THE BANQUE DE FRANCE UNVEILS PROGRESS ON CENTRAL BANK DIGITAL CURRENCY
Using end-to-end blockchain infrastructure, the Banque de France has reported that it has used an in-house developed blockchain that used a central bank digital currency to settle an issuance of digital financial securities. This first trial was done in partnership with Société Générale and issued a total of €40 million of covered bonds.
This central bank digital currency is going to be used for interbank settlements, instead of consumer payments. This trial has offered great success for both Société Générale and Banque de France and places the country at the forefront of digital financial securities landscape.
Since the launch of the digital Euro programme, there have been many applications and an increased interest to test the central bank digital currency. This demand highlights the commitment that the country has to innovations in payment technology. During the programme launch, the central bank stated that they are not looking to replace coins and banknotes and that the present version of this central bank digital currency is being designated for financial institutions only.
As part of its ongoing research of a digital Euro, the Banque de France commits to continue testing with other financial institutions over the coming weeks.
ZOOM ACQUIRES IDENTITY MANAGEMENT FIRM KEYBASE IN COMMITMENT TO IMPROVE SECURITY
Based on their 90-day plan to strengthen the security of the video communications platform, Zoom has purchased identity management firm, Keybase. The Keybase team will integrate with the Zoom family to build end-to-end encryption that is capable of scaling to hundreds of millions of participants, while creating a truly private video communication platform.
Presently, the audio and video content that flows between Zoom clients is only encrypted at each sending device and is not decrypted until it reaches the recipients’ device. Zoom’s plan is to offer an end-to-end encryption mode to all paid accounts by providing users with public cryptographic identities.
- Continue to work with users to enhance the reporting mechanisms available to meeting hosts to report unwanted and disruptive attendees.
- Zoom does not and will not proactively monitor meeting contents, but their trust and safety team will continue to use automated tools to look for evidence of abusive users based upon other available data
- Zoom has not and will not build a mechanism to decrypt live meetings for lawful intercept purposes
- Zoom does not have the means to insert employees or others into meetings without being reflected in the participant list and will not build any cryptographic backdoors to allow for the secret monitoring of meetings.
COVID-19 RELATED CRIMES ON THE RISE, INCLUDING FRAUD, CYBERCRIME AND EXPLOITATION OF GOVERNMENT FUNDS
While the world continues to focus and adjust to the global challenges, human suffering and economic disruption that the COVID-19 pandemic has led to, there has been an increase in COVID-19 related financial crimes.
According to the Financial Actions Task Force (FATF) the ability for the government and private sector to implement anti-money laundering and counter-terrorist financing obligations has been greatly impacted. This could potentially lead to emerging risks and vulnerabilities including:
Implementation of AML/CFT policy responses can support the measures required to respond to COVID-19, including the new associated risks and vulnerabilities. Learn about a few examples of these proactive responses.
- Bypass customer due diligence measures
- Misuse of online financial services and virtual assets to move and conceal illicit funds
- Exploit economic stimulus measures and insolvency schemes as a means for natural and legal persons to conceal and launder illicit proceeds
- Increase use of the unregulated financial sector, creating additional opportunities for criminals to launder illicit funds
- Misuse and misappropriation of domestic and international financial aid and emergency funding
- Exploit COVID-19 and associated economic downturn to move into new cash-intensive and high-liquidity lines of business in developing countries
Implementation of AML/CFT policy responses can support the measures required to respond to COVID-19, including the new associated risks and vulnerabilities. Learn about a few examples of these proactive responses.
