On Jun. 27-28, 2023, the Charity & Security Network (C&SN) attended a workshop on the role of new technologies in anti-money laundering (AML) and countering the financing of terrorism (CFT) in the Netherlands. The workshop was held by the Global Expert Hub on AML/CFT and hosted by the European Center for Not-For-Profit Law (ECNL).
The Global Expert Hub promotes learning, information sharing, and engagement on the impact of AML/CFT regulations and laws on civil society actors and civic freedoms. In the field of technology and artificial intelligence (AI) specifically, the Hub advocates for the protection of civic freedoms in AI development and regulation at the local, regional, and international levels to ensure that legal standards on AI and tech incorporate a human rights-based approach in both creation and implementation.
The workshop in the Netherlands provided training to civil society organizations (CSOs) on the crossover of counter-terrorism (CT) and CFT, and technology. The training covered specific topics such as CT and surveillance, CT and platform content moderation, CFT and financial access, CT and emergency powers, and CT in the context of AI regulation.
The workshop began with educational presentations on the realities of the use of technology in CTF and in banking as a whole. The use of new technologies in terrorism financing is often painted as a widespread and imminent threat in the AML/CFT space. This has led to policymakers broadening CT laws and regulations due to fears of these potential threats and risks. However, the use of new technologies by terrorist actors is much less prevalent in actuality, meaning that there is no need for the over-broadening AML/CFT laws – which often results in over-compliance by banks and hampers civil society operations.
The workshop also covered ECNL’s report, New Tech, Perpetual Challenges: How Emerging Technologies for Financial Compliance are Impacting the Nonprofit Sector. The report, developed by Rita R. Soares, LL.M., Dr. Tasniem Anwar, and Dr. Mara Wesseling, “aims to fill the knowledge gap regarding the real-world impact of these emerging technologies on the non-profit sector’s access to financial services in an effort to determine what impact these tech solutions are having on civic space.” The workshop provided an opportunity to unpack the report and its findings on how emerging technologies are used by banks for compliance purposes, and how these technologies impact de-risking and financial exclusion of non-profit organizations (NPOs).
In addition to covering how technology plays a role in the financial sector, the workshop provided training on technology and AI’s role in surveillance and the increasing collection of biometric data, as well as social media content moderation as part of global CT efforts. Biometric and AI surveillance technologies, such as facial and emotion recognition, continue to be proposed as necessary and effective tools for the countering of terrorism.
Indeed, the popularity of these new technologies has led to an increase in centralized databases for biometric data in both the public and private sectors. However, actors implementing and creating these surveillance and data collection systems have side-stepped critical human rights safeguards and due diligence mechanisms to protect civic freedoms under the pretenses of countering terrorism. While protecting individuals from terrorist threats and activities is an important and necessary objective, its implementation must not be undertaken at the expense of fundamental human rights and freedoms and without the necessary safeguards in place.
With a wide array of international attendees, the Global Expert Hub expertly convened diverse perspectives on the use of technology in AML/CFT measures across all parts of the world. Participants were afforded the opportunity to share their own unique experiences with technology in CT and CFT, and brainstorm solutions for how to best protect civil society and encourage human rights safeguards as the use of these technologies continues to grow.