DISEC

BACKGROUND GUIDE

AGENDA

Developments in the field of

Information and Telecommunication
Technologies in the context of
International Security
 LETTER FROM THE EXECUTIVE BOARD
Greetings!

It gives us immense pleasure to serve as the Executive Board for the

United Nations General Assembly, Disarmament and International
Security Committee, at this inaugural edition of MITIMUN.

The United Nations General Assembly (UNGA) First Committee, also

known as Disarmament and Security Committee (DISEC), engages
discussion and makes recommendations on issues relating to global
geopolitics, and is often seen as the first forum of consensus-based
discussion in the UN for matters of international security and
disarmament. In this committee, we will be discussing about a topic of
great technological importance, which has gained relevance in the 21st
century as one of the key aspects of international security, highlighting a
need to develop frameworks and guidelines to address its use
internationally: Information and Communication Technology.

This guide has been created to serve as a starting point to your research
and to give you a brief overview of the subject matter. It is vital that you
use this document as a reference point for more research and not as an
end in itself. The committee, the Executive Board as well as the organisers
want to make this experience as comfortable as possible for you. Do not
hesitate to approach us with your doubts. As frivolous as they may sound
in your head, trust me, we’ve all been there. We look forward to intense
debate, new-found points of view and recommendations, and we wish you
all the very best for your preparations!

Signed

Fazil Razak, Chairperson

Aaron Cherian, Vice Chairperson

Aashrith S Narayn, Director

 INTRODUCTION

1. UNGA DISEC
1.1 What is UNGA DISEC ?
The United Nations General Assembly's Disarmament and
International Security Committee (UNGA DISEC) is one of the six main
committees of the United Nations General Assembly (UNGA). It is
tasked with addressing issues related to disarmament, global security,
conflict resolution and international peacekeeping. Originally
established in 1945 as the Disarmament Commission, it was later
restructured and renamed as the First Committee in 1994, reflecting
its broadened scope beyond disarmament. However, it is often
unofficially referred to as DISEC.

1.2 Significance of the committee

DISEC has historically played a crucial role in shaping international
agreements and norms regarding disarmament and security. Central
to its endeavours is the pursuit of consensus-driven approaches.
In effect, it is very similar in its scope of discussion with the United
Nations Security Council (UNSC), but differs in powers and mandate,
as highlighted in the Charter of the United Nations. One of its most
notable achievements is the negotiation and adoption of landmark
treaties aimed at preventing the proliferation of weapons of mass
destruction (WMDs) and conventional arms. For instance, the
Committee has been instrumental in the drafting and adoption of the
Treaty on the Non-Proliferation of Nuclear Weapons (NPT), which
entered into force in 1970, and is a cornerstone of global efforts to
prevent the spread of nuclear weapons and promote disarmament.
1.3 Mandate and Powers
The mandate of the United Nations General Assembly (UNGA) is to
serve as the principal deliberative, policymaking, and representative
organ of the United Nations. As outlined in the UN Charter, the
General Assembly is tasked with addressing a wide range of global
issues, including international peace and security, economic
development, human rights, and humanitarian assistance. Its
responsibilities include adopting resolutions, making
recommendations, and overseeing the budget and administration of
the UN. The General Assembly provides a forum for all member
states to express their views, engage in diplomacy, and work
collectively towards common goals, embodying the core principles of
multilateralism and cooperation in addressing the challenges
facing the international community. Within the UNGA, DISEC
committee focuses the discussion on topics mentioned in 1.1, and
serves as a recommendatory UN body that furthers deliberation and
debate on these key matters in a forum where all members of the Un
have an equal standing and can contribute equally to the discussion.

2. THE CHARTER OF THE UNITED NATIONS

The Charter of the United Nations is the foundational treaty and
constitutional document of the United Nations (UN), established on
June 26, 1945, in San Francisco. It serves as the framework for the
organisation's structure, functions, and principles. The Charter
outlines the purposes and principles of the UN and its organs,
including maintaining international peace and security, promoting
friendly relations among nations, fostering cooperation to solve
international problems, and respecting the principles of sovereign
equality of all member states.

