AI·Jul 7, 2026, 4:00 AM

Counterfactual Methods for Detecting Unfairness in Anti-Money Laundering Algorithms

Source: arXiv cs.LG

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Counterfactual Methods for Detecting Unfairness in Anti-Money Laundering Algorithms

arXiv:2607.05101v1 Announce Type: new Abstract: The application of machine learning-based predictive algorithms to Anti-Money Laundering (AML) has grown rapidly, driven by the vast volume of financial transaction data available to banks. These algorithms are typically trained not only on transactional data but also on sensitive client information, which may raise fairness concerns. Despite this, AML detection systems remain largely underexplored from a fairness perspective, even though deeper analytical methods based on counterfactuals are now available. Such techniques enable the decompositio

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