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Tag: data

  • AI-powered fraud detection: Time to reach transactional data | Bank Automation News

    AI-powered fraud detection: Time to reach transactional data | Bank Automation News

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    Traditional financial services’ fraud detection is focused on — surprise, surprise — detecting fraudulent transactions. And there’s no question that generative AI has added a powerful weapon to the fraud detection arsenal.

    Dr. Shlomit Labin, VP of data science, Shield

    Financial services organizations have begun leveraging large language models to minutely examine transactional data, with the aim of identifying patterns of fraud in transactions.

    However, there is another, often overlooked, aspect to fraud: human behavior. It’s become clear that fraud detection focusing solely on fraudulent activity is not sufficient to mitigate risk. We need to detect the indications of fraud through meticulously examining human behavior.

    Fraud does not happen in a vacuum. People commit fraud, and often when using their devices. GenAI-powered behavioral biometrics, for example, are already analyzing how individuals interact with their devices — the angle at which they hold them, how much pressure they apply to the screen, directional motion, surface swipes, typing rhythm and more.

    Now, it’s time to broaden the field of behavioral indicators. It’s time to task GenAI with drilling down into the subtleties of human communications — written and verbal — to identify potentially fraudulent behavior.

    Using generative AI to analyze communications

    GenAI can be trained using natural language processing to “read between the lines” of communications and understand the nuances of human language. The clues that advanced GenAI platforms uncover can be the starting point of investigations — a compass for focusing efforts within reams of transactional data.

    How does this work? There are two sides to the AI coin in communications analysis — the conversation side and the analysis side.

    On the conversation side, GenAI can analyze digital communications via any platform — voice or written. Every trader interaction, for example, can be scrutinized and, most importantly, understood in its context.

    Today’s GenAI platforms are trained to pick up subtleties of language that might indicate suspicious activity. By way of a simple example, these models are trained to catch purposefully vague references (“Is our mutual friend happy with the results?”) or unusually broad statements. By fusing an understanding of language with an understanding of context, these platforms can calculate potential risk, correlate with relevant transactional data and flag suspicious interactions for human follow-up.

    On the analysis side, AI makes life far easier for investigators, analysts and other fraud prevention professionals. These teams are overwhelmed with data and alerts, just like their IT and cybersecurity colleagues. AI platforms dramatically lower alert fatigue by reducing the sheer volume of data humans need to sift through — enabling professionals to focus on high-risk cases only.

    What’s more, AI platforms empower fraud prevention teams to ask questions in natural language. This helps teams work more efficiently, without the limitations of one-size-fits-all curated questions used by legacy AI tools. Since AI platforms can understand more open-ended questions, investigators can derive value from them out-of-the-box, asking broad questions, then drilling down into follow up questions, with no need to focus on training algorithms first.

    Building trust

    One major downside of AI solutions in the compliance-sensitive financial services ecosystem is that they are available largely via application programming interface. This means that potentially sensitive data cannot be analyzed on premises, safe behind regulatory-approved cyber safety nets. While there are solutions offered in on-premises versions to mitigate this, many organizations lack the in-house computing resources required to run them.

    Yet perhaps the most daunting challenge for GenAI-powered fraud detection and monitoring in the financial services sector is trust.

    GenAI is not yet a known quantity. It’s inaccurately perceived as a black box — and no one, not even its creators, understand how it arrives at conclusions. This is aggravated by the fact that GenAI platforms are still subject to occasional hallucinations — instances where AI models produce outputs that are unrealistic or nonsensical.

    Trust in GenAI on the part of investigators and analysts, alongside trust on the part of regulators, remains elusive. How can we build this trust?

    For financial services regulators, trust in GenAI can be facilitated through increased transparency and explainability, for starters. Platforms need to demystify the decision-making process and clearly document each AI model’s architecture, training data and algorithms. They need to create explainability-enhancing methodologies that include interpretable visualizations and highlights of key features, as well as key limitations and potential biases.

    For financial services analysts, building a bridge of trust can start with comprehensive training and education — explaining how GenAI works and taking a deep dive into its potential limitations, as well. Trust in GenAI can be further facilitated through adopting a collaborative human-AI approach. By helping analysts learn to perceive GenAI systems as partners rather than slaves, we emphasize the synergy between human judgment and AI capabilities.

    The Bottom Line

    GenAI can be a powerful tool in the fraud detection arsenal. Surpassing traditional methods that focus on detecting fraudulent transactions, GenAI can effectively analyze human behavior and language to sniff out fraud that legacy methods can’t recognize. AI can also alleviate the burden on fraud prevention professionals by dramatically reducing alert fatigue.

    Yet challenges remain. The onus of building the trust that will enable widespread adoption of GenAI-powered fraud mitigation falls on providers, users and regulators alike.

    Dr. Shlomit Labin is the VP of data science at Shield, which enables financial institutions to more effectively manage and mitigate communications compliance risks. She earned her PhD in Cognitive Psychology from Tel Aviv University.

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    Shlomit Labin

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  • Complete the BAN 2023 Reader Survey | Bank Automation News

    Complete the BAN 2023 Reader Survey | Bank Automation News

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    At Bank Automation News, we want to ensure we are providing the most relevant, useful articles, reports, data, and content to our readers. The banking industry is constantly evolving, and we need your help to ensure we stay on the right path.

    Two cyber puzzle pieces coming together
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    By completing the following survey, you ensure that BAN stays ahead of the curve, giving us your insights, opinions, and recommendations to keep us as the leader in the news for the industry.

    Your feedback will enable us to tailor our content, resources, and offerings to serve your interests better and provide exceptional service to help you and your business. And to show our appreciation, we are offering the first 50 survey respondents a $10 Starbucks gift card as a token of our gratitude for your valuable input.

    Thank you for your participation. We look forward to hearing your feedback and elevating Bank Automation News in the future.

    Best Regards,

    The Bank Automation News Team

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    Bank Automation News

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  • Making cybersecurity a cornerstone of digital transformation | Bank Automation News

    Making cybersecurity a cornerstone of digital transformation | Bank Automation News

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    These days, financial institutions have a great deal more to manage than their customers’ money. They must also manage their customers’ personally identifiable information safely and in accordance with an increasing number of regulations — data that makes this sector attractive and therefore more susceptible to cybercriminal attention.

    Headshot of Michael Brown
    Michael Brown, field CISO for financial services, Fortinet

    In addition, if a company doesn’t uphold security standards in accordance with the Payment Card Industry Data Security Standard, it could completely lose its ability to process credit card payments.

    The potential attack surface grows as financial institutions step up their digital operations. A possible vulnerability exists with every work-from-anywhere (WFA) login, service integration and mobile app. As an illustration, many American banks were handed a combined $1.8 billion penalty last year because staff members were using personal messaging apps for work-related purposes.

    Financial institutions require complete cybersecurity solutions that include WFA capabilities, secure networking for branch locations and next-generation firewalls in order to adapt to the current regulatory and threat landscape. These solutions must provide advanced threat prevention from the data center to the endpoint to the edge.

    Real-world impacts of insufficient cybersecurity

    We’ve seen it time and time again — cyberattacks can cause significant and, sometimes, irreparable harm. The concrete repercussions of insufficient cybersecurity can have a lasting impact and a ripple effect.

    These include:

    • Data loss — Financial services organizations hold very sensitive and proprietary information that you don’t want bad actors getting their hands on, whether it’s investment portfolio information or customers’ personally identifiable information like passwords and Social Security numbers.
    • Operational outages — Security teams typically need to identify the attack’s origin and assess the extent of the damage. And when a distributed denial-of-service attack occurs, the intention is to halt business as usual. Both scenarios result in a loss of productivity, both internally and externally. Customers are unable to access their money and employees can’t do their jobs.
    • Fines — In some cases, a company may receive penalties from several regulators for a single incident. The Securities and Exchange Commission and the New York State Department of Financial Services have fined companies for issues like inadequate disclosure controls and cybersecurity-related procedures.

    Additionally, if the penalty includes revoking licenses or charters that you need to operate, one of your business lines or even the entire company could be shut down for noncompliance.

    Reputational damage — It can be quite challenging to bounce back once an organization has shown that it is unable to protect the personal information of its customers. For instance, years after the initial occurrence, the Equifax breach remains a cautionary tale.

    Bolstering strategy with the right features

    To ensure proactive regulatory and cybersecurity compliance, a well-managed solution from a reputable cybersecurity provider can make all the difference. When choosing a solution, financial organizations should consider these aspects:

    • Cloud capabilities — Due to the prevalence of multi-cloud and hybrid cloud networks, many financial services companies need to collaborate with cybersecurity suppliers that provide products that can operate natively in both public and private cloud settings. To provide uniform policy enforcement, the solutions must perform smoothly across on-premises networks and cloud environments. Organizations should choose a cybersecurity provider with a history of innovation and scalable, accessible and safe security solutions.
    • AI/ML and automation — Every day, new cybersecurity risks surface and bad actors are increasingly leveraging artificial intelligence, machine learning and automation. Likewise, these technologies should be part of the arsenal for defending against cyberattacks. Automation can help increase accuracy and decrease human error. Many cybersecurity suppliers employ point solutions to patch vulnerabilities.
    • Seamless customer experience — For customers to be unaware that the cybersecurity solution is operating in the background, it must be seamless. The solution must operate with the current architecture without placing an excessive load on the network. Seconds count; if a customer can’t connect right away, they might go elsewhere for their business.
    • Adaptability — Every milestone on the digital transformation journey should involve cybersecurity. Businesses require adaptable cybersecurity solutions when they change their focus and enter cross-industry disciplines. Financial firms require dependable cybersecurity solutions when the core elements of the business shift or the network grows in unanticipated ways.

    Transform safely

    Even as financial service organizations strive to better serve their customers via digital transformation, they are facing more — and more sophisticated — threats. As data multiplies with frightening speed, organizations must keep that data secure and compliant. If not, fines and loss of reputation and even the whole business can result. Consider the best practices noted above when vetting cybersecurity providers to ensure a safe and compliant business foundation.

