WH/Jack Lew Helping Iran Launder Money

During the Obama summit, did Obama violate government secrets?

WASHINGTON, April 1 (UPI) For the first time in more than a decade, the United States has made public its inventory of nuclear uranium components, President Barack Obama said Friday. Much more here.

                                                         

 

The White House Cedes More, Even As Iran’s Economy Recovers

Mark Dubowitz, Annie Fixler
01 April 2016 – FDD Policy Brief

While U.S. and European diplomats celebrated the conclusion of the Joint Comprehensive Plan of Action last summer, Iran’s Supreme Leader Ali Khamenei and his government saw that deal as not the end of the negotiations but the beginning. This has become increasingly clear in their criticism of sanctions relief and demand for more.

The Obama administration appears ready to comply. Reportsconfirm that the administration is preparing a general license authorizing the use of the U.S. dollar in Iran-related transactions. This is intended to encourage large European and other banks to return to business with Iran and help alleviate its concerns about the legal risks associated with engaging with a country still under U.S. sanctions for money laundering, terrorism and missileproliferation, and human rights abuses.

The license would contradict repeatedadministrationpromises to Congress, and goes beyond any commitments made to Iran under the JCPOA. It also contradicts the evidence: Tehran has already received substantial sanctions relief, a major “stimulus package.”

In 2012 and 2013, Iran’s economy was crashing. It had been hit with an asymmetric shock from sanctions, including those targeting its central bank, oil exports, and access to the SWIFT financial messaging system. The economy shrank by six percent in the 2012-13 fiscal year, and bottomed out the following year, dropping another two percent. Accessible foreign exchange reserves were estimated to be down to only $20 billion.

This changed during the nuclear negotiations. During the 18-month period starting in late 2013, interim sanctions relief and the lack of new shocks enabled Iran to movefrom a severe recession to a modestrecovery. During that time, the Islamic Republic received $11.9 billion through the release of restricted assets, while sanctions on major sectors of its economy were suspended. This facilitated strong imports that supported domestic investment, especially from China. The Obama administration also de-escalated the sanctions pressure by blocking new congressional legislation. Jointly, these forces rescued the Iranian economy and its leaders, including the Revolutionary Guard, from an imminent and severe balance of payments crisis. In the 2014-15 fiscal year, the Iranian economy rebounded and grew at a rate of 3 to 4 percent.

Now, under the JCPOA, Iran has received access to an additional $100 billion in previously frozen foreign assets, significantly boosting its accessible foreign exchange reserves. Sanctions were also lifted on Iran’s crude oil exports and upstream energy investment, and on key sectors of the economy and hundreds of Iranian banks, companies, individuals, and government entities. The additional access of Iranian institutions to global financial payments systems has reduced transaction costs and the need for intermediaries.

In the current fiscal year – with declining oil prices and a tight monetary policy to rein in inflation – Iran’s economy grew only slightly, and may have even experienced a modest contraction. But in the coming fiscal year, its economy is projected to grow at a rate of 3 to 6 percent, according to estimates from the International Monetary Fund, World Bank, and private sector analysts. Assuming that Iran continues to make modest economic reforms to attract investment, the country’s economic growth is projected to stabilize around 4 to 4.5 percent annually over the next five years.

The future success of Iran’s economy depends on privatization, encouraging competition, addressing corruption, recapitalizing banks, and strengthening the rule of law. If Tehran wants to encourage foreign investment and alleviate international banks’ concerns, it also needs to end its support for terrorism, missile development, and destabilizing regional activities, and to reduce the economic power of the Revolutionary Guard Corps and the supreme leader’s business empire. All of these increase the risks of investing in the Islamic Republic, regardless of what deal sweeteners the White House provides.

Meanwhile, there is Russia who did NOT attend the Obama Nuclear Security Summit, but Russia is quite busy.

FreeBeacon: Russia is doubling the number of its strategic nuclear warheads on new missiles by deploying multiple reentry vehicles that have put Moscow over the limit set by the New START arms treaty, according to Pentagon officials.

A recent intelligence assessment of the Russian strategic warhead buildup shows that the increase is the result of the addition of multiple, independently targetable reentry vehicles, or MIRVs, on recently deployed road-mobile SS-27 and submarine-launched SS-N-32 missiles, said officials familiar with reports of the buildup.

“The Russians are doubling their warhead output,” said one official. “They will be exceeding the New START [arms treaty] levels because of MIRVing these new systems.”

