Shield in the Cloud

Working together to eradicate corruption by harnessing technology innovation 2 3 INTRODUCTION INTRODUCTION

Message from C5 Andre Pienaar

In the arid beauty of the Karoo desert in As the headlines and history books show us, a South Africa, where I grew up, when you strong and lasting peace in post conflict countries see a cloud, it is good news. The promise of is not possible without good governance. The rain and its transformative power is on the Middle East and Africa, corruption and innovation horizon. We knew that soon a beautifully are opposing forces. Where one is present, the bountiful harvest of flowers and life would other is invariably absent. Innovation thrives on burst forth from the barren landscape before good governance. Corruption corrodes and kills our eyes. Today, cloud computing offers us this innovation and opportunity thereby wasting the same incredible transformative power with talent of generations. Through this challenge, we unprecedented opportunities for innovation aim to strengthen the virtuous cycle between and entrepreneurship. good governance, innovation and opportunity, which the entrepreneurs with whom we partner Cloud is taking the computing power we have as investors need to thrive. come to know first on our personal computers From back row left to right: Jamie Lowther-Pinkerton LVO, MBE, DL, Ambassador George Moose, Raymond Donovan, Derek Maltz, and on-premises servers and industrializing As Admiral Mike Mullen, U.S. Navy admiral who Andy Powell, Andre Pienaar, GEN Keith Alexander (Ret.), Sir Iain Lobban, Alex Newman, Sheldon Himelfarb, Nancy Lindborg, Kurt Scherer, Eva Dimitriadis, Cheryl Carolus, Georgina Callander, Moira Andrews, Tami Longaberger, Sir Graeme Lamb its capacity with computing infrastructure on served as the chairman of the Joint Chiefs of a global scale, for everyone’s benefit. Amazon Staff (2007–11), said, “corruption is corrosive pioneered this by investing billions of dollars to to national and international security.” Thus, We are stronger as a collective than alone. this Shield in the Cloud white paper highlights build multiple industrial sized computing centres it is in our collective interest to stand against General Keith Alexander says, “In a networked the discussions we held and the experts around the world, and networking them cost- it. Corruption gives rise to vast criminal world, collective security is the best security we engaged with through the course of the effectively with high-speed fibre optic cables. enterprises, such as the toxic stream of illegal model.” However, fighting organised corruption is programme, enabling us to confront a universal This means that we need less capital and less narcotics whose damaging influence floods one of the loneliest tasks. Invariably, perpetrators issue through a global coalition of thinkers and infrastructure to grow organizations. We can global trade routes and ultimately poisons seek to isolate, target, and diminish those innovators, aiming to make the world a more displace capital with technology to build, scale our nations. Running through the same veins working towards the greater good. The same transparent and responsible place. Together, and innovate globally on an unprecedented of the illicit global trading routes that carry perpetrators often have reach, hiring lawyers, we can amplify counter-corruption efforts by scale. The power of cloud computing to scale heroin, cocaine and opioids, there are myriad investigators and public relations advisers of rapidly scaling and accelerating the innovative innovation, to reduce the cost of computing, and menaces and threats, ranging from human their own. The bigger the syndicate, the further ideas and platforms. More importantly, we to increase its accessibility to everyone is one trafficking to terrorist finance. Moreover, these their influence extends. This competition enabled can contribute to the future of the fight against of the drivers of growth in the global economy. same routes increasingly form the lines of us to find and support the leaders who are corruption by bringing the issue to the forefront, attack that adversaries are pursuing against our Peacetech is the purposeful application of the innovators in the fight against corruption and providing a collective initiative for our common nations, while camouflaging their hostile intent innovation that cloud computing enables for its causes. We then connected organizations defence, and by lighting the fire of the next in a twilight of war and peace. The corruption good. Through cloud-enabled innovation, we fighting corruption to build collective security generation of ideas and inventions to carry that enables these illegal networks and routes can rapidly scale technology to immediately while simultaneously accelerating the pace forth the fight against corruption now and well to thrive are a clear and present danger. With have strategic impact. Used for good, this can of anti-corruption innovation by sharing best into the future. each day, the problem becomes increasingly sustain national and international security gains practices across this network. complex and thus we need new tools and while building a strong peace and securing our models to combat it. Ultimately, as Former Vice Like the clouds over the Karoo, our “Shield in the children’s future. We launched the first global President Joe Biden rightly points out, “fighting Cloud” offers the hope of a better future. Acting anti-corruption challenge in order to support corruption is not just about good governance. It as one-part forum and one-part advocacy, the growth and impact of tech innovation in is patriotism, it is self-defence.” fighting the corrosive and destabilising force of corruption. The PeaceTech Accelerator Washington D.C. Contents is the first major international peacetech program powered by cloud innovation Keynote remarks from 6-7 and dedicated to scaling startups GEN Keith Alexander (Ret.), IronNet: Securing our common defense 6-7 from around the world. Briefing Paper: 8-11

Peacetech is recognized as the application of technology Combatting Corruption: Our Collective Responsibility 8-11 to assist communities in conflict and crisis zones. Innovator Interviews: 12-17

Sheldon Himelfarb, PeaceTech Lab 12-13 Startups are selected based on their ability to produce innovative technologies that manage, mitigate, predict, Steve Fehr, SAP NS2 14-15 or prevent conflict and promote sustainable peace. Mr. Mohamed Ali AlQaed, 16-17 Information & eGovernment Authority of Bahrain

Anti-Corruption Innovation roundtable discussion, 18-27 Washington D.C.

Partner Perspectives: 28-33 “The introductions and connections we’ve established through the PeaceTech AWS support of ICMEC 28-29 Accelerator have been invaluable.” Jay Collins, Citi 31-33

John Jaeger, Founder and CEO, Hala Systems Cloud Champions: 34-43

Mark Labs: 34-35 “The PeaceTech Accelerator propelled our Technology Innovation providing the tools to fight corruption business towards an inflection point. What PurpleTRAC: New Sanctions Impact Shipping & 36-39 we accomplished in just under 8 weeks Trade Transactions Worldwide would have taken a year and a half.” ProZorro.Sale: Reforming state assets in Ukraine 40-41

Kevin Barrow, Founder and CEO, MARK Labs Ushahidi: Accountability and transparency in the World today 42-43

Anti-Corruption Innovation roundtable discussion, 44-54 London Image courtesy of USIP of courtesy Image 6 7 KEYNOTE REMARKS KEYNOTE REMARKS

Securing our common defense Gen. Keith Alexander (Ret.), IronNet

Defending our Nations in cyberspace requires analog community to digital-analog to completely access and distribution of real-time cyber digital. This transformation happened not only in information among companies in the private networks but across the cyber spectrum and this sector, and between the public and private relentless progress is not subsiding. The amount of sector. Delays in sharing that information unique information created this past year is more than the last 5000 years combined. The amount creates gaps adversaries can and will exploit. of new technology tools launched each year is From our perspective, the cloud offers a unique growing exponentially. The top 10 in-demand jobs The private sector needs to find a way to build a aimed at bringing technology to bear in some of opportunity to rapidly share, correlate and in 2017 did not exist 10 years ago. The winds of collaborative and enduring framework to bolster society’s most intractable challenges like corruption. enrich data amongst all of the key participants. change are now full gales. the nation’s “common defence.” The myriad tools of technology now offer solutions At the height of the Iraq War, we struggled to Embracing transformation and adapting in order never dreamed of before. Organizations are provide signal intelligence in real-time that could In the military, elements do not fight alone but as to remain along the leading edge is critical not adding visibility to government property sales in effectively help save American lives on the ground. a collective group. Platoons support Companies, only on the battlefield but also in business and Ukraine, illuminating the flow of money between The signal intelligence we were providing was Companies support Battalions, Battalions support government. The digital arena is re-defining how financial supporters of extremist groups, and “historic,” but intelligence is only as good as it is Brigades; combat happens in coordination. Unity we do business, wage wars, and serve our ensuring delivery of aid to the right people. All of timely. Our legacy system to provide intelligence to of effort on the battlefield thereby enables the citizens. Citizens, businesses, and countries must this is now possible in real time. “Shield in the Cloud” combat units was simply not keeping pace with achievement of unity of effect. This maxim has not be protected in both the real world and the cyber has brought these pioneering tech innovators to their requirements to defeat our adversaries. yet been translated to the private sector. Instead, world. Increasingly, little separates these two worlds. the forefront and has enabled organizations to today, you see companies and sectors that are As a consequence, we set out to build a project To embrace these changes in how we operate, rapidly scale this impact across sectors. essentially defending themselves, a collection of that would make our intelligence timely and we must also change the way we operate and island forts in a vast cyber sea. Further challenges lie in building a blueprint for actionable. Originally, we imagined “Real Time work together. others to use new technology to make the lives 10,” with the hope of improving the speed by a Yet, even within these sectors, companies, In our United States Constitution, the preamble of all citizens safer and more secure. We need factor of 10, bringing intelligence collection and local governments, and organizations are not clearly states a central reason for the Federal to consider how we prepare for our common synthesis from 1000 minutes to 100. Yet, our team collaborating in real time. Data is being shared, government was to provide for the “common defense and our common prosperity. New from the NSA work force and our partners from but like our original signal intelligence in Iraq, it is defence.” There are no preconditions or qualifiers technology will yield new jobs. We need to offer GCHQ, full of sharp intellects and a fierce desire being shared in a historical lens. It does not enable to this, it is not limited by age or context. The cyber the younger generations the tools to prepare them to turn the tide in Iraq, brought the analysis time the pre-emption of problems or provide for an arena is now a necessary and integral part of our for jobs that do not exist using technology that has down from 1000 minutes to less than 1 minute. active defense against common threats. For our national economy, government, and our way-of- not been created to solve problems that are yet This revolutionary program, the Real Time Regional adversaries, this means that if any organization has life. It is this all-encompassing network that the to come. Forward thinking, collaborative problem Gateway, enabled our combat personnel to use a weak link, it will be unable to forecast or forestall government must secure in meeting its mandate to solving, and an emphasis on the creation of timely signals intelligence to react in real time in in real-time any impending attack. Government provide for the “common defence.” But the learning organization will better offer the hope of order to pre-empt, defeat, and deny insurgent and cybersecurity experts will only then be able government cannot do this without support from common prosperity. to help reactively rather than proactively. One progress at every turn. the private sector. need only look to the implications of the recent Like combat, this campaign to secure our common Timely intelligence pays dividends. The Real Time Collaboration between government and the private ransomware attack in Atlanta or Colorado to see defense by rolling back society’s cyber legacy Regional Gateway empowered an increasingly sector is ever-more important with increased how this can grind a major city or organization to approach must happen in coordination between well-honed and unyielding effort against our privatization. Most utilities and communications a halt. The threat is clear and present, but most the public and private sector. Through unified collective enemy. In doing so, we broke the back services are in commercial hands. Government concerningly it is dynamic across regions and effort, across both the public and private sectors, of the insurgency and eliminated entire networks must proactively share its technology, means, and sectors. When portions of our digital arena lose, we will provide for the “common defence.” By while helping open the possibility of peace in methods to safeguard these essential services. So, we all lose as our nations becomes less secure. investing in collaborative efforts and frameworks, Iraq. Yet, the creation of this real-time intelligence too, must private industry. we can further empower future generations to project would never have been possible just years Incubators and accelerators offer the chance be prepared for the inevitable transformations before. Success on the digital battlefield requires Companies, like the one I have started, IronNet to foster this collaborative problem solving ahead. Together we can harness the full potential adaptability and the pursuit of transformation. Cybersecurity, are looking to bridge government while simultaneously amplifying the impact and of technology to defend both our national experience providing cybersecurity to private capabilities of ideas already in play. Programs Change is the only certainty in the cyber security and our private sectors for today and sector clients. Yet, companies like mine can only like “Shield in the Cloud” in Washington, DC bring arena. From development starting in 2005 to tomorrow’s challenges. provide a patch in the vast cybersecurity network. together private industry and government efforts implementation in 2007, we saw transition from an 8 9 BRIEFING PAPER BRIEFING PAPER

this corrosive cancer between the state and the poor in unsurmountable poverty.12 Two worlds people grows, institutions to implement the rule within one country emerge. Unable to secure Combatting Corruption: of law and hold the public trust fall further into access to education or health care, the human irrelevance. 8 Rather than the creative destruction capital potential of a society will then suffer as of capitalism or the social contract of a state, the future innovators and entrepreneurs from the Our Collective Responsibility people know only how to pay-to-play and those impoverished segment of society will never reach not able to pay are pointedly left at the mercy of their full potential.13 Corruption robs people of their those who can. opportunity and a country of its potential future.