    Michael Brown, field CISO for financial services at Fortinet, is a global security evangelist and advisor, helping financial services firms implement digital transformation while enhancing security and resilience. He specializes in cybersecurity regulations, ESG impact, SD-WAN, SD-Branch, Zero Trust, low-latency electronic trading security, SASE, and multi-cloud solutions.

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    Michael Brown

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  • Stay bold amid techno-panic; long-term tech relationship is positive-sum | Bank Automation News

    Stay bold amid techno-panic; long-term tech relationship is positive-sum | Bank Automation News

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    Yogesh Mulwani, RVP of technology, Backbase

    The arrival of ChatGPT and similar products has reignited a decades long debate about whether advanced automation, supported by artificial intelligence, will usher in the “end of work,” leading to mass layoffs as businesses replace humans with machines.

    The artificial intelligence (AI) hype cycle has been building since the 1970s. And with each advancement, the chorus begins again about the workforce threats posed by the technology. But many of those fears have yet to come to pass. For example, a 2013 study by Oxford professors Carl Benedikt Frey and Michael Osborne estimated that 47% of U.S. jobs would likely be eliminated by technology over the following 20 years. Of course, that hasn’t happened. In fact, the number of jobs actually grew 25%.

    However, there is no denying that, with the growing capabilities of large language models like ChatGPT and other AI applications, the emerging technology will permeate through every part of corporate America. Soon, common business processes, like customer support, will be entirely automated. And companies will increasingly be able to use data to build hyper-personalized customer experiences.

    That should be welcomed. Only by changing our mindset about the looming AI revolution will banks, their employees and their customers be able to begin to reap the benefits that the coming decade of innovation will offer.

    Changing the narrative

    For too long, automation has been discussed as a job killer instead of a time creator.

    That’s especially true in financial services. In fact, bank chief executives regularly speak about the hundreds of thousands of human jobs that could be lost to robots. Understandably, that’s driving new worries among workers about the future of their roles.

    What is lost in the discussion is how much employees will gain when algorithms can automate the mundane workflows that chip away at our ability to tackle the larger, more in-depth projects that humans are built to do.

    For example, it’s becoming possible to automate many of the humdrum tasks that monopolize an accountant’s time every day, like data entry, freeing them up to spend more time analyzing and interpreting the information. Companies also won’t have to think about cybersecurity as much, as many of the modern IT platforms provide all the necessary bank-grade security capabilities.

    As areas like customer onboarding and support get put on autopilot as a result of advanced chatbots, bank employees will be able to devote more time to creating more dynamic and personalized customer experiences using all the data now accessible as a result of the modern IT infrastructure that is used to support AI and machine learning.

    Unlocking the power of data

    Creating personalized customer experiences is difficult for banks because the data that’s needed to power the machine learning models is stored in many different places. For example, traditionally, all the interactions on the mobile application might flow to one storage center, while all the data from the website or customer service channels flows to another.

    To build unique profiles of customers that power more seamless interactions, banks must have continual access to high-quality and comprehensive data sets from every different touchpoint that people have with their financial partners.

    New, cloud-based technologies make it possible to access data across any interactions with a bank’s service. Aggregating all that information from multiple sources into one area will enable banks to now build those hyper-personalized experiences. Such a system will also make it possible for financial institutions to start using predictive analytics to help customers make informed investment decisions, among other use cases.

    It doesn’t stop there. Better access to data will help banks better detect fraud, improve their credit-risk assessment frameworks, and begin to use criteria beyond credit scores — like spending and bill payment patterns — to evaluate applicants for loans.

    As machines begin to eliminate many of the small tasks that often dominate our days, there will be a shift in priorities in the financial industry. What will become increasingly valuable is our human capacity for empathy and intuition, as well as the emotional connection we’re able to make with others. These attributes enable us to maintain a long-term view of a bank’s progress and mitigate potential problems.

    The swift rise of AI doesn’t have to be feared. Instead, banks and their employees should take the time to understand the technology and learn how it can be used to make their operations easier. Like the web browser and the mobile phone before it, AI holds the promise to completely change how we work and connect with one another. We just have to let it.

    Yogesh Mulwani, RVP of Technology at Backbase.

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    Yogesh Mulwani

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  • ChatGPT boss wants HQ in Europe

    ChatGPT boss wants HQ in Europe

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    Voiced by artificial intelligence.

    Sam Altman wants you to know he loves Europe.

    The CEO of OpenAI, the maker of the artificial intelligence tool ChatGPT, spent last week touring the Continent, stopping in Spain, France, Poland, Germany and the United Kingdom. He was at once talking AI regulation with policymakers — he met national leaders Pedro Sánchez, Emmanuel Macron, Mateusz Morawiecki, Olaf Scholz, and Rishi Sunak — and scouting locations for an OpenAI European office.

    “We really need an office in Europe,” Altman told POLITICO at a Paris event Friday. “We also just really want one.” Under the European Union’s upcoming Artificial Intelligence Act, companies with EU-based users would need a presence in the bloc, with national “supervisory authorities” in charge of implementing the regulation. The eventual choice of its HQ location will, therefore, determine which member country will oversee it when it comes to enforcing the AI Act.

    Since its launch in November 2022, OpenAI’s ChatGPT — a bot able to create texts such as songs, scripts, articles and software based on written prompts — has caused both optimism and anxiety about what the rise of AI means for the future of humankind. While some have marveled at the tool’s prowess in creating computer code and streamlining office work, others fear that it could be used to generate troves of automated disinformation, manipulative content and biased material — or even put millions of people out of a job.

    Nevertheless, politicians appear eager to host the world’s hottest AI lab. Opening the event, French Digital Minister Jean-Noël Barrot read a ChatGPT-generated description of Altman (“innovative, influential, visionary”) before pitching France as a “great AI country” — rattling off a list that included talent, abundant nuclear energy (to power the computers underpinning the AI), and cultural heritage among its assets.

    In the U.K., where Altman also briefed national security personnel, a person familiar with his conversation with Sunak, who was granted anonymity to talk of high-level meetings, described the British prime minister as “deferential.”

    Altman is still deliberating on where to house the new office. “If you had to pick just based on the most AI research talent, you’d pick France,” he told POLITICO. “But I’ve been super-impressed by the talent and energy everywhere.” OpenAI already has staff working in London, according to LinkedIn, and in September 2022 it created a U.K. subsidiary, according to the country’s business registry.

    In Paris, Altman strove to quash reports, from Reuters, that OpenAI might leave the EU if the AI Act proved too onerous. “We plan to comply. We want to offer services in Europe,” Altman told the Parisian audience. “We just want to make sure we’re technically able to. And the conversations have been super-productive this week,” he added.

    First floated by the European Commission in 2021, the AI Act would ban some uses of AI uses (such as social scoring and some instances of facial recognition) and impose stricter rules related to safety and oversight when it comes to sensitive AI applications considered “high-risk.” On top of that, according to a version of the AI Act adopted earlier this month by lawmakers in the European Parliament, “generative” models such as ChatGPT — which can create new content, like text or photos — would have to disclose a summary of copyrighted materials used as training data.

    The rule — which still needs to be agreed upon by representatives of the Commission and EU member countries — addresses worries from artists and publishers that AI firms might use their intellectual property without their consent or knowledge.

    “That sounds like a great thing to ask for,” Altman told POLITICO. “But — due to the way these datasets are collected and the fact people have been copying data in different ways on different websites — to say I have to legally warrant every piece of copyrighted content in there is not as easy as it sounds.”

    Altman thinks an easier way for creators to know if their work is being used would be based on whether their names appear in the prompts users give to an AI. “Every time you ask, ‘I want a song in the style of the Beatles,’ that would be clear,” Altman said.

    Sam Altman is the CEO of OpenAI, the maker of the artificial intelligence tool ChatGPT | Drew Angerer/Getty Images

    All in all, however, Altman struck an optimistic tone about the AI Act and said he’d be happy to meet EU policymakers — despite skipping a planned Brussels stop in his tour. He told POLITICO that OpenAI would join the EU’s first “sandbox,” based in Spain, where AI companies will be able to test their regulatory compliance.

    “It’s going to get to a good place,” he said. “Regulatory clarity will be a good thing.”

    This article has been updated.

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    Gian Volpicelli

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  • EU hits Meta with record €1.2B privacy fine

    EU hits Meta with record €1.2B privacy fine

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    Voiced by artificial intelligence.

    U.S. tech giant Meta has been hit with a record €1.2 billion fine for not complying with the EU’s privacy rulebook.

    The Irish Data Protection Commission announced on Monday that Meta violated the General Data Protection Regulation (GDPR) when it shuttled troves of personal data of European Facebook users to the United States without sufficiently protecting them from Washington’s data surveillance practices.

    It’s the largest fine imposed under the bloc’s flagship General Data Protection Regulation (GDPR) privacy law and it comes on the eve of the fifth anniversary of the law’s enforcement on May 25.

    Amazon was previously fined €746 million by Luxembourg and the Irish regulator also imposed four fines against Meta’s platforms Facebook, Instagram and WhatsApp ranging between €405 million and €225 million in the past two years.

    The Irish privacy watchdog said that Meta’s use of a legal instrument known as standard contractual clauses (SCCs) to move data to the U.S. “did not address the risks to the fundamental rights and freedoms” of Facebook’s European users raised by a landmark ruling from the EU’s top court.

    The European Court of Justice in 2020 struck down an EU-U.S. data flows agreement known as the Privacy Shield over fears of U.S. intelligence services’ surveillance practices. In the same judgment, the top EU court also tightened requirements to use SCCs, another legal tool widely used by companies to transfer personal data to the U.S.

    Meta — as well as other international companies — kept relying on the legal instrument as European and U.S. officials struggled to put together a new data flows arrangement and the U.S. tech giant lacked other legal mechanisms to transfer its personal data.

    The EU and U.S. are finalizing a new data flow deal that could come as early as July and as late as October. Meta has until October 12 to stop relying on SCCs for their transfers.

    The U.S. tech giant previously warned that if it would be forced to stop using SCCs without a proper alternative data flow agreement in place, it could shut down services like Facebook and Instagram in Europe.

