Mueller Obtains Search Warrant on Facebook

Facebook sold ads for up to $100,000 each incident. Facebook is expected to send a representative to participate in a panel in a Senate hearing.

It is also important to note Russia Today, now known as RT is to formally register as a foreign agent. Sputnik News may be asked to do the same.

Related reading: FBI investigates Russian government media organizations accused of spreading propaganda in U.S.

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In part from Newsweek:

The recent news that Robert Mueller obtained a search warrant for the contents of Facebook accounts associated with Russian operatives trying to undermine the 2016 presidential election was a key turning point in our knowledge of his investigation that could transform the scope of the inquiry and the legal strategy of the people in the special counsel’s sights.

Before news of the Facebook search warrant broke, it appeared that Mueller was focused on several discrete areas of inquiry, such as potentially false disclosures by former Trump campaign chair Paul Manafort, potential tax charges and alleged obstruction of justice related to President Donald Trump’s firing of former FBI Director James Comey. Mueller’s warrant tells us that the special counsel is closing in on specific foreigners who tried to undermine our democracy, that he’s serious about going after Russian interference and he is far enough along to convince a federal judge that he has good evidence of such a crime. Read the full article here.

Deeper Dive

The Hill: The American public should be furious about the recent revelations regarding Russian manipulation of social media. What the public should not be is surprised. Although exploitation of cyber venues may be a new twist, it is just another chapter in an old story.

For the better part of a century, Russia (including its Soviet predecessor), Soviet proxies, as well as other countries have attempted to exploit wedge issues and social unrest to interfere with U.S. internal politics. These countries’ objectives are likely twofold: driving policies toward a desired outcome and forcing the United States to focus inward, distracting it from international developments.

From the 1930s onward, the Soviet Union and its Russian successor have consistently exploited divisions in American society to Moscow’s advantage. Moscow, starting with its Popular Front strategy in the mid-1930s, has insinuated its proxies into grievance-driven domestic coalitions.

 

These ranged from the Great Depression’s disenfranchised, to the anti-nuclear and pro-peace crowds. More recently, according to the Office of the Director of National Intelligence, Russia attempted to co-opt populists on both ends of the ideological spectrum by facilitating both the Occupy movement, via the Russian television network RT, and the far right, members of which have looked to Vladimir Putin as an exemplar of traditional values.

In addition to efforts at co-optation of mass movements, the Soviet Union attempted to inflame tensions within American society. In the 1960s, Soviet officials skulked around Capitol Hill, querying offices on a variety of issues including the dynamics of the civil rights movement.

For instance, one official specifically wanted to know about which civil rights leaders had been excluded from a White House meeting. This collection activity probably indicated Moscow’s desire to get smarter on a hot-button topic, which it could then exploit through an “active measures” campaign.

The civil rights issue came full circle when, in 1980, the Soviets surfaced a forgery which purported to show the U.S. government as using the CIA against African-Americans.

Cuba, a Soviet satellite, pursued similar disruptions against the United States. The Cuban government viewed American minorities as a constituency that Havana could incite to create mayhem on U.S. soil. Fidel Castro, himself, suggested that he could prompt a race riot at a time of his choosing.

Furthermore, Cuba arguably attempted to weaponize criminality against the United States when, in 1980, it seeded 8,000 criminals into the Mariel boatlift’s refugee population.

Given Venezuela’s status as a protégé of Cuba, it is hardly surprising that Caracas, under Hugo Chavez, sought to exploit socioeconomic tensions by distributing subsidized heating oil for low-income Americans as a propaganda ploy.

The Soviet/Russian-perpetrated and inspired attempts to exploit divisive U.S. political issues is notable but hardly unique to Moscow and its minions. China, during the 1960s, courted U.S. Maoist-inspired groups, including the Revolutionary Union, that embraced militancy.

More recently, the Chinese government, known for keeping a tight rein on social media, nevertheless seemed to let its WeChat platform off the leash to stir up rallies against the New York Police Department in 2016.

This history of foreign-sponsored disruption suggests that U.S. adversaries and competitors are sufficiently knowledgeable about the tensions within American society to effectively exploit them. The jury is out on whether Washington is paying similar attention.

Both the Church and Pike investigations of American intelligence in the mid-1970s produced skittishness about looking too closely at domestic actors, as indicated by the guidelines issued by Attorney General Levi, in 1976, regarding domestic security investigations.

Such trepidation about identifying dangerous domestic dynamics appears to persist, if the outraged reaction to the Department of Homeland Security’s 2009 report on right-wing extremism is any indication. Is it possible that risk-aversion has become willful blindness?

