We present a data mining approach for profiling bank clients in order to support the process of detection of anti-money laundering operations. We first present the overall system architecture, and then focus on the relevant component for this paper. We detail the experiments performed on real world data from a financial institution, which allowed us to group clients in clusters and then generate a set of classification rules. We discuss the relevance of the founded client profiles and of the generated classification rules. According to the defined overall agent-based architecture, these rules will be incorporated in the knowledge base of the intelligent agents responsible for the signaling of suspicious transactions.
A combination of clustering and MLP (multilayer perceptron) was proposed by @cite_8 . A simple center-based clustering technique is used to detect suspicious cases of money laundering. This technique is based on two main characteristics, which are then used as an MLP creation process entry. The preliminary results show that this approach is efficient. However, the number of characteristics and training patterns is too small and that could affect precision.
@cite_8
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Recently, money laundering is becoming more and more sophisticated, it seems to have moved from the personal gain to the cliche of drug trafficking and financing terrorism. This criminal activity poses a serious threat not only to financial institutions but also to the nation. Today, most international financial institutions have been implementing anti-money laundering solutions but traditional investigative techniques consume numerous man-hours. Besides, most of the existing commercial solutions are based on statistics such as means and standard deviations and therefore are not efficient enough, especially for detecting suspicious cases in investment activities. In this paper, we present a case study of applying a knowledge-based solution that combines data mining and natural computing techniques to detect money laundering patterns. This solution is a part of a collaboration project between our research group and an international investment bank. We investigate the approximation ability of a multilayer perceptron (MLP) network when it is extended to the complex domain. The main challenge for processing complex data with neural networks has been the lack of bounded and analytic complex nonlinear activation functions in the complex domain, as stated by Liouville's theorem. To avoid the conflict between the boundedness and the analyticity of a nonlinear complex function in the complex domain, a number of ad hoc MLPs that include using two real-valued MLPs, one processing the real part and the other processing the imaginary part, have been traditionally employed. However, since nonanalytic functions do not meet the Cauchy-Riemann conditions, they render themselves into degenerative backpropagation algorithms that compromise the efficiency of nonlinear approximation and learning in the complex vector field. A number of elementary transcendental functions (ETFs) derivable from the entire exponential function ez that are analytic are defined as fully complex activation functions and are shown to provide a parsimonious structure for processing data in the complex domain and address most of the shortcomings of the traditional approach. The introduction of ETFs, however, raises a new question in the approximation capability of this fully complex MLP. In this letter, three proofs of the approximation capability of the fully complex MLP are provided based on the characteristics of singularity among ETFs. First, the fully complex MLPs with continuous ETFs over a compact set in the complex vector field are shown to be the universal approximator of any continuous complex mappings. The complex universal approximation theorem extends to bounded measurable ETFs possessing a removable singularity. Finally, it is shown that the output of complex MLPs using ETFs with isolated and essential singularities uniformly converges to any nonlinear mapping in the deleted annulus of singularity nearest to the origin. Class imbalance learning tackles supervised learning problems where some classes have significantly more examples than others. Most of the existing research focused only on binary-class cases. In this paper, we study multiclass imbalance problems and propose a dynamic sampling method (DyS) for multilayer perceptrons (MLP). In DyS, for each epoch of the training process, every example is fed to the current MLP and then the probability of it being selected for training the MLP is estimated. DyS dynamically selects informative data to train the MLP. In order to evaluate DyS and understand its strength and weakness, comprehensive experimental studies have been carried out. Results on 20 multiclass imbalanced data sets show that DyS can outperform the compared methods, including pre-sample methods, active learning methods, cost-sensitive methods, and boosting-type methods. Suspicious transaction detection is used to report banking transactions that may be connected with criminal activities. Obviously, perpetrators of criminal acts strive to make the transactions as innocent-looking as possible. Because activities such as money laundering may involve complex organizational schemes, machine learning techniques based on individual transactions analysis may perform poorly when applied to suspicious transaction detection. In this paper, we propose a new machine learning method for mining transaction graphs. The method proposed in this paper builds a model of subgraphs that may contain suspicious transactions. The model used in our method is parametrized using fuzzy numbers which represent parameters of transactions and of the transaction subgraphs to be detected. Because money laundering may involve transferring money through