Name: A fast-track in financial crime rise
Uploaded: 2021-11-26T16:41:31.504Z
Duration: 172.25
Description: Millions of criminal incidents rocked the financial sector in 2020, ranging in extent, scope, and financial repercussions. Jas Randhawa, Stripe's Head of Financial Crimes, explains how financial crime kinds and frequency changed during the pandemic and post-pandemic periods.

A fast-track in financial crime rise.vtt

English

{{00:00:34}}
So I think in the last about 12,
18 months, what's really happened,

{{00:00:38}}
first of all in the larger
industry is, the fact that they

{{00:00:43}}
found a new medium to do business.

{{00:00:45}}
A lot of businesses that were
sitting on the sidelines, not

{{00:00:49}}
wanting to go digital, or were just
dipping their toes in the digital

{{00:00:53}}
world, they didn't have an option.

{{00:00:56}}
They had to go digital, but that
came a lot of new users, new

{{00:01:00}}
clients, new transaction, and
all kinds of crazy patterns.

{{00:01:04}}
And you will see setting
in the background.

{{00:01:07}}
The financial crimes community
had to innovate fairly rapidly and

{{00:01:11}}
very quickly to understand all the
challenges of the new business and the

{{00:01:17}}
new opportunity brought to the table.

{{00:01:20}}
Specifically in the US department of
justice, FinCEN specifically, they've

{{00:01:24}}
done a terrific job of communicating
with the industry, what red flags and

{{00:01:30}}
typologies they're seeing in the back.

{{00:01:33}}
And these are general methods,
how bad actors are, you know,

{{00:01:36}}
the bad actors, the methods that
they're using to launder money.

{{00:01:39}}
And they've tried to enlighten the
community a lot more, which means

{{00:01:45}}
that it's our responsibility then to
go back and build controls, make sure

{{00:01:49}}
we are identifying those patterns and
preventing those activities to happen.

{{00:01:56}}
The pandemic definitely
moved the industry in a more

{{00:02:01}}
non-face-to-face digital environment.

{{00:02:05}}
Has it fast tracked certain
types of behaviors in the bank?

{{00:02:08}}
I do thinkso.

{{00:02:10}}
But those, I feel are more, a lot
more prevalent on the fraud side

{{00:02:14}}
and the fraud detection side.

{{00:02:18}}
Again, the mode and the medium
of, you know, these transactions,

{{00:02:23}}
because it has changed, it has led
to new patterns, especially when

{{00:02:27}}
it came to lending a lot of the PPP
loans and other associated industry.

{{00:02:33}}
They've seen a lot of
risks and a lot of losses.

{{00:02:36}}
But I feel like both banks and
you know, the financial services

{{00:02:41}}
industry overall, they've done a
pretty good job of coming up with

{{00:02:44}}
controls to mitigate that risk.

So I think in the last about 12,
18 months, what's really happened,

first of all in the larger
industry is, the fact that they

A lot of businesses that were
sitting on the sidelines, not

wanting to go digital, or were just
dipping their toes in the digital

They had to go digital, but that
came a lot of new users, new

clients, new transaction, and
all kinds of crazy patterns.

And you will see setting
in the background.

The financial crimes community
had to innovate fairly rapidly and

very quickly to understand all the
challenges of the new business and the

Specifically in the US department of
justice, FinCEN specifically, they've

done a terrific job of communicating
with the industry, what red flags and

And these are general methods,
how bad actors are, you know,

the bad actors, the methods that
they're using to launder money.

And they've tried to enlighten the
community a lot more, which means

that it's our responsibility then to
go back and build controls, make sure

we are identifying those patterns and
preventing those activities to happen.

The pandemic definitely
moved the industry in a more

Has it fast tracked certain
types of behaviors in the bank?

But those, I feel are more, a lot
more prevalent on the fraud side

Again, the mode and the medium
of, you know, these transactions,

because it has changed, it has led
to new patterns, especially when

it came to lending a lot of the PPP
loans and other associated industry.

They've seen a lot of
risks and a lot of losses.

But I feel like both banks and
you know, the financial services

industry overall, they've done a
pretty good job of coming up with

Trend

Millions of criminal incidents rocked the financial sector in 2020, ranging in extent, scope, and financial repercussions.
Jas Randhawa, Stripe's Head of Financial Crimes, explains how financial crime kinds and frequency changed during the pandemic and post-pandemic periods.

thumbnail_Jas Randhawa.jfif

xsmall_Jas Randhawa.jfif

Jas Randhawa.jfif

Jas Randhawa

Global Head of Financial Crime Compliance

In the last 18 months, the finance industry has discovered a new way of doing business as a result of the pandemic. So the financial crime community had to swiftly grasp all of the new business's issues and adapt.
Randhawa emphasises how the Justice Department raised the required red flags and aided the financial crimes sections.

Financial crime in the post-pandemic period

Pandemic shifted the finance business away from face-to-face interactions.
Randhawa points out the problems, particularly with lending and PPE loans, and how fraud rates have risen drastically in these areas.