C-suite fraud options

This article, the second in a two-part series, presents insights and best practice recommendations from CFEs and other experts on how to anticipate and respond to passive executive fraud, or nonfeasance, such as failing to prevent employees from engaging in illicit financial transactions.

Part 1 explored techniques and tools that veteran CFEs and other experienced fraud fighters use to detect and prevent C-suite-initiated schemes, or malfeasance.

To illustrate C-suite nonfeasance, this article cites recent examples from the real estate sector. As the biggest cog in America's economic machinery, it generates 13 percent of U.S. GDP. Perhaps unsurprisingly, money laundering in the real estate industry (MLRE) is vast and, some say, under-regulated. Here's a discussion of how CFEs can help its leaders — and those in all industries — actively fight fraud.

Up to $2 trillion is laundered globally each year, says the United Nations Office on Drugs and Crime. Drug cartels, active in the U.S. and Mexico, are responsible for much of that total.