a variable number of accounts the model representing transaction subgraphs is also parametrized with respect to some structural features. In contrast to some other graph mining methods in which graph isomorphisms are used to match data to the model, in our method we perform a fuzzy matching of graph structures. Traditional learning algorithms applied to complex and highly imbalanced training sets may not give satisfactory results when distinguishing between examples of the classes. The tendency is to yield classification models that are biased towards the overrepresented (majority) class. This paper investigates this class imbalance problem in the context of multilayer perceptron (MLP) neural networks. The consequences of the equal cost (loss) assumption on imbalanced data are formally discussed from a statistical learning theory point of view. A new cost-sensitive algorithm (CSMLP) is presented to improve the discrimination ability of (two-class) MLPs. The CSMLP formulation is based on a joint objective function that uses a single cost parameter to distinguish the importance of class errors. The learning rule extends the Levenberg-Marquadt's rule, ensuring the computational efficiency of the algorithm. In addition, it is theoretically demonstrated that the incorporation of prior information via the cost parameter may lead to balanced decision boundaries in the feature space. Based on the statistical analysis of results on real data, our approach shows a significant improvement of the area under the receiver operating characteristic curve and G-mean measures of regular MLPs. Most existing model-based approaches to anomaly detection in streaming data are based on decision trees due to their fast construction speed [1]. This paper proposes two fast anomaly detectors based on ensembles of neural networks for evolving data streams. One model is a supervised online learning algorithm involving an ensemble of threaded multilayer perceptrons MLP. The other model is a one-class learning algorithm with an ensemble of threaded autoencoders. The latter model only requires data from the positive class for training and is accurate even when anomalous training data are rare. The models feature an ensemble of multilayer perceptrons or autoencoders from multi-threads which evolve with data streams. Using multi-threads makes the methods highly efficient because both methods process data streams in parallel. Our analysis shows that both methods in streaming data have constant small time complexity and constant memory requirement. When compared with Very Fast Decision Trees VFDT, a state-of-the-art algorithm, our methods performed favorably in terms of detection accuracy and training time for the datasets under consideration. This paper introduces a methodology for neural network global optimization. The aim is the simultaneous optimization of multilayer perceptron (MLP) network weights and architectures, in order to generate topologies with few connections and high classification performance for any data sets. The approach combines the advantages of simulated annealing, tabu search and the backpropagation training algorithm in order to generate an automatic process for producing networks with high classification performance and low complexity. Experimental results obtained with four classification problems and one prediction problem has shown to be better than those obtained by the most commonly used optimization techniques For safe and reliable autonomous driving systems, prediction of surrounding vehicles' future behavior and potential risks are critical. The state-of-the-art prediction algorithms tend to show limited performance on long-term predictions due to their deterministic nature. In this paper, a probabilistic lateral motion prediction algorithm is proposed based on multilayer perceptron (MLP) approach. The MLP model consists of two parts; target lane and trajectory models. In order to develop an intuitive and accurate prediction algorithm, a lane-based trajectory prediction model is introduced based on the fact that vehicles drive within a lane except for during lane changes. More specifically, a set of three representative trajectories with different levels of lane-change positions are generated for each target lane, and real-world traffic data is categorized by each trajectory for MLP training. These target lane and trajectory models enable the stochastic MLP modeling and training. The proposed MLP model outputs probabilities of how likely a vehicle will follow each trajectory and each lane for a given input of vehicle position history including current position. For training the MLP model, Next Generation Simulation traffic data are used. Simulation results show that the proposed algorithm detects lane-changes one to one and a half second earlier than existing methods and three seconds before lane crossing with about ninety percentages accuracy. The statistical use of a particular classic form of a connectionist system, the multilayer perceptron (MLP), is described in the context of the recognition of continuous speech. A discriminant hidden Markov model (HMM) is defined, and it is shown how a particular MLP with contextual and extra feedback input units can be considered as a general form of such a Markov model. A link between these discriminant HMMs, trained along the Viterbi algorithm, and any other approach based on least mean square minimization of an error function (LMSE) is established. It is shown theoretically and experimentally that the outputs of the MLP (when trained along the LMSE or the entropy criterion) approximate the probability distribution over output classes conditioned on the input, i.e. the maximum a posteriori probabilities. Results of a series of speech recognition experiments are reported. The possibility of embedding MLP into HMM is described. Relations with other recurrent networks are also