    Meta also has until November 12 to delete or move back to the EU the personal data of European Facebook users transferred and stored in the U.S. since 2020 and until a new EU-U.S. deal is reached. However, it’s unlikely the tech firm will have to delete or move data as European and U.S. negotiators are expected to finalize the new deal before early November.

    “This decision is flawed, unjustified and sets a dangerous precedent for the countless other companies transferring data between the EU and U.S.,” Meta’s President of Global Affairs Nick Clegg and Chief Legal Officer Jennifer Newstead said in a statement on Monday.

    Clegg and Newstead said the company will appeal the decision and seek a stay with the courts to pause the implementation deadlines. “There is no immediate disruption to Facebook because the decision includes implementation periods that run until later this year,” they added.

    Max Schrems, the privacy activist behind the original 2013 complaint supporting the case, said: “We are happy to see this decision after ten years of litigation … Unless U.S. surveillance laws get fixed, Meta will have to fundamentally restructure its systems.”

    The Irish Data Protection Commission said it disagreed with the fine and measure that it was imposing on Meta but had been forced by the pan-European network of national regulators, the European Data Protection Board (EDPB), after Dublin’s initial decision was challenged by four of its peer regulators in Europe, from Germany, France, Spain and Austria.

    According to internal discussions released on Monday, the Irish regulator earlier this year vehemently argued against imposing a financial penalty on the social media giant, saying that such a decision would be disproportionate for the alleged privacy abuses. Dublin also argued any such fine against Meta could be viewed as discriminatory since U.S. tech firm Google had not faces similar penalties for other transatlantic data protection cases.

    But Ireland was overruled by other European regulators. In a stinging rebuke, the pan-EU body of privacy regulators EDPB said it took the view that “Meta committed the infringement at least with the highest degree of negligence,” the discussions released Monday showed, arguing in favor of a fine. The EDPB backed claims from the four EU privacy regulators that Meta should also be forced to delete historical European data affected by the decision.

    This article was updated to include comments from Meta and Max Schrems and to add details about the decision.

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    Clothilde Goujard and Mark Scott

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  • Scouring the seas for Putin’s pipeline saboteurs

    Scouring the seas for Putin’s pipeline saboteurs

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    It’s an hour before dawn breaks over the North Sea. Aboard the KV Bergen, the officer of the watch is wide awake. 

    The 93-meter long Norwegian Navy Coast Guard vessel is on patrol, 50 miles out to sea. The sky is dark, the sea darker. But off the starboard bow, bright lights gleam through the rain and mist. Something huge and incongruous is looming out of the water, lit like a Christmas display.  

    “Troll A,” says Torgeir Standal, 49, the ship’s second in command, who is taking the watch on this bleak March morning. 

    It’s a gas platform — a big one.  

    When it was transported out to this desolate spot nearly 30 years ago, Troll A — stretching 472 meters from its seabed foundations to the tip of its drilling rig — became the tallest structure ever moved by people across the surface of the Earth. Last year, Troll, the gas field it taps into, provided 10 percent of the EU’s total supply of natural gas — heating homes, lighting streets, fueling industry. 

    “There are many platforms here,” says Standal, standing on the dark bridge of the Bergen, his face illuminated by the glow from the radar and satellite screens on his control panel. “And thousands of miles of pipeline underneath.” 

    And that’s why the Bergen has come to this spot today. 

    In September 2022, an explosion on another undersea gas pipeline nearly 600 miles away shook the world. Despite three ongoing investigations, there is still no official answer to the question of who blew up the Nord Stream pipe. But the fact that it could happen at all triggered a Europe-wide alert.

    The Norwegian Navy’s KV Bergen, seen in the background, after departing from the port of Bergen

    Against a backdrop of growing confrontation with Moscow over its brutal invasion of Ukraine and its willingness to use energy as a weapon, the vulnerability of the undersea pipes and cables that deliver gas, electricity and data to the Continent — the vital arteries of comfortable, modern European life — has been starkly exposed. 

    In response, Norway, alongside NATO allies, increased naval patrols in the North Sea — an area vital for Europe’s energy security. The presence of the Bergen, day and night, in these unforgiving waters, is part of the effort to remain vigilant. The task of the men and women on board is to keep watch on behalf of Europe — and to stop the next Nord Stream attack before it happens. 

    The officers of the watch 

    But what are they looking for? 

    In recent weeks the Bergen has tracked the movements of a Russian military frigate through the North Sea — something that it has to do “several times every year,” says Kenneth Dyb, 47, the skippsjef, or commander of the ship. 

    The Russians have a right to sail through these seas out to the Atlantic, and it is very unlikely Moscow would be so brazen as to openly attack a gas platform or a pipeline. But, says Dyb, as his ship steams west to another gas and oil field, Oseberg, “it’s important to show that we are present. That we are watching.” 

    Recent reports that Russian naval ships — with their trackers turned off — were present near the site of the Nord Stream blasts in the months running up to the incident have reinforced the importance of having extra eyes on the water itself. 

    The Oseberg oil and gas field, 130 kilometers north-west of Bergen

    Of course, the gas didn’t come for free. Norway has profited hugely from the spike in gas and oil prices that followed Putin’s invasion of Ukraine. The state-owned energy giant Equinor made a record $75 billion profit in 2022. Oslo is sensitive to accusations of war profiteering — and keen to show Europe that it cares about its neighbors’ energy security as much as it cares about their cash. 

    But the threat to the pipelines could also be more low-key. One of the many theories about the Nord Stream attack is that it was carried out by a small group of divers, operating from an ordinary yacht. In such a scenario, something as seemingly innocent as a ship suddenly going stationary, or following an unaccustomed course through the water, could be suspicious. The Bergen’s crew have the authority to board and inspect vessels that its crew consider a cause for concern.  

    Russia’s covert presence in these waters has been acknowledged by Norway’s intelligence services in recent weeks. A joint investigation by the public broadcasters in Norway, Sweden, Denmark and Finland uncovered evidence of civilian vessels, such as fishing ships, being used for surveillance activities. This is something that has been “going on forever,” according to Ståle Ulriksen, a researcher at the Royal Norwegian Naval Academy, but it has increased in intensity in recent years. 

    “We always look for oddities, anything that is unusual, like new ships in the area that have not been here before,” says Magne Storebø, 26, senior petty officer, as he takes the afternoon watch on the bridge later that day. 

    The sky is leaden and the horizon lost in cloud. Coffee in hand, Storebø casts his eye over the radar and satellite screens as giant windscreen wipers whip North Sea spray from the floor-to-ceiling windows. There are few ships around, all of them familiar to the crew; service vessels plying back and forth from the gas and oil platforms. 

    The Nord Stream incident and the new security situation has changed the way Storebø thinks about his work, he says. 

    He is “more aware of the consequences suspicious vessels could have,” he says. “More awake, you could say.”   

    Senior Petty Officer Magne Storebø keeps watch from the bridge

    Soft-spoken and calm beyond his years, Storebø is philosophical about the potential dangers of his work. He has been in the Navy for four years, in which time war has broken out on the European continent and the threat to his home waters has come into sharp focus. 

     “If you are going to put a rainy cloud over your head and bury yourself down, I don’t think the Navy or the coastguard is the right place to work in,” he says in conversation with two shipmates later that day. “You need to adjust and to look in a positive direction — and to be ready in case things don’t go that way.” 

    Energy war round two 

    As Europe emerges from the first winter of its energy war with Russia, its gas supplies have held up better than almost anyone expected. 

    But as the Continent braces for next winter, the risk of another Nord Stream-style attack to a key pipeline is taken seriously at the highest levels of leadership. 

    “Things look OK for gas security now,” said one senior European Commission official, speaking on condition of anonymity to discuss sensitive matters of energy security. “But if Norway has a pipeline that blows up, we are in a different situation.” 

    EU policymakers see four key risks to gas security going into next winter, the senior official added: exceptionally cold weather; a stronger-than-expected Chinese economic recovery hoovering up global gas supply; Russia cutting off the remaining gas it sends to Europe; and last but not least, an “incident” affecting energy infrastructure. 

    Such an event might not only threaten supply but could potentially spark panic in the gas market, as seen in 2022, driving up prices and hitting European citizens and industries in the wallet. And nowhere is the potential for harm greater than in the North Sea. 

    Norway is now Europe’s biggest single supplier of gas. After Russian President Vladimir Putin and the energy giant Gazprom shut off supply via Nord Stream and other pipelines, Norway stepped up its own production in the North Sea, delivering well over 100 billion cubic meters to the EU and the U.K. in 2022. European Commission President Ursula von der Leyen visited Troll A herself in March this year — the first visit of a Commission president to Norway since 2011 — to personally thank the country’s president, Jonas Gahr Støre, for supplies that “helped us through the winter.” 

    “We have a huge responsibility, supplying the rest of Europe with energy,” Defense Minister Bjørn Arild Gram told POLITICO. “To be a stable, reliable producer of energy, of gas, is an important role for us and we take that very seriously. That is why we are also doing so much to protect this infrastructure.” 

    The vast majority of that gas is transported into northwest Europe via a complex network of seabed pipes — more than 5,000 miles of them in Norway’s jurisdiction alone. The North Sea has an average depth of just 95 meters. That’s not much deeper than the Nord Stream pipes at the location they were attacked.  

    “It actually doesn’t take a particularly sophisticated capability to attack a pipeline in relatively shallow waters,” says Sidharth Kaushal, research fellow at the Royal United Services Institute think tank in the U.K. A small vessel, “some divers and an [explosive] charge” are all it could take, Kaushal says. 

    The navy chief 

    After the Nord Stream incident in September, suspicion instantly fell on Russia. Moscow has a record of operating in the so-called gray zone — committing hostile acts short of warfare, often covertly.  

    To date, the three investigations looking into the incident have yet to confirm that suspicion. But European governments — and their militaries — are not taking any chances. 