Social media may be a new front in foreign exploitation of tensions in the United States, but the underlying concept of exacerbating divisions and inciting conflict on American soil is a timeworn strategy.

Although Russia is the perpetrator of current interest, it is not alone in its effort to disrupt American politics through the sowing of dissent and division.

For Washington to anticipate (and, hopefully, deter) future, foreign-sponsored attacks on the public’s perceptions, it must ensure that it is aware of the vulnerabilities inherent to the domestic setting that U.S. adversaries and competitors may manipulate to their advantage.

Darren E. Tromblay served as an intelligence analyst with the U.S. intelligence community for more than a decade and is the author of the forthcoming book, “Foreign Influence on U.S. Policymaking: How Adversaries and Allies Manipulate and Marginalize the American Electorate,”

 

Citizenship for Sale in U.S and EU, the Golden Ticket

In the United States, with a starting number such as $500,000, you can buy a passport and with just a little more you can advance to citizenship under the EB-5 visa program. Swell huh? It has been going on for years and even Senator Dianne Feinstein has an issue with it. So, where is President Trump on the matter? Crickets…..

In February of this year, Senator Grassley and Feinstein introduced legislation to stop the EB-5 abuse.

The EB-5 program is inherently flawed,” Feinstein said in a joint statement with Grassley on Friday. “It says that U.S. citizenship is for sale. It is wrong to have a special pathway to citizenship for the wealthy while millions wait in line for visas.”

Roughly 10,000 EB-5 visas are awarded each year, with more than 85 percent going to Chinese investors in 2014, according to a study by Savills Studley, a real estate services firm. The program, begun in 1990 to stimulate the economy, has turned into a convenient way for wealthy Chinese citizens to become permanent U.S. residents and later bring over their family members. More here.

The Chinese, the Ukrainians and the Russians, all oligarchs are the largest exploiters of the program and most of these oligarchs are corrupt, paying for speedy processes with dirty money.

We know there are multiple investigations going on inside the DC Beltway regarding Russian interference and rightly so. Both Democrats and Republicans have some complicity in foreign collaboration.

In March of this year, this site published an extensive summary of Russian relations with people in the Trump camp as well as with Nancy Pelosi and Steny Hoyer. Few take a look at Secretary Wilbur Ross and his Cyprus connections. Cyprus is a location where abuse and corruption is as normal as breathing. One interesting person is Dmitry Rybolovlev, who happens to know Donald Trump as well as Wilbur Ross.

Beyond paying for a speedy process to obtain a passport or citizenship, there is also yet another method and that is money laundering illicit funds through U.S. real estate purchases where the buyer’s name is not listed if cash is paid. You dont say…..yup. This site published a summary of such activities in July of 2014.

So, while we have examined the issue in the United States and in Cyprus, it is the same for the European Union.

Russian and Ukrainian oligarchs suspected of corruption are among hundreds who have acquired EU passports under the “golden visa” program – a bourgeois shortcut to European citizenship in exchange for cash investments, the Guardian reported Sunday.

A list of recipients seen by The Guardian includes “prominent businesspeople and individuals with considerable political influence.”

The paper claims that Cyprus alone has made over $US 4 billion selling passports to international oligarchs, “granting them the right to live and work throughout Europe,” completely legally.

However, Cyprus is not alone. “The Golden Visa program for Spain, Portugal, Malta, Greece and Cyprus are the most prominent. Bulgaria and Hungary offer residency and citizenship by investment in Europe through government bonds,” the Golden Visa website states.

The BBC reported about this kind of purchasable citizenship three years ago.

“Just like you diversify an investment portfolio, you want to diversity your passport portfolio,” investment expert Christian Kalin, told the BBC.

The list of individuals who have received Cypriot citizenship includes Bashar al-Asad’s cousin, who was previously placed under American sanctions because of allegations he benefited from corruption. It also includes a former member of the Russian parliament and the founder of Ukraine’s largest bank.

According to Global Witness, an international NGO dedicated to exposing global corruption, global visas have the potential to give applicants fleeing persecution a “get out of jail for free card.”

Portuguese MEP, Ana Gomes, said golden visas are an immoral way to grant citizenship.

“I’m not against individual member states granting citizenship or residence to someone who would make a very special contribution to the country, be it in arts or science, or even in investment. But granting, not selling,” said Gomes.

Gomes also questioned the secrecy of obtaining golden visas. If they’re legal, why is it so hard to see who has them, asked Gomes.

