Proposal of Expert System to Predict Financial Frauds Using Data Mining

The phrase `Money Laundering' is a deplorable activity to mask the black money as white money. This criminal activity poses a severe threat to the monetary institution and also to the nation. There are three phases in Money Laundering Placement, Layering, and Integration. The advancement of competent mechanism to detect suspicious transaction is a critical problem because of financial transaction made in global market. The system we are developing targets on how monetary institutions can obtain better results in anti-money laundering initiatives. To overcome this criticality we propose an efficient approach to find out if the transactions are legal or illegal by adopting Hash-based technique and Graph Theoretic Approach.