    In the days immediately following the explosions, NATO navy chiefs started calling each other to try to coordinate efforts to protect energy infrastructure, says Rune Andersen, the chief of Norway’s navy, speaking to POLITICO at Haakonsvern naval base, before the KV Bergen’s voyage. 

    Everyone had the same thought, he says. “If that happens in the North Sea, we will have a problem.”  

    Andersen joined the Navy as a young man in 1988, in the last days of the Cold War. Now 54, he is used to the Russian threat overshadowing Norway’s and Europe’s security. 

    “After decades of attempts to integrate or cooperate with Russia, we now have war in Europe. We see that our neighbor is brutal and willing to use military force,” he says grimly. “I worked in the Navy in the ’90s when it was enduring peace and partnership on the agenda. We are back to a situation where our job feels more meaningful — and necessary.” 

    Kenneth Dyb, the skippsjef, or commander of the ship

    However, he points out, his own forces have so far not seen any Russian movements or operations “that are different to what they were before” the Nord Stream attacks. “The job we are doing is precautionary, rather than tailored to any specific threat,” he adds. 

    Even so, those early discussions with NATO allies have now formalized into daily coordination via the Allied Maritime Command headquarters in the U.K., to ensure there are always NATO ships on hand that can act as “first responders” to potential incidents. British, German and French ships have joined their Norwegian counterparts in the monitoring and surveillance effort. 

    It is “by nature challenging” to protect every inch of pipeline, all of the time, Andersen says. 

    The role of the Bergen and ships like it, he adds, is just “one bit of the puzzle.” Simply by their presence at sea, these ships increase the chances of catching would-be saboteurs in the act, and hopefully deter them from trying in the first place.  

    The goal, in other words, is to reduce the size of the “gray zone” — or to “increase the resolution” of the navy’s picture of the activity out on the North Sea, as Andersen puts it. 

    In collaboration with the energy companies and pipeline operators, unmanned underwater vehicles — drones — using cameras and high-resolution sonar have been used, Andersen says, to “map the micro-terrain” around pipelines. These are sensitive enough to spot an explosive charge or other signs of foul play. 

    Equinor, alongside the pipeline operator Gassco, has carried out a “large inspection survey” of its undersea pipeline infrastructure, a company spokesperson says. The survey revealed “no identified signs of malicious activities” but pipeline inspections are ongoing “continuously.” 

    Senior Petty Officer Simen Strand speaks to the crew. “We haven’t had much to fear in the past. We are probably less naïve nowadays,” he says.

    Perhaps understandably, the heightened level of alert has led to the occasional false alarm. A spate of aerial drone sightings near Norwegian energy infrastructure around the time of the Nord Stream attacks last year included a report of a suspicious craft circling above Haakonsvern naval base itself. 

    “After a while, we concluded it was a seagull,” says Andersen, with the shadow of a grin.  

    Europe on alert 

    The navy chief is nonetheless deadly serious about the potential threat. A Nord Stream-style attack in the North Sea is possible. Anderson will not be drawn on the most vulnerable points in the network, saying only that “easy to access” places and “key hubs” are “two things in the back of mind when we think [about] risk.” 

    Throughout Europe, the alert has been raised. This month, NATO warned of a “significant risk” that Russia could target undersea pipelines or internet cables as part of its confrontation with the West. 

    Several countries are increasing patrols and underwater surveillance capabilities. The British Royal Navy accelerated the purchase of two specialist ocean surveillance ships, the first of which will be operational this summer. The EU and NATO have established a new joint task force focusing on critical infrastructure protection, and a “coordination cell” has been established at NATO headquarters in Brussels to improve “engagement with industry and bring key military and civilian stakeholders together” to keep the cables and pipelines secure. 

    Norway — and Europe — are in this struggle for the long haul, Andersen believes.  

    Indeed, even as Europe transitions from fossil fuels to green energy, the North Sea will remain a vital powerhouse of offshore wind energy, with plans for a huge expansion over the next 25 years. Earlier this year, the Netherlands’ intelligence services reported a Russian ship seeking to map wind farm infrastructure in the Dutch sector of the North Sea. “We think the Russians wanted to investigate the possibilities for potential future sabotage,” Jan Swillens, head of the Dutch Military Intelligence and Security Service tells POLITICO in an emailed statement. “This incident makes clear that these kinds of Russian operations are performed closer than one might think.” 

    At the same time in the Baltic, countries are shoring up security around their infrastructure, at sea and on land. Late last year, Estonia carried out an underwater inspection of the two Estlink power cables and the Baltic Connector gas pipeline linking it to Finland, the Estonian navy says. Lithuania, meanwhile, is paying “special attention” to security around its LNG terminal at Klaipėda and the gas cargoes that arrive there, a defense ministry spokesperson says. 

    Torgeir Standal, left, the KV Bergen’s second in command

    It was in Lithuania that Europe had its first major false alarm since the Nord Stream incident, when a gas pipeline on land exploded on a Friday evening in January. Foul play was briefly considered a possibility in the immediate aftermath but was quickly ruled out. The pipe was 40 years old, and had been subject to a technical fault. 

    The danger posed by Russia to infrastructure throughout Europe should not be underestimated, says Vilmantas Vitkauskas, director of Lithuania’s National Crisis Management Centre and a former NATO intelligence official. 

    “We know their way of thinking, [the way] they send signals or apply pressure,” Vitkauskas says. “We understand Russia quite well, and we are quite worried by what we see — and how vulnerable our infrastructure is in Europe.” 

    The watchers on the water 

    Back aboard the Bergen, life for the sailors carries on as normal. It’s a young crew, with an average age of around 30. Some are conscripts. It’s still compulsory in Norway for 19-year-olds to present themselves for national service, but only around one in four are actually recruited for the mandated 19-month stint.   

    The days are long. Surveillance, maintenance and exercises in search and rescue are all part of the crew’s regular routine. A helicopter from one of the Oseberg oil and gas platforms soars overhead, and the crew are drafted into an exercise winching people on and off the deck of the Bergen in the dead of night, simulating a rescue operation. 

    The ship needs to be ready to respond to an incident should the call come in from naval headquarters that help is required, or a suspicious vessel has been identified in their patch of the North Sea. But in their downtime, the sailors head to the gym on the lower deck, or play FIFA on the X-box in the sparse games room. Three hearty meals a day are served in the galley kitchen. There is even a ship’s band, cheekily named “Dyb Purple” after their commander. Dyb “takes it well,” says Senior Petty Officer Storebø. 

    In the daily whirl of activity, most of the young sailors don’t think of their work in the grand strategic sense of protecting the energy security — the warmth, the light, the industry — of an entire continent. 

    But the context of the Ukraine war — and the precedent set by the Nord Stream attack — has added a note of solemnity just below the surface of the comradeship and bonhomie. 

    “We are probably less naïve nowadays,” says 33-year-old Senior Petty Officer Simen Strand, who has a wife and two children, a boy and a girl, back home in Bergen. “We haven’t had much to fear in the past, there hasn’t been a concrete threat.” 

    Storebø agrees but is characteristically sanguine. “Russia has always been there … I’ve not personally felt any more unease than before.” 

    The next day, Storebø has the night watch, from midnight to four in the morning, as the Bergen travels back to base for a short stop before heading out to sea again.  

    It’s dark up on the bridge, with the glow of the control panel screens the only light inside. Twenty miles away, little lights can be seen on the Norwegian coast. A lighthouse flares to the south, at Slåtterøy, not far from Storebø’s home island of Austevoll. Beneath the waves, unseen, gas flows from the Troll field back to the mainland, where it is processed. From there, it continues its journey south to light the dark of European nights.  

    All is quiet but Storebø can’t afford to lose focus. “Coffee and music help,” he says. “I like the night shifts.”  

    As the officer of the watch, he has to be ready, should the radar, the satellites, or his own eyes see something out of the ordinary — ready to call the captain and raise the alarm. 

    That’s the job, he says. “You always have it in the back of your mind.” 

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    Charlie Cooper

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  • Meta faces record privacy fine for data transfers to the US

    Meta faces record privacy fine for data transfers to the US

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    Meta is expected to face a record privacy fine on Monday when Ireland’s data protection watchdog confirms the social media platform mishandled people’s data when shipping it to the United States, according to two people with direct knowledge of the upcoming decision.

    POLITICO was not able to confirm the size of the record-setting penalty, which will likely be more than the €746 million fine that Amazon was forced to pay in 2021 for similarly flouting the European Union’s privacy standards, the people added, who spoke on condition of anonymity to speak about internal deliberations.

    Ireland’s Data Protection Commission will publish its ruling on Monday; it is also expected to include demands that Meta’s Facebook stop using complex legal instruments to move EU data to the U.S., called standard contract clauses, in the fall. 

    The upcoming decision dates back to revelations in 2013 from Edward Snowden, the former U.S. National Security Agency contractor, who disclosed that American authorities had repeatedly accessed people’s information via tech companies like Facebook and Google.

    Max Schrems, an Austrian privacy campaigner, filed a legal challenge against Facebook for failing to protect his privacy rights, setting off a decade-long battle over the legality of moving EU data to the U.S.

    Europe’s top court has repeatedly stated Washington does not have sufficient checks in place to protect Europeans’ personal information, and the U.S. recently updated its internal legal protections to give the EU greater assurances that American intelligence agencies will follow new rules governing such data access.

    Meta declined to comment. The Irish Data Protection Commission did not respond in time for publication.

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    Mark Scott and Clothilde Goujard

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  • Greece’s conservatives achieve landslide victory but fall short of majority

    Greece’s conservatives achieve landslide victory but fall short of majority

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    ATHENS — Greece’s conservative ruling party achieved a landslide victory in Sunday’s election, but it will have to wait for a second vote later this summer in its bid to secure an outright majority.

    The New Democracy party of Prime Minister Kyriakos Mitsotakis managed to gain a double-digit lead over its main rival, the left-wing Syriza party, and was missing only a few seats for a majority even with the new proportional representation system, according to early results.

    “The political earthquake that occurred today calls on all of us to accelerate the process for a final governmental solution,” Mitsotakis declared Sunday evening from his party headquarters.