Corruption is a corrosive reality in all too many An Economy for the few A diversion of funds The profit of corruption societies. This “…abuse of entrusted power for As a result, corruption builds an economy and Corrupt governments often turn to “large capital With this widening gap between the rich and poor, private gain” perverts the relationship of the public government for the few, not the many. When projects” where a multitude of bureaucratic layers there are those who would go further to profit from servant to the state.1 The resulting cost of this officials begin to steal from the state to enrich can mask the swindling of millions of dollars in the vacuum of corruption. Authority and legitimacy “private gain” is the citizenry’s trust in its state. As themselves, state revenues are impugned for public investment.9 One need only look to today’s are rapidly usurped from the government as such, corruption can crescendo into the cacophony the benefit of the “kleptocrats.” With a run on the headlines to see this across the world, from a organised criminal enterprises and terrorist of armed conflict or simply perpetuate it. However, state’s discretionary budget, large-scale projects $21 million dairy farm in Vrede, South Africa or networks use “their financial power to infiltrate it can also steal economic opportunity and hope aimed at social welfare or increased investment the nearly $50 billion spent on the Sochi Olympic legal businesses, to intimidate, to create protection from an entire population. With the breakdown of in “productivity-enhancing areas” that may Winter Games, corruption in governments across rackets and a climate of fear and uncertainty.”14 the basic social contract, it is not only the present contribute to an increase in state productivity the world are lining officials’ pockets on projects This leads to the government becoming only an day that is sacrificed, but also any prospect of a or GDP growth come up short on the necessary meant for the public benefit.10 Yet, this further observer within a system it supposedly manages. better future. With the advent of the internet and funding to implement them.3 Financial security is descends the country into an “unvirtuous circle” These organisations are then able to map out information technology, corrupt agents working determined not by access to government services as these same corrupt government officials then and control the lifeblood of systems that are within states have increasingly complicated or government supported market opportunities, “[skimp] on maintaining existing projects.”11 The eroding countries beyond its borders, such as methods and sophisticated tools at their disposal. but rather through access to corrupt officials. people lose by getting projects they do not need opium exported from Afghanistan. This revenue Thus, to challenge them, all of society must work Wealth then rapidly accumulates around these and lose further as those they do vitally need fall then enables these organisations to fund terrorist together to eradicate corruption. “Shield in the individuals who are capable of both stealing from further into disrepair, all while those at the top attacks, assassinations, and even wars. Corruption Cloud” supports initiatives which are using cloud the state and establishing self-enriching ventures accrue greater wealth. errodes not just nations singularly, but the larger innovations to join the global anticorruption effort. thereby disrupting income distribution throughout community of nations. As this problem deepens, the unfair income the country. This unvirtuous and immoral circle distribution within the country widens, burying the Corruption inhibits innovation further enriches the corrupt and isolates the vast At its core, corruption is antithetical to innovation. majority of the population. However, when the Innovators push traditional boundaries and literally system is designed to fail, the entire nation slumps, re-invent systems to improve, streamline, and Marcelo Veraciero of the United States Federal pave new ways forward. The story of innovation in Reserve Bank of Chicago notes, “…if many industries America is commonly known and commonly held: are subject to corrupt practices, the lower rate of Apple starting in a garage in California, Facebook innovation would result in a lower growth rate for beginning in a dorm room in Massachusetts. Central the whole economy…4 to these stories is a small group of innovators re- framing how the world thinks and interacts through Disengagement in the system its products. Yet, in a corrupt country, the work With a slowing of the economy and a breakdown in of these small groups of innovators would have trust, the fabric of society begins to fray. As citizens been limited by an overwhelming focus on larger watch their leaders flout the rule of law, there is firms.2 Instead of innovation, the corrupt seek out increased incentive and justification to selectively inefficiency. The larger the organisation and the disregard authority. Citizens are therefore unlikely deeper the bureaucracy, the larger the pay-out for to pay their taxes into a system they do not corrupt cronies. Smaller firms have fewer levels that believe will ultimately benefit them.5 Worse yet, can be abused and manipulated by “kleptocrats” they will soon be more likely to believe they can to fill their own pockets. Moreover, they do not only advance within the system by stepping into offer the deep political connections required in this that same unvirtuous cycle by bribing others and environment to advance their products. Working accepting briberies in kind. Soon, more of the within corrupt countries, even innovation within economy will move underground and away from larger companies is stifled, as corruption motivates legitimate sources of recourse.6 More concerning, no interest in ingenuity or improvement, merely citizens will no longer derive any benefit from the personal gain. Corruption squeezes out not only a improvement of sectors as the tax revenue from healthy business environment but also the hopes these businesses will also move underground.7 As of a more successful future. From left to right: Andre Pienaar, Sir Iain Lobban, Jay Collins, GEN Keith Alexander (Ret.), Teresa Carlson, Raymond Donovan, Derek Maltz 10 11 BRIEFING PAPER

A vivid example and practices of Ben Ali’s government, perfectly encapsulated in the tragic self-immolation of The community of nations must tackle these Mohamed Bouazizi. His death, in protest to his challenges. A vivid illustration of this phenomenon treatment at the hands of the police and his is the largest heroin case in history, which the U.S. inability to find gainful employment, shows how Department of Justice and the Drug Enforcement corruption ravages individuals lives and can turn Administration are prosecuting in the Southern entire regions on their head. District Court of New York against an East African syndicate. This case involves a group called the Akasha brothers which attempted to smuggle The growing complexity 99kg of heroin into the US. The heroin was sourced With so much to gain and so much to lose, the from the Taliban in Afghanistan by a drug lord corrupt are turning to increasingly complex based in the UK posing as a legitimate Gulf-based methods to harvest benefit from their societies businessman. The heroin supply was clandestinely and evade detection. The fight against corruption transported from Afghanistan through Pakistan and must be resolute and rapid in order to defend concealed in oil tankers to East Africa for onward civil society. Empirical research shows that no shipment to the US and Europe. The syndicate used matter how small the progress in the fight against modern technology to evade detection including corruption, it can lead to exponentially positive Skype and encrypted USB sticks. Along the way, results. Studies found that even with “small increases its drug trade and money laundering helped in the penalties to corruption, the effectiveness to fuel conflicts in multiple countries in different of detection can result in large increases in the ways- from the Taliban in Afghanistan, terrorist amount of product innovation.”16 These small rises organizations in Pakistan, ethnic violence in Kenya, in product innovation can then “lead to jumps in to state capture in South Africa. The syndicate was the growth rate of the economy.”17 Taken together, too big for a single state to combat. It required a this signifies a significant economic and societal law enforcement alliance using new tools and incentive in turning the tide against corruption. methods, yet, collaborative work between national governments and the leadership of the Special Technology the enabler Operations Division (SOD) of the DEA brought them to justice in a United States Federal courtroom to Central to maintaining this edge in the anticorruption answer for their global crimes. fight is the role of technology. With the development of software that can be placed in the hands of Corruption collapses into conflict citizens globally, technology is democratising the fight against corruption. Citizens can respond in Corruption not only feeds conflict, it can also real time to report or highlight cases of graft to be provide the groundswell for the outbreak of conflict. rectified by upstanding authorities. Technology can Williams J. Burns, the former Undersecretary of State illuminate real ownership and bring businesses of the United States, and Admiral Michael Mullen, from the shadows into the light, enabling further the former Chairman of the Joint Chiefs, rightly transparency. The cloud enables these solutions point out: “As citizens watch their leaders enrich to be rapidly scaled regionally or even globally. themselves at the expense of the population, Ultimately, it is precisely these global technological they become increasingly frustrated and angry – solutions that Shield in the Cloud endeavours to sentiments that can lead to civil unrest and violent identify, celebrate, and support in their fight against conflict.”15 Tunisians sparked the Arab Spring in corruption to collectively secure a more innovative, response to their rising feeling of helplessness equitable and just world. in the face of increasingly corrupt behaviours

1. Transparency International. (2018). “What is Corruption?” 10. Gebrekidan, Selam and Norimitsu Onishi. (16 April 2018). “They Eat Money: Transparency International Home Page. Online. How Mandela’s Political Heirs Got Rich Off Corruption.” The New York Times. 2. Paunov, Caroline. (10 February 2016). “How corruption hurts innovation.” Online. and Surowiecki, James. (10 February 2014). “The Sochi Effect.” The World Economic Forum. Online. New Yorker. Online. 3. Lopez-Claros, Augusto. (31 March 2014). “Nine Reasons why Corruption is a 11. Surowiecki, James. (10 February 2014). “The Sochi Effect.” The New Yorker. Destroyer of Human Prosperity.” Online. The World Bank. Online. 12. Lopez-Claros, Augusto. 4. Veracierto, Marcelo. “Corruption and Innovation.” Federal Reserve Bank of 13. Ibid. Chicago. 29. 14. Lopez-Claros, Augusto. 5. Lopez-Claros, Augusto. 15. Burns, William J. and Michael Mullen. (6 May 2016). 6. Ibid. “Why Corruption Matters.” Project Syndicate. Online. 7. Ibid. 16. Veracierto, 35. 8. Ibid. 17. Ibid., 35. 9. Ibid. 12 13 INNOVATOR INTERVIEWS INNOVATOR INTERVIEWS

Q&A with How is the PeaceTech Lab helping? We focus Can governments and corporates help overcome on several areas. First and foremost are the those challenges? Absolutely. Corporate and “PeaceTech Exchanges (PTXs)” which we host. government relationships can go a long way to Sheldon Himelfarb We use these programs to train activists, NGOs protecting the individuals behind these initiatives, and local governments in the use of tech to which is crucial as they can attract a lot of attention President and CEO of PeaceTech Lab promote greater accountability. We’ve held these from vested interests. That said, all too often we see in Iraq, Afghanistan and most recently in Costa corporate and government interests being used to Rica, where we gathered together activists from expose these change agents to greater risk. six countries across Central America. That one A great way big organizations can support start- has produced several projects that range from a ups is by establishing public-private partnerships. web platform that surveys and guides users on But governments and corporates have to act in ways to counter corruption they’re encountering full recognition of the unique challenges that come Australia. In Afghanistan, the government, with the to a chatbot designed to shed light on opaque Sheldon was kind enough to talk with the kind of technology we’re talking about. help of organizations like Adam Smith International, budgeting processes. with us about how technology is has overhauled its internal systems by digitizing tax The advances in big data, data analytics, and being used to fight corruption – records. This has made it much more difficult for Secondly, we have formed a partnership with C5 cloud computing in the last three years alone have and why we need initiatives like officials to take bribes or pocket revenues because and Amazon Web Services to create a dedicated been staggering and present us with extraordinary PeaceTech Accelerator to support startups with opportunities to fight corruption in new ways. Slow, Shield in the Cloud it is much harder to cover it up, falsify a chain of documents or lose the file. Partly as a result of that mentoring, access to capital and access to cloud bureaucratic programs just won’t cut it in a world tech solution, which we in D.C. might consider fairly computing resources. This accelerator has a where technological innovation is moving at a What is the relationship between technology and basic, Afghanistan has been able to increase tax broader remit than just corruption and is open million miles an hour. anti-corruption efforts? The way I see it; tech is a revenue from $250m in 2004 to approximately to organizations working in a number of social- tool. It can be used both to facilitate corruption and $2b today. That’s a huge material difference and impact fields in conflict-regions. Is there a limit to what ‘establishment’ to counter it. organisations can do to help? Independence helps the government invest in the future. Shield in the Cloud is our third area of focus, again Now, rooting out corruption is obviously no easy is absolutely vital for both the credibility and the Something similar is happening in Australia. Their in partnership with C5 and AWS. It is the world’s feat and it requires a multi-pronged approach. It effectiveness of the effort; otherwise you have Taxation Office there recently began to use big first anti-corruption innovation challenge and exists in a varied number of complex contexts. the fox guarding the henhouse. This perspective data analysis to search through vast numbers organizations of all sizes are welcome to apply, There are complex webs of cultural norms, explains why governments in many of the of tax records in search of tax havens and so long as they are using cloud-based technology. leadership systems, legal frameworks and myriad conflict countries where we work have been so evasion. Sophisticated approaches like that can There are a number of different awards, each other factors of which technology is just one – but remiss in dedicating serious resources to solving yield impressive results that sophisticated but of which recognizes the very best in class tech it is one where there’s lots of exciting innovation the problem. conventional methods can’t. It will benefit Australia’s innovations and winners receive AWS credits to that is shifting the balance of power in favour taxpayers but it will also benefit people around the spend on digital infrastructure – as well as a space Technology is shifting the balance of power of citizens. world by shutting down the systems that launder in the PeaceTech Accelerator! between governments and citizens on a money stolen or extorted in other countries. fundamental level. The availability of low-cost Can you share any case studies of new What are the challenges being faced by start- tech is changing the landscape. It’s possible for technology being used to tackle corruption? One Those two examples so far have both been about ups in developing and bringing these technologies more people than ever to participate in anti- of the interesting things about this field is just how top-down government-led tech solutions, so let to market? As the Lab is focused in conflict regions, corruption efforts. varied the solutions are. They vary in scale from me give you something different. In India there’s the organisations we hear from have two major the reform efforts of national governments to local a mobile app and website called “I Paid a Bribe”. hurdles: access to capital and intimidation. initiatives started by startups or individuals. They It’s a service that crowd sources information are varied in terms of the type of solution; from about bribery and corruption at every level of crowdsourcing information to big data analysis. government, from exposing traffic wardens to And they are also varied in terms of the countries identifying fraud in the issuance of passports. and communities they work in. At PeaceTech Lab Created by a non-profit, it’s a way for people to we tend to focus our work in countries with a contribute directly to the fight against corruption by recent history of conflict - but tech solutions are raising awareness and initiating process change needed to fight corruption in rich, stable countries by working with the media and government. just as much, not least because money stolen Nearly every day we read of another new through corruption is often laundered through rich- deployment of tech for this purpose and of the world financial systems. promising results they are yielding. Driven by Let’s take two examples from the world of tax dedicated people, technological change is having corruption to illustrate this point; Afghanistan and a major effect on the fight against corruption. 14 15 INNOVATOR INTERVIEWS

Q&A with Steve Fehr Former Senior Vice President, Corporate Strategy and Strategic Programs, SAP NS2

Steve Fehr talks to us about how deceit, waste and abuse in social and government health care programs; weakened border security corruption is a significant threat increases vulnerability to drug smuggling, human to governments and their security, trafficking and potential infiltration by terrorist and how advances in big data organizations. All these public corruption areas analytics are making a difference. degrade and weaken US security and cost the government billions of dollars annually. Can you start by explaining the work SAP NS2 does? SAP National Security Services, Inc. (SAP How do you understand the relationship NS2®) is an independent U.S. subsidiary of SAP, between technology and anti-corruption efforts? focused on providing the full portfolio of SAP Technology can be used as a tool in the fight technology, services, support and cloud computing against corruption. It must be coupled with cultural services to the national security and critical change, increased government transparency and infrastructure communities. strong enforcement policy and practices. It can be used to identify and localize patterns of fraud What role does corruption play in national and corruption, and with recent advancements, and international security? The biggest impact can apply machine learning and advanced corruption has on national and international analytical techniques to perhaps predict where security is the erosion of trust between deception could occur to help get in front of the government, private enterprise, and the citizens of fight. Technology can be an enabler, but it is not the country and international community. Whether the total answer. it is a lack of trust in a national or local election, or a culture and climate of bribery and special Can you give one example of innovation in favours, the breakdown of confidence in the data analytics which you feel has made a big institutions of government leads to civil unrest. This difference in the global fight against corruption? civil conflict and lack of trust can be manipulated Two examples come to mind. The first is identifying to create safe havens where terrorists, criminal fraud, waste, and abuse in federal and state groups and other bad actors can operate and administration of social services programs. This they encounter in real time every day, and the governance as corruption corrodes stability and spread further civil discourse and create serious is an area where thousands and thousands of big data analytics can be used to correlate to peace. The Shield in the Cloud initiative takes security challenges. claims are filed requesting various benefits and payments, especially in government health care historical information and spot trends and identify advantage of the ubiquity of cloud computing to unethical activity and perpetrators. let anyone with a good idea build a solution to What form of corruption do you consider the programs. Big Data Analytics is used today to tackle the challenge of corruption. We at SAP have most significant threat to US Security? Public analyze and identify fraudulent claims, saving Why did NS2 decide to support the Shield in world-class technology that is being used today corruption poses the most significant threat to U.S. government hundreds of millions of dollars. the Cloud award? NS2 is proud to be a sponsor by governments around the world to root out national security. Whether it is procurement fraud Another example is in the capture and analysis of PeaceTech and the Accelerator program. The corruption, and through our partnership with AWS in the government contracting process, the filing of open source information such as social media mission of Peacetech is to reduce violent conflict and we want to make that same technology available of fraudulent claims for social services or medical feeds and other publicly available information promote sustainable peace, using new innovative to creative people worldwide to develop the next claims, or bribery of border control agents. All of to geo-locate potential corruption activity. Social technology and data. This is very important to us. set of solutions to fight corruption and promote this corruption weakens U.S. security. Tax dollars media platforms are a great tool that allow every We also recognize the need to apply technology transparency and good governance. are siphoned from intended uses because of citizen to identify cases of fraud and exploitation to help fight corruption and enable transparent 16 17 INNOVATOR INTERVIEWS INNOVATOR INTERVIEWS

