How to Use Technology to Support Obama's Financial Fraud Enforcement Task Force

 
 
By Reetu Khosla  |  Posted 2010-11-04 Email Print this article Print
 
 
 
 
 
 
 


title=Setting Precedent at the Federal Level}

Setting precedent at the federal level

The current administration's Financial Fraud Enforcement Task Force is focused on mortgage, corporate and securities fraud, as well as ensuring that all current financial recovery and rescue efforts protect taxpayer investments. The Task Force is also focused on monitoring any discrimination to assure that the financial markets work for all Americans.

The ramifications of the recent financial meltdown are still being felt in the economy. The Task Force is charged with assuring that the underlying fraud and greed that contributed to the deterioration of the financial markets will be monitored and held in check moving forward.

The Task Force has already made some progress in its mission. In June 2010, it completed an operation which targeted mortgage fraudsters throughout the country and was the largest collective enforcement effort ever initiated to confront mortgage fraud. Over a four-month span, the Task Force has brought 1,215 criminal defendants to justice. These defendants were allegedly responsible for more than $2.3 billion in losses. The Task Force has also been able to enforce civil actions that have resulted in the recovery of hundreds of millions of dollars.

The early results have been encouraging. Financial institutions and insurance providers also have to look at their internal controls to help stem the threat of fraud and financial crimes. Many financial organizations have limited visibility across operational silos where there are a large amount of manual processes and multiple detection systems. Investigators and employees may be more knowledgeable about what to look for in suspicious activity, but firms need to take a more holistic approach, including using technology to identify seemingly unrelated risks and prioritizing higher risk activity.




 
 
 
 
Reetu Khosla is the Director of Financial Crime Solutions at Pegasystems Inc. She has several years of regulatory experience in the banking and non-banking sectors, specializing in financial crimes and anti-money laundering (AML) compliance, operations and management. Reetu has implemented, developed and managed international Suspicious Activity Report (SAR) programs, sanctions, high-risk customers (foreign financial institution and private banking), regulatory response and internal audit response management. Reetu has been invited by the FBI and private sector to train financial institutions on building effective AML programs. Her most recent positions include director of risk at Fidelity Investments, consulting financial institutions on developing their AML/fraud programs and working with the Department of Justice on analysis for AML regulatory requirements. She can be reached at reetu.khosla@pega.com.
 
 
 
 
 
 
 

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