The European Parliament will be debating the legality of golden visas in light of the leak, The Guardian reported.

So, for the leaders of respective countries, the definition of citizenship and the spirit of that loyalty means nothing when it comes to money, dirty money.

Perhaps we should be pushing harder for the Grassley/Feinstein legislation at a minimum….what say you?

 

DPRK: What Barack/Hillary Knew and When

Hey China…what gives? France, you have a call holding on line 4.

None of this would have been in Obama’s, Hillary’s or John Kerry’s emails? Hillary did not use ANY official government email platform…just say’n.

John Kerry under the instruction of the Obama White House negotiated the Joint Plan of Action with Iran on the nuclear development program. Purposely many things were overlooked including the nefarious activities between Iran and North Korea.

Imagine the developments are cables since 2009.

Countries that were part of the long negotiations were the P5+1, which included:

France, Germany, and the United Kingdom (the EU3) also offered Iran several proposals to resolve the nuclear issue during negotiations with Iran in 2004 and 2005. China, Russia, and the United States joined the three European countries in 2006 to offer “P5+1” proposals to Iran.

North Korean front companies operate inside China with impunity.

The extent of Chinese companies’ role in enabling North Korea’s evasion of sanctions is detailed deep in the fine print of the still unpublished 105-page report. For instance, North Korea’s Daedong Credit Bank (DCB) and Korea Daesong Bank, both subject to U.S. and U.N. sanctions, continue to operate in the Chinese cities of Dalian, Dandong, and Shenyang in violation of U.N. resolutions. The panel suspects that one of the banks, Daedong, may in fact be majority-owned by Chinese shareholders, citing July 2011 documents indicating the sale of a controlling stake, 60 percent, to a Chinese firm. More here.

So, when it comes to France, what did they know via the MTCR?

Background

Formal discussions on controlling missile proliferation began in 1983 among France, Germany, Italy, the United Kingdom, and the United States. They were later joined by Canada and Japan, and in 1985, an interim agreement to control the proliferation of nuclear-capable ballistic missiles, including dual-use missile items, was reached. A nuclear-capable missile was defined as one capable of delivering at least 500 kilograms (kg) to a range of 300 kilometers (km) or more. The G-7 States formally announced the Missile Technology and Control Regime (MTCR) on 16 April 1987.

Since then, membership has expanded to the present 34 States, the additional members being Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, Czech Republic, Denmark, Finland, Greece, Hungary, Iceland, Ireland, Luxembourg, The Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, Russian Federation, South Africa, Spain, Sweden, Switzerland, Turkey and Ukraine. Some other States, including China, India, Israel, Romania, and Slovakia, have pledged to abide by the MTCR Guidelines.

Regime Goal

The regime goal is to limit the risks of proliferation of weapons of mass destruction (i.e. nuclear, chemical and biological weapons) by controlling the transfers that could make a contribution to delivery systems (other than manned aircraft) for such weapons.

Regime Guidelines

The regime guidelines consist of national control laws and procedures; a two-category common control list; information-sharing on any denied cases to ensure no commercial advantage; no impediment to national space programs; presumption of denial of any transfers in terms of nuclear weapon delivery systems development; and no retransfers without authorization.

Equipment and Technology Annex

Category I items of the Equipment and Technology Annex include complete rocket and unmanned-air-vehicle delivery systems and subsystems. The transfer of Category I items is subject to a strong presumption of denial. The transfer of production technology for Category I items is prohibited.

Category II items include propulsion and propellant components, launch and ground support equipment, as well as the materials for the construction of missiles. The transfer of Category II items is less restricted, but still requires end-use certification or verification where appropriate. More here.

So, to answer the question in the title of this article, here is a WikiLeaks cable providing background:

***

MISSILE TECHNOLOGY CONTROL REGIME (MTCR): NORTH KOREA,S MISSILE PROGRAM
2009 October 6, 13:14 (Tuesday)
09STATE103755_a
SECRET
SECRET
In the metadata of the Kissinger Cables this field is called ‘Previous Handling Restrictions’.

Cablegate does not originally have this field. We have given it the entry ‘Not Assigned’.

Citations for acronyms used are available here.” data-hasqtip=”true” oldtitle=”Handling Restrictions” title=””>Handling Restrictions

— Not Assigned —
14817
— Not Assigned —
TEXT ONLINE
— Not Assigned —
TE – Telegram (cable)
— N/A or Blank —
— N/A or Blank —
— Not Assigned —
— Not Assigned —

Original cable: Reasons: 1.4 (B), (D), (H). 1. (U)

This is an action request.