The United Nations can take action on a wide variety of issues due to
its unique international character and the powers vested in its
Charter, which is considered an international treaty. As such,
the UN Charter is an instrument of international law, and UN Member
States are bound by it.
 The UN Charter codifies the major principles of international
relations, from sovereign equality of States to the prohibition of the
use of force in international relations.

Additionally, it establishes the main organs of the UN, such as the

General Assembly, the Security Council, the International Court of
Justice, and the Secretariat. It defines their powers and their
mandate. The Charter also defines the procedures for decision-
making, including voting mechanisms of the UN organs, and the
responsibilities of member States to the UN. It embodies the
collective aspirations of nations to prevent future conflicts and
promote peace, prosperity, and justice on a global scale. The Charter
of the United Nations consists of over 111 articles and 19 chapters.
The document can be found on the link below:

https://www.un.org/en/about-us/un-charter/full-text

Chapter IV of the UN Charter, talks about the United Nations General

Assembly, and by extension,
the First Committee. The entire Chapter is given as follows:

CHAPTER IV: THE GENERAL ASSEMBLY

COMPOSITION

ARTICLE 9
1. The General Assembly shall consist of all the Members of the
United Nations.
2. Each Member shall have not more than five representatives in the
General Assembly.
FUNCTIONS AND POWERS

ARTICLE 10

The General Assembly may discuss any questions or any matters

within the scope of the present Charter or relating to the powers and
functions of any organs provided for in the present Charter, and,
except as provided in Article 12, may make recommendations to the
Members of the United Nations or to the Security Council or to both
on any such questions or matters.

ARTICLE 11

1. The General Assembly may consider the general principles of co-

operation in the maintenance of international peace and security,
including the principles governing disarmament and the
regulation of armaments, and may make recommendations with
regard to such principles to the Members or to the Security
Council or to both.
2. The General Assembly may discuss any questions relating to the
maintenance of international peace and security brought before
it by any Member of the United Nations, or by the Security
Council, or by a state which is not a Member of the United
Nations in accordance with Article 35, paragraph 2, and, except as
provided in Article 12, may make recommendations with regard to
any such questions to the state or states concerned or to the
Security Council or to both. Any such question on which action is
necessary shall be referred to the Security Council by the General
Assembly either before or after discussion.
3. The General Assembly may call the attention of the Security
Council to situations which are likely to endanger international
peace and security.
4. The powers of the General Assembly set forth in this Article shall
not limit the general scope of Article 10.
ARTICLE 12

While the Security Council is exercising in respect of any dispute or

situation the functions assigned to it in the present Charter, the
General Assembly shall not make any recommendation with regard to
that dispute or situation unless the Security Council so requests.
2. The Secretary-General, with the consent of the Security Council,
shall notify the General Assembly at each session of any matters
relative to the maintenance of international peace and security which
are being dealt with by the Security Council and shall similarly notify
the General Assembly, or the Members of the United Nations if the
General Assembly is not in session, immediately the Security Council
ceases to deal with such matters.

ARTICLE 13

1. The General Assembly shall initiate studies and make

recommendations for the purpose of:

promoting international co-operation in the political field and

encouraging the progressive development of international law
and its codification;
promoting international co-operation in the economic, social,
cultural, educational, and health fields, and assisting in the
realization of human rights and fundamental freedoms for all
without distinction as to race, sex, language, or religion.

2. The further responsibilities, functions and powers of the General

Assembly with respect to matters mentioned in paragraph 1 (b)
above are set forth in Chapters IX and X.
ARTICLE 14

Subject to the provisions of Article 12, the General Assembly may

recommend measures for the peaceful adjustment of any situation,
regardless of origin, which it deems likely to impair the general
welfare or friendly relations among nations, including situations
resulting from a violation of the provisions of the present Charter
setting forth the Purposes and Principles of the United Nations.

ARTICLE 15

1. The General Assembly shall receive and consider annual and

special reports from the Security Council; these reports shall
include an account of the measures that the Security Council has
decided upon or taken to maintain international peace and
security.
2. The General Assembly shall receive and consider reports from the
other organs of the United Nations.

