Keeping Islamic State from Money Exchanges

Denying The Islamic State Access To Money-Exchange Houses

Energy: Regional regulators must take steps, as the Iraqi Central Bank has done, to wall off their financial systems from unlicensed or loosely regulated money remitters vulnerable to exploitation by the Islamic State.

This week, the entity known as the Foreign Ministers of the Small Group of the Global Coalition to Counter ISIL/Da’esh met in Rome to assess the coalition’s work and accelerate its efforts to degrade and ultimately defeat the Islamic State. In a statement, the ministers stressed that they “are determined to keep ISIL/Da’esh cut off from the international financial system [and] to disrupt its economic and financial infrastructure.” Making good on this pledge requires tackling the group’s access not only to banks but also to remittance providers such as exchange houses, which play an important role in the local economies and are more difficult to regulate. In December, the Central Bank of Iraq took action against nearly 150 Iraqi money-exchange companies — most, but not all, in Islamic State-controlled areas — showing how U.S. and regional regulators, along with other coalition partners, can join forces to isolate the group from the international financial system.

BACKGROUND

Given the Islamic State’s 2014 budget of roughly $2 billion, U.S. Department of Treasury officials have called the group’s ability to draw revenues from its own territory “unprecedented.” The sources of funds include between $500 million and $1 billion seized from bank vaults as the Islamic State gained territory (a onetime take), hundreds of millions a year from taxation and extortion, and tens of millions a month from oil sales, among other sources. While the Islamic State derives most of its income from the territory it controls, denying the Islamic State the ability to use bank branches and exchange houses in its territory to make and receive international transfers — to access foreign currency, procure goods, and finance foreign fighters and potentially foreign affiliates — is a critical part of isolating the group.

Military strikes have played an increasingly important role in degrading the Islamic State’s ability to derive income from resources in the territory it controls. Furthermore, given that the Islamic State derives most of its income from natural resource extraction and extortion directed at commercial activity, territorial losses will have a direct impact on the organization’s bottom line. Recently, airstrikes have also targeted Islamic State cash collection and distribution points, depriving the group of millions of dollars stored at these “cash depots,” according to military estimates.

Previously, the Iraqi government and other regional regulators have taken steps to cut off bank branches in Islamic State territory from participating in the broader financial system. The United States and other countries, together with Iraqi authorities, headquarters of international banks, and others within the international financial community, have partnered to counter the Islamic State’s backdoor banking through these bank branches, as well as those in Syria. International banks now look closely for indications of Islamic State financing and file suspicious activity reports that, U.S. authorities say, have provided “valuable insight into financial activity in areas where ISIL operates.” The Central Bank of Iraq instructed financial institutions incorporated in Iraq to prevent wire transfers to and from banks located in areas under Islamic State control, and international banks with regional branches in Islamic State-controlled territories have relocated staff away from areas around the group’s territories.

Another area of effort is limiting new funds entering Islamic State territory through countersmuggling initiatives and by ceasing to pay Iraqi government salaries, which had been taxed directly and indirectly by the Islamic State, in areas under the group’s control. As pressure mounts on the Islamic State’s backdoor banking, the group has become more reliant on money-exchange houses to send and receive funds. More explanation and details here.

Meanwhile, there is finally those who are declaring Russia is aiding Islamic State:

US says Russian campaign in Syria helping the Islamic State

WASHINGTON (AP) — The U.S. says Russia’s counterterrorism campaign in Syria is actually helping the Islamic State.

Brett McGurk, the Obama administration’s point-man for defeating the group, says a Russian-backed offensive in northern Syria is targeting rebel fighters who were battling the Islamic State and who now have to face the Syrian military.

McGurk tells the House Foreign Affairs Committee, “What Russia’s doing is directly enabling ISIL.”

He says Russia is strengthening the Syria’s government, worsening a humanitarian crisis and fueling extremism. McGurk, who will meet Russian and other diplomats at a conference on Syria later this week, called the developments “totally unacceptable.”

Louis Farrakhan Heads to Iran, Pro Regime Rally

Farrakhan to Speak in Iran at Rally Celebrating Islamic Revolution

FreeBeacon: Louis Farrakhan, the longtime Nation of Islam leader most well known for his racist and anti-Semitic rhetoric, accepted an invitation to speak at an upcoming rally in Iran following an address by the Islamic Republic’s president, Hassan Rouhani, according to Persian language reports.

Farrakhan, as well as other leaders of the global Islamic movement, will travel to Iran to participate in festivities surrounding the 1979 revolution, in which Iranian hardliners deposed the former government, according to Iran’s state-controlled Fars News Agency.

One Iranian reporter, Sobhan Hassanvand, announced the news on Twitter, describing it as “BIG.”

