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UNITED NATIONS GENERAL ASSEMBLY– QMS MUN 2022

TABLE OF CONTENTS
LETTER FROM EXECUTIVE BOARD….………………………………………………...2
CRITERIA MARKS ASSIGNED………………………………………………………….....3
HOW TO PREPARE FOR THE COMMITTEE………………………………………….3-5
SOME POINTERS ON CHITS.........................................................................................................5-6
HOW TO RESEARCH FOR THE COMMITTEE………………………………………….6
A STEP-BY-STEP GUIDE TO UNDERSTAND YOUR COUNTRY AND ITS
FOREIGN POLICY……………………………………………………………………….....6
DOCUMENTATION SUBMISSION AND PREPARATION….………………………...6-7
VALID SOURCE OF PROOF IN THE COMMITTEE.…………………………………....7
NEWS SOURCES…….……………………………………………………………………...7
GOVERNMENT REPORTS………….………………………………………………..…7-8
UNREPORTS………………………………………………………………………………..8
COMMITTEE MANDATE….………………………………………………………………9
FINANCIAL CRIME LEGISLATION AND DATA ANALYTICS IN FIGHTING
FINANCIAL CRIMES…………………………………………………………………....9-13
SOLUTIONS AND APPROACHES TO FIGHT DATA
CRIMES………………………………………………..………...………………………….14
THE RISKS OF PUBLIC DATA: BALANKCING PRIVACY AND
GOVERNMENT FUNCTIONS…………………………………...….…………………….16
CHALLENGES OF TRANSPARENCY IN ADDRESSING INFORMATION
ASYMMETRIES IN THE DATA-DRIVEN MARKET …………………………..…….17-18
CONCLUSION…………………………………………………………………………..18-19
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LETTER FROM EXECUTIVE BOARD

Greetings delegates,
We welcome you to the simulation of United Nations General Assembly – DISEC
at QMS Model United Nations Conference 2023 This session of UNGA shall be
conducting a “ADDRESSING THE RISKS OF ILLEGAL STATE-LICENSED DATA
ACQUISITION AND MANIPULATION” as its agenda for the course of 2 days. The
agenda is chosen after intense debate and deliberation amongst the Executive Board,
keeping in mind the relevance, the mandate and the wide availability of information
of the same.
Though we shall try our level best to give you all a very comprehensive guide,
however, the responsibility of reading between the lines and joining the dots lies on
you.
We as moderators can just bring information on the table; it’s on you how you wish
to pursue that information as. So, in this Guide as well, we shall bring in a wide range
of information to your notice, ranging from official statements to scholarly views
however the responsibility of prioritizing what to focus on and not is totally yours.
When we talk of prioritizing information, what we mean is not to prioritize
information according to what you think should be focused, but prioritizing
information according to what your country thinks should be focused.
Before coming for the conference, it is very important to break the larger agenda
into smaller subtopics and ask questions to yourself about the agenda. Making chits
and moderated caucus topics beforehand would give you an edge in moderately
procedural committees like the UNGA. It is also crucial to enhance your leadership
skills and lobbying capacity since we would give equal importance to overall
participation in committee. We would be using the UNA- USA rules of procedure
to facilitate this simulation.
You may consult http://www.unausa.org/global-classrooms-model-un/how- to-
participate/model-un-preparation/rules-of-procedure if you have any queries
regarding the same. We would take this opportunity to elaborate upon the criteria
for judgment which we will follow in the committee. We hardly see Executive Board
Members spell out the criteria for judgment in the committee for various reasons.
However, since we wish to ensure a fair simulation, we will elaborate upon the
criteria we wish to follow and institute in the committee to give an equal footing to
every delegate participating.
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CRITERIA MARKS ASSIGNED