Please see paragraph 2. 2. (C) ACTION REQUEST: Department requests Embassy Paris provide the interagency cleared paper “North Korea,s Missile Program” in paragraph 3 below to the French Missile Technology Control Regime (MTCR) Point of Contact (POC) for distribution to all Partners.

Info addressees also may provide to host government officials as appropriate. In delivering paper, posts should indicate that the U.S. is sharing this paper as part of our preparation for the Information Exchange that will be held in conjunction with the MTCR Plenary in Rio, November 9-13, 2009. NOTE: Additional IE papers will be provided via septels. END NOTE.

3. BEGIN TEXT OF PAPER: (SECRET REL MTCR) North Korea’s Missile Program Introduction North Korea continues to make progress in its ballistic missile development efforts. We expect both the new Musudan intermediate-range ballistic missile (IRBM) and the solid-propellant Toksa short-range ballistic missile (SRBM) to be fielded in the coming years, and as demonstrated by North Korea,s April 5th launch of the Taepo Dong 2 (TD-2) space launch vehicle (SLV)/intercontinental ballistic missile (ICBM) in a failed attempt to place a satellite into orbit, the pursuit of longer-range systems remains a DRPK priority. North Korea’s deployed forces include hundreds of Scud and No Dong short and medium-range ballistic missiles (SRBM/MRBM), seven of which it launched in 2009.

North Korea remains one of the world’s leading suppliers of ballistic missiles and technology, and continues to provide assistance to both Iran’s and Syria’s ballistic missile programs. North Korea, since the 1980s, has supplied a variety of customers with ballistic missiles, missile components, and missile-related technology. These sales have included complete Category I missile systems, as well as production technology and expertise.

North Korea has maintained its right to sell ballistic missiles and continues to market its systems to countries in the Middle East while seeking to expand its missile marketing activities worldwide. North Korea this year probably resumed ballistic missile-related cooperation with Yemen, and may have recently reached an agreement with Burma to provide Rangoon with ballistic missile technology.

North Korea has developed most of the necessary capability and infrastructure to produce and assemble its ballistic missiles. However, while North Korea continues to make progress in its missile development efforts, it remains reliant on outside suppliers for a range of missile-related raw materials and components. While most of these materials are for direct application to its missile program, North Korea may procure some items in support of its missile customers.

Program History North Korea’s ballistic missile program started in the early-1980s, when it reverse-engineered Soviet-made 300km-range Scud B SRBMs acquired from Egypt. This Scud B technology went on to form the basis for the DPRK,s Scud B, Scud C, No Dong, Taepo Dong-l (TD-1), and TD-2 systems. In return for the Scud Bs, North Korea assisted Egypt’s efforts to domestically produce Scuds. Building on this success, the DPRK began designing the 500 km- range Scud C in the mid-1980s.

These Scuds have been exported to customers in the Middle East and are deployed in North Korea. Given its 20 years experience working with Scud technology, North Korea is able to design and produce extended-range variants of the Scud, capable of delivering payloads of over 500 kg to ranges up to 1,000 km.

North Korea also used Scud technology to develop the No Dong medium-range ballistic missile (MRBM) that is deployed as part of North Korea’s missile forces. The No Dong has a range of 1,300 km with a 500 kg payload, which could strike all of South Korea and Japan. Scud and No Dong technology also form the basis of North Korea’s TD-1 and TD-2 systems. In 1998, North Korea tested the Taepo Dong-1, which probably utilized a No Dong first stage and Scud second stage. Although launched as an SLV, the TD-1 launch showed that North Korea had successfully developed many of the essential technologies for staged missile systems vital for ICBM development.

The DPRK has also developed the follow-on system for the TD-1, the TD-2. Although a more advanced design than the TD-l, the TD-2 still relies on Scud and No Dong technology, with probably clustered No Dong engines powering the first stage, and either a Scud or No Dong-based second stage. In a two stage configuration, the TD-2 would have a range of over 9,000 km with a substantial weapons payload of approximately 500 kg.

In a three stage configuration, such as that launched in April 2009, the TD-2 could deliver the same sized payload up to 15,000 km, which could reach all of the United States and Europe, although likely with very poor accuracy.

The first stage of the April 2009 launch fell into the Sea of Japan, and the upper stages landed in the Pacific. This demonstrates progress since the 2006 test, which flew only about 40 seconds. Recently, North Korea has developed a new land-mobile IRBM –called the Musudan by the United States.