BIG: Nation of Islam leader to visit Iran, speak at 22 Bahman rally marking Islamic Revolution, meet

 

Hassanvand inaccurately claimed that Farrakhan would meet with Rouhani. In a correction, he clarified that Farrakhan would deliver a speech directly after the Iranian president. “Rouhani, Farrakhan might meet,” he tweeted.

Iran dailies see huge rally to mark anniversary of 1979 Revolution Thursday NOI’s to address rally

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Farrakhan has long been seen as a pariah in the Jewish community due to his repeated comments attacking Jews for controlling the media and Hollywood. He also has claimed that Jewish people created the slave trade and that Israelis has advance knowledge of the 9/11 terror attacks.

Iran’s government also is known for promoting anti-Semitic conspiracy theories and routinely threatens to slaughter Jews and destroy the state of Israel.

***

FNC: Both Farrahkan and Iranian president Hassan Rouhani will speak, Iran’s Tasnim News Agency reports. The homegrown drone will go on display along with a ballistic missile and a satellite carrier, organizer Asghar Abkhezr told the news agency.

Farrakhan and Rouhani met for dinner as recently as 2013, in New York City.

Critics have long condemned Farrakhan, 82, for his inflammatory statements about Jews, Catholics, gays and Asians.

Speaking in 2010, he claimed “white right” would conspire to keep President Obama to one term in office. Farrakhan also said the president was manipulated into disavowing him.

Farrakhan also recently described Judaism as a “deceptive lie” and “theological error” meant to expand Jewish control of the U.S. government and economy, according to the Anti-Defamation League.

*** In 2013:

FNC: The Iranian delegation may be pariahs inside the UN building, but they’ve found at least one friend during their visit to New York – Nation of Islam leader Louis Farrakhan.

Farrakhan and his entourage attended a dinner party hosted by Iranian President Hassan Rouhani on Tuesday night. Rouhani’s dinner party was held on the second floor of the One UN Hotel, where the Iranian delegation is staying, and at the same time as President Obama’s party at the Waldorf Astoria just blocks away.

The private dinner party was held just hours after Rouhani’s speech to the general assembly.

Farrakhan, the fiery 80-year-old who has previously sidled up to the likes of Libyan strongman Muammar Qaddafi, and his massive entourage and private security detail were seen departing the hotel around 10 p.m. Tuesday. Pedestrian traffic was stopped while the minister and his group piled into various cars with lights and sirens and New Jersey license plates.

Supreme Court Got it Right vs. Obama

This Supreme Court decision could place Obama’s Paris Climate Change Agreement in real jeopardy, and it should.

Supreme Court threatens Obama’s climate agenda

Politico: President Barack Obama will leave office next January with the fate of one of his biggest environmental achievements hanging in the balance.

The Supreme Court on Tuesday took the unusual step of blocking the Environmental Protection Agency’s landmark carbon rule for power plants, throwing into doubt whether Obama’s signature climate change initiative will survive a legal battle before the high court.

The decision to grant the stay is no guarantee the justices ultimately will strike down the rule, but the development is a bad sign for EPA’s chances, and the agency’s foes quickly cheered the news, with West Virginia Attorney General Patrick Morrisey calling it a “great victory.”

“We are thrilled that the Supreme Court realized the rule’s immediate impact and froze its implementation, protecting workers and saving countless dollars as our fight against its legality continues,” he said in a statement.

The White House vowed that the rule, known as the Clean Power Plan, will survive, saying it “is based on a strong legal and technical foundation.”

“We remain confident that we will prevail on the merits,” press secretary Josh Earnest said in a statement late Tuesday night, adding that “the administration will continue to take aggressive steps to make forward progress to reduce carbon emissions.”

“We’re disappointed the rule has been stayed, but you can’t stay climate change and you can’t stay climate action,” EPA spokeswoman Melissa Harrison said in a separate statement. “Millions of people are demanding we confront the risks posed by climate change. And we will do just that.”

The Supreme Court issued its short order putting the rule on hold at the request of states and companies that had asked the high court to intercede early — even though a lower court had already declined to do so.

The ruling was on a 5-4 vote, with Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan — the court’s liberal wing — lining up against staying the rule.

Environmentalists quickly downplayed the stay, noting that it did not come to any conclusions about the legality of the rule itself.

“The Clean Power Plan has a firm anchor in our nation’s clean air laws and a strong scientific record, and we look forward to presenting our case on the merits in the courts,” said Vickie Patton, the Environmental Defense Fund’s general counsel.

The justices did not explain their decision, but the order indicates they believe the rule threatens imminent and irreparable harm. The states and groups challenging the rule noted that the Supreme Court last year identified a major flaw with an EPA regulation limiting mercury emissions from power plants only after that rule had started to take effect, and they urged the justices not to allow something similar to happen with the carbon rule.