Research: 3
Analysis: 3
Policy Consideration & Guidance of debate: 2
Chits (Substantive + POI) 1(.75+.25) + [Components 1-2-3]/2 = 5
Chits will be given equal recognition as verbal statements in the committee, however
will not be given equal marking. While verbal statements (and demeanour) will be
marked out of 8 (as mentioned above), the written statements will be marked out of
5 (Category 1,2,4)
This does not mean it is okay to bring a notebook full of chits and submit it all to
the executive board! The point behind allowing equal recognition to chits is to
promote the concept of being fair to each delegate. Equal recognition means the
content of the chit needs to be about what is being discussed in the committee during
formal and informal debate (Moderated Caucus only)
Chits which contain information regarding a topic which isn’t the subject of
discussion during GSL’s or Moderated Caucuses will not be marked upon. There
will be a restriction of 3 POI chits, Questions only – there shall be no restriction on
answers/replies via chit, and 2 Substantive chits per debate session, formal and
informal, in the committee. It is pertinent to note that there is no compulsion on the
submission of chits, it is an exercise which is voluntary in nature.
We shall, to the best of my abilities, ensure that a fair simulation is conducted and
there is ample scope for fruitful and meaningful discussion which paves the way for
a nuanced learning experience.
Sincerely,
Shivam Gupta, Chairperson, UNGA – DISEC
Yagya Passi – Vice Chairperson UNGA – DISEC, yagyapassi97@gmail.com

HOW TO PREPARE FOR THE COMMITTEE

One of the major misconceptions about the concept of MUN’s is that you just
research from the internet and speak in the committee. However, that’s not the only
thing you do, you are required to research for the committee and analyse whatever
you’ve studied. When it comes to the term analysis, a lot of people don’t know what
it means so
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For example: You see someone’s marksheet and see that person has scored 90+ out
of 100 in 4 out 5 subjects however in the 5th subject, the person has scored just 53
out of 100. The part till here is called your research, this is something you’ve found
out by searching somewhere.
When it comes to analysis, analysis means interpretation, now for example in the
above example a good analysis would be finding out that the person if gives more
time to the 5th subject rather spending so much time on other subjects, his/her
marks in the individual subjects might fall a bit but he/she would improve overall
because now that person would be scoring well in 5th subject as well.
In simple language, analysis means to interpret and understand what you’ve research
and being able to present it as an argument in the committee which will help in the
flow of the debate. So, for 3 days of the conference, you’ll be marked upon following
things:
1. Verbatim: Research (3 Marks) + Analysis (3 Marks) + Foreign Policy & Guidance
of Debate (2 Marks; Explained below) = 8 Marks
2. Chits: [Research (3 Marks) + Analysis (3 Marks) + Foreign Policy (2 Marks)]/2
+ 1 = 5 Marks
3. Foreign Policy: Ensuring the fact that the statements made by a delegate in the
committee in the verbatim or chits are in line with their foreign policy; which
basically means that your statements should not oppose something which has been
said by high positioned representatives of your state/country;
4. Guidance of Debate: Being able to lobby in the committee and ensuring your
points in the committee are creating good arguments and ensuring debate in the
committee including in the unmoderated caucuses;
Substantive Chits shall be holding equal recognition in terms of marking for
Research, Analysis and Foreign Policy; however, they won’t be given marks for
Guidance of Debate, hence the overall marking for verbatim and chits won’t be
equal. Also, we understand that since the chits would be of equal recognition in the
committee, that doesn’t mean that you bring a pack of substantive chits written from
home. Only those chits will be marked which would be related to the topic being
discussed.

Chits play an important role in conveying messages in the committee to delegates

and the executive board. Now the chits can be used in 2 ways:
1. Lobbying by asking questions and sending points to other delegates
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2. Display of substantive knowledge by sending chits to the Executive Board

