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Paper · arXiv

DPxFin: Adaptive Differential Privacy for Anti-Money Laundering Detection via Reputation-Weighted Federated Learning

In the modern financial system, combating money laundering is a critical challenge complicated by data privacy concerns and increasingly complex fraud transaction patterns. Although federated learning (FL) is a promising problem-solving approach as it allows institutions to train their models without sharing their data, it has the drawback of being prone to privacy leakage, specifically in tabular data forms like financial data. To address this, we propose DPxFin, a novel federated framework that integrates reputation-guided adaptive differential privacy. Our approach computes client reputation by evaluating the alignment between locally trained models and the global model. Based on this ...

AuthorsRenuga Kanagavelu, Manjil Nepal, Ning Peiyan et al.
Primary categorycs.LG
Published14 March 2026
Last updated at source14 March 2026
cs.LGcs.CR
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