Observer Leader calls for escrow

[Q G Campbell]

> -----Original Message-----
> From: Brian Gladman [mailto:brg@gladman.plus.com]=20
> Sent: 01 October 2001 23:17
> To: UK Crypto Posting
> Subject: Re: Observer Leader calls for escrow
>=20
>=20
> ----- Original Message -----
> From: "Ben Laurie" <ben@algroup.co.uk>
> To: <ukcrypto@chiark.greenend.org.uk>
> Sent: Monday, October 01, 2001 9:35 PM
> Subject: Re: Observer Leader calls for escrow
>=20
>=20
> > David Swarbrick wrote:
> > >
> > > Be fair, the leader itself suggests that only legitimate users=20
> > > should deposit keys.
> >
> > And this would help to combat terrorism how?
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> I agree that it won't but the 'logic' sometimes quoted by=20
> advocates is that criminals inevitably have to communicate=20
> with honest people at times so, while you can't get at=20
> 'criminal to criminal' encrypted messages through key escrow,=20
> this does allow messages between criminals and honest people=20
> to be obtained.
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> I should stress that I am just repeating this argument, I=20
> don't believe in it!
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>    Brian

Another problem with the 'logic' is that the rest of the world may not
necessarily deploy technology in the way that we do. One example of this
is the age-old underground banking system that is widespread in South
Asia and among Chinese communities in East Asia [*]. No amount of
escrowed keys and deployment of sigint will help in tracing the movement
of cash through it.

It allows money to be moved quickly across borders and leaves almost no
paper trail. Known as "hundi" in Pakistan and "fei qian" in China it
works as follows [*]: A client approaches an underground bank in a major
Asian city, usually a travel agent or a goldsmith's shop. He deposits an
amount in US dollars to be remitted to an associate in another country.
The shop gives the sender a "receipt" or chit which might be something
as simple as a specially marked ticket stub or a low-value currency
note. The chit is mailed to the recipient in the other country who then
presents it to an associated travel agent or goldsmith there. He
receives in exchange the amount in local currency equivalent to the
amount of US dollrs deposited by the sender of the chit.=20

Creating a doubly ironic link to the cryptographic interests of this
list, one analyst is quoted [*] as saying that the "Investigation into
bin Laden and his finances will provide a modern Rosetta Stone on how to
attack terrorists' financial networks".

References
[*] Far Eastern Economic Review, Oct 4, 2001, page 28.

Quentin
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"Any opinion expressed above is mine. The University can get its own." =20