Fraud, Compliance & Financial Integrity

To maintain the public trust, federal agencies must protect their financial houses and counter the growing fraud and money laundering threat. CEM engages across government agencies to support this mission.
MITRE assists with compliance, financial integrity

CEM has a team of specialists in the areas of fraud, compliance, and financial integrity. We support government agencies in three key areas:

  • Improving their ability to collect appropriate amounts of revenue and pay out appropriate amounts of refunds, grants, benefits, and other public payments
  • Improving the management of their financial resources
  • Collecting and using financial information gathered from the private sector and public sector to safeguard the integrity of the U.S. financial system.

We have introduced the IRS to new resources, analytical models, and ways of thinking about tax compliance. One example is the Joint Operations Center for National Fuel Tax Compliance (JOC), developed collaboratively by MITRE with the IRS. The JOC is helping the IRS and its state partners construct a clearer picture of the fuel supply chain in the United States. By gaining an improved understanding of the tax consequences of transactions in this complex commerce stream, our nation is closer to narrowing the excise tax gap attributable to fuel taxes.

When it comes to federal agency financial systems management and safeguarding the integrity of the U.S financial system, the overall responsibility falls to the Department of the Treasury, but is carried out by a number of other federal agencies. Many non-Treasury agencies—including the Departments of Veterans Affairs and Health and Human Services—collect funds and initiate payments. Each agency has a responsibility to detect and prevent improper payments before initiating the payment request to the Treasury Fiscal Service, where the final review occurs before Treasury issues the payment. We help Treasury choose the right approach to acquire systems and initiate the process changes needed to reduce improper government payments.

Because MITRE has no organizational conflicts of interest that might affect our guidance, we play a unique role by gathering U.S. financial system information and using it for analysis of potential illicit U.S. financial system activity. We analyze aggregated proprietary data from agencies, businesses, and individuals to discover patterns. In turn, we make objective, data-driven recommendations to help federal agencies improve their regulatory oversight, examination, and enforcement activities.

For example, we helped the Securities and Exchange Commission identify ways to improve how it evaluates TCRs—tips, complaints, and referrals. This enabled the agency to better identify valuable leads about illicit U.S. financial system activity for potential examination and enforcement.