Regulating supranational financial cyberspace

Controlling international money space

Description

Regulating supranational financial cyberspace involves establishing coordinated international frameworks and enforcement mechanisms to oversee digital financial transactions and platforms that operate across borders. This strategy aims to prevent cybercrime, money laundering, and systemic risks by harmonizing standards, enhancing transparency, and facilitating real-time information sharing among regulatory bodies. Practical actions include developing unified compliance protocols, cross-jurisdictional monitoring, and rapid response systems to address emerging threats and ensure the stability and integrity of global financial networks.

Context

Computer and communication technology permit enormous volumes of money to be moved around the world in split-seconds in a "supranational cyberspace" or an "international money space". In this way, more than 1 trillion dollars are moved internationally every day in the legal economy, moving among others in and out of offshore banks and 24-hour markets. However, all this activity is largely beyond the reach of government control. International money space is suited to permit international organized crime's estimated 750 billion dollar a-year-enterprise to merge into the legal economy. Indeed, following illegal money in international money space is often more and more impossible. This criminal activity is a challenge to national sovereignty and international security. Mechanisms must be developed and implemented in order to effectively regulate international money space against its abuse.