The Musudan is a single-stage missile and may have a range of up to 4,000 km with a 500 kg payload. The Musudan is derived from the SS-N-6 submarine-launched ballistic missile (SLBM) and represents a substantial advance in North Korea’s liquid propellant technology, as the SS-N-6 had a much more advanced engine and used more energetic propellants — unsymmetrical dimethylhydrazine (UDMH) and nitrogen tetroxide (N204) — than those used in Scud-type missiles. Development of the Musudan with this more advanced propulsion technology allows North Korea to build even longer-range missiles — or shorter range missiles with greater payload capacity — than would be possible using Scud-type technology. As the Scud market nears saturation, North Korea also has started to develop its own solid-propellant missile systems, as evidenced by its development of a new solid propellant SRBM based on the SS-21 SRBM.

This new missile — called the Toksa by the United States — has a range of 120 km with a payload as large as 500 kg. This is a disturbing development since North Korea can apply its experience in producing this missile to other, longer- range, solid propellant missile designs. Solid propellant ballistic missiles are preferred by many countries due to their lesser logistics requirements and shorter launch times, making them more survivable than liquid propellant missiles. North Korea,s advances — in both its liquid and solid propellant programs — have come despite a self-imposed missile launch moratorium, that limited North Korea’s ability to verify new designs or modifications to its missile systems during the 1999-2006 timeframe.

North Korea ended the moratorium with its July 5, 2006 Scud, No Dong, and Taepo Dong-2 launches. Program Activities On April 5, 2009, North Korea — despite UN Security Council Resolution 1718, which requires the suspension of all activities related to its ballistic missile program — conducted the second launch of the TD-2. Although the April 5th TD-2 launch failed to place a satellite in orbit, the launch was much more successful than the first TD-2 launch in 2006, demonstrating that North Korea is making progress in developing technology that can directly contribute to the production of ICBMs. Subsequently, and despite the adoption on June 12, 2009 of UNSCR 1874, which reaffirmed the provisions of UNSCR 1718 related to North Korea,s ballistic missile activities, North Korea tested seven Scud SRBMs and No Dong MRBMs on July 4th.

The April 5th TD-2 launch also demonstrated that North Korea continues to pursue the development of longer-range missile systems and that long range missile development probably remains a priority. North Korea’s next goal may be to develop a mobile ICBM that would be capable of threatening targets around the world, without requiring the lengthy — and potentially vulnerable — launch preparation time required by the TD-2. Technology Supplier The DPRK continues to sell ballistic missile-related technology to countries in the Middle East, while seeking to re-engage with former customers in the region. North Korea is probably also pursuing new markets for its missiles, including in regions such as Southeast Asia and Africa.

North Korea offers a wide-range of ballistic missile services, almost certainly is willing to offer any missile design in its inventory for sale to customers interested in complete systems, and can design missiles to meet specific customer needs. For customers with established missile programs or otherwise lacking interest in complete systems, North Korea provides missile refurbishment and technical expertise, ground support equipment and launchers, and production technology. North Korea can also broker precision machine tools and other missile-related raw materials from third-parties for customers through its extensive procurement network. Iran Iran is one of North Korea’s key missile customers.

Since the late 1980s, the DPRK has exported complete Scud B and Scud C missiles to Iran, as well as their production technology. The Scud and other missile technology acquired from North Korea form the basis for the Iranian Shahab-3, which is based on North Korea’s No Dong. North Korea has probably provided Iran an MRBM variant, called the BM-25, of its Musudan IRBM.

This technology would provide Iran with more advanced missile technology than currently used in its Shahab-series of ballistic missiles and could form the basis for future Iranian missile and SLV designs. North Korea also provided assistance to Iran’s SLV program. On February 2nd, Iran successfully orbited the Omid satellite, using its Safir SLV, the first stage of which was based on the Shahab-3 (No Dong). Pyongyang’s assistance to Iran’s SLV program suggests that North Korea and Iran may also be cooperating on the development of long-range ballistic missiles. Syria Syria is another of North Korea’s key missile customers. North Korea has provided Syria with 500 km-range Scud C missiles and technology as well as technology for a 700 km-range Scud variant, referred to in Syria as the “Scud D.”

The missiles came initially in either partially or completely knocked-down kit form, but were produced in North Korea. Syria has since achieved a domestic production capability, probably with extensive assistance from Pyongyang. North Korea has also provided a range of other missile-related services to Syria, including production technology, ground support equipment, raw material, components, technical assistance, and know-how.

