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.”

“Money launderers are highly motivated. It requires much more diligence for those of us in the financial services sector.”

“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.

Download Money Laundering and Mortgage Fraud: The Growth of a Merging Industry

PDF format, 151KB.

Katalina M. Bianco, J.D., CCH Writer Analyst, Subprime, Mortgage, and Securitization Law Update, CCH Federal Banking Law Reporter, CCH Mortgage Compliance Guide, and Bank Digest.

CONCLUSION
As mortgage fraud continues to grow, so does its potential for money laundering. Sophisticated frauds and easy cash lure money launderers to the mortgage fraud industry. Financial institutions must meet the challenges brought by fraudsters by continually reviewing and updating their methods of fraud detection and prevention.

ABOUT THE AUTHOR
Katalina Bianco is a Writer Analyst at Wolters Kluwer Law & Business, a leading provider of banking information. Bianco contributes her editorial expertise to the Subprime, Mortgage, and Securitization Law Update, CCH Federal Banking Law Reporter, CCH Mortgage Compliance Guide and Bank Digest.

She was the author of Identity Theft: What You Need to Know and co-author of Financial Services Modernization—Gramm-Leach-Bliley Act of 1999; Law and Explanation. Bianco also authored The Subprime Lending Crisis: Causes and Effects of the Mortgage Meltdown as well as several white papers for various banking trade associations.

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