The D.C. Circuit Court of Appeals has put the case on a fast track, with oral arguments scheduled for June 2. That indicates a ruling from that court in late summer or fall, and tees up a Supreme Court appeal for as early as 2017.

“The stay is a signal the Supreme Court has serious concerns with the Power Plan,” said Mike Duncan, head of the coal-supported advocacy group American Coalition for Clean Coal Electricity.

Coal-heavy utilities, mining companies and 27 states are among those suing to reverse the rule, which opponents say exceeds EPA’s authority under the Clean Air Act.

The stay may only delay implementation of the rule by two or three years if EPA eventually triumphs at the Supreme Court. But it will keep the rule on hold into the next administration, increasing the chances that it could be undone if a Republican is elected to the White House this year.

At the very least, some efforts to replace power plants’ coal with cleaner-burning natural gas and carbon-free wind and solar power are likely to be delayed. And the stay could foreshadow an eventual court decision tossing out the rule altogether, which may severely limit how far the government can go in curbing greenhouse gas emissions.

This is not the first big Obama environmental rule to be stayed during litigation. In late 2011, just two days before it was to take effect, the D.C. Circuit put a stay on EPA’s Cross-State Air Pollution Rule, which targets pollutants like nitrogen oxide and sulfur dioxide that float downwind across state lines.

The circuit later struck down the rule — but the Obama administration appealed to the Supreme Court and ultimately won the case 6-2, and the rule took effect three years after its original start date.

With the rule’s legal defense stretching into the next administration, the possibility of a Republican president casts a thick fog over the regulation’s future. All of the GOP candidates have repudiated the rule as a threat to the economy and vowed to overturn it, and a Republican president would have several avenues for kneecapping the Clean Power Plan, including simply accepting a possible circuit decision to strike down the rule without filing an appeal — a more likely outcome after Tuesday’s stay.

Environmental groups have quietly prepared for that possibility by preserving their own right to defend the rule in court.

A combination of Supreme Court rulings and scientific findings is likely to eventually compel EPA to regulate power plants’ greenhouse gas emissions in some manner, though the extent of such regulations is up in the air.

In the meantime, EPA’s foes will double down on their efforts to get the Clean Power Plan tossed out for good. Critics argue that the Clean Air Act does not allow EPA to require tools such as renewable energy mandates to control pollution, and they say the agency’s authority is limited to cutting emissions from coal plants themselves.

EPA counters that the law allows it to choose the best path forward, and that the agency should receive deference to interpret conflicting statutes that were passed by Congress and signed into law.

Coal producer Peabody Energy, represented by liberal law icon Laurence Tribe, has also raised several constitutional concerns over the Clean Power Plan, though it remains unclear whether the courts will be receptive.

 

 

Clapper Breaks with Obama’s Threat Crisis Plank

North Korea has restarted plutonium reactor: US

North Korea has restarted a plutonium reactor that could fuel a nuclear bomb and is seeking missile technology that could threaten the United States, Washington’s top spy said on Tuesday.

Intel Chief Breaks From Obama Narrative On Iran Deal

DailyCaller: The head of U.S. intelligence believes that Iran’s recent actions speak loudly to its intentions, particularly given the country’s recent provocations since the Iran nuclear deal came into effect.

Testifying to the Senate Committee on Armed Services Tuesday, director of national intelligence James Clapper gave a very somber description of what he sees as Iran’s intentions toward the U.S. now that last summer’s nuclear deal has commenced. In particular, his statements offered little assurance that Iran is acting as an honest actor with the U.S. and the other states involved in last year’s negotiations, or that the nuclear deal will stop Iran from obtaining a nuclear weapon.

“Iran probably views JCPOA [Iran deal] as a means to remove sanctions while preserving nuclear capabilities, as well as the option to eventually expand its nuclear infrastructure,” said Clapper, who also noted that, so far, he sees no evidence that Iran is violating the nuclear deal.

Clapper’s statements stand in stark contrast with those made by President Barack Obama, who lauded the nuclear accord last summer, claiming it would not only stop all of Iran’s possible pathways to a nuclear weapon, but that “under its terms, Iran is never allowed to build a nuclear weapon.” More here.

***

Clapper went into all specifics on the threat matrix both at home and globally. He did not leave anything behind, from cyber wars, space wars, weapons systems, human trafficking, terror organizations, economic instability, migrants, disinformation and drug cartels.