Now when it comes to Substantive chits, they can be used to display your research
and analytical skills. The only thing it won’t help you in is your guidance of debate
as the matter which you’ll send would be only known to the Executive Board and
you.
SOME POINTERS ON CHITS
1. Try to concentrate on the analysis part. Which basically means what you interpret
from the research you have done, what are things being conveyed by the substantive
matter which you are giving to us? What do we do with the substantive matter?
Research can be found anywhere on the internet, but what matters is how you
interpret and analyse it while keeping your foreign policy in mind. That is when you
need to carefully use your brain.
2. Whatever research you do, try to find the application of it. As in, why is the
substantive matter needed in the committee? How is it relevant? How can it help?
3. Chit are meant to be short, crisp and detailed at the same time. So always try to
keep it brief and to the point.
HOW TO RESEARCH FOR THE COMMITTEE
Whenever you start your research, first try understanding the meaning of research
and what do you plan to do in the committee. In our case try understanding ‘regional
conflicts’ as a basic term followed by understanding the parameters of what classifies
as a conflict and why?
Write the agenda somewhere on your electronic device or a notepad and try to break
it into parts. As you break it into parts try coming up with topics which can be
discussed in the committee. After writing the agenda and breaking it further, search
about the sub-topics on the internet and find more information about such as legal
aspects, government implication etc. It’s not necessary that you are able to find your
sub-topics without starting your basic research, as you start your basic research,
you’ll be coming across problems which are being faced across the world from which
you can derive your sub topics.
After coming up with your topics and researching on them; find out what all other
committees and bodies exist (National and international both) apart from UNGA
which are taking actions on this agenda. In our case, NGO’s suggestions can be also
considered to provide solutions. Go through the reports, suggestions, and actions
taken by those bodies and those given in national and
UN documents for e.g., Secretary General Report till date on the agenda and try to
analyse the problem and solution both and give your own input.
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After going through the National and International reports, do go through the
general news report on the agenda which will tell you about all the progress which
has been related to the agenda.
After you’re done with the above things, try to pick up case studies and find the
problems in it and how can they be improved (which will test your analytical skills)
and being able to implement the solution for that problem will help you in your
application skills. The above is just one of the many ways of research, and one can
differ as well. But in the end, just ensure that you understand what the agenda means
and what all requires to be done in order to have a successful result.
A STEP-BY-STEP GUIDE TO UNDERSTAND YOUR COUNTRY AND
ITS FOREIGN POLICY
1. Research whether your country has provided aid to either parties or has in any
form dependent upon either parties for trade or finances and what were the
statements made by your respective delegations
2. Go to the website of foreign affairs of your respective allotments and research the
latest statements and issues they have highlighted along with the foreign policy
documents. (Note: not all countries have a foreign policy document on a website. In
such cases use Wikipedia and look up your country and understand where it stands
in the geopolitical scenario)
3. It is okay to use Wikipedia for understanding but do not depend on the
information provided in it, try to utilize the references they have used as a
substantive way of researching.
DOCUMENTATION SUBMISSION & PREPARATION
The executive board has also provided a document with regards to the rules of
procedures, in the said document you will find the details of how to create all the
types of documents, their uses and reasons for creation along with other procedures
of the committee.
It should be noted that the executive board will make certain changes in the rules of
procedure according to what it feels is in the benefit of the committee.
Documents that will be accepted in the committee during the conference time:
1. Plan of Actions
2. Press release or statements
3. Working papers
4. Draft resolution (only 2 by the whole committee)
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Note: there is no numeric restriction on components 1-3 but the marking will be
done on an average basis for the same.
VALID SOURCE OF PROOF IN THE COMMITTEE NEWS SOURCES:
a. Reuters – Any Reuters article which clearly makes mention of the fact, or is in
contradiction of the fact being stated by a delegate in council.
(http://www.reuters.com/)
b. State-operated News Agencies – These reports can be used in the support of
or against the State that owns the News Agency. These reports, if credible or
substantial enough, can be used in support of or against any Country as such but in
that situation, they can be denied by any other country in the council. Some examples
are,
i. RIA Novosti (Russia) http://en.rian.ru/
ii. IRNA (Iran) http://www.irna.ir/ENIndex.htm
iii. BBC (United Kingdom) http://www.bbc.co.uk/
iv. Xinhua News Agency and CCTV (P.R. China) http://cctvnews.cntv.cn/
GOVERNMENT REPORTS: These reports can be used in a similar way as the
State Operated News Agencies reports and can, in all circumstances, be denied by
another country.
a. Government Websites like the State Department of the United States of America
(http://www.state.gov/index.htm) or the Ministry of Defense of the Russian
Federation (http://www.eng.mil.ru/en/index.htm)
b. Ministry of Foreign Affairs of various nations like India
(http://www.mea.gov.in/), People’s Republic of China
(http://www.fmprc.gov.cn/eng/), France (http://www.diplomatie.gouv.fr/en/),
Russian Federation (http://www.mid.ru/brp_4.nsf/main_eng).
c. Permanent Representatives to the United Nations Reports
http://www.un.org/en/members/ (Click on any country to get the website of the
Office of its Permanent Representative)
d. Multilateral Organizations like the NATO
(http://www.nato.int/cps/en/natolive/index.htm), ASEAN
(http://www.aseansec.org/), OPEC (http://www.opec.org/opec_web/en/), etc.
UN REPORTS: All UN Reports are considered are credible information or
evidence for the Executive Board of the Security Council.
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a. UN Bodies: Like the SC (http://www.un.org/Docs/sc/), GA

