INTRODUCTION
Money launderers constantly are seeking new methods to perpetuate their schemes,providing endless challenges to struggling financial institutions. Money laundering has become so permeated throughout the financial sector that getting to the source has
become increasingly difficult. In a recent interview, Debra Geister, Director of fraud prevention and compliance solutions for LexisNexis Risk & Information Analytics Group, noted that “money launderers are highly motivated. It requires much more diligence for those of us in the financial services sector.” Geister urged financial institutions to think like a money launderer in order to “stay ahead of the curve.”
“Staying ahead of the curve,” requires institutions to be aware of the ever-evolving trends in money laundering. One trend plaguing the financial sector is the use of mortgage fraud as a vehicle for money laundering.
Mortgage fraud, by all accounts, is increasing. In a 2006 Financial Crimes Network Enforcement agency report on mortgage fraud, FinCEN stated that “Mortgage loan fraud is growing because it can be very lucrative and relatively easy to perpetrate, particularly
in geographic areas experiencing rapid appreciation.”
Detailed report link: here