security, including both technology solutions and a single cloud environment with high speeds, full utilisation of human resources. It is essential less deployment time, minimal costs and that employees are well-informed regarding the maximum protection. importance of security as well as have a general Shield in the Cloud Innovators Interview This will continue as the Ministry of the Interior understanding of how hackers may deceive users and the Telecommunications Regulatory Authority to bypass security. Mr. Mohamed Ali AlQaed explore the implementation of the General One of our most successful approaches is the Directorate of Anti-Corruption, Economic and CE of Information & eGovernment Authority Security Advisories - a newsletter that reports Electronic Security to raise security awareness on the latest security threats using basic in the public sector and society in addition to March 2018 terminologies and visual aids such as infographics, addressing all information security threats. in addition to useful information on how to detect and prevent such threats. Upon sending the What is the nature and value of any external Advisory to government entities, we immediately collaborations on information security and received numerous requests from private sector corruption outside Bahrain on a corporate or organizations to join our mailing list. In 2017 alone, government level? When it comes to security, Why is it so important to take Bahrain’s govern- across all channels, as well as increasing the we gained over 80 correspondents within the the GCC countries work together on a number ment online? And how are you doing this? It’s value of transactions by 61%. This growth in use private sector. of levels that has resulted in initiatives such as the Suspicious Internet Address System to enable important that Bahrain’s government is effectively and value demonstrates how processes have However, having these layers can incur quite Computer Emergency Response Centers to monitor running online as the eGovernment program developed to ensure ease-of-use and speed of large overheads. We’re solving this by automating and handle cyber-attacks. These centers monitor is able to serve citizens and businesses while delivery along with increased collaboration with as many tasks as possible to ensure that we’re suspicious internet around the world to pre-empt minimizing costs and increasing the effectiveness other government entities. reducing the workload to a more manageable of public services. and prevent attacks. At the same time, we are always looking to raise amount. The GCC Cyber Safety and Security Strategy Bahrain’s Economic Vision 2030 involves the the public’s awareness of the need for security As part of our Security Awareness program, iGA has also been adopted to enhance the role of development of transparency and efficiency, the and address online threats and attacks. conducted 46 workshops in 2017 with over 1,300 eGovernment in catering to GCC citizens and delivery of better government eServices to the attendees to educate users on the importance improve delivered services through a secured, public, and the preparation of the labour force. We How are you tackling or handling information of security. On a larger scale, iGA is running the efficient environment. have utilized the Kingdom of Bahrain’s infrastructure security challenges? What are these challenges? Cyber Trust Program that aims to drive government efficiently and with very strong support from the The biggest challenge is in keeping staff up-to- organizations as a whole in order to adopt security What is your view on using technology to fight country’s leadership. This comprehensive vision is date with the latest cyber security developments best practices with emphasis on continuous corruption? Why is it important? Technology at the centre of the eGovernment program. to enable them to combat threats and attain improvement. The program breaks down security is a valuable tool in fighting corruption and skills they require to carry out their duties. The requirements into three tiers with the Information & Currently, 359 government services are available promoting transparency, accountability and public technology landscape is constantly evolving and eGovernment Authority’s role to audit participants online through various channels. These include the participation. It provides innovative communication staff need to be fully equipped. and certify compliant organizations. The Cyber National Portal bahrain.bh, a range of mobile apps, channels between the government and the public Trust Program presently involves 26 participating and the National Contact Center. We have therefore developed continuous as well as facilitates the flow of exchanged and open communication channels between organizations with four organizations that On the other hand, the Information & eGovernment information between government entities. government entities, adopted systems that identify have implemented the program’s fundamental Authority (iGA) is committed to supporting national risks, as well as applied information security laws requirements and have been granted the First iGA works closely with concerned entities to fight strategic directions in transitioning government and strategies. Level Certificate - Practitioner. corruption by implementing all guidance and systems to the cloud, with the support of Amazon instructions circulated in this matter promptly. Web Services (AWS). Using the cloud means that In October 2017, we conducted our first cyber drill What is the way forward? The cloud delivers a organizations can gain a competitive advantage with Information Security teams across government number of logistical and economic benefits. We’re What plans for the future do you have in this by using advanced analytical solutions that assist entities. This was intended to demonstrate the investigating and utilizing the latest and fastest area? The authority is developing technologies in storing and protecting data. Cloud backups importance of securing and protecting online methods for cloud migration. Our collaboration to enhance online communication and take enable big data tools and provide a homogenous systems in the public sector, highlighting the impact with AWS has made Bahrain the first Middle further steps forward in fighting corruption. We’re environment for government and ICT services. The of accidents and security attacks which hit these Eastern country in the region to offer a robust cloud developing systems to ensure non-repudiation cloud can also reduce operating costs. Moreover, systems together with developing solutions and storage infrastructure. and accountability on the receiving end. cloud computing enables the government to policies to limit similar attacks in the future. innovate and spur economic growth in the country We will continue to keep pace with the latest Last year, we also successfully prevented around We have also been instrumental in introducing as well as further attract foreign investments. international advancements and developments data classification laws that will pave the way 27,000 attempts to hack into government in IT as well as provide them to government systems. We were able to detect and deter these for more transparency by defining which data How does eGovernment create real societal institutions. This will allow a unified archiving of attempts as well as block around 168 million the general public can access. In 2017, over 15 change? In 2017, the Bahrain National big data and hosting of government websites via malicious emails up to the first quarter of 2018. workshops were conducted to cover these new eGovernment Strategy succeeded in achieving AWS’ cloud computing platform. All governmental laws and how data is handled. 91% of its objectives and 90% of its KPIs. The most branches and entities can therefore benefit from What are you currently doing – what measures important of these was reaching the milestone and protections? We employ multiple layers of of achieving more than one million transactions 19 ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C

Anti-Corruption ANTI-CORRUPTION INNOVATION Innovation Roundtable ROUNDTABLE 13th September 2017 Washington D.C.

WASHINGTON D.C. SPEAKERS Andre Pienaar Tim Receveur Founder, Director, C5 PeaceTech Exchanges, PeaceTech Lab

Steve Fehr Priscilla Mutembwa Former Senior Vice President, Advisor, Corporate Strategy and Annona Senior Programmes, SAP NS2

Ronald Moultrie Randa Fahmy Chairman, USA, Director, C5 Fahmy Hudome International

PARTICIPANTS

• Tad Anderson, Global Manager, Venture Capital, • Schuyler M. Miller, Anti-Corruption Advisor, Startups and Ecosystem Development, U.S. Department of State Amazon Web Services • Rohini Srihari,Chief Data Scientist, PeaceTech Lab • Marcos Battisti, Managing Partner, • Sarah J. Staton, Senior Coordinator C5 Capital of GIST initiative and Partnership - • Shaazka Beyerle, Jennings Randolph Senior Fellow, U.S. Department of State United States Institute of Peace • John G. Tomaszewski, Regional Director, Africa, • Wayne Chen, Ventures Director, International Republican Institute Booz Allen Hamilton • Marianne Toussaint, U.S. Department of State • Chip Hauss, Senior Fellow for Innovation, • Schuyler M. Miller, Anti-Corruption Advisor, Alliance for Peacebuilding State Department • Sheldon Himelfarb, President and CEO, • Sarah Welsh, Senior Program Officer, PeaceTech Lab National Democratic Institute • Dan Horowitz, Director, • Stacey Wood, Global Business Development Advocacy and Campaigns, LinkedIn Manager, VCs & Startups, AWS • Josh Mandell, Director of International Policy and • Nada Zohdy, Director, Open Gov Hub Programs, Halcyon • Kevin Gordon Barrow, Founder & CEO, MARK Labs, • Scott Mastic, Regional Director, Middle East and North Africa, International Republican Institute • Ben Butler, Principal BD, Cloud Innovation Centers & Accelerators, Worldwide Public Sector, AWS • Ryan May, Program Analyst, Bureau of Economic and Business Affairs, U.S. Department of State • Fahdy El Salamin, Fellow at the Foreign Policy Institute 20 21 ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C

successful, we can fund them further to the tune of would have been unable or unwilling to highlight $10,000 to $25,000. We’re continuing to develop underpayment because they would have been this model. worried about losing business and contracts. This isn’t an issue now. This ANDRE: Tim, thank you very also applies to laborers On September 13th 2017, C5 Accelerate held its much for those remarks. I on farms, who may worry first roundtable as a part of the Shield in the Cloud am struck by how practical “IT is really only an about complaining if they your work is and how much anti-corruption challenge, a global program that are underpaid. you go to the theater of enabler. We need aims to highlight and recognize the way technology action when it is needed. to look at what Finally, one thing I really innovation is tackling corruption issues around the Pricilla, please can you give people want to do want to highlight is the level world. Taking place in Washington D.C., C5 Founder us the start-up perspective. playing field Annona has and then we can created for farmers to get Andre Pienaar welcomed the guests and participants. PRISCILLA: Thank you, information on crops, prices Andre. My name is Priscilla create transparency and the markets in general, Mutembua. Annona is from that.” just by using their phones. a social enterprise that records and manages Steve Fehr ANDRE: Priscilla, I think this Tim Receveur opened the session. getting more citizen feedback, as well as getting theme of convergence CSOs and governments working closer together. smallholder farmer TIM: PeaceTech Lab is a non-profit dedicated interactions with exporters is extremely relevant in to using data and technology to prevent violent A good example is our event in Basra two that buy from them. anti-corruption innovation. conflicts around the world. This includes big data months ago. Before the event, 22% of civil society Using a suite of mobile and web technologies Focusing an investment on a single sector and platforms; for example using IBM Watson to organizations saw the government as a partner in we have a procurement and distribution making a digital contribution creates a convergence look at global supply disruptions and violence. their work. By the end, it was 92%. That’s a sharper channel to report transactions and transaction that can create value-added transparency I’m currently working on PeaceTech Exchanges, increase than normal and indicates the success data in real time and increase efficiency in and accountability . which seeks to use low-cost technology, data and efficacy of these programs. delivering fresh produce to countries worldwide. Steve, would you be able to give the perspective collection, social media and online security tools to Places like Mosul demonstrate what happens We’re the only platform built from the ground up from a major software company on how we can change dynamics in situations such as countering when a government doesn’t get feedback from that interacts with the smallholder farmers and drive this innovation agenda? violent extremism; improving accountability citizens. The Sunni/Shia divide gets worse, tensions communities while providing a payment gateway and transparency; delivering anti-corruption; STEVE: I work for SAP National Security Services, increase and ISIS is able to enter easily. At this point, for exporters to oversee their transactions and combatting gender-based violence and hate the world’s largest enterprise software company, the State Dept. has indicated that all ISIS territory reduce overheads. This means the customers have speech in different parts of the world and most of with 75% of global commerce running through our has been taken back and we need to make sure increased transparency when trading with the the worst global conflict zones—we’re currently in products. We started in a similar place to Annona. it can’t happen again. smallholder farmers and they can have real-time 10 countries. We were simply looking for efficiency in getting crop and trade information to increase efficiency. There’s growing interest in the space. Previously from source to customer. We’ve been in this space We research the challenges, examine case studies you could barely fill a room with personnel but We can also help farmers register their crops and a long time but there have been massive changes and consider which technologies will work best with we have 30 people working in the accountability, create contracts with farmers. in the last 10 – 12 years in procurement and each region. We also carry out three to four-day transparency and fighting corruption space. In our purchasing, mainly due to the search for efficiency. workshops to help introduce people to technology. This may be basic but for some farmers in rural last event series, we had to vet 350 applicants How do we take friction out of our supply chain, So far we have a success rate of around 82% Africa there is no infrastructure for these things down to 30 organizations and two events. We from the manufacturing floor to the end customer? with people using technology as a direct result focused on digital media commands, citizen and digital information does not exist. Without of the workshops. These There were a lot of inefficiencies and we needed to feedback, monitoring an application such as Annona, these farmers have so far focused on get more people into the ecosystem and automate. administrative and have no access to sell produce to international accountability, trans- The issue is that IT is really only an enabler. We financial corruption, as buyers. Therefore, we can create transparency parency and anti- need to look at what people want to do and well as partnering with and a level playing field for big and small farmers corruption. “Technology has then we can create transparency from that. Our the government, service alike. Our features are also accessible offline, allowing farmers in rural areas with no network the evolution is to take all the data being produced The statistics speak for created a level playing delivery and the needs chance to carry out digital transactions by storing and properly leverage it to create transparencies. themselves—around field for farmers to get and challenges of IEPs information offline and then transmitting when We’re seeing this evolve very quickly and believe 1000 CSOs trained and public service information on crops, there is network. blockchain will be integral to this. We’ll need to deal around the world, 300 monitoring. We used with regulatory and perhaps privacy issues but government officials prices and the markets low-cost tools and Just the digital contract alone provides these are probably the biggest hurdles. Once we’re and 300 technologists customized training. So transparency both for the farmer, agent and in general, just by using past that, the technology will not be the barrier. working as part of our far, 50 projects have retailer by providing a transaction that everybody network. We not only aim their phones.” come out of PeaceTech has access to, especially as we’re using blockchain. The key also lies in analytics. Using the right data for more accountability, Priscilla Mutembwa Challenges, seed-funded Recording transactions means that even cash analytics helps detect corruption and enhance transparency and fighting with around $2000 payments are logged allowing accurate records transparency and governance. We can then see corruption, but also on to $4000. If these are to be kept. Previously, some of these famers how companies are really performing and have 22 23 ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C