(http://www.un.org/en/ga/), HRC
(http://www.ohchr.org/EN/HRBodies/HRC/Pages/HRCIndex.aspx) etc.
b. UN Affiliated bodies like the International Atomic Energy Agency
(http://www.iaea.org/), World Bank (http://www.worldbank.org/), International
Monetary Fund (http://www.imf.org/external/index.htm), International
Committee of the Red Cross (http://www.icrc.org/eng/index.jsp), etc.
c. Treaty Based Bodies like the Antarctic Treaty System
(http://www.ats.aq/e/ats.htm), the International Criminal Court
(http://www.icccpi.int/Menus/ICC)
NOTE — Sources like Wikipedia [http://www.wikipedia.org/], Amnesty
International [http://www.amnesty.org/], Human Rights Watch
[http://www.hrw.org/] or newspapers like the Guardian
[http://www.guardian.co.uk],
Times of India: [http://timesofindia.indiatimes.com/],
However, these sources can be used for better understanding of any issue or on rare
occasions, be brought up in debate if the information given in such sources is in line
with the beliefs of a government.
Further, the information submitted as evidence citing reportage from sources such
as specified in this note may be at best, treated as having significance in terms of
persuasive value - e.g., to cement one’s assertions, but never as binding, indisputable
fact.

COMMITTEE MANDATE
“The pursuit of peace and progress cannot end in a few years in either victory or
defeat. The pursuit of peace and progress, with its trials and its errors, its successes
and its setbacks, can never be relaxed and never abandoned.”
Introduction Article 1(1) of the Charter of the United Nations (1945) states that the
first purpose of the United Nations (UN) is “[to] maintain international peace and
security, and to that end: to take effective collective measures for the prevention and
removal of threats ”
The General Assembly is made up of 6 main committees: Economic & Financial
(ECOFIN), Social, Cultural and Humanitarian (SOCHUM), Special Political and
Decolonization (SPECPOL), Administrative & Budgetary, Legal, and Disarmament
and International Security (DISEC). DISEC is the first committee of the General
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Assembly, discussing issues of diplomatic and military stability with the goals of
disarmament and increased international security. The idea of disarmament can
extent to a wide variety of potential threats; nuclear, biological and chemical warfare,
civil strife within nations, weaponization of space and many more.
According to Chapter IV, Article 10 of the UN Charter, committees of the UNGA
have the power and responsibility to make recommendations to the Security Council
and members states of the UNO after thorough discussions of issues that fit into
the mandate of their specific committee. It is important to remember that the
committee will be responsible for making recommendations for action: DISEC, as
part of the UNGA, is never authorized to declare sanctions, make war, or impose
other regulations on nations.
According to Chapter IV, Article 11(3): “The General Assembly may call the
attention of the Security Council to situations which are likely to endanger
international peace and security.”
FINANCIAL CRIME LEGISLATION AND DATA ANALYTICS IN FIGHTING
FINANCIAL CRIMES
Financial crime legislation aims to enhance transparency in financial transactions and
prevent criminals from using financial institutions for money laundering, terrorist
financing, bribery, and corruption. Financial integrity laws play a crucial role in
combating these crimes by imposing regulations on financial institutions and non-
financial entities. One of the key tools used to comply with these regulations and
fight financial crime is big data analytics. However, the effectiveness of these efforts
is often hampered by challenges related to data quality, quantity, regulatory
asymmetry across jurisdictions, and the tension between financial integrity laws and
data privacy.
KEY CONCEPTS:
Financial Crime Legislation and Integrity Laws: These laws aim to prevent and
deter money laundering, terrorist financing, and other financial crimes by enforcing
regulations that require financial institutions to gather information about their
customers, employees, and vendors. This includes "Know Your Customer" (KYC)
obligations, transaction monitoring, and reporting of suspicious activities
Big Data and Analytics: Big data refers to the large volumes of structured and
unstructured data that organizations generate. Analytics tools are used to extract
insights from this data, helping in identifying patterns, trends, and anomalies that
could indicate financial crimes.
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Regulatory Asymmetry: Different countries implement financial integrity