    “The data from the ballot box is catalytic — it proves that New Democracy has the approval to govern independently and strongly and they demanded it emphatically, in an absolute way,” he said.

    With 75 percent of the votes counted, New Democracy was poised to get 40.8 percent of the vote and 145 seats in the 300-seat parliament. Syriza was lagging with only 20.1 percent and 72 seats, while the Socialist Pasok party had 11.7 percent and 42 seats. The Communists KKE had 7.1 percent and 25 seats and the nationalist Greek Solution 4.5 percent and 16 seats.

    Three smaller parties that initially looked poised to get 3 percent and top the threshold to make it to parliament, eventually scored lower. The participation rate was at 59.2 percent, the Interior Ministry reported.

    Nonetheless, New Democracy didn’t gather the percentage of votes — 45 percent — needed to win an outright majority.

    Mitsotakis managed to gain among voters despite his premiership being burdened with a spying scandal, spiraling inflation and mounting concerns over the rule of law.

    “Our collective bodies will be convened immediately in order to evaluate the election results,” said Syriza leader Alexis Tsipras, calling the results extremely negative for his party.

    However, he said “the election cycle is not yet over, as there will probably be a second election and therefore, we do not have the time to wait. We must immediately make all changes necessary, in order to give the best possible conditions to the next crucial and final electoral battle.”

    “It is a devastating outcome for the opposition, especially for Syriza,” said Wolfango Piccoli, co-founder of risk analysis company Teneo.

    “It will take a long time for the main opposition party to recover, leaving New Democracy in a position to dominate Greek politics and run the government with no meaningful scrutiny,” he said.

    “The outcome of today’s vote will be welcome by investors, but ND’s dominance of the political system together with a weak opposition may raise concerns about clientelism and the quality of policy-making,” Piccoli added.

    “The resounding victory of New Democracy sends a clear and undisputed message all over Europe,” said Thanasis Bakolas, the center-right European People’s Party secretary general, adding that this is the first time since 2000 in Greece that the incumbent government emerges stronger after its term.

    “A message to Brussels? — Today’s electoral result is a clear message against all those outside Greece who have consistently questioned the quality of Greek democracy and the will of the Greek people,” Bakolas added.

    Starting from Monday, each of the three leading parties will get the mandate to form a government, starting with the winner, before passing to the second and then third party. Each one will have up to three days to try to form a government.

    If there is no agreement on a coalition, the parliament elected on Sunday will be sworn in and then dissolved, paving the way for a second round of elections to take place and a caretaker government will be sworn in.

    Bolstered by his triumph, Mitsotakis is expected to immediately seek a second vote, rejecting the option of a coalition after this first round of voting.

    That means Greeks will probably head to the ballot boxes again on June 25 or July 2, with New Democracy poised to gain an outright majority, thanks to a system that grants the winning party in the second round up to 50 bonus seats.

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    Nektaria Stamouli

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  • Who are the bad guys? Police brutality shapes Greek election

    Who are the bad guys? Police brutality shapes Greek election

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    ATHENS — The biggest crime in Greece? The state of the police force.

    That’s according to opposition politicians, who are putting security and law enforcement center-stage ahead of this month’s national election.

    Syriza, the leftist main opposition party, accuses the conservative New Democracy, which is hoping for another term in office after the May 21 vote, of allowing the police to become run by organized crime gangs. The conservative government maintains a lead in the polls, although a second round will likely be needed and is penciled in for July 2.

    “The Greek police are collaborating with the crime instead of fighting crime,” Syriza leader Alexis Tsipras said, adding that the “Greek mafia is in the police.”

    For sure, Greek police have been in the headlines for all the wrong reasons of late, thanks to the alleged involvement of police officials in mafia gangs profiting from illegal brothels and casinos; the murder of a 16-year-old Roma boy during a police chase; an alleged rape in a central Athens police department; and complaints of police brutality.

    The Greek police force has a long history of corruption and excessive use of force but since New Democracy was elected in 2019 — at least in part on a law-and-order platform — complaints have soared.

    In recent protests following a deadly train crash, police were accused of using unjustified violence during peaceful rallies, with several videos exposing the brutality. In one case, police officers sped toward a group of peaceful protestors on motorcycles and threw firecrackers at their feet. Prosecutors have ordered an investigation after a police tow truck drove at high speed into dumpsters being wheeled into the middle of a street by protesters.

    The chief of police, Konstantinos Skoumas, was replaced in March. In an open letter, Skoumas defended his record and blamed politicians for forcing him out, saying he wouldn’t be “anyone’s scapegoat,” and arguing that his actions “caused strong resentment in certain centers of power, which, as a result, led to the violent termination of my term of office.”

    The opposition blames both the police and the interior ministry that oversees it. “Impunity, the cultivation of an omertà mentality, the lack of accountability, are unfortunately characteristic of the way the Greek police operates, with the tolerance, if not the complicity, of the ministry,” said Giorgos Kaminis of the socialist Pasok party.

    Minister of Civil Protection Takis Theodorikakos hit back, calling Syriza’s accusations “slanderous” and “nationally damaging,” as they could potentially scare away tourists.

    “Our daily concern in practice is the safety of citizens, which is why we put an end to the lawlessness and delinquency,” he said on a recent visit to a police station. “This is why in 2022 the Greek police arrested 7,000 illegal migrants in the Attica [region that includes Athens], and now we are placing 600 new special guards at the Attica police stations,” Theodorikakos said, adding that Greece is a safe country.

    Government spokesman Akis Skertsos said on Monday that there has been a reduction in all medium and low crime rates during the government’s term. Comparing January to August of 2019 to the same period in 2022 there has been a 15 percent reduction in thefts and 35 percent reduction in robberies.

    Complaints on the rise

    In 2022, preliminary data from the Greek Ombudsman showed a 50 percent rise in citizens’ complaints against the police compared to 2019, the last pre-pandemic year, and a 14 percent rise in incidents of racially motivated police actions.

    “The tone set by the political as well as the natural, operational leadership of the security forces undoubtedly plays a vital role” in these increases, Greek Ombudsman Andreas Pottakis told POLITICO. Pottakis said the government’s attitude toward the police was “overly supportive” and could “be misinterpreted” by officers, making them think they have “carte blanche” to do whatever they want.

    GREECE NATIONAL PARLIAMENT ELECTION POLL OF POLLS

    For more polling data from across Europe visit POLITICO Poll of Polls.

    One of the government’s first tasks after taking office four years ago was to revive a police motorcycle unit that had been disbanded under the previous Syriza government over human rights violations. Many of the 1,500 recruits were drafted from the ranks of military special forces, bypassing the police academy.

    New Democracy’s efforts to establish the first university police force in Europe also failed. Α special unit with 1,000 officers was set up in September but still hasn’t set foot on campuses. The idea is so unpopular that on the rare occasions officers from the unit have ventured near universities, they have been accompanied by riot police. Some 600 officers meant for the uni police have already been transferred to other departments, the police confirmed.

    Last month, an officer fired his gun into the air outside Athens University of Economics and Business in the center of the capital during clashes with hooded, masked youths.

    Theodorikakos, the interior minister, said such incidents happened because, in the pre-election period, some people want to “blow up the political climate.” He added that some people “even want him dead,” a comment that was heavily criticized by the opposition.

    “Let’s stop playing games at the expense of the seriousness of the issues, as [Prime Minister Kyriakos] Mitsotakis did with the university police,” said Pasok leader Nikos Androulakis. “He made a body which was paid for by the Greek taxpayers, did nothing of substance, and instead of apologizing he continues doing the same.”

    Abuses of power

    Police have also been accused of resorting to violence and intimidation to hamper journalists covering demonstrations and the refugee crisis on the country’s islands.

    “We have cases of police officers arresting and even stripping lawyers and journalists off their clothes or humiliating them even though their professional identity is made known,” Pottakis, the ombudsman, said. “Young people are mainly targeted. The age element seems to act as an encouragement.”

    Last December a 16-year-old Roma boy died after being shot in the head by police chasing him after he fled a petrol station allegedly without paying for €20 of fuel.

    A 19-year-old girl reported she had been raped in a station by two policemen who filmed their actions in the main central police department last year. The officers involved said the sex was consensual. They have been suspended pending an investigation.

    “We are heading from one fiasco to another,” said Syriza MP Christos Spirtzis. “Where are the internal investigations that have been conducted? There is no information, no one has been punished.”

    Such investigations have, however, been launched. In January, Supreme Court prosecutor Isidoros Dogiakos and Interior Minister Theodorikakos ordered an investigation into the relationship between senior police officials and members of the mafia, after leaked conversations showed gang leaders negotiating with officers about continuing their activities undisturbed.

    Posters of the communist party in Thessaloniki | Sakis Mitrolodis/AFP via Getty Images

    This was not the first report linking the police with organized crime.

    Active and retired police officers stand accused, together with mafia members, of widespread corruption, with the criminal organization alleged to be running a protection racket involving 900 businesses — from clubs to brothels and casinos — with a turnover of at least €1 million per month.

    Investigative website Reporters United revealed that one official implicated in the racket was promoted to director of the Attica Security Department, one of the most important positions in the fight against organized crime. Police later said they weren’t aware of the allegations against the officer.

    “Citizens’ trust relationship with the police is broken when those who break their oath are not punished,” the ombudsman said.

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    Nektaria Stamouli

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  • Erdoğan finds a scapegoat in Turkey’s election: LGBTQ+ people

    Erdoğan finds a scapegoat in Turkey’s election: LGBTQ+ people

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    ISTANBUL — To President Recep Tayyip Erdoğan, Turkey’s LGBTQ+ community represents “deviant structures” and a “virus of heresy.”

    In the run-up to Sunday’s too-close-to-call election, he has ramped up his poisonous invective against homosexuality, as he seeks to shore up his conservative Islamist base. Almost every other speech from the campaign trail accuses the opposition of undermining family values and of being in the thrall of improbably powerful LGBTQ+ networks — sometimes with hints they are run by paymasters abroad.  

