Industry ApplicationsFebruary 12, 202648 min read

AML Detection Gate Optimization: Constrained Loss Minimization for Anti-Money Laundering

Formalizing gate strength as a continuous control variable to minimize the combined cost of false positives, missed detections, and investigation delay in AML compliance pipelines

AML programs face a costly tradeoff between false positives, missed detections, and investigation delay. This paper formalizes AML detection as constrained loss minimization over gate strength `g` and treats the benchmark numbers as synthetic scenario outputs, not as universal regulatory thresholds or turnkey compliance claims. The practical value of the article is in the control framework, escalation logic, and risk-based calibration structure.

financeamlgate-optimizationfalse-positivecompliancerisk-managementresponsibility-gates
MathematicsDecember 24, 202522 min read

Completion Rate and Rework: The Exponential Decay Model of Effective Throughput

Effective throughput is shipped output adjusted by rework return

Enterprise AI systems often optimize completion rate while under-accounting for rework. A system with high completion but high rework can have much lower net throughput. This paper models effective throughput as F_effective = F_short * (1 - Rework) and models rework decay with gate quality as R(g) = R_0 * e^(-beta*g). We derive an optimal gate strength g* that maximizes net throughput under the throughput-quality tradeoff.

effective-throughputrework-rateexponential-decaygate-optimizationquality-tradeoffoperations-research