regulations to varying degrees, leading to regulatory asymmetry. Criminals exploit
gaps in enforcement and differing standards across jurisdictions.
Data Privacy Laws: Data privacy laws protect individuals' personal information
and establish rules for its collection, processing, and sharing. These laws can conflict
with the need for data access in fighting financial crime.
International Guidelines: Organizations like the Financial Action Task Force
(FATF) and the Basel Committee on Banking Supervision set international
standards for anti-money laundering (AML) and counter-terrorist financing (CTF)
measures.
AML Directives and Regulations: The European Union (EU) issues directives to
combat money laundering, with the latest directive (4AMLD) emphasizing beneficial
ownership information and risk assessment.
Transaction Monitoring: Financial institutions use data analytics tools to monitor
transactions for unusual or suspicious activities. This involves analysing vast
amounts of data to identify patterns that might indicate illicit activities.
Recommendations: Proposals for improving financial integrity and data analytics
include addressing regulatory challenges, promoting global coordination, enhancing
cybersecurity, and developing clear definitions and guidelines.
KEY CHALLENGES
Data Quality and Quantity Effective data analytics requires accurate and
comprehensive data, which can be challenging to obtain, especially across
international borders.
Data Quality: In the context of fighting financial crime, data quality refers to the
accuracy, reliability, and completeness of the data that financial institutions and
regulatory bodies have access to. Poor data quality, such as inaccurate or incomplete
information about customers, transactions, and entities, can lead to false positives
or false negatives in detecting suspicious activities. If the data used for analysis is not
reliable, it can undermine the effectiveness of anti-money laundering (AML) and
counter-terrorist financing (CTF) efforts.
Data Quantity: The volume of data generated by financial transactions is immense,
especially in the global financial system. Analyzing this vast amount of data in real-
time or near-real-time to detect patterns of financial crime can be challenging.
Financial institutions need advanced data analytics tools to process and make sense
of this data effectively.
THESE ARE THE FOLLOWING THREATS TO ILLICIT STORAGE OF DATA:
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When discussing threats to the illicit storage of data, we're referring to risks
associated with unauthorized, illegal, or malicious storage of personal or sensitive
information. These threats could include:
Data Breaches: Unauthorized individuals or entities may gain access to stored data
through cyberattacks or other means, leading to breaches of sensitive information.
Identity Theft: Illegally stored data can be used to impersonate individuals, commit
fraud, or steal identities for financial gain.
Black Market Activities: Criminals may store illegally obtained data on the black
market, where it can be bought and sold for various malicious purposes, including
financial fraud.
Illegal Surveillance: Illicit storage of data can also involve unlawful surveillance,
where personal information is collected and stored without consent or legal
authorization.
Espionage: Governments and other actors may engage in the unauthorized storage
of sensitive data for espionage or intelligence purposes.
Data quality and quantity are challenges that impact the effectiveness of efforts to
combat financial crime, whereas threats to illicit data storage relate to risks associated
with unauthorized or malicious storage of personal or sensitive information.
Regulatory Asymmetry:
Inconsistent implementation of financial integrity regulations across countries
creates opportunities for criminals to exploit regulatory gaps. Inconsistent Laws and
Standards: Different countries have different legal frameworks and standards for
addressing data crimes. This inconsistency can create confusion for international
cooperation and hinder the ability to effectively prosecute cybercriminals or respond
to cross-border data breaches.
Jurisdictional Challenges: Data crimes often cross-national borders, making it
difficult to determine which jurisdiction has the authority to investigate and
prosecute. Criminals can exploit jurisdictional gaps, operating in countries with lax
regulations to evade consequences.
Differing Definitions: The definitions of various data crimes, such as hacking,
identity theft, and unauthorized access, may vary across jurisdictions. This can
complicate international cooperation and coordination in tackling these crimes.
Extradition and Cooperation: Extraditing cybercriminals from one country to
another for prosecution can be challenging if the legal systems and extradition
treaties between the countries do not align.
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Data Sharing and Reporting: Reporting data breaches and cyber incidents to
authorities can be inconsistent due to varying reporting requirements and thresholds
in different jurisdictions. This can impede the timely response to data breaches and
hinder efforts to prevent further damage.
Digital Evidence Handling: The rules and procedures for collecting, preserving, and
presenting digital evidence in court may differ among countries. This can affect the
admissibility of evidence and the successful prosecution of data crimes.
Legal Barriers: Some jurisdictions may have legal barriers to accessing data stored in
their territory for investigation purposes. This can hinder the ability to gather critical
evidence and track down cybercriminals.
Resource Disparities: Not all countries have the same resources and capabilities to
combat data crimes. Criminals may target jurisdictions with weaker cybersecurity
measures or law enforcement capabilities.
Addressing Regulatory Asymmetry:
To address regulatory asymmetry and enhance the effectiveness of combating data
crimes, international cooperation and coordination are crucial. This includes:
International Agreements: Developing international agreements, treaties, and
conventions that establish common standards for addressing data crimes and
ensuring consistent enforcement across borders.
Information Sharing: Establishing channels for sharing information and intelligence
about cyber threats and data breaches among countries and relevant law
enforcement agencies.
Capacity Building: Assisting less-resourced countries in building their cybersecurity
and law enforcement capabilities to better combat data crimes.
Harmonization of Laws: Encouraging countries to harmonize their legal frameworks
for addressing data crimes, ensuring consistent definitions, reporting requirements,
and penalties.
Mutual Legal Assistance Treaties (MLATs): Strengthening and streamlining MLATs
to facilitate cooperation in investigating and prosecuting data crimes across
jurisdictions.
Cross-Border Collaboration: Promoting collaboration between law enforcement
agencies, cybersecurity experts, private sector entities, and international
organizations to address data crimes collectively.
Regulatory asymmetry poses challenges to combating data crimes due to the
inconsistent implementation of laws and standards across jurisdictions. Addressing
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these challenges requires international cooperation, harmonization of laws, and the

