Money laundering is the crucial mechanism utilized by criminals to inject proceeds of crime to the financial system. The primary responsibility of the detection of suspicious activity related to money laundering is with the financial institutions. Most of the current systems in these institutions are rule-based and ineffective. The available data science-based anti-money laundering (AML) models in order to replace the existing rule-based systems work on customer relationship management (CRM) features and time characteristics of transaction behaviour. However, there is still a challenge on accuracy and problems around feature engineering due to thousands of possible features. Aiming to improve the detection performance of suspicious transaction monitoring systems for AML systems, in this article, we introduce a novel feature set based on time-frequency analysis, that makes use of 2-D representations of financial transactions. Random forest is utilized as a machine learning method, and simulated annealing is adopted for hyperparameter tuning. The designed algorithm is tested on real banking data, proving the efficacy of the results in practically relevant environments. It is shown that the time-frequency characteristics of suspicious and non-suspicious entities differentiate significantly, which would substantially improve the precision of data science-based transaction monitoring systems looking at only time-series transaction and CRM features.

We consider settings in which the data of interest correspond to pairs of ordered times, e.g, the birth times of the first and second child, the times at which a new user creates an account and makes the first purchase on a website, and the entry and survival times of patients in a clinical trial. In these settings, the two times are not independent (the second occurs after the first), yet it is still of interest to determine whether there exists significant dependence {\em beyond} their ordering in time. We refer to this notion as "quasi-(in)dependence". For instance, in a clinical trial, to avoid biased selection, we might wish to verify that recruitment times are quasi-independent of survival times, where dependencies might arise due to seasonal effects. In this paper, we propose a nonparametric statistical test of quasi-independence. Our test considers a potentially infinite space of alternatives, making it suitable for complex data where the nature of the possible quasi-dependence is not known in advance. Standard parametric approaches are recovered as special cases, such as the classical conditional Kendall's tau, and log-rank tests. The tests apply in the right-censored setting: an essential feature in clinical trials, where patients can withdraw from the study. We provide an asymptotic analysis of our test-statistic, and demonstrate in experiments that our test obtains better power than existing approaches, while being more computationally efficient.

The minibatch stochastic gradient descent method (SGD) is widely applied in deep learning due to its efficiency and scalability that enable training deep networks with a large volume of data. Particularly in the distributed setting, SGD is usually applied with a large batch size. However, as opposed to small-batch SGD, neural network models trained with large-batch SGD can hardly generalize well, i.e., the validation accuracy is low. In this work, we introduce a novel regularization technique, namely distinctive regularization (DReg), which replicates a certain layer of the deep network and encourages the parameters of both layers to be diverse. The DReg technique introduces very little computation overhead. Moreover, we empirically show that optimizing the neural network with DReg using large-batch SGD achieves a significant boost in the convergence and an improved generalization performance. We also demonstrate that DReg can boost the convergence of largebatch SGD with momentum. We believe that DReg can be used as a simple regularization trick to accelerate large-batch training in deep learning.

We show that standard machine-learning algorithms may be trained to predict certain invariants of algebraic number fields to high accuracy. A random-forest classifier that is trained on finitely many Dedekind zeta coefficients is able to distinguish between real quadratic fields with class number 1 and 2, to 0.96 precision. Furthermore, the classifier is able to extrapolate to fields with discriminant outside the range of the training data. When trained on the coefficients of defining polynomials for Galois extensions of degrees 2, 6, and 8, a logistic regression classifier can distinguish between Galois groups and predict the ranks of unit groups with precision >0.97.

In the Internet-of-Things (IoT) systems, there are plenty of informative data provided by a massive number of IoT devices (e.g., sensors). Learning a function from such data is of great interest in machine learning tasks for IoT systems. Focusing on streaming (or sequential) data, we present a privacy-preserving distributed online learning framework with multiplekernels (named DOMKL). The proposed DOMKL is devised by leveraging the principles of an online alternating direction of multipliers (OADMM) and a distributed Hedge algorithm. We theoretically prove that DOMKL over T time slots can achieve an optimal sublinear regret, implying that every learned function achieves the performance of the best function in hindsight as in the state-of-the-art centralized online learning method. Moreover, it is ensured that the learned functions of any two neighboring learners have a negligible difference as T grows, i.e., the so-called consensus constraints hold. Via experimental tests with various real datasets, we verify the effectiveness of the proposed DOMKL on regression and time-series prediction tasks.

