Combating Global Cybercrime and the Role of the United Nations Ad Hoc Group
Introduction
Cybercrimes have been traversing peripheries and growing at a fast pace. Cybercrime is known to be an offensive action that either targets or operates through a computer, a computer network or a networked device, according to Kaspersky. In the “Era of globalisation” and a “Digitally coalesced world”, there has been an increase in International cybercrime. Cybercrime could be for personal or political objectives. Nevertheless, Cybercrime aims to sabotage networks for motives other than gain and be carried out either by organisations or individuals. Some of the cybercriminals have no national boundaries and are considered a global threat. They are likewise inordinately technically adept and operate avant-garde strategies.
The 2023 Global Risk Report points to exacerbating geopolitical apprehensions that have increased the advanced persistent threats (APTs), which are evolving globally as they are ubiquitous. Christine Lagarde, the president of the European Central Bank and former head of the International Monetary Fund (IMF), in 2020 cautioned that a cyber attack could lead to a severe economic predicament. Contemporary technologies and hazardous players have grown at an exceptional gait over the last few decades. Also, cybercrime has heightened on the agenda of nation-states, establishments and global organisations, as per the World Economic Forum (WEF).
The Role of the United Nations Ad Hoc Committee
In two shakes, the United Nations (UN) has a major initiative to develop a new and more inclusive approach to addressing cybercrime and is presently negotiating a new convention on cybercrime. The following convention seeks to enhance global collaboration in the combat against cybercrime. The UN has a central initiative to develop a unique and more inclusive strategy for addressing cybercrime. The UN passed resolution 74/247, which designated an open-ended ad hoc committee (AHC) in December 2019 entrusted with setting a broad global convention on countering the use of information and Communication Technologies (ICTs) for illicit pursuits.
The Cybercrime treaty, if adopted by the UN General Assembly (UNGA) would be the foremost imperative UN mechanism on a cyber point. The treaty could further become a crucial international legal framework for global collaboration on arraigning cyber criminals, precluding and investigating cybercrime. There have correspondingly been numerous other national and international measures to counter the criminal use of ICTs. However, the UN treaty is intended to tackle cybercrime and enhance partnership and coordination between states. The negotiations of the Ad Hoc Committee with the member states will be completed by early 2024 to further adopt the treaty during the UNGA in September 2024.
However, the following treaty is said to be complex. Some countries endorse a treaty that criminalises cyber-dependent offences and a comprehensive spectrum of cyber-enabled crimes. The proposals of Russia, Belarus, China, Nicaragua and Cuba have included highly controversial recommendations. Nevertheless, India has backed for criminalising crimes associated with ‘cyber terrorism’ and the suggestions of India to the UN Ad Hoc committee are in string with its regulatory strategy in the country. Similarly, the US, Japan, the UK, European Union (EU) member states and Australia want to include core cyber-dependent crimes.
Nonetheless, though a new treaty could become a practical instrument in the international step against cybercrime, it must conform to existing global agencies and networks that occupy similar areas. This convention will further supplement the "Budapest Cybercrime Convention" on cybercrime that materialised in the 1990s and was signed in Budapest in the year 2001.
Conclusion
According to Cyber Security Ventures, global cybercrime is expected to increase by 15 per cent per year over the next five years, reaching USD 10.5 trillion annually by 2025, up from USD 3 trillion in 2015. The UN cybercrime convention aims to be more global. That being the case, next-generation tools should have state-of-the-art technology to deal with new cyber crimes and cyber warfare. The global crevasse in nation-states due to cybercrime is beyond calculation. It could lead to a great cataclysm in the global economy and threaten the political interest of the countries on that account. It is crucial for global governments and international organisations. It is necessary to strengthen the collaboration between establishments (public and private) and law enforcement mechanisms. An “appropriately designed policy” is henceforward the need of the hour.