development of effective mechanisms for information sharing and cross-border
collaboration.
Data Privacy vs. Financial Integrity: Striking a balance between data privacy laws
and the need for accessible data to fight financial crime is complex and often
contentious. The challenge of balancing data privacy and financial integrity revolves
around finding a harmonious intersection between protecting individuals' privacy
rights and effectively combating data crimes, including cybercrime, money
laundering, and financial fraud. Here's how the tension between these two factors
presents a challenge:
Individual Rights: Data privacy laws and regulations are designed to safeguard
individuals' personal and sensitive information. These laws give individuals control
over how their data is collected, processed, and shared.
Consent: Many data privacy laws require organizations to obtain individuals'
informed consent before collecting and using their data. This consent ensures that
individuals have a say in how their information is used.
Transparency: Data privacy laws emphasize the importance of transparency in data
processing. Individuals have the right to know what data is collected, why it's
collected, and how it will be used.
Cross-Border Data Flows: International data flows are complicated by differing data
privacy regulations across countries. Some countries have strict regulations that
restrict the transfer of personal data across borders.
FINANCIAL INTEGRITY IMPERATIVES
Anti-Money Laundering (AML) and Fraud Prevention: Financial institutions and
regulatory bodies need access to accurate and comprehensive data to detect and
prevent money laundering, fraud, and other financial crimes.
Transaction Monitoring: Effective transaction monitoring involves analyzing large
volumes of data to identify suspicious patterns and activities that may indicate illicit
financial activities.
Know Your Customer (KYC) Requirements: Financial institutions must verify the
identity of their customers to ensure they are not involved in criminal activities and
comply with regulations.
Global Cooperation: Fighting financial crime often requires sharing data and
collaborating across borders to track down criminals and their illicit activities.
The Challenge:
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The challenge arises from the conflict between these two important priorities:
Access to Data for Financial Integrity: Effective measures to combat financial crime
often require access to a wide range of data, including personal and transactional
information. Privacy regulations may restrict the collection and sharing of such data.
Respecting Data Privacy: Stricter data privacy laws limit the extent to which
organizations can collect, use, and share personal data, even for legitimate purposes
like fraud prevention and financial integrity.
SOLUTIONS AND APPROACHES TO FIGHT DATA CRIMES
Risk-Based Approach: Tailoring data collection and usage based on the level of risk
involved. Organizations can focus their efforts on high-risk areas while minimizing
data collection in low-risk scenarios.
Anonymization and Encryption: Implementing strong data security measures, like
anonymizing and encrypting data, can protect individuals' privacy while still enabling
effective analysis for financial integrity purposes.
Consent Management: Developing consent management processes that provide
clear explanations of how data will be used for financial integrity purposes can help
individuals understand and agree to data processing.
Cross-Border Collaboration: Encouraging international cooperation to establish
common standards for data privacy and financial integrity. This could involve
creating frameworks that facilitate data sharing while respecting privacy rights.
Technology Innovation: Developing advanced technologies, such as privacy-
preserving data analytics, that allow financial institutions to analyse data without
exposing individual identities.
Balancing data privacy and financial integrity is a complex challenge that requires
careful consideration and collaboration among regulators, financial institutions,
technology experts, and privacy advocates. Striking the right balance ensures that
individuals' privacy rights are respected while also enabling effective measures to
combat data crimes and safeguard the integrity of the financial system.
Cross-Border Cooperation: Criminal activities transcend national borders,
necessitating international cooperation among regulatory bodies and law
enforcement agencies.
RECOMMENDATIONS AND SOLUTIONS:
Transparency Exemptions: Regulatory bodies like the Financial Stability Board
(FSB) and FATF should collaborate to establish exemptions in data privacy laws for
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risk management and security purposes. These exemptions should enable