total transparency. This will be a dynamic and shows how hard it is to detect corruption. We can Bribery may be the more interesting aspect of to consistently be proactive in combatting ever-changing landscape but blockchain and try to help understand by following the money— the FCPA. It has evolved since 1977 and is more global corruption. other technologies will mean that companies will the 1 or 2 trillion dollars that are stolen each year sophisticated, including individuals connected We’ve now heard from all the panellists and I’d like be more transparent and their internal governance according to the IMF makes an impression! The key with foreign officials. The Middle East is a good to open the floor up to the experienced officials will look completely different in five years’ time. is to try to track and stop that. States fall because way to explain. Corruption can make it difficult and executives that have joined us. Please do ask of corruption, demonstrating the unrest that it can to do business there. When a company wants ANDRE: Thank you Steve—that’s an amazing your questions of the panellists. cause. It’s not just ‘another country’, as people to do business the first step is to sign contracts, statistic regarding the commerce running through may say, it’s a global issue if global citizens are one part of which is ‘we won’t violate the FCPA’. SHELDON: The common thread seems to be that your platform. living there. It’s happening more and more. However, in practice, what ends up happening is, technology is a game changer. I’d love to get I would now like to ask Ron to speak. We’ve been while cash isn’t being actually handed to officials, Priscilla, Steve and Ron’s perspectives. Priscilla: Economically it’s a major issue. Industries can speaking around Africa about how we can protect companies are hiring individuals to represent What are the difficulties in getting people who be affected completely by this. This adds to the countries and US corporates from companies that them and make introductions. They may call them have never lived in a digital world to embrace individual impact and demonstrates that there’s a might thrive in proliferating corruption. What are agents or employees. That can confuse things. technology? Steve: What are the challenges about global economic impact. We do try to infuse best your thoughts on this? Are these individuals actually connected to an getting technology for efficiency adopted? And practices into these countries, our ambassadors official? Are they indirectly breaching the FCPA? finally, Ron: if everyone believes this is a force for RON: I was in the national security arena rather and diplomatic corps work with the high-level How can we find out? My challenge is this – how good – what challenges are you facing in the than the policy world but I think it is very important officials of those nations to develop these best can technology help with this? It can be difficult to policy making world? to understand how policy is made, at least in practises. We focus on this, how to identify where properly vet individuals. How can US companies the United States of America. In the US, we take corruption is occurring and then rooting it out by PRISCILLA: It’s two things for me. Firstly, availability carry out accurate due diligence, especially a very informed approach. The policy makers alerting local officials. of resources. The farmers really only need a phone considering cultural issues where family ties may would likely have meetings with deputies and but many can’t afford that. We’ve tried to minimize One last thing to note is the rise of cryptocurrencies, be strong and obscure? officials from different departments who would the technology aspect relating directly to the currencies which have protection and security. come together to discuss global issues such as farmer. We communicate through text messages in These are becoming more important but they have violence, corruption and unrest and then make code, for example. to be end-to-end. The initial transaction must be recommendations to the President of the United examined, including the deal that is being made, “How can US companies Literacy is another issue, as well as exposure. States via the secretaries of their departments. who is involved, not just the bitcoin/cryptocurrency carry out accurate due Some are suspicious that it will require a lot of itself. There’s a whole spectrum to focus on so we learning and they have been cheated so many try to look at every aspect of a transaction or issue diligence, especially times and for so long. We need to educate to show “States fall because and then inform policy makers. We don’t always considering cultural advantages rather than just trying to generally get it right, but we try our best. fight corruption. of corruption, issues where family ties ANDRE: Absolutely, cryptocurrency is a key issue may be strong There’s also an element that some players in demonstrating the unrest and an important area of innovation, but one the supply chain make money due to a lack of that it can cause.” that brings its own set of challenges. Randa, I and obscure?” transparency. They’re obviously not keen to have want to turn to you to give us an international technology expose that they’ve been cheating Ron Moultrie business perspective. Randa Fahmy rural farmers for a long time. RANDA: This is a great segway from Ron’s topic TIM: We saw this one in Afghanistan. The police as I’d like to look at private sector (primarily US) were happy to get paid through mobiles but Language issues can play a role. Culture can affect Intelligence agencies would not usually be part challenges when doing business abroad. Some then they realised they had been cheated out of the use of even the same language. ‘License’ is a of this discussion, but we were included because countries have been under sanctions or are in 20 – 30% of their paycheck the entire time up till word that seems to have a number of meanings decisions are made in a vacuum if they are transition and have been for some time, raising that moment. according to culture. Even ‘bribes’ can fall under a not informed by knowledge from inside these issues for US companies of any size that wish to range of different meanings. It might be ‘money for STEVE: It’s not difficult to get the technology out there, countries. Intelligence agencies are therefore enter them. I want to focus particularly on one favours’, it might be ‘wasta’, it might be as simple as but everyone is at a different stage of expertise. So brought in to inform policy makers even though law that our policy makers enacted in 1977—the handing over money for a passport or visa. we need to approach many different spectrums, they aren’t technically policy makers. Foreign Corrupt Practises Act (FCPA). with different levels of complexity. There’s also a Again, these issues are ripe to be approached There are number of issues — corruption and 15 USC section 78 DD and following paragraphs barrier in terms of defining transparency. It can be with technology. What will be important is finding crime are good examples — that are truly global. focus on Accounting and Bribery of Foreign viewed as making all information available and the right combination of technology and human Andre mentioned Africa, a good example as we Officials. Accounting is clearly important as people are possessive of their data. That’s not a intelligence to do the correct due diligence and not study and try to support Africa because we have numbers don’t lie. The SEC enforces this provision technological hurdle, just a mindset shift that needs violate the FCPA. a vested interest in trying to help the people there. and instils accounting transparency. Technology is to take place. We need to make it clear that there But these issues are global. A UK report in 2014 cited central to this area and well-advanced. Corruption ANDRE: Thank you for those remarks. A key are more benefits to sharing than in keeping data South Korea as being a model for transparency requires money. We can then follow the flow of development in recent years is the FCPA becoming to yourself. and accountability. The South Korean President large amounts and then match up what people a benchmark for international best practices. This RON: I agree with Priscilla and Steve—it’s fascinating was locked up and thrown out of the country say they’re spending on what they actually are. is largely due to the US Justice Department being to go to other countries and discuss technology after being indicted on corruption charges. That effectively the only international justice department with them. There are also barriers between 24 25 ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C

departments – prosecutors are not talking to the indicators through tech but then we need to look police and the data is siloed. Technology can be at the underlying causes. seen as a panacea but the key thing is helping ANDRE: Tim, at a ground level, how is PeaceTech people understand the outcomes. Africa is a great Exchanges handling this? example, they don’t have the resources but they have a key understanding of technology. If we were TIM: We have some case studies. ‘I Paid a Bribe’ is able to give them the tech they’d really succeed. a self-reporting app which tracks bribery in India However, there can be levels of parochialism and and allows people to text in or visit a website if fiefdom within governments that make this hard. they’ve had to pay a bribe. There is a lot of self- reporting to create a cultural shift. CHIP: There has often been a reluctance for NGOs to work with former members of the national KEVIN: How can start-ups contract with the security establishment. This is getting better but government and how do you build the capacity to there is still reluctance to use new technologies. It’s apply cutting-edge tech that may be well ahead not just a challenge of getting the rural farmer to of current systems or capacities? use a phone - it can be hard work getting major STEVE: The government is often 8 – 10 years NGOs to use them too. behind the private sector and their acquisition ANDRE: With 17,000 NFPs running on the AWS process is the biggest barrier to entry. The US often platform, I think Ben Butler will be the best placed spends years building something rather than buy it to respond to this. How off the shelf. We always is Amazon dealing advocate getting tech with this challenge from the best provider that NGO’s and not for “We can find the and keeping ahead of profits sometimes feel the curve that way. allergic to technology? indicators through RON: That’s true. The US BEN: The cloud technology but then Government may be a is making large we need to look at the good example of anti- contributions in this underlying causes.” bribery protection gone respect. There’s a lot of wrong. There are simply experimentation. Being Steve Fehr too many approvals able to experiment and processes needed and quickly test and to do something that revise is crucial and could just be bought on that’s AWS and cloud computing can really help the same day. It’s an understood issue but it will with. We can provide scalable, large-enterprise take time to break down this barrier. technology to small and large companies. A small SHELDON: I agree. The government is trying to NGO can therefore tap into the same infrastructure speed this up but it’s a slow process. Part of the as a major company on a pay-as-you-go basis. problem is not understanding just how quickly tech Experimentation works to find our how to set up is moving. By the time a meeting happens, the tech a series of tests to get to an end point. So the has changed. NGOs or the non-profits are really able to tap RON: That’s a good point. Perhaps the answer lies into the power of the cloud and higher levels of in trying to adopt a bottom-up change, rather than services such as machine learning, data analytics, top down. global presence and being able to scale that out throughout the world. MARIANNE: How do we make anti-corruption technology and self-reporting sustainable? There ROHINI: There’s naturally high-level, big-money may be capacity gaps in terms of investigating corruption but it’s worth thinking more about low- allegations and incidents. Where do you see these level corruption. It seems that addressing corruption gaps and what can be done? means changing the psychology of people. Would you have any comment on this? RANDA: I think the government can mirror the private sector, particularly in enforcing the ANDRE: Steve Fehr, would you have a comment? criminal penalties under the FCPA, that will STEVE: That’s a cultural issue so no amount of assist sustainability. technology will break through. We can find the

26 27 ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C ANTICORRUPTION INNOVATION ROUNDTABLE, WASHINGTON D.C

ANDRE: I think that causes a ripple effect. After a generation that really trusts it and an older ANDRE: That’s exactly it. We need new constructs needs to be complemented by increasing levels FIFA was indicted, it really made other sporting generation that is unfamiliar with it. How do we and we need new models to find the right talent. of investment in education and enforcement. I organizations realised they had to up their games. breach that gap? actually disagree with rewarding integrity as this EVA: I think the idea of celebrating integrity and may mean that people only feel that they can RANDA: Another aspect is convincing politicians STEVE: We have an open call for NGOs that we good behavior is a better tactic than punishments get a present if they’re good. I think you have to across the world to run on anti-corruption then try to match with government partners. It for breaches. An example is Blair Glencorse’s enforce the law, across all strata of society. platforms. It may be difficult in countries that don’t works about 25% of the time. Essentially, that’s ‘Integrity Idol’, which has been broadcast on have open or free elections but it would be a the message. We just need to find more ways to national television. It’s a good way to reinforce RANDA: The US also has some good examples. good step. create and sustain an overlap between CSOs and and identify values such as: What is trust? What is Cellphones in jails have been showing abuse of the government. integrity? What are manners? What are manners the legal system. In Palestine also there have been RON: Execution can be a problem. At the NSC in your culture, what are they in mine? How do good examples of citizen journalism. we worked with enforcement arms of anti- REBECCA: I have questions about the people we speak to someone of this background? And it corruption bodies. We gave technology and running tech. How do you find and retain the right There are also laws in the US such as FARA – goes with the global citizenship that you are also then worked with them on implementing the full, people to run the technology to make sure that it the Foreign Agent Registration Act. Individuals in describing. That’s one solution. end-to-end program. continues to solve the problems? the United States who represent foreign interests FAHDY: I deal with private equity in several countries have to register. This is instant and online. Same STEVE: People need to talk to each other and ROHINI: The most popular sessions at the Grace in Africa. What do you do when countries find for election donations. At the end of the day, maintain dialogue. It’s easier said than done but Hopper conference last year were on women in a number of loopholes around corruption and the camera and the world wide web provide we are seeing networks grow in Iraq. We now technology and AI for Social Good. There are a there’s a different type of corruption than usual. For valuable transparency. have mentors coming in from Egypt and Lebanon. lot of people that are really interested in using the example a ‘fine’ being levied and then corporate The conversations are happening. technology to do good and to work in this field. We Wayne –I don’t think we’re far from this. I think assets frozen for non-payment. For a number need to leverage this enthusiasm. we have to think about how we define success ANDRE: I think both embedding people to full of young people living in these countries, these against such big problems. We also need to capacity and building self-sustainable networks RON: From my perspective, organisations, be it people become role models for young people. We define the problem. How do we understand are all great mechanisms to build sustainability.. in government or private sector, are employing need to find ways to reach the youth. the metrics for accountability and transparency people who are doing SHAAZKA: I wanted to ANDRE: These are two tough questions. What do across organizations and how do we get the buy- things today that are tie together two points. you do when the system is so corrupt that it flows in from organizations? When we talk about tech greater and more Technology to combat both ways and secondly, what happens when and people, they’re both important, but business “Technology to combat important than ever corruption is disruptive corruption becomes the norm for success? models are important also. before. Every company and can disrupt corruption is disruptive is competing for the MARCOS: I was born in Brazil, and there’s a similar ANDRE: This has been a very rich topic and the corruption systems. It’s and can disrupt same talent, including the situation to this there and in other countries. I’m half- comments and thoughts provided today have also a point of pressure government. But these Italian and you can see the same thing in the South created a rich discussion on how we can fight to change practices or corruption systems. It’s staff are also looking of Italy. I also work in technology, and I think there’s corruption globally. This roundtable is one of policies. It can also be also a point of pressure beyond and wanting to just no short-term fix for corruption. We’ve mixed several we are hosting around the world to support a reward for those with to change practices make a social impact. the discussion into different types of corruption but our Shield in the Cloud innovation challenge to integrity, it’s not just a tool This is a real challenge I think the really damaging type of corruption in find the most innovative startups, corporations, to punish. and policies.” for governments as emerging markets is top-level corruption. governments and not for profits using technology to At the same time, there’s a risk that security fight corruption. I would like to express my sincerest Shaaza Beyerle Where technology really makes a difference is in technology changes clearances might lapse thanks to all our panelists and participants. increasing transparency and accountability. This so quickly that what is when staff take leaves perfect today may be of absence to go and obsolete tomorrow. We need to keep a grass roots make an impact. We’ve been looking at ways campaign going. Hackathons and other ways to allow people to go and work on their projects to encourage the youth are important to keep without losing their clearance, meaning we lose the technology fresh. I’m impressed by the efforts staff. There are some big changes coming. you’re making in this regard. ROHINI: We also have several volunteers from SARAH: A theme I keep hearing about is trust— Miter. These people are the cream of the crop political, social and financial. We are seeing a lot and the company gives them time to volunteer, of dissolution of systems that used to bind trust something we’re leveraging. and technology together. Where are bridges being REBECCA: I actually work with a number of data built between the old trust systems and the new scientists that have turned down offers from major ones created by technology? How can we import corporations such as Netflix to work with us. It’s the technology into the old systems without them one thing to want to do good and quite another being destroyed? to commit fully to it. There’s a balance between ANDRE: There is a potential for a trust gap. 90% reality and dollars that has to be struck. It’s not just of all start-ups are born in the cloud so there’s tech, it’s people. 28 29 PARTNER PERSPECTIVES PARTNER PERSPECTIVES

ICMEC: Data that never sleeps Developing Systems to Bring GMCNgine™ Missing Children Home