Gradient descent and backpropagation have enabled neural networks to achieve remarkable results in many real-world applications. Despite ongoing success, training a neural network with gradient descent can be a slow and strenuous affair. We present a simple yet faster training algorithm called Zeroth-Order Relaxed Backpropagation (ZORB). Instead of calculating gradients, ZORB uses the pseudoinverse of targets to backpropagate information. ZORB is designed to reduce the time required to train deep neural networks without penalizing performance. To illustrate the speed up, we trained a feed-forward neural network with 11 layers on MNIST and observed that ZORB converged 300 times faster than Adam while achieving a comparable error rate, without any hyperparameter tuning. We also broaden the scope of ZORB to convolutional neural networks, and apply it to subsamples of the CIFAR-10 dataset. Experiments on standard classification and regression benchmarks demonstrate ZORB's advantage over traditional backpropagation with Gradient Descent.

Understanding the set of elementary steps and kinetics in each reaction is extremely valuable to make informed decisions about creating the next generation of catalytic materials. With physical and mechanistic complexity of industrial catalysts, it is critical to obtain kinetic information through experimental methods. As such, this work details a methodology based on the combination of transient rate/concentration dependencies and machine learning to measure the number of active sites, the individual rate constants, and gain insight into the mechanism under a complex set of elementary steps. This new methodology was applied to simulated transient responses to verify its ability to obtain correct estimates of the micro-kinetic coefficients. Furthermore, experimental CO oxidation data was analyzed to reveal the Langmuir-Hinshelwood mechanism driving the reaction. As oxygen accumulated on the catalyst, a transition in the mechanism was clearly defined in the machine learning analysis due to the large amount of kinetic information available from transient reaction techniques. This methodology is proposed as a new data driven approach to characterize how materials control complex reaction mechanisms relying exclusively on experimental data.

Instance-specific algorithm selection (AS) deals with the automatic selection of an algorithm from a fixed set of candidates most suitable for a specific instance of an algorithmic problem class, where "suitability" often refers to an algorithm's runtime. Over the past years, a plethora of algorithm selectors have been proposed. As an algorithm selector is again an algorithm solving a specific problem, the idea of algorithm selection could also be applied to AS algorithms, leading to a meta-AS approach: Given an instance, the goal is to select an algorithm selector, which is then used to select the actual algorithm for solving the problem instance. We elaborate on consequences of applying AS on a meta-level and identify possible problems. Empirically, we show that meta-algorithm-selection can indeed prove beneficial in some cases. In general, however, successful AS approaches have problems with solving the meta-level problem.

Reliable treatment effect estimation from observational data depends on the availability of all confounding information. While much work has targeted treatment effect estimation from observational data, there is relatively little work in the setting of confounding variable missingness, where collecting more information on confounders is often costly or time-consuming. In this work, we frame this challenge as a problem of feature acquisition of confounding features for causal inference. Our goal is to prioritize acquiring values for a fixed and known subset of missing confounders in samples that lead to efficient average treatment effect estimation. We propose two acquisition strategies based on i) covariate balancing (CB), and ii) reducing statistical estimation error on observed factual outcome error (OE). We compare CB and OE on five common causal effect estimation methods, and demonstrate improved sample efficiency of OE over baseline methods under various settings. We also provide visualizations for further analysis on the difference between our proposed methods.

This paper proposes a dual-supervised uncertainty inference (DS-UI) framework for improving Bayesian estimation-based uncertainty inference (UI) in deep neural network (DNN)-based image recognition. In the DS-UI, we combine the classifier of a DNN, i.e., the last fully-connected (FC) layer, with a mixture of Gaussian mixture models (MoGMM) to obtain an MoGMM-FC layer. Unlike existing UI methods for DNNs, which only calculate the means or modes of the DNN outputs' distributions, the proposed MoGMM-FC layer acts as a probabilistic interpreter for the features that are inputs of the classifier to directly calculate the probability density of them for the DS-UI. In addition, we propose a dual-supervised stochastic gradient-based variational Bayes (DS-SGVB) algorithm for the MoGMM-FC layer optimization. Unlike conventional SGVB and optimization algorithms in other UI methods, the DS-SGVB not only models the samples in the specific class for each Gaussian mixture model (GMM) in the MoGMM, but also considers the negative samples from other classes for the GMM to reduce the intra-class distances and enlarge the inter-class margins simultaneously for enhancing the learning ability of the MoGMM-FC layer in the DS-UI. Experimental results show the DS-UI outperforms the state-of-the-art UI methods in misclassification detection. We further evaluate the DS-UI in open-set out-of-domain/-distribution detection and find statistically significant improvements. Visualizations of the feature spaces demonstrate the superiority of the DS-UI.