information sharing among financial institutions.
Standardization and Data Formats: The FSB should promote global coordination to
standardize data formats and financial definitions for better risk data aggregation and
reporting.
Cybersecurity Standards: The FSB should develop international standards and best
practices to address cybersecurity concerns in the financial sector.
Data Analytics Promotion: Financial regulators should encourage the use of data
analytics and monitoring tools by banks and fintech companies to enhance financial
crime detection and prevention.
Technology Innovation: Emerging technologies like fintech, regulation-tech, smart
contracts, and distributed ledgers can play a significant role in improving financial
integrity and collaboration between the private and public sectors.
THE RISKS OF PUBLIC DATA: BALANCING PRIVACY AND GOVERNMENT
FUNCTIONS
In today's interconnected world, the challenges of managing public data while
safeguarding individual privacy have become increasingly complex. As we navigate
this landscape, it's essential to strike a delicate balance between government
functions that require data and the protection of personal privacy. Recent events and
technological advancements highlight the urgent need to address these issues. Let's
explore how the evolution of data collection and accessibility has brought about new
challenges and considerations.
Shifting Landscape
In the wake of a tragic unsolved murder in Cambridge, Massachusetts, a city
councillor was faced with both public inquiries and personal reflections. While
primary questions regarding the incident remained unanswered due to law
enforcement constraints, the councillor realized that seemingly innocuous
government actions often impact citizens' privacy rights in unexpected ways. As
data, or information, has evolved into a valuable asset, it has transitioned from being
slow and cumbersome to access, to becoming readily available at our fingertips.
Historical Perspective
Taking a journey back in time, we can observe how data collection and accessibility
have transformed over the years. In earlier times, interactions with government
required physical presence—individuals had to travel to government offices to
access information. Records were maintained on paper, limiting the scale of data
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collection due to logistical constraints. However, as technology advanced, so did the

ability to gather, combine, and analyse data, creating a new set of challenges.
The Internet's Impact
With the advent of the internet, the barriers that once separated public data from
the general public were eroded. Information that previously required an in-person
visit to access is now just a few keystrokes away. Consequently, individuals' personal
data, such as addresses, names, and birthdates, once held by government entities,
has become increasingly exposed. This data, when aggregated and manipulated by
software tools, can be used to target individuals for various purposes
The Challenge of Balance
The challenge lies in managing the dual objectives of efficient government
operations and safeguarding privacy rights. Governments require data for various
functions, including taxation and public service provision. However, the expanded
availability of data through digital platforms raises concerns about unintended
consequences, such as data being used in ways not originally intended.
Privacy and Security Implications
As the accessibility and scope of public data grow, so do concerns related to privacy
and security. Unauthorized access, data breaches, and the potential misuse of
personal information are significant threats that cannot be ignored. Balancing the
ease of data availability with the protection of sensitive information is a critical task
for government entities.
The Path Forward
While data collection is essential for government operations, it must be carefully
managed to avoid overreach and potential abuse. Stricter limitations on data
collection, coupled with robust security measures, can help mitigate the risks
associated with public data. Implementing policies that focus on minimizing data
exposure and maintaining transparency regarding data usage will contribute to a
more secure and privacy-conscious digital governance landscape.
Challenges of Transparency in Addressing Information Asymmetries in the
Data-Driven Market
The previous sections underscored the diverse ways that information disparities arise
and persist even after the EU's implementation of the GDPR. The emergence of
information asymmetry within the data-driven market brings to light specific
concerns regarding privacy and data protection. This section will delve into the
intricacies of transparency and its intricate connection to existing information
asymmetries. While it might seem logical to enhance transparency as a solution, this
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section will elucidate the limitations of transparency in mitigating information