The 2010 treaty requires the United States and Russia to reduce deployed warheads to 1,550 warheads by February 2018.

The United States has cut its warhead stockpiles significantly in recent years. Moscow, however, has increased its numbers of deployed warheads and new weapons.

The State Department revealed in January that Russia currently has exceeded the New START warhead limit by 98 warheads, deploying a total number of 1,648 warheads. The U.S. level currently is below the treaty level at 1,538 warheads.

Officials said that in addition to adding warheads to the new missiles, Russian officials have sought to prevent U.S. weapons inspectors from checking warheads as part of the 2010 treaty.

The State Department, however, said it can inspect the new MIRVed missiles.

Disclosure of the doubling of Moscow’s warhead force comes as world leaders gather in Washington this week to discus nuclear security—but without Russian President Vladimir Putin, who skipped the conclave in an apparent snub of the United States.

The Nuclear Security Summit is the latest meeting of world leaders seeking to pursue President Obama’s 2009 declaration of a world without nuclear arms.

Russia, however, is embarked on a major strategic nuclear forces build-up under Putin. Moscow is building new road-mobile, rail-mobile, and silo-based intercontinental-range missiles, along with new submarines equipped with modernized missiles. A new long-range bomber is also being built.

SS-N 30

SS-N 30

“Russia’s modernization program and their nuclear deterrent force is of concern,” Adm. Cecil Haney, commander of the U.S. Strategic Command, which is in charge of nuclear forces, told Congress March 10.

“When you look at what they’ve been modernizing, it didn’t just start,” Haney said. “They’ve been doing this quite frankly for some time with a lot of crescendo of activity over the last decade and a half.”

By contrast, the Pentagon is scrambling to find funds to pay for modernizing aging U.S. nuclear forces after seven years of sharp defense spending cuts under Obama.

Earlier this month, Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, told Congress that Russia continues to pose the greatest threat to the United States.

“The one that has the greatest capability and poses the greatest threat to the United States is Russia because of its capabilities—its nuclear capability, its cyber capability, and clearly because of some of the things we have seen in its leadership behavior over the last couple of years,” Dunford said.

In addition to a large-scale nuclear buildup, Russia has upgraded its nuclear doctrine and its leaders and officials have issued numerous threats to use nuclear arms against the United States in recent months, compounding fears of a renewed Russian threat.

Blake Narendra, spokesman for the State Department’s arms control, verification, and compliance bureau, said the Russian warhead build-up is the result of normal fluctuations due to modernization prior to the compliance deadline.

“The Treaty has no interim limits,” Narendra told the Free Beacon. “We fully expect Russia to meet the New START treaty central limits in accordance with the stipulated timeline of February 2018. The treaty provides that by that date both sides must have no more than 700 deployed treaty-limited delivery vehicles and 1,550 deployed warheads.”

Both the United States and Russia continue to implement the treaty in “a business-like manner,” he added.

Mark Schneider, a former Pentagon official involved in strategic nuclear forces, however, said he has warned for years that Russia is not reducing its nuclear forces under the treaty.

Since the New START arms accord, Moscow has eliminated small numbers of older SS-25 road-mobile missiles. But the missiles were replaced with new multiple-warhead SS-27s.

SS-27 Mod 2

SS-27 Mod 2

“The Russians have not claimed to have made any reductions for five years,” Schneider said

Additionally, Russian officials deceptively sought to make it appear their nuclear forces have been reduced during a recent nuclear review conference.

“If they could have claimed to have made any reductions under New START counting rules they would have done it there,” Schneider said.

The Obama administration also has been deceptive about the benefits of New START.

“The administration public affairs talking points on New START reductions border on outright lies,” Schneider said.

“The only reductions that have been made since New START entry into force have been by the United States,” he said. “Instead, Russia has moved from below the New START limits to above the New START limits in deployed warheads and deployed delivery vehicles.”

Deployment of new multiple-warhead SS-27s and SS-N-32s are pushing up the Russian warhead numbers. Published Russian reports have stated the missiles will be armed with 10 warheads each.

Former Defense Secretary William Perry said Thursday that New START was “very helpful” in promoting strategic stability but that recent trends in nuclear weapons are “very, very bad.”

“When President Obama made his speech in Prague, I thought we were really set for major progress in this field [disarmament],” Perry said in remarks at the Atlantic Council.

