Commonwealth adopts model law designed to shape the digital economy across 56 nations
THE Commonwealth of Nations has marked its 75th year by adopting a series of new model laws covering tech, innovation, AI and digital assets.
The laws are a significant step towards widespread legislation of the digital industries across the 56 nations – a third of the world’s population - that make up the Commonwealth.
A four-day meeting of Commonwealth law ministers, Attorney Generals and senior figures in Tanzania addressed the theme ‘Technology and Innovation: How digitalisation paves the way for people-centred access to justice’.
Beginning the summit, the Secretary General of the Commonwealth noted that closing the justice gap was central to realising every aspect of the values and aspirations expressed in the Commonwealth Charter, and that technology was a vital weapon in the Commonwealth’s legal arsenal.
Member countries were urged to harness, understand and master the benefits of technology and innovation in breaking down barriers of cost and complexity, and delivering legal systems which can meet the justice needs of all.
As well as a model law, key provisions in the package of new measures included improved access to justice for people with disabilities, a new action plan to protect women from online violence, and a proposal to eliminate gender-discriminatory legislation.
The Commonwealth Secretary-General, the Rt Hon Patricia Scotland KC, said the measures were “absolutely critical” – particularly in respect of meaningful access to justice.
“Our discussions have been purposeful, our decisions have been meaningful, and our powerful new consensus allows us to take the next giant steps forward towards equal access to justice, in modernised legal systems, across our wonderful Commonwealth,” she said.
“We leave Zanzibar with a powerful mandate which will allow us to take the next decisive steps to ensure justice for all is the lived experience of every one of the 2.5 billion people living in our Commonwealth.”
Officiating the closing ceremony, H.E. Hussein Mwinyi - President of Zanzibar - commended the substantive outcomes, and urged members to continue on the path of digitisation.
“I am pleased to note that the meeting has recorded a number of achievements, which challenge us to undertake reforms in an effort to ensure that justice is accessible to all,” he said.
“I am aware of efforts that the Commonwealth countries have taken to shape its agenda on the rule of law and access to justice. It is high time that you made the same efforts on access to justice through digitisation.”
One of the key members in the expert working group that helped to shape the virtual asset model law was The Digital Commonwealth Roundtable founding member Loretta Joseph, who was advising in Zanzibar last week.
Together with Rajesh Ramloll (chair)Rick McDonell, Josée Nadeau, Allan Prochazka, Ian Matthews, Michelle Harwood, Joseph Weinberg, Kokila Alagh, Ankita Dhawan, Soumya G, Paul Derham, Jonathan Hatch, Maxine L Binns and Jean-Louis Yvan, the working group was supported by Baroness Patricia Scotland KC, Dr Elizabeth Macharia and Prof Luis Franceschi.
Loretta Joseph praised the teamwork within the group as they strived to get the virtual asset model law across the line.
“Primarily, this model law serves as an example of how countries can adopt a VA regime if they lack sufficient resources or guidance. Countries may also choose to develop their own framework based on their specific needs and circumstances,” she said.
“This model law serves as an example for implementing VA regulations, emphasizing global regulation to address challenges. With 2.5 billion citizens, our Commonwealth nations, leading in crypto usage, can set global standards. While technology must thrive, regulations should prevent illicit activities.
“The FATF has urged stronger VA regulations globally, emphasising effective risk mitigation. Our model law aligns with international standards, providing a benchmark for jurisdictions. We have used the FATF definitions and minimum standards as the benchmark.”
She added that it was adaptable to different legal frameworks, therefore promoting consistency throughout virtual asset regulation.
“As crypto evolves, the model law must adapt, addressing emerging trends like DeFi and stablecoins. Financial stability risks, especially in jurisdictions with weaker currencies, underscore the need for robust regulation,” she explained.
“By closely monitoring standard-setting bodies’ recommendations, such as the FATF, the model law aims to ensure effective implementation and trust in the VA sector. Promoting broader implementation across the Commonwealth is crucial for realizing the full benefits of digital innovation while safeguarding financial stability and consumer protection and mitigation of illicit financing risks.”
