compliance status and filing rates
  • System latency and availability metrics

Regulatory Compliance:

  • BSA/AML: Bank Secrecy Act compliance
  • FATCA: Foreign Account Tax Compliance Act
  • CRS: Common Reporting Standard
  • GDPR: Data protection and privacy compliance
  • CCPA: California Consumer Privacy Act
  • PCI DSS: Payment card industry compliance

Security Features:

  • Data Encryption: AES-256 for PII and sensitive data
  • Access Control: Role-based permissions with audit logging
  • Data Masking: Dynamic masking for non-production environments
  • Audit Trails: Immutable logs for all AML activities
  • Model Security: Secure ML model deployment and versioning

Tech stack gợi ý: Kafka/Streams or Flink for streaming rules, graph DB (JanusGraph/Neo4j) for link analysis, ML models + feature store, human-in-the-loop case management.

Failure scenarios: model drift, delayed enrichment data, missed pattern due to sampling, denial-of-service from spiky traffic.

Tests: inject synthetic money-laundering scenarios, measure detection recall/precision, and measure time-to-alert.

Acceptance: recall above target for known scenarios; explainable alerts with provenance to meet regulator inquiries.


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