ARTICLE 16

The General Assembly shall perform such functions with respect to

the international trusteeship system as are assigned to it under
Chapters XII and XIII, including the approval of the trusteeship
agreements for areas not designated as strategic.

ARTICLE 17
1. The General Assembly shall consider and approve the budget of
the Organization.
2. The expenses of the Organization shall be borne by the Members
as apportioned by the General Assembly.
3. The General Assembly shall consider and approve any financial
and budgetary arrangements with specialized agencies referred
to in Article 57 and shall examine the administrative budgets of
such specialized agencies with a view to making
recommendations to the agencies concerned.
VOTING

ARTICLE 18

1. Each member of the General Assembly shall have one vote.

2. Decisions of the General Assembly on important questions shall
be made by a two-thirds majority of the members present and
voting. These questions shall include: recommendations with
respect to the maintenance of international peace and security,
the election of the non-permanent members of the Security
Council, the election of the members of the Economic and Social
Council, the election of members of the Trusteeship Council in
accordance with paragraph 1 (c) of Article 86, the admission of
new Members to the United Nations, the suspension of the rights
and privileges of membership, the expulsion of Members,
questions relating to the operation of the trusteeship system, and
budgetary questions.
3. Decisions on other questions, including the determination of
additional categories of questions to be decided by a two-thirds
majority, shall be made by a majority of the members present and
voting.

ARTICLE 19

A Member of the United Nations which is in arrears in the payment of

its financial contributions to the Organization shall have no vote in
the General Assembly if the amount of its arrears equals or exceeds
the amount of the contributions due from it for the preceding two
full years. The General Assembly may, nevertheless, permit such a
Member to vote if it is satisfied that the failure to pay is due to
conditions beyond the control of the Member.
PROCEDURE

ARTICLE 20

The General Assembly shall meet in regular annual sessions and in

such special sessions as occasion may require. Special sessions shall
be convoked by the Secretary-General at the request of the Security
Council or of a majority of the Members of the United Nations.

ARTICLE 21

The General Assembly shall adopt its own rules of procedure. It shall
elect its President for each session.

ARTICLE 22

The General Assembly may establish such subsidiary organs as it

deems necessary for the performance of its functions.

AGENDA
1. BACKGROUND - PAST ACTION

Few technologies have been as powerful as information and

communications technologies (ICTs) in reshaping economies,
societies and international relations. Cyberspace touches every
aspect of our lives. The benefits are enormous, but they do not come
without risk. The global ICT environment is facing a dramatic increase
in the malicious use of ICTs by State and non-State actors. The
misuse of ICTs poses a risk for all States and may harm international
peace and security.
Arguably the first international efforts to address the issue of
information security can be attributed to two major events, the 9th
session of the United Nations Conference on Trade and Development
(UNCTAD), held in Midrand, South Africa in 1996, and the Ministerial
Conference on Terrorism, held by the Group of 7 (G7) in Paris, France,
in 1996.

The issue of information security has been on the UN agenda since

1998, when the Russian Federation introduced a draft resolution on
the subject in the First Committee of the UN General Assembly. It was
then adopted without a vote by the General Assembly as resolution
A/RES/53/70. Since then, there have been more than 25 UNGA
resolutions on this agenda, and several intergovernmental processes
have been established to address the security of and use of ICTs in
the context of international security.

The main aim of the UNGA resolutions thus far have been to generally
promote awareness on developments in the field of ICTs and to
provide informative reports from each State’s perspective of
the same to the UN Secretary General (since 1998). States are
encouraged to strengthen national frameworks to address
information security and move towards strengthening international
frameworks in a similar manner. Other intergovernmental measures
have been introduced in the UN by these resolutions.

