Network analytics
Also called graph analytics, link analysis, network analysis
Network analytics maps the connections between customers, accounts, companies, devices and payments to find patterns that single-account checks miss. It treats data as a graph of nodes and links. Financial crime teams use it to uncover mule networks, circular payment chains and hidden common ownership behind apparently unrelated customers.
How it works
The firm first resolves its data so that the same person or company appears once, then links entities through shared addresses, phone numbers, devices, directors and payments. Analysts and models look for dense clusters, funds passing quickly through many accounts and links to known bad actors. An alert on one account can expand to show the whole network around it.
Laundering usually involves many accounts, so a network view finds more than reviewing one customer at a time. Its reach grows when firms share data. US banks can share information under section 314(b) safe harbour, and UK rules since 2024 protect firms from civil liability for sharing customer information to prevent economic crime. Results depend on clean, resolved data.
The rules
Gives a safe harbour for sharing information between registered institutions to identify and report possible money laundering or terrorist financing.
Financial institutions that file a notice with FinCENDisapplies civil liability for breach of confidence when firms share customer information directly to prevent, detect or investigate economic crime.
Firms in the UK regulated sectorCommon questions
What is the difference between network analytics and entity resolution?
Entity resolution works out which records refer to the same person or company. Network analytics then maps how those resolved entities connect. Good resolution is a precondition for useful network analysis.
What can network analytics detect?
Common uses include money mule rings and funnel accounts. It also exposes circular trading, webs of shell companies and fraud rings that share devices or addresses across many applications.
Does it replace transaction monitoring rules?
No. It usually adds context to existing alerts and finds risks rules miss. Many firms run it alongside rules-based and behavioural monitoring within the same investigation process.
Why does information sharing matter?
One bank sees only its side of a network. Sharing under 314(b) in the US or ECCTA powers in the UK lets firms see links that cross institutions, where much laundering takes place.
