Mortgage and Anti-Money Laundering
The Financial Crimes Enforcement Network, or FinCEN, is the administrator of the Bank Secrecy Act. They enforce the ruling requiring all residential mortgage lenders and originators to establish anti-money laundering program and report any suspicious activities under the Bank Secrecy Act.
Money laundering is defined as the process of making illegally gained proceeds appear legal (Mortgage Wealth Advisors
). All brokers, lenders, and originators are required to follow an explicitly defined process of recognizing characteristics of money laundering and reporting them to authorities immediately.
It is important to maintain a close-eye on money laundering because mortgages obtained under false pretenses can greatly affect and harm the housing market and the economy as a whole. Because of this, mortgage professionals are trained to recognize money laundering in its many unique forms.
Anti-money laundering rules are the direct result of many past situations including terrorism, drug trafficking, tax evasion, smuggling, and embezzlement. With these issues present in today’s society, mortgage professionals and mortgage companies are now held responsible for appropriate and legal lending practices and properly reporting any conduct that can be viewed as suspicious. These rules are in place and monitored to protect both lenders and law-abiding borrowers in our nation.