 STATEMENT FOR THE RECORD WORLDWIDE THREAT ASSESSMENT of the US INTELLIGENCE COMMUNITY
February 9, 2016
INTRODUCTION
Chairman McCain, Vice Chairman Reed, Members of the Committee, thank you for the invitation to offer
the United States Intelligence Community’s 2016 assessment of threats to US national security. My statement reflects the collective insights of the Intelligence Community’s extraordinary men and women, whom I am privileged and honored to lead. We in the Intelligence Community are committed every day to provide the nuanced, multidisciplinary intelligence that policymakers, warfighters, and domestic law enforcement personnel need to protect American lives and America’s interests anywhere in the world.
 The order of the topics presented in this statement does not necessarily indicate the relative importance or magnitude of the threat in the view of the Intelligence Community. Information available as of February 3, 2016 was used in the preparation of this assessment.
 
TABLE OF CONTENTS
 
GLOBAL THREATS Cyber and Technology Terrorism Weapons of Mass Destruction and Proliferation Space and Counterspace
 
Counterintelligence Transnational Organized Crime
 
Economics and Natural Resources Human Security
 
REGIONAL THREATS East Asia
China Southeast Asia North Korea
Russia and Eurasia
Russia Ukraine, Belarus, and Moldova The Caucasus and Central Asia
Europe
 
Key Partners The Balkans Turkey Middle East and North Africa 
Iraq Syria Libya  Yemen Iran  Lebanon Egypt Tunisia
 
South Asia
Afghanistan Bangladesh Pakistan and India
Sub-Saharan Africa  Central Africa Somalia South Sudan Sudan Nigeria
 
Latin America and Caribbean
 
Central America Cuba Venezuela Brazil
 

 

 

 

 

McCaul’s Homeland Terror Threat Snapshot

McCaul Releases February Terror Threat Snapshot

WASHINGTON, D.C. – The February Terror Threat Snapshot was released today by Homeland Security Committee (HSC) Chairman Michael McCaul. The “snapshot” is a monthly Committee assessment of the growing threat America, the West, and the world face from ISIS and other Islamist terrorists.

Chairman McCaul: “The Islamist terror threat remains alarmingly high as recent arrests and terror plots demonstrate. ISIS recruits wage war in our communities, while thousands of deadly fighters trained in Syria stream back into the West – some of them infiltrating massive refugee flows. ISIS continues its global expansion on the shores of the Mediterranean Sea and the still-dangerous al Qaeda in the Arabian Peninsula seizes greater territory in Yemen. Meanwhile, Vladimir Putin and the revitalized Iran-Assad-Hezbollah terror axis are further destabilizing the Syrian crisis in the absence of U.S. leadership. This year is on track to be as dangerous as – if not worse than – 2015 for the American homeland and our national security.”

Key takeaways in this month’s Terror Threat Snapshot include:

  • The Iranian regime gained access to $100 billion in cash from the disastrous nuclear deal and is poised for further economic relief that will fuel its global network of terror.
  • An increasing number of battle-hardened fighters from Europe are returning from jihadist training grounds. Nearly 2,000 Europeans – among an estimated 6,600 Western fighters who have traveled to Syria and Iraq – have snuck back into Europe. A French counterterrorism official recently warned, “We are moving towards a European 9/11: simultaneous attacks on the same day in several countries…We know the terrorists are working on this.”
  • Islamist terrorists are exploiting global refugee flows to infiltrate and target the West. Germany’s domestic intelligence chief recently said terrorists “have slipped in camouflaged or disguised as refugees. This is a fact that the security agencies are facing.” A suspected ISIS terror plotter arrested in Germany this week snuck into Europe posing as a refugee. The European Union also recently assessed there is a “real and imminent danger” of Syrian refugees inside Europe being radicalized and recruited by Islamist extremists.
  • ISIS and al Qaeda are expanding their sanctuaries from North Africa to South Asia. ISIS is reinforcing its foothold in Libya, where it has amassed as many as 6,500 fighters and controls coastal territory on the Mediterranean Sea. Al Qaeda is making further gains in Yemen and its key ally in Afghanistan controls more territory than it has at any point since 2001.
  • The Obama Administration has surged the release of terrorists from Guantanamo Bay despite alarming rates of recidivism. The intelligence community has assessed that 30 percent of Guantanamo detainees released are either known to have or suspected of having rejoined the fight. The potential transfer of detainees to the United States, prohibited under law, would also pose a threat to the American people.
  • The United States faces the highest Islamist terror threat environment since 9/11. ISIS is waging war here in the homeland, where there have been 21 ISIS-linked plots to launch attacks. Law enforcement authorities have arrested 81 ISIS-linked suspects, including six thus far in 2016.

TerrorThreatSnapshot_February_Social Media

The complete February Terror Threat Snapshot is available, here.

View the Committee’s interactive Terror Threat Snapshot map, here.