The Commonwealth draft model law on virtual assets was first presented at the 2022 Commonwealth Law Ministers Meeting in Balaclava, Mauritius, where law ministers were presented with a paper on the Commonwealth legal and regulatory frameworks for a digital economy.
Ministers agreed that the Commonwealth Secretariat should commence work to scope a potential framework model law on digital assets which aligned with Commonwealth values.
Last week, law ministers received from the Commonwealth Secretariat a ‘Model Law on Virtual Assets’ which complies with the Financial Action Task Force (FATF) Recommendation 15 which requires Virtual Assets Service Providers (VASPs) to be regulated for anti-money laundering and countering the financing of terrorism (AML/CFT) purposes, and licensed or registered and subject to effective systems for monitoring or supervision.
Passing the model law now means member states may utilise the model law at their discretion, with the Secretariat primed to review the model law as appropriate.
Commonwealth Day - March 11
Today, 56 of the world’s largest countries and smallest islands, across six oceans, continue to stand united and celebrate shared values for Commonwealth Day.
Commonwealth Day is traditionally celebrated on the second Monday in March. The theme for this year’s Commonwealth Day and the forthcoming Commonwealth Heads of Government Meeting (CHOGM), is ‘One Resilient Common Future: Transforming our Common Wealth’.
This year’s staging is especially significant as the modern Commonwealth will celebrate its 75th anniversary in April this year. At a Commonwealth Prime Ministers meeting in London on April 26 1949, the London Declaration said that republics and other independent countries could be equal members of the Commonwealth. Thus, the modern Commonwealth of Nations was born.
His Majesty King Charles III, in his Commonwealth Day video message, said: "The Commonwealth family is strongest when we are connected, through friendship. As I have said before, the Commonwealth is like the wiring of a house, and its people, our energy and our ideas are the current that runs through those wires.
"Together and individually, we are strengthened by sharing perspectives and experiences, and by offering and borrowing the myriad ways we have each tackled the challenges of our time."
The Commonwealth Secretary-General, the Rt Hon Patricia Scotland KC, emphasised the value, power and potential of the Commonwealth family in her Commonwealth Day address.
"Together, we have built a Commonwealth which is fit for the times we live in: stronger, more connected and more influential than ever; capable of rising to the world’s challenges, innovating to seize new opportunities, and working together to shape a more peaceful, resilient and prosperous common future," she said.
"On this Commonwealth Day, as we prepare to come together again as one Commonwealth family for CHOGM in Samoa later this year, let us draw again from the wells of friendship and mutual respect, encouraging ourselves and inspiring each other to ever-more profound depths of cooperation and greater heights of achievement."
Among the activities slated for the day in London is a flag-raising ceremony at the House of Commons, which will be attended by the Deputy Secretary-General, Dr Arjoon Suddhoo. Secretary-General Scotland will lay a wreath at the Memorial Gates to recognise the men and women from across the Commonwealth who served with the British Armed Forces during the First and Second World Wars.
The Secretary-General will also pay tribute to the late Baroness Flather, who served as Lifetime President of the Memorial Gates Council, who passed away earlier this year. The Memorial Gates event will also be the culmination of a 100km charity walk being undertaken to bring awareness to the sacrifice of the fallen soldiers.
Later, members of the Royal Family, Commonwealth government officials and High Commissioners, youth leaders and other dignitaries will gather for the annual commemorative service at Westminster Abbey. His Majesty The King will attend the Commonwealth Secretary-General’s reception at the Commonwealth Secretariat's headquarters and greet representatives from the member nations.
Throughout the world to celebrate Commonwealth Day, civic events, educational activities and cultural gatherings will also take place.
Commonwealth nations will come together later this year in October 2024 for the Commonwealth Heads of Government Meeting in Samoa. Samoa will be the first small island developing state from the Pacific to host CHOGM, which will bring a unique perspective to the table. CHOGM 2024 promises to be a landmark event, uniting Commonwealth nations in their pursuit of resilience, sustainability and a shared future.