2. GROUPD OF GOVERNMENTAL EXPERTS

The adoption of these resolutions has led to the introduction of

several measures in the UN, including the formation of six Groups of
Governmental Experts of the UN (UNGGEs) on Information
and Communication Technologies and on Cyberspace, beginning
from 2004 (the first one having been called for by General Assembly
Resolution 56/19), which have studied the threats posed by the
use of ICTs in the context of international security and how these
threats should be addressed.
Four of these Groups have agreed on substantive reports with
conclusions and recommendations that have been welcomed by all
UN Member States. Each GGE built on the work done by the
previous one, making significant cumulative progress on the issues at
hand. Another important consideration of the UNGGEs is the
applicability of existing international law to cyberspace and ICTs.
The sixth and last GGE, which met between 2019 and 2021, agreed its
report by consensus, which provided an additional layer of
understanding on the normative framework for responsible
behaviour of States in cyberspace in the context of international
security.

The reports of the GGEs, agreed to by consensus, submitted on 2010,

2013, 2015 and 2021 form a very important guiding framework for the
member States of the UN with respect to ICTs. They have been called
on as guiding documents in several UNGA resolutions in encouraging
efforts to address the issue internationally. The 2013 and 2015
reports in particular are important to this context because they
(respectively) deemed that international law, in particular, the UN
Charter applies to cyberspace, and identified 11 norms of
responsible State behaviour in cyberspace to be followed on a
voluntary basis by member States.

3. Open-Ended Working Groups and The Programme of Action

The second major UN measure was the establishment of two Open

Ended Working Groups (OEWGS) on ICTs (in 2018 and 2021) to
discuss the security of ICTs in the context of international security.
These OEWGs were open to all UN member States for discussion,
and, similar to the GGEs, were mandated to discuss the following
matters:

Developing rules, norms, and principles for responsible state

behaviour
Considering state initiatives to ensure security in the use of ICTs
 Establishing regular institutional dialogue with states
Studying existing and potential threats to information security,
such as data security
Considering possible cooperative measures to prevent and
counter threats
Studying how international law applies to the use of ICTs by
states
Considering confidence-building measures and capacity-building

The first OEWG began its work in 2019 and held intersessional
consultative meetings with industry, civil society and academia. The
Group adopted a report by consensus at its final session in March
2021. This report was endorsed in the UNGA by its Decision 75/564.
In 2020, the General Assembly through Resolution 75/240 ,
established a new five-year OEWG on security of and in the use of
information and communications technologies. This OEWG is planned
to meet regularly up till 2025 in eleven substantive sessions in New
York. The main purpose of this OEWG is to further the progress made
by the first Group, and to provide regular reports on such
international progress to address the question of ICTs based on the
work done in each of its substantive sessions. Its Seventh and most
recent Substantive Session took place from March 4-8, 2024.

In 2022, a General Assembly resolution entitled “Programme of

Action to advance responsible State behaviour in the use of
information and communications technologies in the context of
international security” was adopted for the first time as A/RES/77/37.
The resolution requested a report of the Secretary-General on the
proposal, taking into account the views submitted by States. The PoA
aims to serve as a permanent forum in the UN to strengthen
international security and stability in the cyber domain. It would do
this through actionable proposals and enhanced support for tailored
capacity-building efforts.
 4. ROLE OF CONVENTIONS AND TREATIES ON ICT LAWS

Conventions and treaties play a crucial role in shaping the global

response to cybersecurity challenges, aiming to address the evolving
landscape of cyber threats and promote responsible behaviour in the
use of information and communication technologies (ICTs). One such
significant document is the UNGA Resolution 76/19, adopted on
December 6, 2021, which underscores the importance of
developments in the field of information and telecommunications
within the context of international security. This resolution not only
assesses the growing cybersecurity threats but also recommends
national and international policy measures to mitigate these risks.
Furthermore, it advocates for enhanced international cooperation to
tackle cybersecurity challenges effectively.