    “The AK Party has never been an LGBT supporter,” Erdoğan roared at a recent Istanbul rally, referring to his governing party. “We believe in the sanctity of the family. Family is sacred.”

    Adding a menacing note, he followed up with: “So are we ready to bury these LGBT supporters in the ballot box?”

    To some extent, the homophobic focus of the campaign is easily explicable. Increasingly deserted by his early supporters, Erdoğan is having to form coalition partnerships with more extreme Islamists in this year’s elections.

    But even so, his language smacks of a fixation, and an attempt to divert attention from the country’s most pressing ailments — including a snowballing cost of living crisis and scorching inflation.   

    Diversionary tactics

    Fulden Ergen, editor of Velvele.Net, an online debate platform for LGBTQ+ rights, said she was taken aback by the ubiquity of Erdoğan’s propaganda against the LGBTQ+ community in this year’s campaign.

    She reckoned the attacks were an attempt to mask how few answers to Turkey’s profound problems the AK Party now has.

    “I was not expecting them to be this devoid of policies and just talking about LGBTI,” she said. “The alliance does not have much to give people anymore,” she added, referring to the conservative coalition backing the president. “They don’t know how to deal with the economic crisis. They have no policies left, I see this campaign as a defeat.” 

    Though he may be running out of ideas, Erdoğan could still win. And that is now a serious concern to LGBTQ+ people.

    Life is already tough, and could get significantly worse. LGBTQ+ flags are banned, gatherings are arbitrarily blocked by the government and participants in pride parades are regularly attacked or detained by police. The fear is that their organizations could now be made illegal, and — in the worst case scenario — that laws to protect families could be extended to outlaw homosexuality itself.

    Activists say that if Erdoğan stays in power, violence could follow his hate speech.  

    An anti-LGBTQ+ rally in Istanbul in 2022 | Chris McGrath/Getty Images

    One of the dangers is that his government could use security laws to crack down on homosexual relations — casting them as part of a foreign conspiracy. The government is playing on perceptions that “people don’t believe LGBTI can be from Turkey,” Ergen said.  

    One of the biggest setbacks for women and LGBTQ+ people has been Turkey’s 2021 withdrawal from the — ironically named — Istanbul Convention, which is intended to prevent, prosecute and eliminate violence against women and promote gender equality. 

    Domestic violence is a severe problem that kills at least one woman every day in Turkey. According to data from the Monument Counter, a website that commemorates women who lost their lives to domestic violence, 824 women have been killed in just the past two years.

    Gender parity is another failing across the country’s political spectrum. According to the country’s Women’s Platform for Equality, a rights group that has been tracing the candidates on the various parties’ electoral lists, a mere 117 female deputies are set to be elected to Turkey’s 600-seat parliament

    ‘I have seen many Erdoğans in my life’

    Zeynep Esmeray Özadikti, who has been an activist for trans rights for 30 years, looks set to be an exception to that trend. She is a candidate for the Workers’ Party of Turkey and the first openly trans woman with a good chance of making it to parliament. 

    In a café in Kurtuluş, a neighborhood in Istanbul where there are significant numbers of trans voters, Esmeray told POLITICO that, if elected, she would fight for the rights of LGBTQ+ people against discrimination, hate crimes and violence. “I am getting very positive feedback from the streets,” she said. “If we can judge it by looking at the streets then I’ll definitely be getting into the parliament.”

    If Erdoğan stays in power, Esmeray believes he will take the country in a more religiously conservative direction, even aiming for Sharia law.

    Ergen, the Velvele.net editor, echoed Esmeray’s line of thought. She feared that Article 10 in Turkey’s constitution — a part of the national charter that gives some vague protection to gender equality — might be doctored, paving the way to the possible criminalization of homosexuality. 

    “This is my biggest fear,” she says. “If they win, they are going to do it.”

    Still, the fear of Erdoğan does not mean the LGBTQ+ community feels completely protected by the opposition, whose candidate Kemal Kılıçdaroğlu is leading in the polls ahead of Sunday’s first round vote.

    Ergen thinks the right-wing parties within the wide-ranging opposition alliance could also lobby to make life harder for LGBTQ+ groups. 

    Kılıçdaroğlu himself is fairly guarded in his LGBTQ+ remarks, knowing that the government could easily turn the subject against him.

    To Erdoğan, Turkey’s LGBTQ+ community represents “deviant structures” | Burak Kara/Getty Images

    He is, however, committed to a trajectory toward EU norms. When asked for his stance by POLITICO, he said: “We defend all human rights. It is our common duty to defend human rights. Democracy demands it. You cannot alienate people based on their beliefs, identities and lifestyles, you have to respect everyone.”

    Both Esmeray and Ergen believed the priority should be for Turkey to return the Istanbul Convention to reinforce some basic freedoms.

    And both reckoned Turkey’s population was ahead of its politicians.

    “I am more optimistic about people, not political parties,” said Ergen, who based her hopes on the breadth of civil society activities in Turkey.  

    Esmeray added: “I have seen many Erdoğans in my life. If he wins, we will continue fighting. If it comes to that, I will face him and tell him to kill me.”

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    POLITICO Staff

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  • The Number of U.S. Adults With Some College but No Degree Keeps Growing

    The Number of U.S. Adults With Some College but No Degree Keeps Growing

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    In the wake of pandemic-related enrollment losses, many colleges have been more focused than ever on recruiting and re-engaging a key student demographic: those who attended college but left without earning a credential or degree. A new report provides some insight on this growing market of former students who might one day re-enroll.

    As of July 2021 that population had grown by more than one million from a year earlier to reach 40.4 million, an increase of 3.6 percent, according to the National Student Clearinghouse Research Center. That represents almost one in five people in the United States who are age 18 and older, the report said.

    Of the “some college, no credential” students for whom gender data is known, the share of women, at 45.8 percent, was slightly larger than that of men, at 45.3 percent. Forty-four percent of the more than 40 million former students were under 25 when they dropped out of college.

    The report highlights two subsets of students on whom colleges can focus their re-enrollment efforts. One group is designated as “potential completers”; they’re the 2.9-million adults who have each amassed what amounts to two years of full-time enrollment over the last decade. The other is “recent stop-outs,” or those who were last enrolled at some point in 2019.

    According to the data, potential completers and recent stop-outs were more likely to enroll and to complete a credential within a year after re-enrolling.

    For more data on students who went to college but didn’t earn a credential see below:

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    Audrey Williams June

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  • Citi invests in tech modernization, data, CX | Bank Automation News

    Citi invests in tech modernization, data, CX | Bank Automation News

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    Citi is investing in platform and process simplification, security and infrastructure modernization, client experience enhancements and data improvements. “We recognize these investments have driven a significant increase in expenses, but they are crucial to modernize the firm, address the consent orders and position Citi for success in the years to come,” Citi Chief Financial Officer […]

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    Whitney McDonald

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  • Here Are the Parts of Their Job for Which Presidents Want More Training

    Here Are the Parts of Their Job for Which Presidents Want More Training

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    The college presidency — which has seen a wave of turnovers in recent years — has long been recognized as a challenging job that can sometimes put those in the position on the path to burnout. That’s among the reasons that the average time presidents have held their current position has dropped to 5.9 years, according to a new survey of college presidents.

    That survey also offers some insights into what can make the job so tough: If presidents are spending less time in their jobs, they also need to quickly learn more about some aspects of higher education.

    More on the ACE Survey

    The latest American College President survey, released on Friday by the American Council on Education, asked college leaders about areas in which they would like more training. Of the 32 options that respondents could select, at least one out of five presidents said they wanted to learn more about roughly one-third of them. Among that group were topics like diversity and equity issues, fund raising, and capital improvement projects.

    The survey, which embraced responses from more than 1,000 presidents, also revealed that the most popular professional-development prospects for men and women were largely the same. In the mix for women, however, was crisis management; for men, it was enrollment management.

    Among the areas that nearly all college presidents reported feeling most confident about: student life or conduct issues, and the role of their spouses. Only 4.3 percent and 5.2 percent of leaders, respectively, said they wanted more training on those topics.

    For more highlights about how presidents answered this question — “In which of the following areas would you like more training and/or development for your current presidency/CEO post?” — see below:

    rule line

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    Audrey Williams June

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  • UK goes light-touch on AI as Elon Musk sounds the alarm

    UK goes light-touch on AI as Elon Musk sounds the alarm

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    LONDON — As Elon Musk urged humanity to get a grip on artificial intelligence, in London ministers were hailing its benefits.

    Rishi Sunak’s new technology chief Michelle Donelan on Wednesday unveiled the government’s long-awaited blueprint for regulating AI, insisting a heavy-handed approach is off the agenda.

    At the heart of the innovation-friendly pitch is a plan to give existing regulators a year to issue “practical guidance” for the safe use of machine learning in their sectors based on broad principles like safety, transparency, fairness and accountability. But no new legislation or regulatory bodies are being planned for the burgeoning technology.

    It stands in contrast to the strategy being pursued in Brussels, where lawmakers are pushing through a more detailed rulebook, backed by a new liability regime.

    Donelan insists her “common-sense, outcomes-oriented approach” will allow the U.K. to “be the best place in the world to build, test and use AI technology.”

    Her department’s Twitter account was flooded with content promoting the benefits of AI. “Think AI is scary? It doesn’t have to be!” one of its posts stated on Wednesday.  

    But some experts fear U.K. policymakers, like their counterparts around the world, may not have grasped the scale of the challenge, and believe more urgency is needed in understanding and policing how the fast-developing tech is used.

    “The government’s timeline of a year or more for implementation will leave risks unaddressed just as AI systems are being integrated at pace into our daily lives, from search engines to office suite software,” Michael Birtwistle, associate director of data and AI law and policy at the Ada Lovelace Institute, said. It has “significant gaps,” which could leave harms “unaddressed,” he warned.

    “We shouldn’t be risking inventing a nuclear blast before we’ve learnt how to keep it in the shell,” Connor Axiotes, a researcher at the free-market Adam Smith Institute think tank, warned.