explained. > Multilayer perceptrons (MLPs) with weight values restricted to powers of two or sums of powers of two are introduced. In a digital implementation, these neural networks do not need multipliers but only shift registers when computing in forward mode, thus saving chip area and computation time. A learning procedure, based on backpropagation, is presented for such neural networks. This learning procedure requires full real arithmetic and therefore must be performed offline. Some test cases are presented, concerning MLPs with hidden layers of different sizes, on pattern recognition problems. Such tests demonstrate the validity and the generalization capability of the method and give some insight into the behavior of the learning algorithm. > The increase of malware that are exploiting the Internet daily has become a serious threat. The manual heuristic inspection of malware analysis is no longer considered effective and efficient compared against the high spreading rate of malware. Hence, automated behavior-based malware detection using machine learning techniques is considered a profound solution. The behavior of each malware on an emulated (sandbox) environment will be automatically analyzed and will generate behavior reports. These reports will be preprocessed into sparse vector models for further machine learning (classification). The classifiers used in this research are k-Nearest Neighbors (kNN), Naive Bayes, J48 Decision Tree, Support Vector Machine (SVM), and Multilayer Perceptron Neural Network (MlP). Based on the analysis of the tests and experimental results of all the 5 classifiers, the overall best performance was achieved by J48 decision tree with a recall of 95.9 , a false positive rate of 2.4 , a precision of 97.3 , and an accuracy of 96.8 . In summary, it can be concluded that a proof-of-concept based on automatic behavior-based malware analysis and the use of machine learning techniques could detect malware quite effectively and efficiently. Acute Kidney Injury (AKI), the abrupt decline in kidney function due to temporary or permanent injury, is associated with increased mortality, morbidity, length of stay, and hospital cost. Sometimes, simple interventions such as medication review or hydration can prevent AKI. There is therefore interest in estimating risk of AKI at hospitalization. To gain insight into this task, we employ multilayer perceptron (MLP) and recurrent neural networks (RNNs) using serum creatinine (sCr) as a lone feature. We explore different feature input structures, including variable-length look-backs and a nested formulation for rehospitalized patients with previous sCr measurements. Experimental results show that the simplest model, MLP processing the sum of sCr, had best performance: AUROC 0.92 and AUPRC 0.70. Such a simple model could be easily integrated into an EHR. Preliminary results also suggest that inpatient data streams with missing outpatient measurements---common in the medical setting---might be best modeled with a tailored architecture. A key problem in the adoption of artificial neural networks in safety-related applications is that misbehaviors can be hardly ruled out with traditional analytical or probabilistic techniques In this paper we focus on specific networks known as Multi-Layer Perceptrons (MLPs), and we propose a solution to verify their safety using abstractions to Boolean combinations of linear arithmetic constraints We show that our abstractions are consistent, i.e., whenever the abstract MLP is declared to be safe, the same holds for the concrete one Spurious counterexamples, on the other hand, trigger refinements and can be leveraged to automate the correction of misbehaviors We describe an implementation of our approach based on the HySAT solver, detailing the abstraction-refinement process and the automated correction strategy Finally, we present experimental results confirming the feasibility of our approach on a realistic case study. This paper presents the progress of acoustic models for lowresourced languages (Assamese, Bengali, Haitian Creole, Lao, Zulu) developed within the second evaluation campaign of the IARPA Babel project. This year, the main focus of the project is put on training high-performing automatic speech recognition (ASR) and keyword search (KWS) systems from language resources limited to about 10 hours of transcribed speech data. Optimizing the structure of Multilayer Perceptron (MLP) based feature extraction and switching from the sigmoid activation function to rectified linear units results in about 5 relative improvement over baseline MLP features. Further improvements are obtained when the MLPs are trained on multiple feature streams and by exploiting label preserving data augmentation techniques like vocal tract length perturbation. Systematic application of these methods allows to improve the unilingual systems by 4-6 absolute in WER and 0.064-0.105 absolute in MTWV. Transfer and adaptation of multilingually trained MLPs lead to additional gains, clearly exceeding the project goal of 0.3 MTWV even when only the limited language pack of the target language is used. Index Terms: ASR, KWS, MTWV, MLP, rectified linear units, multilingual, low-resource Mass appraisal is the systematic appraisal of groups of properties as of a given date using standardized procedures and statistical testing. Mass appraisal is commonly used to compute real estate tax. There are three traditional real estate valuation methods: the sales comparison approach, income approach, and the cost approach. Mass appraisal models are commonly based on the sales comparison approach. The ordinary least squares (OLS) linear regression is the classical method used to build models in this approach. The method is compared with computational intelligence approaches - support vector machine (SVM) regression, multilayer perceptron (MLP), and a committee of predictors in