References
- https://www.kaspersky.co.in/resource-center/threats/what-is-cybercrime
- https://www.cyberpeace.org/
- https://www.interpol.int/en/Crimes/Cybercrime
- https://www.bizzbuzz.news/bizz-talk/ransomware-attacks-on-startups-msmes-on-the-rise-in-india-cyberpeace-foundation-1261320
- https://www.financialexpress.com/business/digital-transformation-cyberpeace-foundation-receives-4-million-google-org-grant-3282515/
- https://www.chathamhouse.org/2023/08/what-un-cybercrime-treaty-and-why-does-it-matter
- https://www.weforum.org/agenda/2023/01/global-rules-crack-down-cybercrime/
- https://www.weforum.org/publications/global-risks-report-2023/
- https://www.imf.org/external/pubs/ft/fandd/2021/03/global-cyber-threat-to-financial-systems-maurer.htm
- https://www.eff.org/issues/un-cybercrime-treaty#:~:text=The%20United%20Nations%20is%20currently,of%20billions%20of%20people%20worldwide.
- https://cybersecurityventures.com/hackerpocalypse-cybercrime-report-2016/
- https://www.coe.int/en/web/cybercrime/the-budapest-convention
- https://economictimes.indiatimes.com/tech/technology/counter-use-of-technology-for-cybercrime-india-tells-un-ad-hoc-group/articleshow/92237908.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
- https://consultation.dpmc.govt.nz/un-cybercrime-convention/principlesandobjectives/supporting_documents/Background.pdf
- https://unric.org/en/a-un-treaty-on-cybercrime-en-route/
Related Blogs
Cyber, is the new weapon today! Cyber Violence is violence in cyber-space that has led to violation of cyber rights of individuals, especially those of children and women. Online violence and harassment have been overlooked laying more emphasis on offline or physical violence.
New Delhi [India], November 12 (ANI/NewsVoir): Cyber, is the new weapon today! Cyber Violence is violence in cyber-space that has led to violation of cyber rights of individuals, especially those of children and women. Online violence and harassment have been overlooked laying more emphasis on offline or physical violence. Cyber violence very often permanently, psychologically impacts the victims and their families. Various forms of threats ranging from morphing, stalking, solicitation of children for sexual purposes, online grooming, have grave consequences on the victims disturbing their mental well-being. Maintaining mental well-being in cyber space is a challenge we wish to promote and advocate for, in order to build responsible netizens.
Together, we stand against violation of cyber rights and strongly believe; it is critical to allow everyone to feel safe online. Netizen’s safety rights must be protected from all kinds of abuse and violence. Setting a mission of ‘Making India Cyber Safe for Children and Women’, Responsible Netism a social purpose organization in association with CyberPeace Foundation, an award-winning Cyber Security think tank working towards bringing CyberPeace in CyberSpace for more than two decades, host its 6th Annual National Conference on Cyber Psychology themed “India Fights Cyber Violence”, scheduled for Saturday, January 22, 2022. Ta advocate on the theme, the campaign #IndiaFightsCyberViolence was launched on November 11, 2021 by Vinay Sahasrabuddhe – President ICCR, Member of Parliament, Priyank Kanoongo – Chairperson, NCPCR and Rekha Sharma, Chairperson NCW at the ICCR Auditorium Delhi. The session was also attended by the CyberPeace Foundation team members.
Vinay Sahasrabuddhe has been a strong advocate of online safety of children, he shared his visionary words and focused on 3 R’s, Research, Reform and Reshape. He recommended extensive research was necessary to strongly voice concerns and remedies based on evidence-based research which would help us reform intervention strategies and the reshape the existing framework to best suit the needs to protect women and children in cyber space. The NCW Chairperson Rekha Sharma shared how critical it is to create awareness about online safety rights of women and reiterated the need for spreading awareness about online safety to reach the last mile in order to build collective action and bring change. She also mentioned the need to conducting nationwide trainings for the police personal to handle and report online distress.