    Elon wades in

    Hours before the U.K. white paper went live, across the Atlantic an open letter calling for labs to immediately pause work training AI systems to be even more powerful for at least six months went live. It was signed by artificial intelligence experts and industry executives, including Tesla and Twitter boss Elon Musk. Researchers at Alphabet-owned DeepMind, and renowned Canadian computer scientist Yoshua Bengio were also signatories.

    The letter called for AI developers to work with policymakers to “dramatically accelerate development of robust AI governance systems,” which should “at a minimum include: new and capable regulatory authorities dedicated to AI.” 

    AI labs are locked in “an out-of-control race to develop and deploy ever more powerful digital minds that no one – not even their creators – can understand, predict, or reliably control,” the letter warned.

    Rishi Sunak’s new technology chief Michelle Donelan unveiled the government’s blueprint for regulating AI, insisting a heavy-handed approach is off the agenda | Leon Neal/Getty Images

    Back in the U.K., Ellen Judson, head of the Centre for the Analysis of Social Media at the think tank Demos, warned that the U.K. approach of “setting out principles alone” was “not enough.”

    “Without the teeth of legal obligations, this is an approach which will result in a patchwork of regulatory guidance that will do little to fundamentally shift the incentives that lead to risky and unethical uses of AI,” she said.

    But Technology Minister Paul Scully told the BBC he was “not sure” about pausing further AI developments. He said the government’s proposals should “dispel any of those concerns from Elon Musk and those other figures.”

    “What we’re trying to do is to have a situation where we can think as government and think as a sector through the risks but also the benefits of AI — and make sure we can have a framework around this to protect us from the harms,” he said.

    Long time coming

    Industry concerns about the U.K.’s ability to make policy in their area are countered by some of those who have worked closely with the British government on AI policy. 

    Its approach to policymaking has been “very consultative,” according to Sue Daley, a director at the industry body TechUK, who has been closely following AI developments for a number of years.

    In 2018 ministers set up the Centre for Data Ethics and Innovation and the Office for AI, working across the government’s digital and business departments until it moved to the newly-created Department for Science, Innovation and Technology earlier this year. 

    The Office for AI is staffed by a “good team of people,” Daly said, while also pointing to the work the U.K.’s well-regarded regulators, like the Information Commissioner’s Office, had been doing on artificial intelligence “for some time.”

    Greg Clark, the Conservative chairman of parliament’s science and technology committee, said he thought the government was right to “think carefully.” The former business secretary stressed that is his own view rather than the committee view.

    “There’s a danger in rushing to adopt extensive regulations precipitously that have not been properly thought through and stress-tested, and that could prove to be an encumbrance to us and could impede the positive applications of AI,” he added. But he said the government should “proceed quickly” from white paper to regulatory framework “during the months ahead.”

    Public view

    Outside Westminster, the potential implications of the technology are yet to be fully realized, surveys suggest.

    Public First, a Westminster-based consultancy, which conducted a raft of polling into public attitudes to artificial intelligence earlier this month, found that beyond fears about unemployment, people were pretty positive about AI.

    “It certainly pales into insignificance compared to the other things that they are worried about like the prospect of armed conflict, or even the impact of climate change,” James Frayne, a founding partner of Public First, who conducted the polling said. “This falls way down the priority list,” he said.

    But he cautioned this could change. 

    “One assumes that at some point there will be an event which shocks them, and shakes them, and makes them think very differently about AI,” he added. 

    “At that point there will be great demands for the government to make sure that they’re all over this in terms of regulation. They will expect the government to not only move very quickly, but to have made significant progress already,” he said.

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    Annabelle Dickson

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  • Listen: Citi Treasury and Trade Solutions improves CX, grows revenue 34% | Bank Automation News

    Listen: Citi Treasury and Trade Solutions improves CX, grows revenue 34% | Bank Automation News

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    Citi Treasury and Trade Solutions is improving customer experience and growing its annual revenue through its platform modernization investments for better use of its data.  “Leveraging data-driven origination can activate possible incremental revenue and increase client confidence through customized solutions,” Naveed Anwar, global head of TTS digital and data at Citi Treasury and Trade Solutions, […]

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    Whitney McDonald

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  • Data aggregation ‘a differentiator’ for FIs | Bank Automation News

    Data aggregation ‘a differentiator’ for FIs | Bank Automation News

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    Data aggregation tools like those offered by Envestnet | Yodlee are helping banks attain an improved return on investments and enhanced customer experience, as financial institutions using the tool saw a 416% return on investment following a three-year period ending in January.   In addition, banks using Envestnet | Yodlee saw a net present value of […]

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    Brian Stone

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  • What the hell is wrong with TikTok? 

    What the hell is wrong with TikTok? 

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    Western governments are ticked off with TikTok. The Chinese-owned app loved by teenagers around the world is facing allegations of facilitating espionage, failing to protect personal data, and even of corrupting young minds.

    Governments in the United States, United Kingdom, Canada, New Zealand and across Europe have moved to ban the use of TikTok on officials’ phones in recent months. If hawks get their way, the app could face further restrictions. The White House has demanded that ByteDance, TikTok’s Chinese parent company, sell the app or face an outright ban in the U.S.

    But do the allegations stack up? Security officials have given few details about why they are moving against TikTok. That may be due to sensitivity around matters of national security, or it may simply indicate that there’s not much substance behind the bluster.

    TikTok’s Chief Executive Officer Shou Zi Chew will be questioned in the U.S. Congress on Thursday and can expect politicians from all sides of the spectrum to probe him on TikTok’s dangers. Here are some of the themes they may pick up on: 

    1. Chinese access to TikTok data

    Perhaps the most pressing concern is around the Chinese government’s potential access to troves of data from TikTok’s millions of users. 

    Western security officials have warned that ByteDance could be subject to China’s national security legislation, particularly the 2017 National Security Law that requires Chinese companies to “support, assist and cooperate” with national intelligence efforts. This law is a blank check for Chinese spy agencies, they say.

    TikTok’s user data could also be accessed by the company’s hundreds of Chinese engineers and operations staff, any one of whom could be working for the state, Western officials say. In December 2022, some ByteDance employees in China and the U.S. targeted journalists at Western media outlets using the app (and were later fired). 

    EU institutions banned their staff from having TikTok on their work phones last month. An internal email sent to staff of the European Data Protection Supervisor, seen by POLITICO, said the move aimed “to reduce the exposure of the Commission from cyberattacks because this application is collecting so much data on mobile devices that could be used to stage an attack on the Commission.” 

    And the Irish Data Protection Commission, TikTok’s lead privacy regulator in the EU, is set to decide in the next few months if the company unlawfully transferred European users’ data to China. 

    Skeptics of the security argument say that the Chinese government could simply buy troves of user data from little-regulated brokers. American social media companies like Twitter have had their own problems preserving users’ data from the prying eyes of foreign governments, they note. 

    TikTok says it has never given data to the Chinese government and would decline if asked to do so. Strictly speaking, ByteDance is incorporated in the Cayman Islands, which TikTok argues would shield it from legal obligations to assist Chinese agencies. ByteDance is owned 20 percent by its founders and Chinese investors, 60 percent by global investors, and 20 percent by employees. 

    There’s little hope to completely stop European data from going to China | Alex Plavevski/EPA

    The company has unveiled two separate plans to safeguard data. In the U.S., Project Texas is a $1.5 billion plan to build a wall between the U.S. subsidiary and its Chinese owners. The €1.2 billion European version, named Project Clover, would move most of TikTok’s European data onto servers in Europe.

    Nevertheless, TikTok’s chief European lobbyist Theo Bertram also said in March that it would be “practically extremely difficult” to completely stop European data from going to China.

    2. A way in for Chinese spies

    If Chinese agencies can’t access TikTok’s data legally, they can just go in through the back door, Western officials allege. China’s cyber-spies are among the best in the world, and their job will be made easier if datasets or digital infrastructure are housed in their home territory.

    Dutch intelligence agencies have advised government officials to uninstall apps from countries waging an “offensive cyber program” against the Netherlands — including China, but also Russia, Iran and North Korea.

    Critics of the cyber espionage argument refer to a 2021 study by the University of Toronto’s Citizen Lab, which found that the app did not exhibit the “overtly malicious behavior” that would be expected of spyware. Still, the director of the lab said researchers lacked information on what happens to TikTok data held in China.

    TikTok’s Project Texas and Project Clover include steps to assuage fears of cyber espionage, as well as legal data access. The EU plan would give a European security provider (still to be determined) the power to audit cybersecurity policies and data controls, and to restrict access to some employees. Bertram said this provider could speak with European security agencies and regulators “without us [TikTok] being involved, to give confidence that there’s nothing to hide.” 

    Bertram also said the company was looking to hire more engineers outside China. 

    3. Privacy rights

    Critics of TikTok have accused the app of mass data collection, particularly in the U.S., where there are no general federal privacy rights for citizens.

    In jurisdictions that do have strict privacy laws, TikTok faces widespread allegations of failing to comply with them.

    The company is being investigated in Ireland, the U.K. and Canada over its handling of underage users’ data. Watchdogs in the Netherlands, Italy and France have also investigated its privacy practices around personalized advertising and for failing to limit children’s access to its platform. 

    TikTok has denied accusations leveled in some of the reports and argued that U.S. tech companies are collecting the same large amount of data. Meta, Amazon and others have also been given large fines for violating Europeans’ privacy.

    4. Psychological operations

    Perhaps the most serious accusation, and certainly the most legally novel one, is that TikTok is part of an all-encompassing Chinese civilizational struggle against the West. Its role: to spread disinformation and stultifying content in young Western minds, sowing division and apathy.

    Earlier this month, the director of the U.S. National Security Agency warned that Chinese control of TikTok’s algorithm could allow the government to carry out influence operations among Western populations. TikTok says it has around 300 million active users in Europe and the U.S. The app ranked as the most downloaded in 2022.

    A woman watches a video of Egyptian influencer Haneen Hossam | Khaled Desouki/AFP via Getty Images

    Reports emerged in 2019 suggesting that TikTok was censoring pro-LGBTQ content and videos mentioning Tiananmen Square. ByteDance has also been accused of pushing inane time-wasting videos to Western children, in contrast to the wholesome educational content served on its Chinese app Douyin.