North Korea probably provided assistance to Syria’s development of a maneuvering reentry vehicle (MaRV) for its Scud ballistic missiles. Yemen In December 2002, Yemen received a shipment of Scud missiles, which Sanaa claimed to have bought from North Korea for defensive purposes and pledged would not be retransferred to any third party. North Korea probably resumed ballistic missile cooperation with Yemen in 2009.

Burma The mid-2009 voyage of the North Korean ship, Kang Nam 1, probably was associated with North Korea’s primary arms export entity — suggesting that the cargo was most likely weapons-related. The ship returned to North Korea prior to reaching its destination, which was most likely Burma.

The Kang Nam 1 probably was carrying ballistic missiles or conventional weapons. A November 2008 visit by a senior Burmese official to a North Korean ballistic missile production facility suggests that the two sides probably have been discussing a ballistic missile deal, and that the cargo may have been related to these discussions.

Foreign Assistance North Korea operates a vast network of embassy personnel, front companies, and commercial entities run by ethnic Koreans in other countries to obtain key technologies and materials needed to support both its own and its customers’ missile programs. Members of this network often do not reveal their affiliation with North Korea, or North Korea as the end-user of critical goods; they utilize entities in Europe, China, East Asia, and South Asia to establish reliable routes for the transfer of controlled items. Most foreign procurement by the North Korean missile program includes material North Korea finds too costly or too advanced to manufacture domestically, such as missile component testing equipment, heat-resistant materials for re-entry vehicles, heavy-duty vehicle chassis, missile tracking technologies, precision machine tools, specialty steels and aluminums, ball bearings, precision gyroscopes, solid-propellant precursor chemicals, and liquid-propellant precursors. Although important for its own program, North Korea also uses this network to broker missile-related raw materials for its missile export customers.

Conclusion North Korea will continue to develop missiles with increasing range, payload capacity, and sophistication. In support of these efforts, North Korea will continue to seek critically-needed components from foreign suppliers — most commonly China-based, given their proximity and access to technology that would be beneficial to North Korea,s missile program. In light of its past missile technology acquisition practices, we remain vigilant for any attempts by North Korea to acquire material or technology associated with missile systems other countries — including MTCR Partners — have retired. International pressure against North Korea and its customers have had a significant impact on North Korea,s missile sales.

However, despite such pressure, North Korea continues missile cooperation with its core clients and continues to offer MTCR Category I missile systems, their production technology, and missile maintenance and support services to all interested customers. END TEXT OF PAPER.

4. (U) Please slug any reporting on this or other MTCR issues for ISN/MTR.

A word version of this document will be posted at www.state.sgov.gov/demarche. CLINTON

UK Money-laundering $2.9 Billion Linked to Azerbaijan

May, 2017:

The largest bank in Azerbaijan has halted its foreign debt payments and will start restructuring talks with creditors after a currency crisis in the Caspian Sea nation drove the lender to the brink of collapse.

Under a restructuring plan published on Friday, the International Bank of Azerbaijan said its “designated financial indebtedness” was at $3.3 billion as of April 18. It missed a principal and interest payment on a $100 million subordinated loan on May 10, according to an emailed statement from the government-owned lender on Thursday. More here.

What is the Azerbaijani Laundromat?

A scheme to curry influence, pay lobbyists, apologists and European politicians and to launder cash. The $2.9bn (£2.2bn) operation ran between 2012 and 2014 – meaning that on average $3m was channelled out of Azerbaijan every day. The source of money isn’t always clear, but it comes from companies linked to Azerbaijan’s president, Ilham Aliyev, state ministries and the International Bank of Azerbaijan, the country’s largest bank, which recently filed for bankruptcy protection. The cash was transferred into four offshore-managed UK companies. From there, it was spent in various countries, including Germany, the UK, France, Turkey, Iran and Kazakhstan.

How was it done?

By clever use of the west’s financial system. Danske, Denmark’s largest bank, handled the payments via a small branch office in Estonia. It noticed nothing amiss. The organisers of the scheme exploited Britain’s weakly regulated company system. They registered four firms at Companies House in London. These were Hilux Services, Polux Management, Metastar Invest and LCM Alliance. The first two were incorporated in Glasgow, the third in Birmingham and the fourth in Hertfordshire. The beneficial owner of the firms is a secret. More here.

