1. 18/05/99 FAMO- MODELO- 000 1

2. 18/05/99 FAMO- MODELO- 000 2 REGIONAL HIGH-LEVEL WORKSHOP ON ELECTRONIC COMMERCE AND ICT FOR CENTRAL AMERICA AND THE CARIBBEAN (25-27 JUNE 2002, CURAÇAO, N.A.) Roberto Bedrikow Legal Manager, SERASA E-FINANCE IN BRAZIL

3. 18/05/99 FAMO- MODELO- 000 3 PRESENTATION OUTLINE Introduction Digital inclusion: a shared challenge Security of electronic information: the Gov-PKI Security of e-commerce and e-finance: Brazil-PKI The New Brazilian Payments System Other initiatives for improving the internet’s reliability Conclusions

4. 18/05/99 FAMO- MODELO- 000 4 INTRODUCTION E-finance = internet-mediated financial services Expert Meeting’s recommendations on e-finance: - friendly regulatory environment - secure methods of electronic transmission - legally binding e-messages and e-contracts - supportive institutional environment - public-private co-operation Development of effective e-finance services in Brazil: - Government/private actions - adoption of minimum regulatory measures - market demand for legally binding contracts

5. 18/05/99 FAMO- MODELO- 000 5 DIGITAL INCLUSION (I) 1999: INFORMATION SOCIETY PROGRAMME requires actions from: ~ the Government ~ the private sector ~ the civil society 2000:EXECUTIVE COMMITTEE ON E-COMMERCE 6 Ministries 1 National Telecommunications Agency 1 Academic Community 6 Private Sector: - 3 Industry, Commerce and Transport - 1 Software Services Companies - 1 Internet Providers - 1 Banks

6. 18/05/99 FAMO- MODELO- 000 6 DIGITAL INCLUSION (II) FINANCIAL TRANSACTIONS AUTOMATED 199860.3% 200074.7%R$12.2 billions (1US$=R$2.7) 2001R$20 billions (+) Financial system in a leading position in: ~ introducing new technologies ~ creating a new technological culture HOUSEHOLDS WITH ACCESS TO INTERNET 2000/2001: 50% growth 2002: 13 millions

7. 18/05/99 FAMO- MODELO- 000 7 DIGITAL INCLUSION (III) INTERNET BANKING 370 MILLIONS (2000) ON-LINE BUSINESS US$ 1.7 BILLIONS (2000) PERSONAL CREDIT 1995-99103% GROWTH 1995-00586% GROWTH CREDIT INFORMATION (SERASA) 2002: 2.5 MILLIONS QUERIES/DAY

8. 18/05/99 FAMO- MODELO- 000 8 DIGITAL INCLUSION (IV) PRIVATISATION OF TELECOMMUNICATIONS INCREASED THE OFFER OF SUCH SERVICES TO BRAZILIANS IN GENERAL DEVELOPMENT OF E-FINANCE DEPENDS MUCH MORE ON SECURITY OF THE TRANSACTIONS AND THE LEGALLY BINDING NATURE OF ELECTRONIC DOCUMENTS AND MESSAGES THAN ON TECHNOLOGICAL REVOLUTION AS TO ACCESS TO INTERNET AND E-FINANCE FULL ACCESS TO INTERNET IS STILL UNACHIEVED: PUBLIC POLICIES NEEDED

9. 18/05/99 FAMO- MODELO- 000 9 THE GOV-PKI Government’s commitment to new technologies in the Federal Administration The Security Issue: 4 principles: - availability- integrity - confidentiality - authenticity

10. 18/05/99 FAMO- MODELO- 00010 THE GOV-PKI Trust defined required public and private CA and RA to be formally approved and operate under a CA Root Before came into operation the private sector expressed its interest in broadening the scope of Gov-PKI The Brazilian Banks Associations Federation asked for a regulated-PKI allowing for secure and legally binding financial transactions, that is for real e-finance

11. 18/05/99 FAMO- MODELO- 00011 THE BRAZIL-PKI Three main concerns: - security - trustworthiness - legal validity

12. 18/05/99 FAMO- MODELO- 00012 THE BRAZIL-PKI “Medida Provisória” (Presidential Act) 2.200-2 Art. 10, paragraph 1: legal validity of electronic documents and transactions, provided made using Brazil- PKI digital certificates or other previous agreed by the parties Federal entities required to use only Brazil-PKI digital certificates The AC Root (Information Technology Institute) moved from MST to be attached directly to the Presidency of the Republic itself

13. 18/05/99 FAMO- MODELO- 00013 The New Brazilian Payments System Since 22 April 2002 Payments transfers are made electronically Amount of money available increases Credit risks decreases Security improved since positions are updated many times during the day BPS uses Brazil-PKI digital certificates by SERPRO (public sector) and SERASA

14. 18/05/99 FAMO- MODELO- 00014 Other Initiatives BS 7799 and ISO 17799 Bills on privacy and consumer protection Bills on cybercrime (Government, Parliament and Civil Society) Credit risks decreases

15. 18/05/99 FAMO- MODELO- 00015 CONCLUSIONS Government is committed and gives the example Financial sector introduces technology and culture Co-operation between Government and private sector, particularly the financial sector Security: d-commerce Legal validity of documents and transactions Trust Public Policies must always continue (long term effect)

16. 18/05/99 FAMO- MODELO- 00016 CONTACT AND INFORMATION E-mail: robertobedrikow@serasa.com.br www.iti.gov.br www.icpbrasil.gov.br

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