    Besides accusations of deliberate “influence operations,” TikTok has also been criticized for failing to protect children from addiction to its app, dangerous viral challenges, and disinformation. The French regulator said last week that the app was still in the “very early stages” of content moderation. TikTok’s Italian headquarters was raided this week by the consumer protection regulator with the help of Italian law enforcement to investigate how the company protects children from viral challenges.

    Researchers at Citizen Lab said that TikTok doesn’t enforce obvious censorship. Other critics of this argument have pointed out that Western-owned platforms have also been manipulated by foreign countries, such as Russia’s campaign on Facebook to influence the 2016 U.S. elections. 

    TikTok says it has adapted its content moderation since 2019 and regularly releases a transparency report about what it removes. The company has also touted a “transparency center” that opened in the U.S. in July 2020 and one in Ireland in 2022. It has also said it will comply with new EU content moderation rules, the Digital Services Act, which will request that platforms give access to regulators and researchers to their algorithms and data.

    Additional reporting by Laura Kayali in Paris, Sue Allan in Ottawa, Brendan Bordelon in Washington, D.C., and Josh Sisco in San Francisco.

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  • Russian oil finds ‘wide open’ back door to Europe, critics say

    Russian oil finds ‘wide open’ back door to Europe, critics say

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    European Commission President Ursula von der Leyen has declared Europe’s dependence on Russian oil and gas “history.”

    But others, from senior Ukrainian officials to MEPs and industry insiders, say that chapter of history is still being written.

    Significant quantities of Russian hydrocarbons, particularly oil, are still flowing around sanctions and into the European market, they say, earning payments that fund Vladimir Putin’s war machine.

    “I had a friend in New York in the 1990s who complained cockroaches would get into his apartment through any available hole — that’s what Russia is doing with its energy,” Oleg Ustenko, economic adviser to Ukrainian President Volodymyr Zelenskyy, told POLITICO. “We have to fix these holes to stop Russia receiving this blood money they are using to finance the military machine that is destroying our country and killing our people.”

    Crude oil is notoriously difficult to track on global markets. It can easily be mixed or blended with other shipments in transit countries, effectively creating a larger batch of oil whose origins can’t be determined. The refining process, necessary for any practical application, also removes all traces of the feedstock’s origin.

    A complex network of shipping companies, carrying the flags of inscrutable offshore jurisdictions, adds a further layer of mystery; some have been accused of helping Russia to hide the origin of its crude exports using a variety of different means.

    “Unlike pipeline gas, the oil market is global. Swap and netting systems, and mixing varieties are common practice,” said Mikhail Khodorkovsky, a prominent exiled critic of Putin and the former CEO of oil and gas giant Yukos.

    “The result of the embargo is a significant increase in Russian transportation costs, a significant redistribution of income in favor of intermediaries, and some additional discount due to the narrowing of the buyers’ market.”

    Crude workarounds?

    The EU has largely banned Russian fossil fuels since the invasion of Ukraine in February 2022, with exceptions for limited quantities of pipeline crude oil, pipeline gas, liquefied natural gas (LNG), and oil products.

    But large volumes of Russian crude oil — a bigger source of revenue than gas — are still being shipped onto global markets, leading some experts to suspect they are finding their way to Europe’s market through the back door.

    “Since the introduction of sanctions, the volumes of crude oil Russia is exporting have remained more or less steady,” said Saad Rahim, chief economist at global commodities trading firm Trafigura. “It’s possible that Russian oil is still being sold on to the EU and Western nations via middlemen.”

    Crude oil is notoriously difficult to track on global markets | Image via iStock

    One potential route into Europe is through Azerbaijan, which borders Russia and is the starting point of the Baku-Tbilisi-Ceyhan (BTC) pipeline, operated by BP. The port of Ceyhan, in Turkey, is a major supply hub from which crude oil is shipped to Europe; it also receives large quantities from Iraq through the Kirkuk-Ceyhan pipeline.

    François Bellamy, a French MEP and member of the European Parliament’s Committee on Industry, Research and Energy, aired suspicions about this route in a recent question to the Commission. Data show that Azerbaijan exported 242,000 barrels a day more than it produced between April and July last year, he said — a large margin over domestic production, which stood at 648,000 barrels a day last month and is in long-term decline, according to ministry figures.

    “How can a country diminish its production and increase its exports at the same time? There is something completely inconsistent in the figures and this inconsistency creates suspicions that sanctions are being circumvented,” Bellamy said.

    A spokesperson for the Commission said it is working to crack down on loopholes in sanctions regimes and has appointed the EU’s former ambassador to the U.S., David O’Sullivan, as a special envoy tasked with tackling circumvention. The official also pointed out that data cited by Bellamy on Azerbaijani oil transactions, the most recent publicly available, “happened before the sanctions entered into force so there is no question of evasion of sanctions there.”

    “Azerbaijan does not export Russian oil to the EU via the BTC pipeline,” said Aykhan Hajizada, spokesperson for the country’s foreign ministry, adding that while “Azerbaijan continues to use all non-sanctioned oil regardless of source,” it “remains committed to conducting its supply and trading operations with the utmost care and diligence, in line with relevant laws and regulations.”

    BP has previously been forced to deny that the BTC pipeline carries Russian oil, and data seen by POLITICO for crude shipments from Ceyhan shows a recent dip in the volume of exports to the EU, from around 3 million tons per month (about 700,000 barrels per day) in early 2022 to around 2 million tons a month this year.

    Slick operations

    At the same time, though, Turkey doubled its direct imports of Russian oil last year and has refused to impose sanctions on Russian crude despite simultaneously offering military and humanitarian support to Ukraine.

    Finland’s Centre for Research on Energy and Clean Air (CREA) warned late last year that “a new route for Russian oil to the EU is emerging through Turkey, a growing destination for Russian crude oil,” where it is refined into oil products that are not subject to sanctions and sold on.

    “We have enough evidence that some international companies are buying refinery products made from Russian oil and selling them on to Europe,” said Ustenko, the Zelenskyy adviser. “It’s completely legal, but completely immoral. Just because it’s allowed doesn’t mean we don’t need to do anything about it.”

    On Monday, British NGO Global Witness released a report that found Russian oil has consistently been sold at prices far exceeding the $60 cap imposed by G7 countries in December last year.

    “The fact Russian oil continues to flow round the world is a feature, not a bug, of Western sanctions,” said Mai Rosner, a campaigner who worked on the report. “Governments offered the fossil fuel industry a wide-open back door, and commodity traders and big oil companies are exploiting these loopholes to continue business as usual.”

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    Gabriel Gavin

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  • It’s not just TikTok: French also warn against WhatsApp, Instagram

    It’s not just TikTok: French also warn against WhatsApp, Instagram

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    PARIS — In a typically French move, France’s top lawmakers are refusing to side with the United States and single out China’s TikTok.

    This week, top members of France’s National Assembly strongly encouraged fellow MPs to “limit” their use of social media apps and messaging services, according to a damning internal email seen by POLITICO. The recommendation does include Chinese-owned TikTok — at the heart of a storm on both sides of the Atlantic — but also features American platforms such as Snap and Meta’s WhatsApp and Instagram, alongside Telegram, founded by Russian-born brothers, and Signal.

    “Given the particular risks to which the exercise of their mandate exposes MPs using these applications, we wish to appeal to your extreme vigilance and recommend that you limit their use,” wrote Marie Guévenoux and Eric Woerth from Emmanuel Macron’s Renaissance party and Eric Ciotti from conservative Les Républicains.

    France’s narrative of putting Chinese and American companies in the same basket is in stark contrast to moves by other European countries, including the Dutch government, which decided to target apps from countries that wage an “offensive cyber program” against the Netherlands, such as China, Russia, North Korea and Iran.

    But refusing to pick sides and follow the United States’ geopolitical lead is a long political tradition in France, which is often accused of anti-American bias. During the Cold War, French President Charles de Gaulle tried to position his country as an alternative between the U.S.’s capitalism and the Soviet Union’s communism. 

    “France has not mourned the loss of its power and is trying to resurrect the so-called third way, also carried by [European commissioner] Thierry Breton,” said Asma Mhalla, a tech geopolitics lecturer at Columbia University and Sciences Po. “This will serve as a political argument to put French sovereignty and French tech back on the table,” she added, arguing that the next step will likely be to promote French apps instead.

    And indeed, the top lawmakers’ letter encourages members of parliament to use French software WIMI for project management and collaborative work.

    Their main issue with foreign social media apps is that Chinese and American laws are extraterritorial. The personal data gathered via the platforms — including contacts, photos, videos, and both professional and personal documents — could be used by foreign intelligence services, they argued in their email.

    During Macron’s tenure, France has fought tooth and nail against the U.S. Cloud Act, a piece of legislation that allows American authorities to seize data stored on American servers even if they’re located abroad. Paris has even come up with a specific set of rules for cloud services to try and shield European data from Washington’s extraterritorial reach.

    In China, an intelligence law also requires domestic technology companies to hand over data to state authorities on subjects anywhere in the world.

    “The U.S. are well aware that all their arguments used against TikTok — namely that Chinese law is extraterritorial — awkwardly echo what the Europeans have been reproaching them for some time,” said Mathilde Velliet, a researcher in tech geopolitics at the French Institute of International Relations (IFRI).

    “On the other hand,” she added, “the U.S. also believes they cannot be put on the same footing as China, because they’re a European ally with a different political and security relationship, and because it’s a democracy.”

    Washington and EU capitals including Paris and Brussels also engage in dialogue on data security issues and cyber espionage, which is not the case with Beijing.

    In the National Assembly’s corridors, however, the top lawmakers’ decision to call out foreign platforms from both the U.S. and China was very much welcome. “It’s all starting to look like a third way, which would be European sovereignty,” said Philippe Latombe, an MP from Macron’s allied party Modem. “And that’s good news.”

    Océane Herrero contributed reporting.

    This article has been updated.

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    Laura Kayali

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