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UK Companies at the heart of $2.9 billion money-laundering circle

UK failing to end its complicity in global corruption

4th September 2017, London – A new investigation has shown UK registered companies to be at the centre of laundering $2.9 billion out of Azerbaijan, highlighting that the UK is failing to end its complicity in global corruption. These funds was used to pay-off politicians, purchase luxury goods and act as a slush fund for those close to the Azeri regime using money that appears to have been stolen from the International Bank of Azerbaijan, which is currently restructuring its debt because of funding problems.

The investigation found that four UK registered companies were at the centre of this scheme and essential to its success. These four companies formed a core part of over 16,000 transactions made by the ‘Azerbaijani laundromat’ between 2012 and 2014. Although registered in the UK, previous research by Transparency International UK found that these four companies were ultimately controlled in secretive offshore havens, where the real owners of companies are hidden from public view.

In recent years successive UK governments have made promises to close the loopholes that have left the UK, and its overseas territories, complicit in the laundering of corrupt money around the world. Over two years since the Government first outlined its intention to target corrupt money flowing through the UK, many of the promises have yet to be turned into action.

All four of these companies are either Scottish Limited Partnerships (SLPs) and Limited Liability Partnerships – forms of company that can be controlled by secretive companies based in offshore havens like the British Virgin Islands. Although new rules rushed in earlier this year require SLPs to report who they’re ultimately controlled by, and similar rules apply to LLPs, there are growing concerns that in practice these are not being enforced effectively. 

Duncan Hames, Director of Policy Transparency International UK, said:

“Knowing that UK registered companies were at the heart of a scheme that saw $2.9 billion stolen from Azerbaijan underlines just how damaging it is to be complicit in global corruption. These sums of money can be the difference between life and death for people around the world, and to know that they are instead being used to purchase luxury goods, line the pockets of corrupt politicians and improve the image of dictators, is particularly galling.”

“We are increasingly concerned that action on the promises made by successive governments to close the loopholes that make the UK attractive to money laundering, appears to have stalled. We have seen some regulatory change but it has gone from a core government mission to uncoordinated and piecemeal efforts.” 

“We’re calling on the UK Government to immediately enforce new laws to end the use of British companies as the getaway vehicle for corrupt individuals and organised criminal gangs. Much more than lip service is needed to fight global corruption. If a success is to be made of Brexit, the UK must uphold the highest standards of commerce and not end-up reducing itself to an offshore centre exposed to the risk of serving corrupt and repressive regimes from across the globe.” 

The UK Government is yet to deliver on its promise to introduce greater transparency around anonymous corporate ownership of luxury UK property, a key destination for laundered money, or produce a comprehensive anti-corruption strategy that sets out how it intends to end the UK’s role as a safe haven for corrupt wealth.

Notes:

The four UK companies at the heart of the Azerbaijani laundromat were Hilux Services LP, Polux Management LP, Metastar Invest LLP and LCM Alliance LLP. More details about the offshore companies controlling them are provided in the table below. Hundreds of businesses with similar secretive corporate structures are registered at the same addresses as these four companies.

 

UK Company Address Controlled by
Hilux Services LP Suite 1105 111 West George Street, Glasgow, G2 1QX Solberg Business Ltd (British Virgin Islands) and Astrocom AG (Seychelles)
Polux Management LP Suite 1098 111 West George Street, Glasgow, G2 1QX Solberg Business Ltd (British Virgin Islands) and Astrocom AG (Seychelles)
Metastar Invest LLP 175 Darkes Lane, Suite B, 2nd Floor, Potters Bar, Hertfordshire, EN6 1BW Advance Developments Limited (Belize) and Corporate Solutions Limited (Belize)
LCM Alliance LLP Cornwall Buildings 45-51 Newhall Street, Office 330, Birmingham, B3 3QR Astrocom AG (Seychelles) and Exponet GMBH (Seychelles)

 

Starfish Prime, a Response to North Korea?

The United States knows all too well about an EMP. With regard to North Korea, the Kim regime has acknowledged it was active in EMP pursuits. The U.S. has EMP weapons developed by Boeing.

So what is Starfish Prime?

On July 9, 1962 — 50 years ago today — the United States detonated a nuclear weapon high above the Pacific Ocean. Designated Starfish Prime, it was part of a dangerous series of high-altitude nuclear bomb tests at the height of the Cold War. Its immediate effects were felt for thousands of kilometers, but it would also have a far-reaching aftermath that still touches us today.

In 1958, the Soviet Union called for a ban on atmospheric tests of nuclear weapons, and went so far as to unilaterally stop such testing. Under external political pressure, the US acquiesced. However, in late 1961 political pressures internal to the USSR forced Khrushchev to break the moratorium, and the Soviets began testing once again. So, again under pressure, the US responded with tests of their own.