At the International Centre for Missing & Exploited ICMEC has designed the GMCNgine™, an Children (ICMEC), we fight to protect children innovative, intelligent image search and matching from abduction, sexual abuse and exploitation, engine that integrates and searches a vast array because one missing or abused child is one of global data sets looking for matches and other too many. clues to help GMCN members more quickly solve missing children cases. A missing child is a vulnerable child in need of protection, regardless of the circumstances under The GMCNgine revolutionizes the paradigm by which they went missing. That is why ICMEC’s Global increasing GMCN members’ capacity to search Missing Children’s Center helps protect children for and recover missing children; increasing public around the world from going missing or being engagement in the search for missing children; abducted by providing awareness and prevention accelerating the dissemination of urgent bulletins resources to police, government agencies, civil about missing children; reducing administrative society, and families, as well as conducting training time and investigation cost; and collecting data on the appropriate measures to take in the event and generating national and global missing a child does go missing. children statistics. A core component of the Global Missing Children’s And we know it works. Recently, we received an Center is the Global Missing Children’s Network email through our general email account where an (GMCN), which was launched in 1998 with the adult male claimed he was abducted in Argentina goal of changing the way the international when he was a boy. He provided a picture of community responds when a child goes missing or himself as a boy. The image was uploaded into is abducted. Currently, the GMCN is made up of the GMCNgine prototype and there was an 80% 28-member countries across five continents. Five “hit” for a missing Argentine child. The information members joined in the last year, and our goal is to and lead were provided to the Argentine Federal expand rapidly in the months and years ahead. Police for further investigation. Unfortunately, they GMCN members come from law enforcement, now have confirmed that the photo emailed to government, and NGOs working on missing us is not of the missing boy. But, our pilot program children’s issues, including prevention, investigation did what we hoped it would do: it enabled us to and recovery. GMCN members become a part forward a lead to the appropriate authority in a of a comprehensive global response to the issue, GMCN member country for follow up. working together to: build awareness; share best Through the GMCNgine, we are using technology practices, research, and tools; and bring children to take the GMCN to the next level – moving from home. The more people and organizations focusing static to dynamic data, creating a system as on missing children, the greater the possibility of tireless in its effort to help locate children as are recovering them. the loved ones who search for missing children. With support and encouragement from Amazon For more information please visit www.icmec.org Web Services, C5, the Motorola Solutions or contact us at [email protected] Foundation, Facebook, Web-IQ, and Biometrica, 31 PARTNER PERSPECTIVES

GLOBAL Tech for Integrity MARKETING Jay Collins, Citi EFFORT

Technological innovation can combat corruption, and financial systems worldwide are increasingly one of the greatest challenges of our time. The Citi challenged. Much of fintech’s innovation aims to Tech for Integrity Challenge showed the necessary replace cash, focusing on the last mile, where the solutions already exist. electronic payment and data chains break down.6 Corruption, or the abuse of entrusted power for Meanwhile, new technologies like distributed private gain, comes at enormous economic and ledgers and smart contracts could—if effectively social cost. It destroys the trust that underpins managed—play a major role in reducing corruption. democratic values and institutions and cracks Similarly, big data, artificial intelligence (AI), machine the social contract that binds us together; 60% of learning and predictive analytics will allow powerful ENGAGED 61 APPLICANTS young people see corruption as the most serious virtual “search and destroy” missions to be waged issue facing their local communities and the most against corruption. Advances in biometric (facial, important factor driving inequality.1 voice and fingerprint) recognition will allow digital and multi-factor identification to combine with From an economic standpoint, corruption is a tax OUNTR device, location and behavioral analysis to enable C IE on investors, undermining outcomes in almost 8 S a giant leap in our ability to tackle corruption. 2 every global industry. While estimates vary, the S World Economic Forum (WEF) puts the cost of S corruption at 5% of global GDP, or approximately Supercharging the fight O $3.7 trillion.2 The OECD estimates that corruption against corruption R adds 10% to the global cost of doing business and Citi recognizes that corruption is one of the greatest 3 C 25% to public contracts. challenges of our time and that technology A Yet it is the world’s poor that are hardest hit. Over innovators, big and small, can play a major role 1.6 billion people annually have to pay a petty in defeating it. To mobilize this effort, Citi used an bribe to receive public services.4 Recognizing open innovation methodology to crowdsource this, the United Nations Sustainable Development smart thinking from around the world. The result 24 SHORTLISTED Goal 16.5 targets corruption and bribery in all was a global public private partnership called the forms. The world’s political and economic leaders Citi Tech for Integrity (T4I) Challenge, launched by acknowledge the challenge: corruption is identified Citi, Mastercard, Microsoft, IBM, Facebook, Clifford as a top three problem by 67 countries, according Chance, Let’s Talk Payments and PWC at Davos in to a WEF survey.5 2017. Over 70 governments, NGOs and multilateral organizations such as the UNDP, IADB and the Technology provides an answer World Bank supported the initiative. The inappropriate movement of money, payments T4I crowdsourced integrity pain points from subject and collections of any kind in the public sector is matter experts and bucketed the pain points into enabled by paper money and manual processes. eight pain point pillars (listed below). From several As such, technological developments offer a hundred qualified registrants, 213 went through solution. There has been significant progress in the T4I accelerator program; 96 companies governments adopting electronic payments and showcased their solutions. The examples below 7 collections, including the use of procurement and are drawn from participants in the T4I Challenge: benefit cards to make payments. We have also seen governments successfully implement mobile 1. Cutting red tape wallet and digital identity solutions. Digital document management and workflow From Kenya’s digital wallets and India’s digital efficiency can prevent corruption facilitated by identities to the rapid growth of P2P services in paper documents and manual processes. Many China, the frameworks that anchor regulatory T4I solutions use a “permissioned” blockchain 5 WINNERS 32 33 PARTNER PERSPECTIVES PARTNER PERSPECTIVES

backbone, which acts as an immutable data 4. Government transactions and the absence of data about use-of-funds. Digital • Quantexa delivers an assessment of citizens by registry and enables AI-based cross-checking of payment processes fund distribution, using card and mobile wallet using a 360-degree view of behavioral network databases for anomalies. Physical interactions between citizens and options, is a better alternative during times of crisis connections that provide a credit-risk score for but faces challenges resulting from low levels of KYC and anti-money laundering processes. • Wallet.Services provides workflow solutions to public officials responsible for conditional cash last mile connectivity. over 100 agencies of the Scottish Government, transfers (CCT) and other benefits create bribery • Sqreem uses AI to find behavioral, process and using batch data management workflow opportunities. Digital integrity solutions can • Paycode combines smart cards, and biometric structural anomalies in data. Sqreem’s solutions solutions on a permissioned blockchain platform. electronify and automate the authorization and identity in a ‘bank in a box’ model that does not are applicable to virtually every pain point in payment process associated with CCTs. require an internet connection. the T4I Challenge, but are especially relevant to tackling IFFs. • Digital documentation requires e-signature • PALPAY and Myndgenie identify both the benefit • Nultan’s contactless radio-frequency identi- controls and authentication. Companies recipient and the certification professional, fication (RFID) payment solution allows fast like Dathena, which uses Nvidia’s AI, and digitize certification and automatically release non-cash payments without the need for Implementing integrity solutions Singapore’s Taiger demonstrated solutions that the payment. internet access. The following principles will help governments identify, classify and categorize documents and • Mindgate’s event - and rule-based engine • AID:Tech integrates identity solutions and effectively implement integrity solutions: analyze them for potential fraud and corruption. automates conditional benefits, cutting leakage data analytics designed to meet aid impact • Lead from the top and demonstrate a from 30% to near zero, and reducing certification needs. It uses blockchain, making distribution commitment to integrity. 2. Analytics, reporting and transparency and payment from 180 days to three. records immutable, transparent, auditable • When in doubt, pilot solutions before rolling Many T4I finalists developed solutions that • Prozorro.Sale creates auditable competition and searchable. them out at scale. address data management challenges and tools records via multiple commercial auction • PALPAY uses RFID technology to distribute and Open APIs are a fast, scalable, cost efficient and that organize and analyze data. platforms for government asset sales, eliminating track non-cash supplies to aid recipients and • bureaucracy, collusion and price manipulation. provides unique electronified conditional cash flexible method to utilize new technologies. • Privitar sorts data and identifies, manages and transfer capabilities. • Smaller firms provide comfort to governments protects it. 5. Public procurement and beneficial ownership by imbedding solutions delivered “as a service” • Deepgram and Nice Actimizes use AI to analyze 7. Ethics, engagement and education by larger firms to those smaller companies. non-script data (such as unstructured audio Digital technology can introduce end-to-end • Governments must build capacity to design and video) efficiently and accurately to detect transparency to public procurement processes. Education and citizen engagement contribute to technologically advanced, solution-oriented integrity anomalies. more ethical behavior. • Crediwatch uses algorithms to provide real- RFPs, and to be able to credibly review tech • Precognitive assesses behavioral vulnerabilities time risk insights into government vendors using • Factico crowdsources data about public ideas from consultants, ICT providers, banks and applies predictive analytics against 25,000 public data points. infrastructure and services in Mexico and and fintechs. aggregated data to prevent device fraud. includes a whistleblower app. • Commugen’s end-to-end procurement solution • Build deep partnerships with the private sector • CARTO uses algorithms to analyze and provide is delivered via API and can be bolted onto • iPaidaBribe’s whistleblower app targets petty and utilize its expertise. real-time visualization and predictive insights toolkits by governments. bribery by crowd-reporting bribes. using location data. • Teneris by Signatura uses blockchain for • AasPass directly links citizens with anti- Conclusion document management, with digital signatures corruption authorities, and includes audit trails, Technology, if applied aggressively, has the 3. Identity and document verification, to manage tender as a one-stop-shop to report and address potential to radically reduce corruption. The Citi offers, requests for proposals (RFPs) and sealed corruption grievances. A total of 1.1 billion people in the world have T4I Challenge confirmed this hypothesis. The bid auction processes. no straightforward way to prove their identity, technologies and solutions needed for the integrity 8. Financial crime feeding bribery, contributing to fraud and creating • SuperWise ensures remote infrastructure war are not futuristic; they are available now. There 8 barriers to financial inclusion. Multi-factor, layered construction control and transparency by Financial crime generates approximately is a plethora of companies with the capacity to identity solutions used for identity onboarding providing workflow oversight using supply $2.1 trillion in illicit financial flows (IFFs). T4I solutions successfully compete for mandates to execute and verification, or for transaction authorization, data input, worker and supervisor mobile seek to shine a spotlight on this challenge. their integrity solutions. Together, private sector increasingly draw on biometrics. apps, digital workflow, geo-location capabilities strategic allies, NGOs and official contributors to • Tradle offers know-your-customer (KYC) func- and picture content to improve infrastructure the T4I Challenge, including Citi, are ready to fight • PAYYAP has added IBM voice authentication tionality, bridging internal and external networks sector integrity. corruption wherever it exists. technology to its e-commerce payment solutions. using blockchain. • Taiger applies multiple AI disciplines to • TOC biometrics is commercializing multi-factor procurement by automatically extracting and biometric identity approaches for document interpreting data from structured and semi- solutions. structured sources. • iProov is using color flash technology, combined with a layer of machine learning, to provide 6. Crisis management and aid high-grade facial recognition. Providing cash aid payments in remote areas to 1. World Economic Forum 5. CSIS, “Costs of Corruption,” February 2014. 144 countries were • ID.me allows citizens to access multiple 2. OECD, “The Rationale for Fighting Corruption,” 2013 and World surveyed government services and benefits through one unbanked and unidentified refugees or victims of Bank Global GDP 6. Citi Digital Money Index, 2014 portal and sign-on. civil conflict and natural disasters is problematic 3. B20 Task Force on Improving Transparency and Anti- 7. The companies listed herein represent interesting examples because of the high potential for corruption and Corruption Speech, Angel Gurria, 2012 of solutions. Inclusion in this list is not meant as an 4. U4, “Reducing Bribery for Public Services Delivered to endorsement of any individual company. Citizens,” 2015 8. World Bank Group, ID4D, 2017 34 35 CLOUD CHAMPIONS CLOUD CHAMPIONS

transparent operations and regularly report aspects of the local culture and specific context Mark Labs: KPIs (please define the acronym) for funding of each organization. Rather than generalized Technology Innovation providing to follow metrics, the approach allows for different metrics to be inserted according to context. In addition, 3. Share data and AI powered insights with there are ways to incorporate the story of an relevant stakeholders to advocate partnering the tools to fight corruption organization. In this way, multimedia that shows with validated partners the work in action is a part of the platform. When the story supplements the data, organizations are When deployed, the system releases payments more inclined to continue using the platform. It is Each year since 1995, Transparency International Then, we need to understand, why does corruption when certain conditions are met (smart contracts) not presented as an anti-corruption platform, but ranks countries by their relative levels of happen more in specific places? Certain factors, and ensures validity through a distributed network instead, a platform to maximize effectiveness. corruption. While this ranking system brings such as cultural acceptance for bribes, are hard (blockchain). As the data flows through the greater awareness, it has not affected significant to quantify and specifically address. Yet, one platform, effective activities and organizations are decreases in corruption. controllable factor within aid is the process of identified, as well as irregular responses enabled Enabling Success institutional payments. Aid is still delivered according Technological innovation and progress over the through machine learning (artificial intelligence). The If luck is what happens when preparation meets to a process invented in the 1900s. In a world where past twenty years provides an important addition platform addresses corruption but also modernizes opportunity, then we are lucky to have the right peer-to-peer payment systems (such as PayPal) to the fight against corruption. Now, one can move the system, providing the value of data science to technology and the right opportunity to address and distributed ledgers (blockchain) provide value beyond raising awareness and directly reduce all stakeholders involved. Here’s how: this situation. While the challenge of corruption is and ease, aid is stuck in an antiquated system. the capability to be corrupt while increasing the a tale as old as time, we have yet to possess a The system simply allows too many instances or • Empowers donors with visibility effectiveness of aid and support. The public technology that could greatly mitigate its effect. possibilities for money to vanish before it reaches into spending cloud enables a unique opportunity to bring The underlying data on a public cloud creates the its final destination. One need only consider all the anticorruption efforts into the twenty first century • Empowers partners with real-time conditions and foundation of data. The platform possible problem points: the use of cash, a long list and lower corruption across the globe. impact data to analyse the flow of data and funds is now of intermediaries, subpar and irregular reporting, • Allows for innovative financing via scalable and ready to deploy. The only question Fortunately, a handful of companies and lack of coordination amongst major institutional public private partnerships, and pay for left is, who will lead by example? governments are already leading the effort forward. donors, and loosely enforced protocols. It was performance, and social impact bonds The exciting news is we now have the technology designed for the previous century’s financial As previously mentioned, the benefits would be to reduce corruption, innovate, and rapidly scale structures and problems, not for today’s financial most impactful in areas where the challenge and strengthen good governance, everywhere. structure or possibilities. It’s time for an update. Insights in Action of corruption is felt most acutely. As such, Sub- Where we were once stuck as passive observers, If the technology is ready, why hasn’t this been done Saharan Africa is rich with opportunity to improve we have finally reached the point where we A Better Path Forward yet? In many instances, proposed solutions are the delivery of government services, aid, and can proactively and systematically address the designed as top-down corrections to be imposed combat corruption. This region would also benefit In 2015, Mark Labs was founded with a simple challenges of corruption with technology. by external stakeholders instead of developed as the spread of technology begins to cover goal: optimize impact and modernize aid. Using incorporating perspectives on the ground. With more aspects of the economy. An intervention the power of machine learning and blockchain Corruption Overview such thinking, the value of such systems is one- that makes logical sense to start with are for smart contracts, Mark Labs created a platform sided. Over time, organizations opt out of financial transactions to aid organizations. To reduce corruption, we need to first understand designed to modernize aid and ensure that funds the system due to unclear value or simply A technology that monitors the funds and where it occurs and our options in response. First, are deployed where they are most needed. Since technological challenges. As one of our tracks performance on the cloud would where does corruption happen? The simplest being founded, Mark Labs has addressed this partners put it, “you are talking about provide benefits to both funders (such as answer is everywhere, but we need to be more challenge in areas ranging from the refugee crisis blockchain but these aid works only a government entity) and organizations tailored and strategic in determining where to in Syria, to clean water, human trafficking, and have cell phones.” on the ground. This is a problem deploy anti-corruption strategies and technology. education in countries as diverse as South Africa, with a clear solution waiting in the Thus, where can we make a difference? Follow Indonesia, Turkey, and the USA. At Mark Labs, the platform is Investments wings, we have an incredible the data. The data reveals clear regional trends. built to accommodate low- opportunity to make things One application of the Mark Labs platform was According to Transparency International: tech regions and automate better that is too important with a U.S. Federal government entity (name data entry. In addition, the to ignore. withheld) economic aid to a country in a volatile “The best performing region is platform incorporates area. The regional government was targeting Western Europe with an average Western aid groups and seizing funds. Seeking to Metrics / Metrics / score of 66 [0 is highly corrupt reduce the risk associated with delivering the aid KPIs KPIs and 100 is very clean]. The worst and modernizing the transfer of funds, Mark Labs performing regions are Sub-Saharan designed a solution with three clear steps: Africa (average score 32) and 1. Collect data from beneficiary organizations Eastern Europe and Central Asia and validate its accuracy (average score 34).” 2. Manage payments to organizations – funded Company Company Company organizations would have to maintain 36 CLOUD CHAMPIONS

