THE MONEY LAUNDERING MENACE
Tags: #RPA #Money Laundering #Technology #AML #Compliance #KYC #Risk Management Edgar D Furtado in his recent article on how RPA is a disruptive force explained about the ROBOTS. I was reading through the article and thought I should publish about Money Laundering and how RPA could help. Money Laundering is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses. Source: Dictionary.com Exploding virtual currencies is increasing the number of transactions to monitor. While Legacy systems in Banks and Financial Institutions are still largely rule based. It is not necessarily bad. It is how they were written. A rule is primarily static and is hence limited in its capability to track. AML transactions are humanly complex to track. Every time, there is an alert, someone needs to look at the data. The sheer cost of human capital invested towards catching AML transactions is huge. The cost of AML compliance across U.S. financial services firms equaled $25.3 billion per year based on survey responses from more than 150 decision-makers at banks, investment, asset management and insurance firms, according to LexisNexis Risk Solutions in its inaugural 2018 True Cost of AML Compliance report for the United States. There are other parts of the world where financial institutions exist and warrant AML Compliance Cost. What are your thoughts?
COMBATING COUNTERFEIT DRUGS WITH BLOCKCHAIN
Tags: #Pharmaceuticals #Counterfeit drugs #Blockchain #Drugs #Supply Chain A counterfeit medication or a counterfeit drug is a medication or pharmaceutical product which is produced and sold with the intent to deceptively represent its origin, authenticity or effectiveness. A drug is called a counterfeit when: the drug may not contain appropriate quantities of active ingredients the drug may not contain any active ingredients the drug contains ingredients that are not marked on the label and may or may not be harmful the drug may have false or fake label All this relates to pharma fraud. While many manufacturers and distributors are investing in technologies to increase traceability and authenticity of these drugs, the problem persists. This is a very profitable business for criminals. Corruption and high handed political influence also adds to the problem. These criminals are only interested in producing a perfect copy. They do not care about the content. Some drug manufacturers take up this practice as well, to save costs. The subject of counterfeiting is an organized crime in the Pharma industry, and a menace to the society. Counterfeit medicine smugglers have sold treatments for arthritis, birth control, macular degeneration, cancer, migraines, asthma, infertility, anesthesia, osteoporosis, cosmetic procedures, Hepatitis, HIV etc. There are a lot of shady items like road paint, floor wax, boric acid, aluminium, etc.. that can be used to create these drugs. Since 2012, the FDA has warned 2,234 medical practices across 49 states in the USA that they have done business with unlicensed distributors. In a technologically advanced country like USA, if such an act can happen, imagine the state of affairs in Africa where counterfeit drug producers from Asia import drugs into Africa extensively. Counterfeits are a global problem. It is important to uncover counterfeits and effectively prosecute. Based on industry estimates, pharmaceutical companies incur an estimated annual loss of $200 billion due to counterfeit drugs globally. About 30% of drugs sold in developing countries are considered to be counterfeits. So, how do we solve the issue. Let us look at the various participants in the supply chain of a drug. To keep things simple, I have listed only the high level roles. drug manufacturers wholesalers pharmacists medical representatives the patient The key issues to solve are as follows: who created the drug how the drug is being transported who consumed the drug This inherently means that there needs to be transparency, access to information and disparities in treatments while solving the problem. Can this be solved by implementing a Blockchain technology in the supply chain network to discover and/or trace a drug from consumption (end user) to production? What are blockchains and how does the blockchain technology work? Blockchain is a permanent record of online transactions. This record of transactions can be shared among a network of computers. Users on this network can add to the record of transactions. Transactions are kept secure via cryptography, and transactions have to be approved and verified by the network in a process called mining. Blockchain is similar to a database which stores information, however the main difference is that the data is located in a network of personal computers called nodes where there is no central entity such as a government or bank controlling the data. Instead, all data is shared publicly although the contents of each data is only accessible to those with permission. Each transaction can be thought of as a block, and the ledger that links them together is the chain. Blocks are linked together in the chain through mining. Each participant connected to the blockchain network