It was a scary time to live in.

The US, worried that a Soviet nuclear bomb detonated in space could damage or destroy US intercontinental missiles, set up a series of high-altitude weapons tests called Project Fishbowl (itself part of the larger Operation Dominic) to find out for themselves what happens when nuclear weapons are detonated in space. High-altitude tests had been done before, but they were hastily set up and the results inconclusive. Fishbowl was created to take a more rigorous scientific approach. Read more here.

The Wall Street Journal published an item offering insight regarding North Korea and the threat of an EMP and the United States is not prepared for such a weapon in either a defensive or offensive posture without some exceptional consequence to life.

As South Korea performed some live fire drills in response to the last nuclear test by North Korea that measured a 6.3 on the Richter Scale, at issue is the immediate line of  an estimated thousands of rockets pointed at South Korea. It would take a robust offensive first strike to remove this border threat in cadence with other strike operations into the North Korea tunnel network where most of the weaponry is located.

Finally, South Korea’s leader has taken a more aggressive posture, leaning towards a military operation and this could bring the closer to Japan which is a positive indication where activities to neutralize North Korea is tantamount.

Tensions sharply escalated Sunday as the communist regime conducted what it claims to have been a test of a hydrogen bomb mountable on an intercontinental ballistic missile (ICBM). The test was only the latest in a recent series of saber-rattling, including two ICBM tests in July.

In its report to the legislature’s defense committee, the defense ministry said that it, in consultation with Washington, will seek to deploy a nuclear-powered aircraft carrier, strategic bombers and other powerful assets to the peninsula as a response to the North’s nuclear experiment.

It also unveiled its plan to stage unilateral live-fire drills involving Taurus air-to-surface guided missiles mounted on its F-15K fighter jets. The missile, with a range of 500 kilometers, is capable of launching precision strikes on the North’s key nuclear and missile facilities.

In his assessment of the sixth nuke test, Song said that the North is presumed to have reduced the weight of a nuclear warhead to below 500 kilograms. More here.

Adding more sanctions on China or those doing business with North Korea does not stop or deter North Korea at all. China knows precisely what North Korea is doing and has not moved to stop any of these missile or nuclear activity.

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North Korea’s nuclear test occurred in Punggye-ri, the same site where a nuclear test occurred in January 2016, about 50 miles away from the border with China. Tremors were felt in the Chinese border city of Yanji, home to about 400,000 people, Chinese media reported.  The latest test occurred as China hosted the leaders of the BRICS (Brazil, Russia, India, China and South Africa) countries for their annual summit. China “strongly condemned” North Korea’s provocation and a draft communique from the BRICS summit quoted in Chinese state media “strongly deplored” North Korea’s nuclear test but called for a peaceful solution to the crisis. More here.

All the alleged professional continue to say the United States, Japan and South Korea have no good options with regard to North Korea, and there may be some truth to that given the descriptions as defined here.

What is left out of all conversations is the cyber abilities of the United States, knocking out North Korea’s space segments on existing satellites owned by China, Iran or Russia and lastly once again dusting off the files of Starfish Prime as described below:

Launched via a Thor rocket and carrying a W49 thermonuclear warhead (manufactured by Los Alamos Scientific Laboratory) and a Mk. 2 reentry vehicle, the explosion took place 250 miles (400 km) above a point 19 miles (31 km) southwest of Johnston Island in the Pacific Ocean. It was one of five tests conducted by the USA in outer space as defined by the FAI. It produced a yield equivalent to 1.4 megatons of TNT.

The Starfish test was one of five high altitude tests grouped together as Operation Fishbowl within the larger Operation Dominic, a series of tests in 1962 begun in response to the Soviet announcement on August 30, 1961 that they would end a three-year moratorium on testing.[2]

In 1958 the United States had completed six high-altitude nuclear tests, but the high-altitude tests of that year produced many unexpected results and raised many new questions. According to the U.S. Government Project Officer’s Interim Report on the Starfish Prime project:

“Previous high-altitude nuclear tests: YUCCA, TEAK, and ORANGE, plus the three ARGUS shots were poorly instrumented and hastily executed. Despite thorough studies of the meager data, present models of these bursts are sketchy and tentative. These models are too uncertain to permit extrapolation to other altitudes and yields with any confidence. Thus there is a strong need, not only for better instrumentation, but for further tests covering a range of altitudes and yields.”[3]   

More details here.