this paper. All the three predictors are used to build a weighted data-depended committee. A self-organizing map (SOM) generating clusters of value zones is used to obtain the data-dependent aggregation weights. The experimental investigations performed using data cordially provided by the Register center of Lithuania have shown very promising results. The performance of the computational intelligence-based techniques was considerably higher than that obtained using the official real estate models of the Register center. The performance of the committee using the weights based on zones obtained from the SOM was also higher than of that exploiting the real estate value zones provided by the Register center. A fuzzy neural network model based on the multilayer perceptron, using the backpropagation algorithm, and capable of fuzzy classification of patterns is described. The input vector consists of membership values to linguistic properties while the output vector is defined in terms of fuzzy class membership values. This allows efficient modeling of fuzzy uncertain patterns with appropriate weights being assigned to the backpropagated errors depending upon the membership values at the corresponding outputs. During training, the learning rate is gradually decreased in discrete steps until the network converges to a minimum error solution. The effectiveness of the algorithm is demonstrated on a speech recognition problem. The results are compared with those of the conventional MLP, the Bayes classifier, and other related models. > The recent development of smart meters has allowed the analysis of household electricity consumption in real time. Predicting electricity consumption at such very low scales should help to increase the efficiency of distribution networks and energy pricing. However, this is by no means a trivial task since household-level consumption is much more irregular than at the transmission or distribution levels. In this work, we address the problem of improving consumption forecasting by using the statistical relations between consumption series. This is done both at the household and district scales (hundreds of houses), using various machine learning techniques, such as support vector machine for regression (SVR) and multilayer perceptron (MLP). First, we determine which algorithm is best adapted to each scale, then, we try to find leaders among the time series, to help short-term forecasting. We also improve the forecasting for district consumption by clustering houses according to their consumption profiles. In this paper we present the implementation of a framework for accelerating training and classification of arbitrary Convolutional Neural Networks (CNNs) on the GPU. CNNs are a derivative of standard Multilayer Perceptron (MLP) neural networks optimized for two-dimensional pattern recognition problems such as Optical Character Recognition (OCR) or face detection. We describe the basic parts of a CNN and demonstrate the performance and scalability improvement that can be achieved by shifting the computation-intensive tasks of a CNN to the GPU. Depending on the network topology training and classification on the GPU performs 2 to 24 times faster than on the CPU. Furthermore, the GPU version scales much better than the CPU implementation with respect to the network size. Today, money laundering (ML) poses a serious threat not only to financial institutions but also to the nation. This criminal activity is becoming more and more sophisticated and seems to have moved from the cliche of drug trafficking to financing terrorism and surely not forgetting personal gain. Most international financial institutions have been implementing anti-money laundering solutions (AML) to fight investment fraud. However, traditional investigative techniques consume numerous man-hours. Recently, data mining approaches have been developed and are considered as well-suited techniques for detecting ML activities. Within the scope of a collaboration project for the purpose of developing a new solution for the AML Units in an international investment bank based in Ireland, we propose a new data mining-based approach for AML. In this paper, we present this approach and some preliminary results associated with this method when applied to transaction datasets. In recent years, Deep Reinforcement Learning has made impressive advances in solving several important benchmark problems for sequential decision making. Many control applications use a generic multilayer perceptron (MLP) for non-vision parts of the policy network. In this work, we propose a new neural network architecture for the policy network representation that is simple yet effective. The proposed Structured Control Net (SCN) splits the generic MLP into two separate sub-modules: a nonlinear control module and a linear control module. Intuitively, the nonlinear control is for forward-looking and global control, while the linear control stabilizes the local dynamics around the residual of global control. We hypothesize that this will bring together the benefits of both linear and nonlinear policies: improve training sample efficiency, final episodic reward, and generalization of learned policy, while requiring a smaller network and being generally applicable to different training methods. We validated our hypothesis with competitive results on simulations from OpenAI MuJoCo, Roboschool, Atari, and a custom 2D urban driving environment, with various ablation and generalization tests, trained with multiple black-box and policy gradient training methods. The proposed architecture has the potential to improve upon broader control tasks by incorporating problem specific priors into the architecture. As a case study, we demonstrate much improved performance for locomotion tasks by emulating the biological central pattern generators (CPGs) as the nonlinear part of the architecture.