PurpleTRAC: New Sanctions Impact Shipping & Trade Transactions Worldwide

Globally regulators are increasing Specific UN Security Council Resolutions and targeted actions by cooperating states have their focus on maritime reduced North Korea’s and other rogue states’ transportation and shipping. ability to progress their nuclear programmes and Within the context of annual world trade i.e. by extension further generate revenue through merchandise exports, being worth close to US$17 international trade, be it oil or other commodities trillion in 2017 and 90% of this transported by and technology. It remains an area where the sea, shipping is truly the life blood of World trade. UN, the USA, and its allies hold a tremendous A market of this size and with a fragmented advantage, particularly in a US$ denominated stakeholder and transactional framework that market, and are likely to continue to leverage as is decades old, if not centuries, including bill-of- part of a broader regulatory strategy. ladings, letters of credit, and such like provides a By way of example, the Monetary Authority of fertile environment for illicit trade to flourish and Singapore (MAS) has issued prescriptive guidance specifically money-laundering with associated to the trade sector with respect to sanctions narcotics, people trafficking, and terrorist financing. compliance. While MAS’s expectations are of a Estimates of illicit trade vary due to this scale with higher standard than many had anticipated, for recent estimates suggesting US$ 650 billion for the first time institutions have been given a clear goods and over US$ 2 trillion in illicit financial flows. idea of where the bar is set. Clarity in terms of It is therefore not surprising that we are seeing regulatory expectation is a big step forward, and an escalation in sanctions and regulatory policy is being taken into account by other regulators relating to all areas of trade including maritime around the world. transportation and supply chains. Technology in the regulatory sectors – REGTECH - is making great strides in helping financing Banks We are seeing an escalation in & trading companies with exposures to shipping sanctions and regulatory policy and maritime supply chains to navigate an ever relating to all areas of trade changing and complex regulatory landscape. Pole Star’s multi award winning PurpleTRAC technology has been adopted by many institutions Today, regulators are widening their scope and to streamline, automate, record, and improve focus from the banks that finance world trade their compliance process, reduce risk, and to to the other actors and players that play a key protect reputation. role in the facilitation of international trade and The US treasuries Office of foreign asset control movement of goods around our planet. OFAC does not frequently produce Industry The global regulatory landscape has never been guidance or best practice but instead prefers more complex and most expect this situation to to signal expectations through the use of continue and become increasingly specific and penalties. In more recent times we have seen targeted. Sanctions have become the tool of choice this start to change with the issuance from the for governments and their national regulators. The US treasury’s OFAC in conjunction with the State ability to monitor and enforce these regulations is department of a shipping advisory to alert seen as vital in reducing crime and illicit trade and persons globally to deceptive shipping practices making our oceans a safer place to trade. used by rogue states to evade detection. 38 CLOUD CHAMPIONS

“As part of our global effort, we are tracking in a given shipment. Bills of lading, certificates of the ships that are engaged in this trade, and origin, invoices, packing lists, proof of insurance, you’re exactly right: they frequently fly flags of and lists of last ports of call are examples of convenience, and they try to hide their ownership. documentation that typically accompany a We are going after the flag countries, asking them shipping transaction. to remove the protection that the flags provide. We’re also going after the ownership, and we’re Disabling Automatic also going after the insurers. In short, we want to Identification System (AIS): make an example of these ships to make it very AIS is a collision avoidance system, which transmits, clear that any company that engages in this type at a minimum, a vessel’s identification and select of trade risks losing not only the cargo, but the navigational and positional data via very high ship itself.” frequency (VHF) radio waves. While AIS was not US State Department Press Briefing specifically designed for vessel tracking, it is often 17th January 2018 used for this purpose via terrestrial and satellite The United States and its International partners receivers feeding this information to commercial have demonstrated resolve to pursue those ship tracking services. Ships meeting certain violating sanctions in the Shipping Industry through tonnage thresholds and engaged in international the adoption of UN Port bans, the detention voyages are required to carry and operate AIS. of vessels complicit in sanctions evasion, and through the national level sanctions designations. Manipulating AIS: Financial institutions, Trading companies, Insurers, Merchant vessels have also been known to flag registries, shipping companies, bunker manipulate the data being transmitted via AIS. Such providers and others involved in shipping related manipulation could include altering vessel names, The Solution: PurpleTRAC’s unique hybrid tracking countries of risk, and the degree of alerts that are transactions may be subject to one or more IMO numbers, Maritime Mobile Service Identities solution incorporates both terrestrial and satellite generated. The system can be engineered to any sanction prohibitions. (MMSIs), or other unique identifying information. AIS data, which is then supplemented with secure set of defined risk parameters. This tactic could also be used to conceal a vessel’s Inmarsat position data - the technology used Deceptive Shipping Practices next port of call or other information regarding by governments and flag administrations for Leverage Available Resources: There are several its voyage. vessel tracking. organizations that provide commercial shipping As the global regulatory community increases data, such as ship location, ship registry information, its focus on the maritime sectors, the following Conduct Research Prior to Ship-to-Ship (STS) and ship flagging information. This data should be provides examples of the types of tactics used to Transfers: Vessels conducting STS transfers in the incorporated into due diligence practices, along hide the identity of the vessels, the goods being 90% of world trade is area surrounding the Korean peninsula should with available information from OFAC, the UN, and shipped, and the origin or destination of cargo. transported by sea be aware of the potential for sanctioned vessels the Coast Guard. to use deceptive practices to hide their identities, Physically Altering Vessel Identification: The Solution: PurpleTRAC incorporates data including by using false vessel names or IMO from the IHS matrix; the International Maritime Maritime vessels meeting certain tonnage How PurpleTRAC technologies numbers. Vessel operators should ensure that Organisation’s approved data providers to the thresholds are required to display their name can help you they have verified the vessel name, IMO number, maritime industry. and International Maritime Organization (IMO) and flag prior to engaging in such a transfer, and Deceptive practices are intended to circumvent number (a unique, seven-digit identifying vessel ensure there is a legitimate business purpose for existing sanctions regulation in shipping-related Summary identification code) in a visible location either on the STS transfer. transactions. The risk of engaging in prohibited the ship’s hull or superstructure. A vessel’s IMO The Solution: The PurpleTRAC system screens Pole Star’s multi-award winning PurpleTRAC activity or processing prohibited transactions can number is intended to be permanent and should vessels using their IMO number, which negates the RegTech system has been designed and built in be mitigated by implementing the following types remain consistent regardless of a change in a requirement to look at previous names, as well as conjunction with institutions that have regulatory of measures: vessel’s ownership or name. ensuring 100% accurate vessel screening results. and sanctions exposures in maritime transportation & supply chains. Our online platform allows our Monitor for AIS Manipulation: Ship registries, Clear Communication with International Partners: clients to screen and monitor vessels used for Ship-to-Ship (STS) Transfers: insurers, charterers, vessel owners, or port state Not all parties to a shipping transaction may be sea trade, automating complex compliance STS transfers are a method of transferring cargo control entities should consider investigating subject to the same sanctions regimes, so clear process and generating an auditable record of from one ship to another while at sea rather than vessels that appear to have turned off their AIS communication is a critical step for international their demonstrations to comply with international while located in port. STS transfers can conceal the while operating in the area surrounding the Korean transactions. Clearly communicating U.S. and UN trade sanctions. peninsula. Any other signs of manipulating AIS origin or destination of cargo. sanctions obligations and discussing sanctions transponders should be considered red flags for We’ve even been recognised by United Nations compliance obligations with parties to a potential illicit activity and should be investigated advisories for defining best practice on these Falsifying Cargo and Vessel Documents: transaction can ensure more effective compliance fully prior to continuing to provide services to, processes - and have been awarded for with relevant sanctions programs. Complete and accurate shipping documentation processing transactions involving, or engaging in innovation in maritime regulatory technologies by is critical to ensuring all parties to a transaction other activities with such vessels. The Solution: PurpleTRAC is configurable to the Monetary Authority in Singapore, Microsoft, understand the parties, goods, and vessels involved bespoke requirements in terms of watch lists, Citibank, C5 & The Shield in the Cloud 2017. 40 41 CLOUD CHAMPIONS CLOUD CHAMPIONS

same rights and access to the data. Another easily find information on the assets sold by public distinguishable feature is that after each auction, all bodies, collect the data about the price and terms the data, the bids and the contracts are published of any auction, as well as to get the details on in a machine-readable format, so nothing is hidden. the buyers. All this ensures both huge efficiency The result is fair competition, ease of access and and complete transparency of procedures. And transparency in the process, together generating importantly it creates a unique level of trust. ProZorro.Sale: trust. Trust is the secret of efficient assets sales. And the glue that keeps all the parts together is How is the system different? Usually, each the technology - a unique open-source e-auction Reforming state assets in Ukraine government agency would either build or hire system developed by ProZorro.Sale team together just one website to sell its assets. This website with Quinta, an IT-company from Lviv. would know the bidders and the bids before the auction and also could limit competition by not A Global example registering all interested buyers. This style of system also meant that interested parties would need It took us less than a year to prove that our platform to navigate their way through all the government delivers a transparent and highly efficient sales process. After the first 4 months of testing Deposit reform the state. Now many of them have joined websites selling these types of assets and these Ukraine becomes a global showcase Guarantee Fund has transferred all the assets of the government itself or project teams in different websites are rather hard to find. This all created a in transparent sales bankrupt banks into ProZorro.Sale. Impressed with fields within government (transport, infrastructure, huge backdrop of corruption. This year our ProZorro.Sale team was honored to our results, huge state-owned enterprises (such procurement, sales) on a full-time basis. This was It took us only one and half years to transform a win the 2017 Shield in the Cloud Award. This gives as Ukrainian Post or Ukrainian Energy Company) my story too. system that had become very corrupt. And we great global recognition to our Ukrainian e-auction proposed to sell their assets through our platform. achieved this in a country that is suffering from the system and to the reform of state assets sales in What we are doing at ProZorro.Sale is eradicating Now we have expanded from just NLP’s and deepest economic crisis and is currently at war. general. And of course, it was a great opportunity corruption in public asset sales and leases. We’ve property: transparent e-auctions are used to sell, to deliver a message about our values and show started with the sales of nonperforming loans The ‘Revolution of Dignity’ provoked a call for for example, the rights to hold the season fairs, Ukraine’s success to the world. (NPLs) together with Ukraine’s Deposit Guarantee numerous reforms, such as procurement reform or rights to place the ads on public transport or to Fund building a brand new transparent system of reform of public state sales. This call for reform was lease a spot for a coffee point in the biggest Post I enjoyed my 5 minutes of fame at the United selling the assets of bankrupt banks. a catalyst for the golden triangle of partnership; Office in the Kyiv. Institute of Peace and as I was standing there in the state, business and civil society coming together. darkened conference hall I couldn’t stop thinking The idea behind ProZorro.Sale is quite simple: To The e-auction platform is being used by more than In this triangle the state sets the rules, businesses about the speed of our transformation and create a transparent public e-auction system that 20 Ukrainian cities. A great example: Selling the right bring expertise and services while civil society how different my life had been only a couple of provides fair competition and total access to both to lease space in Post Office in Ivano-Frankivsk. provides transparency and supervision. years before. the auctions and the data. We started in autumn During the auction, the price jumped from USD200 of 2016 and today we have already sold NLPs for up to USD1400 per month. But the most interesting around USD300m. To put this into perspective, this thing about this auction is that the winner was the Leaving the business sector is more than the total privatization revenue in the same person that leased that space previously, This call for reform was a catalyst for In 2014 I was a portfolio manager in a hedge fund whole of Ukraine in the last five years. but now she has to pay the market price for that. the golden triangle of partnership; and I never dreamt of becoming a state official. And that is the best illustration of how the system state, business and civil society coming But today I’m CEO of a newly born state enterprise fights corruption schemes. together. In this triangle the state sets - ProZorro.Sale - and not looking back. In 3 years “The idea behind ProZorro.Sale is quite the rules, businesses bring expertise We created a global example of transparent state I’ve totally changed my field and global focus. simple: To create a transparent public and services while civil society provides sales - not only for Ukraine but for all EU countries How is it I have become part of a global team e-auction system that provides fair transparency and supervision. and beyond. If we were able to do it here in transforming a hugely complicated and corrupt competition and total access to both the Ukraine, you can do it too. area? The answer is a ‘Revolution of Dignity’. auctions and the data.” Slava Ukrayini! The state holds the database, which it the first “I never dreamt of becoming tier of our system architecture, and guarantees a state official. But today I’m Encouraging Transparency its transparency, integrity and security. It also sets the clear and equal rules for the auctions and a CEO of a state enterprise In building the ProZorro.Sale system we were the whole market. Numerous private auction – ProZorro.Sale - and not using a unique two-tier architecture that is used platforms compose the second tier of our system. in the ProZorro Procurement system. This means They form the core to market the assets and find looking back.” that the state controls the database where all the buyers, provide them with high-quality service. the transactions are held. Dozens of commercial- The competition between the private platforms auction platforms connected to that database are My journey has shown Ukraine, and the rest of connected to ProZorro.Sale is tough but fair leading Alex Sobolev providing services (including user interfaces) for the world, that there is an opportunity to change. to an increase in bidders and higher prices. The CEO, ProZorro.Sale sellers and buyers. The platforms are limitedless Many educated young people with great business third tier - civil society - provides public oversight [email protected] and both the sellers and the buyers all have the experience have devoted their free time to help to through open data monitoring. Now anyone can [email protected] 42 CLOUD CHAMPIONS