Priyank Kanoongo, the Chairperson of NCPCR has been very proactively advocating for the cause of child online protection and has been instrumental in voicing critical in fiercely voicing his thoughts on protecting online safety rights of children across India. He shared the following thoughts at the launch. He said there is dire need to educate parents about online safety in order to let the information trickle down to their children. He said NCPCR does not hold any inhibitions in naming and shaming violators of child rights be it offline or online and will always raise a strong voice against platform ‘s inability to protect children in cyber space.
Vineet Kumar, Founder and Global President, CyberPeace Foundation, the partnering organization shared that this nationwide movement will build great momentum on the cause of online protection of children and women cross the country and urged organizations across India to pledge their support to the cause. The more people joining this movement would build collective pressure to formulate guidelines and policies the make cyber space safe for children and women. Sonali Patankar – Founder Responsible Netism shared the objective of the campaign was to let online safety reach the last mile and build on aggressive reporting of online content. The movement was an effort to make the campaign India Fights Cyber Violence to make India cyber safe for children.
She shared that the campaign launch would be followed by a nationwide research conducted to understand parents perspectives on cyber violence which would be handy in representing recommendations on women and child safety protocols through commoners. There would be a round table for organizations working with children chaired by Priyank Kanoongo on November 22 followed by a round table held for organizations working with Women chaired by Rekha Sharma Madam on December 22, 2021. The campaign would culminate in the Responsible Netism 6th National Cyber Psychology Conference scheduled for January 22, 2022 that would witness a compilation of the research and the work done throughout the campaign.
The launch was attended by Sujay Patki – Social Activist and Advisor Responsible Netism and Shilpa Chandolikar trustee Responsible Netism, Adv Khushbu Jain Advocate Supreme Court of India followed by the vote of thanks by Unmesh Joshi – Co-founder Responsible Netism. With the success of the launch and the support of NCPCR and NCW, we are sure to make this a nation-wide movement to protect cyber safety rights of netizens and strongly believe in collective action to make India Cyber Safe for Women and Children.
This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
Introduction
The Indian government has developed the National Cybersecurity Reference Framework (NCRF) to provide an implementable measure for cybersecurity, based on existing legislations, policies, and guidelines. The National Critical Information Infrastructure Protection Centre is responsible for the framework. The government is expected to recommend enterprises, particularly those in critical sectors like banking, telecom, and energy, to use only security products and services developed in India. The NCRF aims to ensure that cybersecurity is protected and that the use of made-in-India products is encouraged to safeguard cyber infrastructure. The Centre is expected to emphasise the significant progress in developing indigenous cybersecurity products and solutions.
National Cybersecurity Reference Framework (NCRF)
The Indian government has developed the National Cybersecurity Reference Framework (NCRF), a guideline that sets the standard for cybersecurity in India. The framework focuses on critical sectors and provides guidelines to help organisations develop strong cybersecurity systems. It can serve as a template for critical sector entities to develop their own governance and management systems. The government has identified telecom, power, transportation, finance, strategic entities, government entities, and health as critical sectors.
The NCRF is non-binding in nature, meaning its recommendations will not be binding. It recommends enterprises allocate at least 10% of their total IT budget towards cybersecurity, with monitoring by top-level management or the board of directors. The framework may suggest that national nodal agencies evolve platforms and processes for machine-processing data from different sources to ensure proper audits and rate auditors based on performance.
Regulators overseeing critical sectors may have greater powers to set rules for information security and define information security requirements to ensure proper audits. They also need an effective Information Security Management System (ISMS) instance to access sensitive data and deficiencies related to operations in the critical sector. The policy is based on a Common but Differentiated Responsibility (CBDR) approach, recognising that different organisations have varying levels of cybersecurity needs and responsibilities.
India faces a barrage of cybersecurity-related incidents, such as the high-profile attack on AIIMS Delhi in 2022. Many ministries feel hamstrung by the lack of an overarching framework on cybersecurity when formulating sector-specific legislation. In recent years, threat actors backed by nation-states and organised cyber-criminal groups have attempted to target the critical information infrastructure (CII) of the government and enterprises. The current guiding framework on cybersecurity for critical infrastructure in India comes from the National Cybersecurity Policy of 2013. From 2013 to 2023, the world has evolved significantly due to the emergence of new threats necessitating the development of new strategies.
