A parliamentary committee has revealed that the Treasury is already incorporating artificial intelligence (AI) into systems used to detect cybercrime and financial fraud, particularly the tax and financial information network. With these tools, Real-time monitoring, anomaly detection, and risk scoring. however, Executive Directorate (ED)The country’s money laundering investigation agency AI tools are not yet in place.
Financial Intelligence Unit of India (FIU-IND) uses:
- Finnet 2.0 Using AI/Machine Learning (ML), Generate entity links, build rich profiles, and visualize your network To reveal hidden relationships.
- Entity resolution tool Extract and match entities across datasetsenhance using external database, Next, identify possible relationships between the entities.
- Law Enforcement Agency (LEA) Predictive Model Use Pattern recognition and classification Based on historical data.
- transaction monitoring system Flag suspicious patterns Structured transactions, use of shell companies, abnormal transaction amounts, etc.
- AI can be used in dynamic Risk assessment system to Adjust thresholds in real-time based on behavior, risk profile, and fraud trends.
Tax evasion detection using AI
- AI/ML risk assessment system Flag fraudulent input tax credit (ITC) claims Identify tax evasion networks.
- What is used in data analysis systems? Third-party data supporting research and refine the risk score.
- AI can be used to enhance compliance monitoring dashboards and make assignments. It provides businesses with real-time risk scores and enables proactive inspection.
- AI fraud detection systems can: Identify fake invoices, circular transactions, and suspicious transaction patterns.
- Registered risk scoring system Route high-risk applications for biometrics Aadhaar authentication and field verification.
- Centralized analytics portal Process AI output on the backend while executives use simplified dashboards.
- AI systems have the potential to: Proactively detect fake invoices and Fraudulent refund request before you run out of income.
AI will not be introduced in ED investigations
The Executive Directorate told the Committee: ED does not use AI tools This is for a money laundering investigation. ” The agency said it is not developing or deploying AI-based models. We continue to rely on traditional research methods. However, at the moment Monitor fraud trends using AI We also work with FIU-IND and other agencies to track down shell companies and suspicious transactions.
At the same time, it warned of potential uses for AI, including: Analyze large datasets, prioritize high-risk cases, and expedite investigations. He also pointed out that AI could potentially link corporate records, banking data, land records, and tax information. discover hidden incomeHowever, such a development require compliance with evidence and human surveillance.
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