asymmetry. Unlike traditional markets, the data-driven landscape presents distinct
challenges in terms of transparency.
Unique Transparency Dynamics
The foremost repercussion of information asymmetry between consumers and
companies is the glaring lack of transparency. However, the extent to which
transparency can be established varies significantly between conventional companies
with focused data processing objectives and Data-Driven Companies (DDCs)
whose business models pivot entirely on profiting from personal data monetization.
Conventional Companies vs. DDCs
For conventional companies, compliance with GDPR's requisites is relatively
feasible, contributing significantly to ensuring the elevated level of data protection it
aspires to attain. The term "conventional companies" pertains to entities not
primarily driven by personal data collection, analysis, and monetization. These
entities encounter fewer information asymmetries. In scenarios like online
purchases, consumers face fewer information imbalances. A small, specialized online
store, for instance, necessitates customers' log-in details, email addresses, banking
particulars, names, and addresses for delivery. Additional data could involve
purchase history, alternate addresses, or newsletter subscriptions. These situations
entail limited personal data utilization, enabling these companies to promptly inform
consumers about data processing, substantiate its purpose, and uphold consumer
rights.
In contrast, DDCs function on a fundamentally different paradigm. These
companies thrive on pervasive data collection, intricate processing employing
advanced algorithms, and a perpetual drive for comprehensive data collection and
detailed analysis. The GDPR's adherence alone does not guarantee that average
consumers can comprehend, comprehend, and effectively exercise their rights within
this complex system.
TRANSPARENCY CHALLENGES IN THE DATA-DRIVEN MARKET
The intricacies of establishing transparency within the data-driven market start at the
initial contact point. In traditional transactions, a contract materializes upon
purchase. Yet, in the data-driven arena, the subscription to online services, such as
social media platforms, constitutes an implicit contract where data is collected and
personalized ads are displayed. However, the nuances of these contracts can easily
elude consumers, often leading to a lack of clarity or even awareness about the
contractual nature of their engagement.
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Privacy policies hold a crucial role in defining the consumer's stance vis-à-vis data-
driven service providers, serving as the primary means for data controllers to meet
their obligations per GDPR Articles 13 and 14. Unfortunately, research shows that
few consumers fully read privacy policies. Moreover, privacy policies are often
convoluted, and user settings granting consumers control over personal data are
challenging to locate and may not always be effective. The complexity of data
collection compounds this challenge.
Challenges in Data Analysis and Profiling
The complexity of behavioral profiling algorithms and the broader data-driven
market engenders a profound lack of transparency. Algorithms involved in creating
profiles are exceptionally intricate and yield results almost unintelligible to humans.
The datasets they analyze are vast and diverse, and their reasoning methods differ
from conventional human deductive reasoning. Consequently, even IT experts
struggle to comprehend these algorithms, making transparency challenging.
The Conundrum of Informed Decision-Making
In the face of such information asymmetry, transparency serves as an essential
safeguard for consumers. It enables data subjects to understand how their data is
processed, empowering them to act on it and maintain control over their privacy.
Nonetheless, the complexity of data flows, processing, and analysis within the data-
driven market renders transparency ineffective. Consumers struggle to identify
relevant data controllers, investigate processing, and manage their online personal
data footprint.
Transparency is pivotal for individuals to exercise their rights and assert control over
their privacy. Yet, within the data-driven realm, the extent of information asymmetry
surpasses consumers' ability to make informed decisions and protect themselves
from excessive data collection, unauthorized sharing, and profiling consequences.
This predicament underscores the pressing need for novel approaches to address
information asymmetries within the data-driven landscape.
CONCLUSION
Efforts to combat financial crime rely heavily on effective data analytics powered by
high-quality, accessible data. Achieving this goal involves addressing challenges
posed by data privacy laws, regulatory asymmetry, and the need for international
cooperation. By implementing the recommended solutions and promoting
collaboration among regulatory bodies, financial institutions, and technology
innovators, the fight against financial crime can be bolstered, leading to a more
secure and transparent financial ecosystem. The Executive Board expects the
delegates to formulate topics for moderated caucus from the key concepts explained
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in this background guide. The Dias also expects a holistic approach wherein arguing
on your portfolio’s national laws in context with the International platform is
necessary in coming onto a collaborative conclusion and solution.
In the digital age, the challenges surrounding public data have become more
pronounced than ever before. As technology continues to evolve, governments must
adapt their data practices to strike the right balance between efficient operations and
the protection of citizens' privacy. With a forward-thinking approach and a
commitment to responsible data management, government entities can navigate
these challenges and maintain the trust of the public they serve.