Significance in the realm of Critical Infrastructure
India faces numerous cybersecurity incidents due to a lack of a comprehensive framework. Critical Information Infrastructure like banking, energy, healthcare, telecommunications, transportation, strategic enterprises, and government enterprises are most targeted by threat actors, including nation-states and cybercriminals. These critical information sectors especially by their vary nature as they hold sensitive data make them prime targets for cyber threats and attacks. Cyber-attacks can compromise patient privacy, disrupt services, compromise control systems, pose safety risks, and disrupt critical services. Hence it is of paramount importance to come up with NCRF which can potentially address the emerging issues by providing sector-specific guidelines.
The Indian government is considering promoting the use of made-in-India products to enhance Cyber Infrastructure
India is preparing to recommend the use of domestically developed cybersecurity products and services, particularly for critical sectors like banking, telecom, and energy, to enhance national security in the face of escalating cybersecurity threats. The initiative aims to enhance national security in response to increasing cybersecurity threats.
Conclusion
Promoting locally made cybersecurity products and services in important industries shows India's commitment to strengthening national security. A step of coming up with the National Cybersecurity Reference Framework (NCRF) which outlines duties, responsibilities, and recommendations for organisations and regulators shows the critical step towards a comprehensive cybersecurity policy framework which is a need of the hour. The government underscoring made-in-India solutions and allocating cybersecurity resources underlines its determination to protect the country's cyber infrastructure in light of increasing cyber threats & attacks. The NCRF is expected to help draft sector-specific guidelines on cyber security.
References
- https://indianexpress.com/article/business/market/overhaul-of-cybersecurity-framework-to-safeguard-cyber-infra-govt-may-push-use-of-made-in-india-products-9133687/
- https://vajiramandravi.com/upsc-daily-current-affairs/mains-articles/national-cybersecurity-reference-framework-ncrf/
- https://m.toppersnotes.com/current-affairs/blog/to-push-cyber-infra-govt-may-push-use-of-made-in-india-products-DxQP
- https://appkida.in/overhaul-of-cybersecurity-framework-in-2024/
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Introduction
In the multifaceted world of international trade and finance, cross-border transactions constitute the heart of economic relationships that span the globe. The threads that intertwine forming the fabric of global commerce are ceaselessly dynamic and exhibit an intricate pattern of complexity especially when it comes to the regulated movement of capital. It's a domain where economies connect, where businesses engage in sublime commerce, and where technology and regulation intersect at critical juncture. These guidelines will play a critical role in the regulation of capital, fortification of financial integrity, and transparency of regulatory and cross-border payments. The key highlights of this regulation include strict pre-authorization for non-bank entities, mandating specific accounts for import and export PA-CBs and a transaction ceiling of 25,00,000 Rupees.
The Vigilance of RBI
The Reserve Bank of India (RBI), ever vigilant in its shepherding role over the nation's financial stability and integrity, has taken decisive strides to dispel the haze that once clouded this critical sector. With the issuance of a revelatory circular dated October 31, 2023, the RBI has unveiled a groundbreaking framework that redefines the terrain for these pivotal financial entities, aptly christened as Payment Aggregators – Cross Border (PA-CB). In deploying this comprehensive array of regulations, the RBI demonstrates a robust commitment to harmonizing and synchronizing the oversight of payments within the country's financial fabric, extending its meticulous regulatory weave from domestic Payment Aggregators (PAs) to the PA-CBs, a sector previously undistinguished in formal oversight.
The prescriptive measures announced by the RBI are nothing short of a regulatory beacon that cuts through the fog of uncertainty, illuminating a clear path forward for entities dedicated to facilitating cross-border payment transactions pertaining to the import and export of permissible goods and services in India through online modes. Inclusiveness is a hallmark of the RBI’s directive, encompassing a diverse cadre of financial actors, ranging from Authorized Dealer (AD) banks and conventional Payment Aggregators (PAs), to the emergent breed of PA-CBs actively engaged in processing these critical international payment transactions.
