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Report

1 Jun 2021

Author:
Amnesty International, Privacy International and The Centre for Research on Multinational Corporations (SOMO)

Operating from the Shadows: Inside NSO Group’s Corporate Structure

Targeted surveillance is a serious threat facing human rights defenders (HRDs) globally. Though often carried out by states, this practice is enabled by digital surveillance tools provided by private companies. However, the lack of transparency about the operations of the surveillance industry poses a serious obstacle for victims of unlawful surveillance to seek accountability and the right to remedy. This briefing seeks to shed light on one specific company – NSO Group – and thereby help to overcome this barrier.

... The overall objective of this briefing is to aid civil society efforts toward greater oversight, remedy and accountability by collecting information on NSO Group’s corporate structure, including information concerning ownership, control, and exports of the company, in one accessible resource in furtherance of transparency. Amnesty International, Privacy International and SOMO do not aim to draw conclusions or make assertions about the purpose of the corporate structure...

... We further recommend that surveillance companies implement a broad range of human rights due diligence, transparency, and accountability measures, in accordance with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We finally recommend that investors assess whether their investment portfolios include or may in the future include surveillance companies, and demand that any such portfolio companies fulfil their responsibilities to respect human rights in accordance with the UN Guiding Principles and OECD Guidelines.

... NSO Group’s corporate structure, fuelled by global investment and shaped by the strategic priorities of private equity firms and governments, has grown to span multiple jurisdictions across the world, including the Britiish Virgin Islands, Bulgaria, the Cayman Islands, Cyprus, Israel, Luxembourg, the UK and the US. NSO Group entities have obtained export licences from Israeli, Bulgarian, and Cypriot authorities. Through multiple layers of holding companies and Novalpina Capital’s private equity fund, NSO Group counts as current investors individuals and institutional investors; among them, two public funds in the UK and two in the US. Ultimately, the corporate structure of the NSO surveillance enterprise has facilitated the growth and acceptance of this company and the broader ‘intrusion as a service’ sector, binding investor returns to ever-expanding surveillance sales. At the same time, NSO Group’s longstanding resistance to disclosure concerning its technical offerings, sales, services, human rights impacts or remediation measures has provided the industry a template on how to avoid public transparency and accountability.

[In one of two letters to the report's authors, NSO group wrote] "... [W]hile our corporate mission is to create technologies to help government agencies prevent and investigate terrorism and crime –to save lives –we are aware of the risk of potential misuse of our products. This is why we have designed a human rights program that seeks to align with the UN Guiding Principles on Business and Human Rights (UNGPs) to the maximum extent feasible. While we believe we have the leading program in our sector, we are committed to continuous improvement, including through ongoing engagement with Amnesty International, SOMO, Privacy Internationaland other stakeholders. With respect to the references to previously reported, alleged misuse included in the Report, we have responded to you in each instance at the time that you raised your allegations..."