has a secret private key and a public key that acts as an openly visible identifier. The pair is cryptographically linked such that identification is possible in only one direction using the private key. One must have the private key in order to unlock a participant’s identity to uncover what information on the blockchain is relevant to their profile. Two of the primary components that make up a blockchain are identity and historical record. This is comparable to a giant log of events and this log in unchangeable. So it provides a secure record of exactly who did what, where and when. A blockchain-based system could ensure a chain-of-custody log, tracking each step of the supply chain at the individual drug/product level. How does Blockchain solve the problem? Most of the times, drugs are developed and manufactured at manufacturing sites and then transferred to wholesale distributors before they are further distributed to pharmacies and retail companies before delivery to patients takes place. The blockchain technology allows opportunity to verify the integrity of the drug supply chain and enhance new drug development by leveraging the blockchain to support and manage the drug development process. Furthermore, add-on functionalities such as private keys and smart contracts could help build in proof of ownership of the drug source at any point in the supply chain and manage the contracts between different parties. Blockchains allows for the elimination of middlemen, and gives ownership of data to all members. Everything is distributed and so there is an inbuilt fairness. A Blockchain based Supply Chain Tracking system for Drug Discovery could be a solution to critical challenges that healthcare systems have been facing for years now where key stakeholders have been complaining about several issues like transparency, access to information and disparities in treatments. With the help of blockchain, it will be easier to track the transaction nodes between the key participants like drug manufacturers, wholesalers, pharmacists and medical representatives thus securing the product information, combating the problem of counterfeit drugs. This could lead to overall drug traceability and reduction in counterfeits and increase in transparency.
SHOULD DATA HAVE BORDERS IN DIGITAL ECONOMY?
Tags: #Data #Digital Economy #Customs for Data #International Data Sharing #Data Supply Chain #Data as a person I have been an international traveler for nearly 20 odd years. At the airport - long queues, friendly security staff with smiles, gift shops, bars, lounges to rest, beautiful restaurants, and magnanimous architecture embrace my attention quite often. Off the airport – the taxis that take me to my destinations, the hotels that I live in, the work places that I go to – quite common in their nature. The concept of flashing a badge, license or a passport to prove my identity, always has taken priority wherever I was. It always made me feel secure, irrespective of the time I waited. When I bring physical goods, like electronics, books, machines and/or money above a certain limit, consumables like cigarettes, food and/or dairy items, I would have always been questioned by a customs officer who would verify if these things are harmful to national security, violate any patents within the country and/or take away jobs from the country. However, when someone sends a file from one country to another country through a Digital Media, either violating the patents in the target country or give instructions to assemble weapons that could harm national security, the borders tend to face a challenge in detection of such digital transactions. While the internet, under the freedom of speech act of multiple nations, has encouraged people to collaborate with each other without the limitation of borders, it is important to solve challenges faced by governments on international data transfer. Alphabets get retold. Thinking of a hypothetical situation, when the creators of internet and social channels, created the Digital economy, perhaps, they only looked at the brighter side of Global Collaboration and might not have envisioned the need for a Digital Data Customs Officer. For governments, where borders only make people feel safer, there is a need for a Digital Data Customs Officer validating every document that is sent over the internet across borders. A Digital Customs Officer could be an automated agent that can have Artificial Intelligence inbuilt into that. It gains knowledge by the day, depending on circumstances that it goes through. There is a need for a better governance regulating International Data Transfer. There is a need for localization of content by country. There is a need for treating Data as a Person, with every unique Data element having its own unique identifier. There is a need for Voice enabled Data Summarization tools that can speak for data on the data. There is a need for data to be un-encrypted while crossing the borders, however, data tunnels carrying them must be made unhackable. There is a need for countries to collaborate digitally on data transfers. There is a need for this world to be a better place to live.