5. UN RESOLUTIONS AND TREATIES

In addition to UNGA Resolution 76/19, several international treaties

and conventions have been established to address cyber threats and
promote cooperation among nations. One notable treaty is
the United Nations Convention Against Transnational Organized
Crime, commonly known as the Palermo Convention, adopted in
2000. While primarily focusing on combating organized criminal
groups, the Palermo Convention indirectly addresses cybercrime by
obligating state parties to enact domestic criminal offenses targeting
organized crime. Furthermore, it calls for the adoption of new
frameworks for extradition, mutual legal assistance, and law enforcement
cooperation, which are instrumental in combating cybercriminal activities
that transcend national borders. In addition to international treaties
focused specifically on cybersecurity, other conventions address broader
issues related to human rights and child protection in the digital age. The
Convention on the Rights of the Child, adopted in 1989, outlines the
fundamental rights of children, including provisions for protection from
exploitation, abuse, and neglect. This convention emphasizes the
importance of safeguarding children's well-being and promoting their
development in all aspects of life, including the digital realm.
 6. REGIONAL TREATIES AND CONVENTIONS

Another significant convention in the realm of cybersecurity is the

Convention on Cybercrime, also known as the Budapest Convention,
adopted by the Council of Europe in 2001. This convention
represents the first international agreement aimed at reducing
computer-related crime by harmonizing national laws, improving
investigative techniques, and enhancing international cooperation.
By establishing common standards and procedures for addressing
cyber threats, the Budapest Convention facilitates collaboration
among member states and promotes a coordinated response to
cybercriminal activities.

Moreover, the Budapest Convention is complemented by the

Additional Protocol concerning the Criminalization of Acts of a Racist
or Xenophobic Nature Committed through Computer Systems,
adopted in 2003. This protocol extends the scope of the Budapest
Convention by obligating state parties to criminalize racist or
xenophobic acts expressed or communicated online. By addressing
hate speech and discriminatory behaviour in the digital sphere, this
protocol reinforces the importance of combating online extremism
and promoting tolerance and inclusivity in cyberspace.

7. INTERNATIONAL HUMARITIAN LAW

Another crucial legality to keep in mind is the International

Humanitarian Law (IHL) which is a set of rules that seeks, for
humanitarian reasons, to limit the effects of armed conflict. It
protects persons who are not, or are no longer, directly or actively
participating in hostilities, and imposes limits on the means and
methods of warfare. IHL is also known as "the law of war" or "the law
of armed conflict". IHL is part of public international law, which is
made up primarily of treaties, Customary International Law and
general principles of law. It may only apply in the case of armed
conflict and is treated as Customary International Law.
 The emergence of Information Communication Technologies (ICTs) has
introduced new complexities to the application of International
Humanitarian Law, particularly concerning cybercrime in armed
conflicts. Cyberattacks present a significant concern due to their
potential to harm civilians and civilian infrastructure, violating the
fundamental IHL principle of protecting non-combatants. The
indiscriminate or disproportionate effects of cyber operations can lead to
civilian casualties and damage to vital services like hospitals and water
supplies. Addressing these risks requires clarifying
how IHL applies to cyber warfare and developing guidelines to mitigate
such threats.

Cyberspace's anonymity and deniability pose challenges for attributing

responsibility in cyberattacks during armed conflicts, unlike traditional
warfare where the attacker's identity is usually apparent. This difficulty in
attribution undermines efforts to hold perpetrators accountable under
IHL, hindering deterrence of future attacks. Strengthening mechanisms
for attributing cyberattacks is
crucial to upholding IHL principles and ensuring accountability for
violations.

Furthermore, the use of cyber capabilities by non-state actors blurs the

lines between traditional armed conflict and other forms of violence.
While IHL traditionally governs conflicts between states,
the increasing involvement of non-state actors in cyberspace raises
questions about regulating their conduct. Cyber operations also have the
potential to disrupt humanitarian aid and peacekeeping efforts,
complicating the application of IHL in modern conflicts.

To address these challenges, there is a growing call for the development

of international norms and guidelines tailored to cyber operations during
armed conflicts. These norms would have to discuss how existing IHL
principles apply to cyberspace, emphasizing the prohibition on targeting
civilians and the need to minimize civilian harm. By adapting IHL to the
realities of cyber warfare, it is certain
that the international community could better protect civilians and
uphold humanitarian principles in
an increasingly digital battlefield.
 QUESTIONS A RESOLUTION MUST ANSWER

A) How can responsible State behaviour in the context of ICTs and

cyberspace be promoted and maintained?

B) What areas of compromise exist on the formation of frameworks

and norms for Responsible State behaviour in the context of ICTs and
Cyberspace?