USHAHIDI: Accountability and Transparency in the World Today

Transparency International’s 2017 Corruption Case Studies Perception index1 highlights that little or no progress In 2012, Transparency International - Macedonia is being made to end corruption in many countries. and the Center for International Relations deployed More than two thirds of countries scored below 50 an open source version of the Ushahidi platform on the index, with an average of 43. It also shows to empower citizens to report on alleged acts of a link between deaths of journalists/activists and corruption, as a central focus of their anti-corruption speaking out against corruption in countries that campaign in Macedonia. Citizens were able to have the least protection for press and NGOs, report on corrupt activities via the web platform, pointing to threats to freedom of expression in the mobile app, SMS and Email, leading to investigations fight against corruption in countries with low scores on consumer electric charge violations, discovery on the index. of improper property taxes, and reports of abuse of workers’ rights. These reports resulted Ushahidi Overview in challenges to the constitutionality of energy Ushahidi’s mission is to build and use technology tariffs, recourse requests of taxes from citizens, as to help marginalized communities raise their voice well government notices to desist in irregularities and those who serve them to listen and respond in adhering to laws governing workers’ rights. better. Our software has been used over 150k The Ushahidi platform was also used for a project times in over 160 countries to gather over 50M called “I Paid The Bribe” from 2009 to 2013 in reports. Ushahidi deployments enable any citizen Zimbabwe. Citizens were able to report on the with a phone or computer to report on corruption, nature, number, pattern, types, location, frequency violence, human rights abuses, threats to public and values of actual corrupt acts, via the web- safety, lacking accountability, and other subject based platform, in addition to email and SMS. areas depending upon the focus of the project. The project aimed to quantify petty corruption by These reports are managed and structured by understanding the role of bribery in public service the owner of the deployment on a single platform delivery, and the reports were used to argue for that can be filtered, sorted, searched, and then improving governance systems and procedures, visualized on map, timeline, and activity views. tightening law enforcement and regulation, and The reports can then be routed to inform response reducing the scope for corruption pervase in by the organizations or escalated to appropriate government services. authorities tasked with responding. The platform is designed and hosted as a cloud enabled web- based application that is scalable across projects The Future We Want to See and sectors, and is not constrained by geography. In the future, we want to see tools like Ushahidi being used at a great scale to uncover entrenched The Ushahidi platform has been working to corruption, and fight for positive change around the increase transparency and accountability across world through empowered community reporting. the globe over the past ten years, with over 30 corruption maps garnering more than 10,000 reports from citizens. Below are a few case studies from corruption maps using Ushahidi

Use the Ushahidi Platform Go here to learn more: Or reach out to Katy Money, Director of www.ushahidi.com/blog/2018/03/23/ Business Development and Partnerships, so-how-would-we-work-with-ushahidi [email protected]

1. www.transparency.org/news/feature/corruption_perceptions_index_2017 45 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

Anti-Corruption ANTI-CORRUPTION INNOVATION Innovation Roundtable ROUNDTABLE 23rd October 2017 London

LONDON SPEAKERS Monica Woodley Blair Glencorse Ex EIU Editor CEO, and head of content, Accountability Lab Legg Mason

Max Peterson Anton Rupert VP of International Sales, Director of Richemont Worldwide Public Sector, AWS

Lord Gold Teresa Carlson David Gold Associates Head of Worldwide Public VP of AWS Worldwide Public Sector

PARTICIPANTS

• Marcos Battisti, Partner, C5 Capital • Dr. August Hanning, • Tom Best , Head of Partnerships and Philanthropy, former German Secretary of State Start Network • Sasha Havlicek, CEO, Institute of Strategic Dialogue • Matt Bode, Associate General Counsel, • Jake Hernandez, Consulting Director, Another Day Amazon.com • Shamil Idriss, CEO, Search For Common Ground • Simon Davison, Investigations Director, • Sir Graeme Lamb, Strategic Partner, C5 Another Day • Jamie Lowther-Pinkerton, Strategic Partner, C5 • Emma Dearnaley, Senior Associate, • Jack Maxton, Head of Cyber, KPMG Hogan Lovells • James Norris, Investment writer, Quilter Cheviot • Eva Dimitriadis, COO, C5 Accelerate • Andy Powell , Product Manager, Eduserv • Christoph von Falck, • Henrik Schliemann, CEO, PMB Group Chief Executive Turquoise Holding, C5 • Natasha Hanckel-Spice, Senior Program Manager, Institute of Strategic Dialogue 46 47 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

MAX: We focus mainly ANTON: I agree that rules on tech innovation but alone aren’t enough. It’s I want to echo one “We can’t always important to find a way On 23rd October 2017, as part of the Shield in the Cloud anti- of Blair’s points. As be looking to simply to support ethical action. Amazon says, we work I think that if you hire corruption challenge, C5 Accelerate continued its successful roundtable backwards from the enforce rules, we need someone with the same series in London. This time the discussion went beyond the technologies customer, whoever that to build a culture that morals as you, then this that can be applied to combatting corruption and increasing may be. As you say, if culture will permeate we don’t start with the embraces integrity, from the top down. I’d like transparency across the world, and explored the socio-cultural problem then you won’t ethics and values.” to share some examples changes required for progress. The question of how to catalyze cultural get to the right solution, from Richemont and shifts in organizations and nations was central to the discussion, as whether it’s a tech Blair Glencourse how we’re employing solution or not. But now technology to help us, well as the importance of understanding the underlying problems that is a powerful time for as well as some of inhibit tech-led change. innovation as technology our failures. is enabling innovation. We spend a lot of time Every point of control has the potential to be a point trying to deliver capability for people to innovate of corruption. When incentives are misaligned, with; that’s what we do with Not for Profits and there can be problems. For example, the high TERESA: Corruption may not be a sexy topic, but goals. I’m not a technologist, I’m a political scientist organizations like PeaceTech Lab in Washington duties that need to be paid for Indian luxury goods, it is corrosive to global peace. At Amazon, we are and we’re often working in low-tech environments D.C. It’s also why our partnership with C5 means compared with the low wages of the enforcers. always opening new countries for business so we such as Liberia, where less than 3% of people so much to us as they think broadly about how We actually had a distributor that thought he was have to be aware of corruption issues. We don’t are online. tech can be applied to real problems. always have clarity on the unique characteristics helping us by smuggling in goods without paying But anti-corruption and accountability are political of each market so we must spend a lot of time But more important than the exciting technology duties on half of them. We had made the rules problems rather than technical ones. Tech is useful investigating practices, meeting with potential like AI or machine learning is how we’re driving clear but he still thought he was doing us a favour. but we also need to incentivize political change— new partners, vetting, and making sure that we tech equality. Previously, only large companies and Now we try and have a transparent conversation, technology can’t always change relationships. This are doing the right thing as a business. We take organizations could afford to use sophisticated rather than just setting rules. We also try to bring means a number of tools are developed then this very seriously as it’s central to how we go to technology but the last five years has demonstrated people into the organization rather than have disappear within three years. Building relationships market. This program is so important because it to us just how much innovation individuals can them operate off-piste as an independent entity. and fitting technology into the broader political bring. Tech is an enabler. But organizational change paves the way for disruptive innovation that will Our brand is crucial to us. It’s a contract between context is crucial. and leadership are central to driving real uses and make the world a better place. There are many us and our customer that they should trust us. real problem solving. Because it’s the business and different areas to consider, for example: technology There’s a danger that technology becomes They know they’re getting exactly what they pay government leaders that are trying to effect real for peace. We’re trying to take the initiatives being the goal, rather than a tool to achieve the goal. for and that it’s ethically sourced. New technologies and positive change against corruption and to developed at the United States Institute for Peace We can’t approach an issue by starting with have made this easier, but also more difficult. It’s build peace. The tech and AWS plays a huge role (USIP) and link them around the world. technology. We must apply the right technology easier to fake papers and use bitcoin rather than in enabling this as we rethink the threats involved to the problem. In the same way, we need to be a traceable bank. At the same time though, it’s BLAIR: The narrative had always been around the aware of the environment we’re working in. If it’s a and the potential for new approaches. problem of corruption, rather than the solution. easier to track. Diamonds, for example, can be low-tech country, we may not be able to apply AI To change this, we’ve found 20 integrity idols The third point I want to make is that data is the tagged with an RFID tag which tells you the whole and blockchain, we need to use the right tools to in the last four years. This kind of work is central new currency and cyber is the new protection. We history of the stone. These systems aren’t infallible, suit the location. to the Accountability Lab as we try to engage need to think about the future in terms of being and we tend not to advertise them because things young people in innovative approaches to It’s also important to consider how we approach able to enable and protect. A good example can go wrong but they allow us to have an honest accountability and anti-corruption. It’s critical to us. enforcement. Most companies will have their own is a meeting I had at City Lab with a number of conversation with clients. mayors. They had a wealth of systems but not We may expect young people to say they want enforcement and compliance programs already. This is important because the world of social enough data and it was because they didn’t yet hospitals or schools but often they say justice We can’t always be looking to simply enforce media means that there’s no putting out a PR spin. have a data architecture to allow them to take and accountability is a higher priority. That’s what rules, we need to build a culture that embraces Someone on Twitter will find you out and destroy advantage of the information they had. There’s we spend our time thinking about, not just in the integrity, ethics and values. This will take longer your reputation. The brand is as much about this huge potential to do big things in a low-tech way. developing world but everywhere. and isn’t easy, but if we can build this culture, in understanding and transparency. If you can be The Internet of Things is a good example. We companies as well as governments, then maybe honest and say you have been using best practises We have three strategies. One is positive may think it’s a high-tech solution but it’s amazing the rules won’t be broken quite so often. then people can forgive mistakes. I think the crucial engagement to change the conversation and what you can do with very simple sensors and a thing is the ability to have that conversation. If you engage young people more positively. The next is One final point: we also need to be aware that broad-base population. our two-year incubator program for young people technology can be a double-edged sword. While talk enough about it then people will eventually understand. If you can instil an ethical culture in and their ideas. This is currently running in Nepal, it can tackle corruption, it can also be misused to I agree, it’s important to make technology fit for your company and use the tools at your disposal Pakistan, South Asia and West Africa. The third is perpetrate it. I’d love to hear more thoughts on how purpose but there are a huge range of tools that can do this. Shield in the Cloud is a great to fight corruption then it will be understood that building ecosystems around accountability. These we can regulate initiatives such as the blockchain. you are doing your very best. ecosystems support each other to reach the same opportunity to participate in this journey. 49 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

respond in a coordinated way? Data is important, as Blair says, but many places haven’t organized “The main issue is that we their data collection. I’d be very excited to look at are not mobilizing to counter ways we could partner with organizations in this room to think holistically about this issue together. quickly enough or acting MAX: I think that’s a great summation as we are in a coordinated way” helping organizations find a way to take advantage of technology but it’s not the ultimate solution. That Sasha Havlicek solution should be the analysis and application of tech to specific problems. We’re working with the National Democratic Institute to bring down costs. LORD GOLD: Everyone so far has said that it’s not Tech shouldn’t be the domain of the biggest and rules, it’s culture. Being cynical though, without rules best funded. we wouldn’t have made it as far as we have. In I agree that there is a challenge in organizational fact, within the last 30 years you could actually cohesion and strategic use of technology. That’s get tax relief on corruption payments in Germany. why we’re involved with incubators, City on a The same in France. Then the US gave us the Cloud and the Shield in the Cloud challenge. Foreign Corrupt Practices Act, which has been an instrumental rule. Then the Bribery Act 2010 was SIR GRAEME: Addressing the cultural aspects is put in place by the UK. Section 7 of this Act put in crucial. We’re good at the hardwiring but miss out place a requirement for companies to employ best on the softwiring that also really matters. It requires practice to avoid corruption. Other countries have commitment from the top but we rarely look at our followed suit. To link this with technology, Section 7 own leadership. We need to have people able gives a great opportunity to test technology. It may to apply their personal ethics to their business be that in the future, companies that work within activities too. That’s the part that I think is missing. Section 7 may actually need to employ some form SHAMIL: We’re a global peacebuilding organization of tech to comply. with teams in 33 nations. We regularly confront MONICA: I think this has been a great start from those issues around extremism. The problem is that our panellists and I’d like to open the conversation many of the solutions we talk about are essentially up to the floor. One point I’d like to start with reactive or trying to counter something, whereas is how technology can be both negative and the majority of soft solutions are better set up to positive. Could we first discuss where technology influence behavior and shift social norms. They is increasing transparency and accountability and should create a pathway for people to achieve where technology is making the other side stronger their goals via different methods. as well? Any examples from the floor? SASHA: We have been working on the challenges around the rise of populism, extremism and “Tech shouldn’t be the terrorism. Some of the groups we look at are domain of the biggest very skilful digitally and use new communications technology. We see a number of minority groups and best funded” use these tool for large-scale communications in a way that majorities don’t. This has a Max Peterson disproportionate effect. Their views aren’t new, but with the hyper-connected environment we’re seeing them spread quicker than ever. That way, we can look at corruption and provide alternate pathways, ones that might provide ways I think the main issue is that we are not mobilizing for people to be honored and respected, rather to counter quickly enough nor acting in a than hated. These pathways can take a long time coordinated way. We have been trying to push to develop, and need a real understanding of the for this, especially as the tools available are social and cultural dynamics of the society. People expensive for us but not for major commercial can be very conformist and one group leveraging entities. This is the challenge, how do we connect technologies can persuade people that this is the dots and connect all the organizations so we the norm. don’t need to keep reinventing the wheel and 50 51 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