Key Aspects of Regulation
One of the most striking aspects of this new regulatory regime is the RBI's insistence on pre-authorization. All non-bank entities providing PA-CB services are impelled to apply to the apex bank for authorisation by April 30, 2024. This is far from a perfunctory gesture; it represents a profound departure from the bygone era when these entities functioned under a patchwork of provisional guidelines and ad-hoc circulars. Indeed, with this resolute move, the RBI signals its intention to embrace these entities within its direct regulatory gambit, an acknowledgement of the shifting tides and progressive intricacies characteristic of cross-border payments.
The tapestry of new rules is complex, setting forth an array of prerequisites for entities aspiring for authorization. For instance, non-bank PA-CBs are obliged to register with the Financial Intelligence Unit-India (FIU-IND) as a preliminary step before commencing the application process. Moreover, the financial benchmarks set are notably rigorous. Non-banks must boast a minimum net worth of ₹15 crores at the time of the application—a figure that escalates to a robust ₹25 crores by the fiscal deadline of March 31, 2026.
Way Forward
As if these requirements weren't indicative enough of the RBI’s penchant for detail and precision, the guidelines become yet more granular when addressing specific types of PA-CBs. Import-only PA-CBs are mandatorily obliged to maintain an Import Collection Account (ICA) with an AD Category-I scheduled commercial bank, while export-only PA-CBs are instructed to maintain an Export Collection Account (ECA), which can be maintained in Indian Rupees (INR) or any permissible foreign currency. The nuance here is palpable; payments for import transactions must be received in a meticulously managed escrow account of the PA, prior to being funneled into the ICA for smooth settlement with overseas merchants.
Conversely, export-only PA-CBs' proceeds from international sales must be swiftly credited to the relevant currency ECA. This meticulous accounting ensures that the flow of funds is both transparent and traceable, adhering to the utmost standards of financial probity.
Yet, perhaps the most emphatic of the RBI's pronouncements is the establishment of a transaction ceiling. PA-CBs have their per-transaction limit capped at ₹25,00,000 for each unit of goods or services exchanged. This calculated move is transparent in its objective to mitigate risk—a crucial aspect when one considers the potential implications of these transactions on the country’s fiscal health and the integrity of its financial systems.
It is no exaggeration to declare that with these guidelines, the RBI is effectuating a seismic shift in the regulation of cross-border payment transactions. There's a fundamental transformation taking place—a metamorphosis—from a loosely defined existence of PA-CBs to one of distinct clarity, under the direct and unswerving supervisory gaze of the regulator. The compliance burden, indeed, has become heavier, yet the return is a compass that points decisively towards secure harbours.
As we embark upon the fresh horizons that these rules bring into view, it is imperative to acknowledge that the RBI's regulatory innovations represent far more than a mere codification of dos and don'ts. They embody a visionary stride towards safeguarding and fortifying the architecture of international payments, a critical component of India's burgeoning presence on the world economic stage.
Conclusion
The journey ahead, as we navigate these newly charted waters with the RBI's guidelines as our steadfast North Star, will no doubt be replete with challenges, adaptations and learning curves for the array of operational entities. But it is with confidence we can say, the path is set; the map is clear. The complex labyrinth of cross-border financial transactions is now demystified, and the RBI's clarion call beckons us towards a future marked by regulation, security, and above all else, reliability in the cosmopolitan tapestry of global trade. RBI’s guidelines provide a comprehensive framework for standardizing cross-border financial transactions in India. This decision is a monumental step towards maintaining cyber peace in cyberspace.
References:
- https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12561&Mode=0
- https://www2.deloitte.com/in/en/pages/tax/articles/tax-alert-Regulation-of-payment-aggregator-cross-border-pa-cb.html
- https://www.jsalaw.com/newsletters-and-updates/rbis-new-guidelines-to-govern-payment-aggregators-in-cross-border-transactions/