C) How to further discussion on the applicability of International Law

to ICTs and their development?

D) How to ensure responsible research and development and

prevent the misuse of emerging technologies in the context of ICTs
and Cyberspace?

E) How to address, reduce and combat Cybercrime globally and why

States must work together for the same?

F) How to address the use of ICTs in warfare, especially in situations

where a breach of peace is constituted by acts of aggression as
outlined under Chapters 6 and 7 of the UN Charter?
 CONCLUSION

The UNGA DISEC, as the primary forum of discussion on matters

of international security, has done a substantive amount of work
in the field of ICTs and Cyberspace, and has deigned to create
norms, frameworks and guidelines for their responsible use
anddevelopment by Member States. It is up to the delegates to
further this discussion in this Committee and ensure meaningful
progress made on the Agenda, with due regard given to the
measures already implemented or introduced in the General
Assembly. ICTs are an indispensable part of the everyday lives of
the common people, and form an integral arm of any State’s
capabilities and progress, with the potential for both great good
and great harm. It is up to us, the
citizens of the world, to ensure that their continued use and
development can be well controlled and shaped to guide us
towards a better and brighter future, one speaking of peace and
prosperity.
ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS:
International financial institutions (IFIs) are essential to the
worldwide effort to combat counter-terrorist financing (CFT) and
money laundering (AML). These organizations, which include the
World Bank, regional development banks, multilateral development
banks, and the International Monetary Fund (IMF), have a lot of power
and resources that can be used to support AML/CFT initiatives
around the globe.
Following are the different ways in which IFIs contribute to AML/CFT:

1. Policy Development and Guidance:

Case Study: The World Bank's support for AML/CFT policy
development in the Eastern Caribbean Currency Union (ECCU).
Overview: The World Bank has provided technical assistance and
policy guidance to member countries in the ECCU to strengthen their
AML/CFT frameworks. This assistance includes support for legislative
reforms, capacity building for law enforcement agencies and
financial institutions, and the development of risk-based approaches
to AML/CFT compliance.
Link: https://documents.worldbank.org/en/publication/documents-
reports/documentdetail/228071468098684384/eastern-caribbean-
currency-union-financial-sector-assessment

2. Assessment and Evaluation:

Case Study: IMF's assessment of Ukraine's AML/CFT regime.
Overview: The IMF conducted an Article IV consultation with Ukraine,
which included an assessment of the country's AML/CFT framework.
The report highlighted areas for improvement, such as enhancing
regulatory oversight of non-bank financial institutions and
strengthening cooperation between law enforcement agencies and
financial intelligence units.
Link:https://www.imf.org/en/Publications/CR/Issues/2023/12/11/Ukra
ine-2023-Article-IV-Consultation-Second-Review-Under-the-
Extended-Arrangement-Under-the-542297
3. Technical Assistance and Capacity Building:

Case Study: The Asian Development Bank's support for AML/CFT

capacity building in Cambodia.
Overview: The Asian Development Bank (ADB) has provided technical
assistance to Cambodia to strengthen its AML/CFT capabilities. This
assistance includes training programs for law enforcement and
financial regulatory agencies, the development of risk-based
supervision frameworks, and support for the implementation of FATF
recommendations.
Link:https://www.adb.org/sites/default/files/project-
documents/44263/44263-013-44263-015-44263-016-pcr-en.pdf

4. Financial Sector Reform:

Case Study: The European Bank for Reconstruction and

Development's (EBRD) support for AML/CFT reforms in the Western
Balkans.
Overview: The EBRD has provided technical assistance and policy
advice to countries in the Western Balkans to strengthen their
AML/CFT frameworks. This assistance includes support for legislative
reforms, capacity building for financial institutions, and the
development of risk-based supervision frameworks to enhance the
integrity of the financial sector.
Link:https://www.ebrd.com/news/2024/ebrd-brings-together-
western-balkans-leaders-and-global-investors.html
 CASE STUDIES AND REPORTS
1. The Panama Papers

The 2016 Panama Papers leak revealed the pervasive use of offshore
tax havens by people and organizations to hide riches, avoid paying
taxes, and perhaps launder money. Information about thousands of
shell businesses and people engaged in questionable financial
activities was included in the leaked documents. Global inquiries into
tax evasion and money laundering were sparked by the occurrence,
and as a result, regulatory changes and heightened surveillance of
offshore financial transactions occurred.