In many of our countries, tech is not the norm so government to spend money on basic education than actually hold these beliefs. It’s just one of the MONICA: It’s interesting to know that you feel there’s we produce reality television and soap operas to get people to the next level and therefore problems. China takes a more hardline view and not enough data for you to be able to handle. and find other ways to reach people and influence encourage transparency? simply shuts down the conversation. There’s a clear Where is the mass of data that we could use to social norms. role for technologists here, especially when we look make a difference? MONICA: That’s a good point. Transparency only at companies like Facebook who would argue TOM: There are some points here that are very works if people can take advantage. Without JAKE: We use social media a lot, to analyze where that they are a platform not a publisher. However, close to me. We are trying to create systems education and access to technology there’s very people seem to be living beyond their means. We countries like Germany are taking active steps to change regarding the current humanitarian little benefit. don’t actually often get the data from the person say that partners are going to be responsible for network. I think it’s important to pick up the need we’re investigating. So, for example, we may see Tom, I think it’s interesting that transparency can go their roles in spreading any disinformation. for a cultural shift, all the way from supply chains their kids posting on Twitter or Instagram that up and down the chain, but how does the person to operations. We’re opening up the supply chain In other cases, it’s a bit simpler for organizations they’re living in exclusive areas. on the ground receiving the payment actually by using blockchain to disperse funding fairly from like ours, especially in accounting as we have see the process? What can they do if they see donor to large organization to local organization shareholders to answer to and we have to be able something they don’t like? to beneficiary. We can create transparency to to explain all our numbers. Of course, Enron had “Regulation moves very slowly. show the donor where their money has gone TOM: It would go to a reporting line, which, as we’ve the same rules and managed to hide the numbers It’s important, then, to make and remove some inefficiencies, particularly any seen, doesn’t really work. There needs to be one in a long and boring report—technology can help sure we’re doing the innovation percentages lost throughout the chain. contact that can be a ‘go-to’ in these situations. parse these reports and make it impossible to hide things in plain sight. part as quickly as possible” However, I do worry about data collection and the BLAIR: It’s an interesting point. Are we actually unregulated use of technology. There’s a lot of data willing to change the system and have these MONICA: On that note, could you not just keep Max Peterson being collected but there’s always the potential for open conversations? I’m not sure the aid system generating more and more data to keep burying misuse if it’s not stored is willing to do this yet. the figures? and used correctly. Are corporations willing MAX: The juxtaposition of regulation versus ANTON: Of course, HMRC, for example, had to to push on a topic innovation is a really important point. Regulation MONICA: How would “Transparency can expose create a visual map to find people cheating on which can become moves very slowly. It’s important, then, to make you suggest being able corruption and allow you to taxes. That’s how technology helps though, creating political very quickly sure we’re doing the innovation part as quickly to balance the positive elect people who are truly that visual helps the human brain understand and may threaten as possible. It’s a powerful tool to be able to use aspects of wider open the data better. So, there’s a balance between honest. But you first need their governmental a platform like Amazon to formulate the question data use? technology that makes things worse and the to create a basis relationships? I had a and then ask it and analyze the data properly technology that counters that. TERESA: One comment for understanding conversation recently to get a complete picture from more than one from me regarding the through education” where a company TERESA: I’d just like to add a point about the data source. There’s a huge amount of data soft aspects of this said they were algorithms that will become possible. Software is and that flow isn’t slowing any time soon. So, all change. We worry Marcos Battisti committed to building already being developed with algorithms and the innovative ideas we have are just going to every day whether schools but felt that natural AI built in and visualisation like this will become more relevant as we apply them to anti- people are using the any corruption issues become easier. But do people know what to corruption or transparency. technology correctly. Perhaps one way to use around that weren’t their problem. They refused look for? Once they do, the emphasis goes on E VA : I want to mention three positive initiatives the technology internally would be an app to to acknowledge that these issues affect the entire knowledge more than technology. that are interesting and using tech in a number of help decision making and that can teach how to enterprise. They didn’t mention their relationships ANTON: At your conference in Seattle a couple different ways. I used to work at Christie’s Auction ethically develop and use technology. with governments but it was clearly about keeping of months ago there was a presentation on how House, which has a lot of overlap with Richemont. this very technical. MAX: Another part of this is data science. People technology can monitor the outcomes of education Luxury goods can be a very easy way to launder need to understand how to take advantage and MONICA: Anton, how does it work in your and its effect on the community. This developed money so the Anti-Bribery Act was a major how to access both structured and unstructured organization? Do you provide technology transparency and community ownership. Involving step. Christie’s was able to educate on these data, as well as how to ask the right questions or throughout your chains? the people around you and giving them the tools risks through gamification and training modules search for the right analytics. means they can actually address the issues. employed from the bottom to the top. ANTON: From my own perspective as a South That’s a powerful way that technology can MARCOS: I grew up in Brazil, an emerging market, African, we have gone in twenty years from a This was complicated as countries across the world improve outcomes. but was lucky enough to travel the world. I agree great leader to our current leadership. The changes have different laws and different timings in how with the long-term nature of the problem. I think have happened while we still have a solid, modern JAKE: I’m an investigator and we look at government these laws are phased in on certain policies—the the role of technology in combatting corruption constitution and our press is still free, as well as our corruption a lot. Data-analysis can be very useful, ivory trade is an example that sticks out. Christie’s is twofold. One is obviously transparency but the judiciary. These rules have been very important to but in some low-tech environments there just isn’t answered this by just taking the harshest law as other is education. It’s applying technology to help keep corruption at bay. data to be analyzed yet. Are we approaching this standard. That helped model best practice. But people that can’t afford good education. too early? For example, government organizations the second example is around emerging markets. At the same time, South Africa is very much still in Iraq just aren’t generating data so we can’t These countries can be very attractive as they can Transparency can expose corruption and allow an online society and we’ve seen issues such as tackle corruption. It’s also generational. The corrupt experience GDP surges and new wealth creation. you to elect people who are truly honest. But you the recent Bell Pottinger case where they used officials are about to retire, but the next generation But at the same time, you have to deal with new first need to create a basis for understanding bots to change the narrative. That was a small are just as corrupt, if not more so. So, how do we practises and cultures, where corruption may not through education. How do we convince a organization, which influenced far more people break that chain? be as frowned upon. The leadership level needs to set the tone. 52 53 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

I’ve just become trustee understand. It’s hard to to better understand what’s driving secular shows it’s not interested in doing so, then there may of the Kay Mason “Young people can easily quantify exactly, but organizations. The tech is allowing us to draw heat even be a reason to prosecute under Section 7. Foundation, which is it did begin to change maps to visualise hate and polarizations and then On a different note, I wanted to put a scenario to aimed at finding the drift into a mindset of people’s behaviour. design and target intervention. The messaging is the group. What if I’m a senior official of a country next generation of ‘how big is the check?’ or In the UK, it may not crucial to this, however. Without the right people and often go on state visits. What if, during one of South African leaders. ‘how many cars can I buy?’” be the Cabinet that conveying the message, people won’t listen. We these visits I know that nation has been negotiating We look for young needs to speak but it’s do use certain technologies and then match with a company not from my country and I tell the people that may not Sir Graeme Lamb about finding the right them with respected messengers that are listened president that they must buy from me, or they know have the chance of people to talk about to, for example, former extremists, or survivors what will happen? How can we expect countries education and try to key issues. of extremism. that don’t have state aid to be able to follow instil a sense of ethics so they can find different MARCOS: There can be concerns that someone So, from the upstream to downstream, the what’s been discussed here today and not run a ways to measure success than a big house and who has the ear of the people may not actually messenger matters, but the technologies give us corrupt society? How would you deal with that? five cars. have pure motives. They may be corrupt the understanding of what messaging is needed. I do believe that if leaders are all committed to CHARLIE: I think the media have a role to play. They themselves and using their power for their own However, there hasn’t been a real investment in wiping out corruption then it can be achieved. can expose organizations and praise success ends. We need to have a way to expose these systemic change – that needs to happen. But, in a sense, the laws we’ve talked about are while punishing failure. But there’s a question people for what they are. MAX: One example is being aware that money an excuse not to wield our influence. China is around what the media is now — does technology MONICA: Are there any more concrete examples does drive a lot of corruption and this is where a good example. There has been a lot of noise hold the media to account or does it perpetuate of where technology can help with this? It seems governments can really drive the rules, particularly about anti-corruption in China but I’m not sure it’s fake news? like it needs to be at the grass roots level. pertaining to institutions. The single biggest problem really happening, even if some people have been Beyond that, there is still a surprising number of we see is the disconnectedness of systems. punished for political reasons. SHAMIL: Generally, I think when we talk about executives coming out of emerging markets who The data piece should be one of the biggest cultural change we need to talk about the JAMIE: I suppose it’s a matter of personal gain. If still believe the media can be bought. technology tools because that’s how you figure out carrot and stick. The app in Columbia City you you’re doing something in the best interests of your what’s really happening at a macro level and that SIR GRAEME: It’s interesting how we can mobilize in mentioned seems apt. Apps like that pick up on an democratically-elected government then that’s a can point to potential corruption. a world that is connected but not informed. Young emotional experience more than facts. A lot of the defense. However, if you’re making huge personal people can easily drift into a mindset of ‘how big is conversation centers around ‘if we get the facts There’s so much data that we need the analytics gain from negotiations like this then that would be the check?’ or ‘how many cars can I buy?’ I think it in front of the people there will be accountability’, to sort it. If organizations working with governments corruption. I don’t think there’s an easy definition or comes back to the idea that you need technology but that’s not the case. People with different and regulators can use the data correctly, that will distinction to make. to teach but you still want leaders in front of the world views interpret facts differently. That’s be a powerful tool to identify corruption. At the MONICA: I think Anton’s previous example about class. That can make sure that education is also a problem as technology is often about same time, any law needs to have information to his distributor highlights this. He wasn’t making a about ethics, as well as competencies and the disseminating information. It’s not that facts prosecute and that’s what a good data strategy gain, but we’d probably still call it corrupt. ‘science of education’. aren’t important, but it’s important to provide the should provide—identification, audit and proof. experience of an inclusive, non-corrupt process in JAKE: China is fascinating, especially with its social GEORGINA: I think the point about being connected whatever domain of life is important. That will be credit system which is highly based on technology, but not informed is really important. We recently more effective than just providing more information. particularly the blockchain and making use of spoke to the Cabinet Office about this and the “The data piece should be one We should use technology in highly emotive ways open data from social media, your credit score, importance of technology in anti-corruption. of the biggest technology tools to influence behavior. We need institutions to etc. to essentially rate your trustworthiness in One of the core issues for them is general public because that’s how you figure accept a process, as well as acculturation and the eyes of the government. You could say that messaging. We can talk about innovation all we out what’s really happening at even commercialism to drive these changes. Any perfectly demonstrates everything we’ve been want, but how do we get the message to the public of those three will work. a macro level and that can point talking about but at what point do we end up in a and create a groundswell to change mindsets? to potential corruption” dystopian future? This could be a good case study. Perhaps I could put that to you, Blair? We’ve looked at how long it can take from having an idea to it triggering this change. The shortest Max Peterson SIR GRAEME: But, if you do punish some then you BLAIR: We obviously do less public messaging in example was four years, but most were from eight are changing behavior. It may be extreme, but tax paying countries and tend to focus on aid- to ten, with some even taking 20 years. it’s important to define how collective betterment receiving countries. But it comes back to education. MONICA: I wanted to ask Lord Gold about the would look like as well as the methods that it This doesn’t need to be formal education, but it’s MONICA: It’s a great point. In financial services, need for certain technologies as a requirement of may require. about learning what it means to be a person for example, people use technology to take a best practice, particularly if a regulator needs to with integrity that has a voice trusted in society. long-term view of what they will be like in their MATT: I think there’s an important point that we’re look at a large amount of data quickly. What type Search for Common Ground do really well with retirement in order to prepare financially. It can be missing. We’ve been focused on corruption arising of technology would be that tool and how can it this. For example, in Liberia, nobody believed hard to envision so technology can help with that. from greed and I think that’s hard to change. But become best practice? the government when they were told about there’s also corruption based on necessity and SASHA : In terms of public messaging and what Ebola because the government has been lying LORD GOLD: It’s not really my expertise, but I desperation. In the US, we’re seeing people who works to create attitudinal and behavioural to them forever. We worked a lot with rappers in think that if you can create greater organizational feel they’re being left out of the economy—leading change, we do a lot of work based on natural Liberia who have the ear of the people and who transparency then you can find any issues quickly. to a rise in populism. Technology should play a language processing LP technologies, sentiment have talked about these things in a way people If an organization isn’t using the tech properly and role as a job creator. If we can use technology to analysis and network analysis in social media 54 ANTICORRUPTION INNOVATION ROUNDTABLE, LONDON

get everyone to participate in the economy then I’d like to ask our panellists to give us their final we can help people feed their families legally. thoughts on which technologies they’re most They won’t have to be a part of corrupt or illegal excited about, and the ones that could be the practises just to make ends meet. biggest support to increasing transparency and tackling corruption. BLAIR: For me, it’s the data aspects. People may The Cloud Leadership Centre “One technology I’m excited feel that data gathering is extractive, which means about is the blockchain. However, it’s crucial to build trust and communicating to has a clear mission to lead the I agree that we need to work people how that data is being used. That trust backwards from understanding is crucial to generating integrity and fighting movement of digital transformation the problem first. Blockchain on corruption. For me therefore, it’s a technology that its own will solve nothing. already exists. Whatsapp is forming a crucial part for positive change. It’s how we apply it.” of our strategies as it’s a low bandwidth way to share lots of data. Anton Rupert MAX: It’s like asking a parent to pick their favorite child! The technology is progressing so fast and there are so many options that we need to take a MONICA: That’s an excellent point – if you have to different approach. Rather than the ‘best’ tech, we Our strength lies in convening and take or give a bribe to make ends meet, you will. need to understand the problems first, produce connecting experts in technology with EVA: That’s an incredible point and I’d like to put ideas and then turn them into action. We need this in the context of an app being developed to consider how we ‘action peace’ and then how business innovators, NGO’s, Non Profits, in our Washington D.C. accelerator. Annona is we scale. Policy formers and Investors. empowering small farmers to connect with the ANTON: One technology I’m excited about is the large scale Western retailers and join the supply blockchain. However, I agree that we need to work chain. They’re using blockchain to create a more backwards from understanding the problem first. CLC is passionate about uncovering, highlighting transparent system. A lot of the initiatives in Africa Blockchain on its own will solve nothing. It’s how we follow this – they’re going straight to mobiles and and supporting technology innovation which is apply it. there’s a huge opportunity for tech and data tackling some of the world’s biggest challenges. collection to improve conditions and build an LORD GOLD: If you want to change the values of ethical road to success. an organization and its behaviors then you need to constantly renew the messages over a long As the philanthropic, non-profit, arm of MONICA: The CEO of M-Pesa has talked about period of time. In my view, it’s keeping good ethical how their payment system is bringing more people the C5 Group, the Cloud Leadership Centre has behavior front-of-mind for people. Social media is into a formal banking system and away from the a good way to do that as it already plays a role in an engaged network of investors who believe in black economy. most people’s day-to-day lives. the power of technology to bring about important humanitarian, environmental and societal change.

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