Use of Formal Methods to Map, Analyze and Interpret Terrorist-Related Alternative Remittance Systems

This paper will examine alternative remittance systems: the fundamental principles involved, how they work in practice, and how they can be traced and transactions among them monitored. We will begin with a brief discussion of the fundamental principles involved. A brief history of these networks in the West will be sketched out and this will be compared to contemporary alternative remittance networks. A series of formal methods for mapping and analyzing these networks will be proposed. Finally, the potential uses of alternative remittance systems for illegal activities—such as money laundering and transmission of funds to terrorists will be discussed together with their vulnerabilities.