The leak consisted of 11.5 million documents, totaling 2.6 terabytes

of data, obtained from the Panamanian law firm Mossack Fonseca.
These documents, spanning several decades, exposed the firm's
involvement in setting up offshore entities for clients around the
world, including politicians, celebrities, business leaders, and
criminals. The leak provided unprecedented insight into the
mechanisms used by individuals and entities to conceal wealth,
evade taxes, and engage in illicit financial activities.

The Panama Papers revealed the widespread use of offshore tax

havens by the global elite to shelter assets from taxation and
scrutiny. Mossack Fonseca facilitated the creation of thousands of
shell companies and offshore structures in jurisdictions like Panama,
the British Virgin Islands, and the Seychelles, offering clients
anonymity and confidentiality. These offshore entities were often
used to hold assets, engage in international business transactions,
and conceal the true ownership of wealth.

Links for further reference:

https://offshoreleaks.icij.org/investigations/panama-papers
https://appliednetsci.springeropen.com/articles/10.1007/s41109-
020-00313-y
2. llicit Financial Flows from Cyber-enabled Fraud

Cyber-enabled fraud is a major transnational organized crime that

has grown exponentially in recent years, both in volume of frauds
reported and their global spread. Such crimes can have a devastating
impact on individuals, organizations, and economies worldwide,
causing significant financial losses and eroding trust in digital
systems. The transnational nature of this crime, with proceeds of
cyber-enabled fraud often rapidly transferred to different
jurisdictions, makes this a global concern.

As digital innovation continues to advance, so will the sophistication

and scale of cyber-enabled fraud, if left unchecked. The FATF, in
partnership with the Egmont Group and INTERPOL, analyzed how the
cyber-enabled fraud landscape has evolved, its links to other crimes
and how criminals may exploit vulnerabilities in new technologies.
The report highlights examples of national operational responses and
strategies that have proven successful in tackling cyber-enabled
fraud. This includes the need to break down silos and accelerate and
enhance collaboration across various sectors and on both the
domestic and international levels.

The report identifies three priority areas in which jurisdictions should

act to tackle this crime and related laundering more effectively:
enhancing domestic co-ordination across the public and private
sectors, supporting multi-lateral international collaboration, and
strengthening detection and prevention by promoting awareness and
vigilance and facilitating reporting of such crimes. The report also
identifies risk indicators and useful anti-fraud requirements and
controls, that may help public and private sector entities detect and
prevent cyber-enabled fraud and related money laundering.

Link to the reportfor further reference:

https://www.fatf-gafi.org/en/publications/Methodsandtrends/illicit-
financial-flows-cyber-enabled-fraud.html
3. Opportunities and Challenges of New Technologies for AML/CFT

New technologies can improve the speed, quality and efficiency of

measures to combat money laundering and terrorist financing. They
can help financial institutions and supervisors assess these risks in
ways that are more accurate, timely and comprehensive. When
implemented using a responsible and risk-based approach, new
technologies and innovative products and services can also improve
financial inclusion, bringing more people into the regulated financial
system and thereby reinforcing the effectiveness of AML/CFT
measures.

This report identifies emerging and available technology-based

solutions. The report highlights the necessary conditions, policies
and practices that need to be in place to successfully use these
technologies to improve the efficiency and effectiveness of AML/CFT.
The report also examines the obstacles that could stand in the way of
successful implementation of new technology.

New technologies for AML/CFT refer to:

1. innovative skills, methods, and processes that are used to achieve

goals relating to the effective implementation of AML/CFT
requirements or
2. innovative ways to use established technology-based processes
to comply with AML/CFT obligation

Link to the report for further reference:

https://www.fatf-
gafi.org/en/publications/Digitaltransformation/Opportunities-
challenges-new-technologies-for-aml-cft.htm