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FinCEN Reverse-Mortgage Advisory Reflects Growing Anti-Fraud Role for AML Units
By Brian Monroe
printA U.S. Treasury Department advisory detailing red flags of reverse-mortgage scams takes another step in placing more responsibility for identifying such frauds within banks' anti-money laundering programs, say consultants. The guidance, issued Tuesday by the department's Financial Crimes Enforcement Network (FinCEN), details how and when banks should file suspicious activity reports (SARs) on account activity potentially tied to home equity conversion mortgage (HECM) frauds. The scams, which typically target senior citizens, have been on the rise, the bureau said. While anti-fraud departments in financial institutions can file SARs to FinCEN, anti-money laundering (AML) compliance divisions have typically handled most reporting...
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The U.S. Treasury Department finalized rules Thursday requiring federal home-loan banks to implement anti-money laundering controls and report suspicious activity.
The number of suspicious activity reports citing possible mortgage fraud fell in 2012 for the first time in over a decade, according to a report published Tuesday by the U.S. Treasury Department.
Plans by the Obama administration to pursue civil and criminal cases against institutions that illegally promoted mortgage-backed securities could also bring scrutiny to anti-money laundering compliance officers.
The number of bank regulatory reports of suspected cases of commercial real estate fraud rose nearly threefold between 2007 and last year, the U.S. Treasury Department said Wednesday.
The U.S. Treasury Department said Monday it plans to close a "regulatory gap" by requiring non-bank mortgage lenders to report suspicious activity to the country's financial intelligence unit.
Non-bank mortgage lenders may soon have to comply with the Bank Secrecy Act as part of a broad effort to shield loan companies from money launderers, according to a U.S. regulator.
The current design of federally-mandated suspicious activity reports makes it difficult for banks to report important information tied to suspected mortgage fraud, say former law enforcement agents and consultants.
Mortgage lenders will face greater scrutiny from law enforcement agencies and federal regulators following the passage of an anti-mortgage fraud bill and the announcement that further regulations may be coming.
U.S. lawmakers voted Monday to pass a bill that would expand the definition of money laundering and strengthen anti-fraud laws, paving the way for the measure's passage.
Less than two percent of the individuals and companies suspected by banks of mortgage fraud are identified by other financial institutions for separate crimes, according to the U.S. Treasury Department.
Bank reports of suspected mortgage fraud increased more than regulatory filings of any other financial crime in the twelve-month period ending June 30, the U.S. Treasury Department said Wednesday.
A U.S. lawmaker called Thursday for the formation of a federal task charged with coordinating law enforcement investigations and training related to mortgage fraud.
The investigative arm of the Internal Revenue Service, charged with tackling intricate tax and money laundering cases, is shifting resources to handle a mushrooming mortgage fraud caseload, according to current and former special age
U.S. investigators are relying on suspicious activity reports in their efforts to detect and curtail mortgage fraud, FBI director Robert Mueller said Thursday. The comments, made at a Washington, D.C. press conference, were part of the FBI's announcement that it had filed 144 mortgage fraud cases.
Banks need better legal safeguards when sharing customer information with other financial institutions in mortgage fraud investigations, say bank compliance professionals. At least one bank industry group wants to get Congress to consider such safeguards.
Financial institutions filed 46,717 suspicious activity reports about potential mortgage fraud in fiscal year 2007, a 31 percent increase in the reports from the previous year, the FBI said Tuesday.
Suspected cases of mortgage loan fraud reported by financial institutions jumped 42 percent in 2007, marking the fourth consecutive year of double digit increases, the U.S. Treasury Department said.
Mortgage fraud cases skyrocketed during the real estate boom of the past decade, and the problem is likely to get worse this year, fraud experts say.
Some money services businesses are still operating outside the law. And while financial service firms are complying with anti-money laundering regulations by filing more suspicious activity reports, they could do a lot more.
The U.S. Department of Housing and Urban Developments Office of Federal Housing Enterprise Oversight has agreed to share its examination findings about suspected mortgage fraud with FinCEN.