However, Russian “hostility” to the United States ended the progress. “Everything came to a grinding halt and we’re moving in reverse,” Perry said.

Other nuclear powers that are expanding their arsenals include China and Pakistan, Perry said.

Perry urged further engagement with Russia on nuclear weapons. “We do have a common interest in preventing a nuclear catastrophe,” he said.

Perry is advocating that the United States unilaterally eliminate all its land-based missiles and rely instead on nuclear missile submarines and bombers for deterrence.

However, he said his advocacy of the policy “may be pursuing a mission impossible.”

“I highly doubt the Russians would follow suit” by eliminating their land-based missiles, the former secretary said.

Additionally, Moscow is building a new heavy ICBM called Sarmat, code-named SS-X-30 by the Pentagon, that will be equipped with between 10 and 15 warheads per missile. And a new rail-based ICBM is being developed that will also carry multiple warheads.

Another long-range missile, called the SS-X-31, is under development and will carry up to 12 warheads.

Schneider, the former Pentagon official, said senior Russian arms officials have been quoted in press reports discussing Moscow’s withdrawal from the New START arms accord. If that takes place, Russia will have had six and a half years to prepare to violate the treaty limits, at the same time the United States will have reduced its forces to treaty limits.

“Can they comply with New START? Yes. They can download their missile warheads and do a small number to delivery systems reductions,” Schneider said. “Will they? I doubt it. If they don’t start to do something very soon they are likely to pull the plug on the treaty. I don’t see them uploading the way they have, only to download in the next two years.”

The White House said Moscow’s failure to take part in the nuclear summit was a sign of self-isolation based on the West’s sanctions aimed at punishing Russia for the military takeover of Ukraine’s Crimea.

A Russian official said the snub by Putin was directed at Obama.

“This summit is particularly important for the USA and for Obama—this is probably why Moscow has decided to go for this gesture and show its outrage with the West’s policy in this manner,” Alexei Arbatov, director of the Center for International Security at the Russian Academy of Sciences, told the business newspaper Vedomosti.

A Russian Foreign Ministry official, Mikhail Ulyanov, told RIA Novosti that the summit was not needed.

“There is no need for it, to be honest,” he said, adding that nuclear security talks should be the work of nuclear physicists, intelligence services, and engineers.

“The political agenda of the summits has long been exhausted,” Ulyanov said.

 

Cyber Intrusions, National Security Threat to Visa System

Primer: Listing a few demonstrating how vulnerable all segments of government, personal databases and corporations have forced lower standards of national security protections. Now with the threat to the State Department U.S. Visa system, terrorists and spies may exploit software security gaps. Anyone fixing this anywhere?

Cyber attack on Office of Personnel Management

Cyber attack of Obamacare

Cyber attack on hospital systems

Cyber attack on law firms

EXCLUSIVE: Security Gaps Found in Massive Visa Database

ABCNews: Cyber-defense experts found security gaps in a State Department system that could have allowed hackers to doctor visa applications or pilfer sensitive data from the half-billion records on file, according to several sources familiar with the matter –- though defenders of the agency downplayed the threat and said the vulnerabilities would be difficult to exploit.

Briefed to high-level officials across government, the discovery that visa-related records were potentially vulnerable to illicit changes sparked concern because foreign nations are relentlessly looking for ways to plant spies inside the United States, and terrorist groups like ISIS have expressed their desire to exploit the U.S. visa system, sources added.

“We are, and have been, working continuously … to detect and close any possible vulnerability,” State Department spokesman John Kirby said in a statement to ABC News.

After commissioning an internal review of its cyber-defenses several months ago, the State Department learned its Consular Consolidated Database –- the government’s so-called “backbone” for vetting travelers to and from the United States –- was at risk of being compromised, though no breach had been detected, according to sources in the State Department, on Capitol Hill and elsewhere.

As one of the world’s largest biometric databases –- covering almost anyone who has applied for a U.S. passport or visa in the past two decades -– the “CCD” holds such personal information as applicants’ photographs, fingerprints, Social Security or other identification numbers and even children’s schools.

Those records could be a treasure trove for criminals looking to steal victims’ identities or access private accounts. But “more dire” and “grave,” according to several sources, was the prospect of adversaries potentially altering records that help determine whether a visa or passport application is approved.

“Every visa decision we make is a national security decision,” a top State Department official, Michele Thoren Bond, told a recent House panel.

Last year alone, the State Department received -– and denied –- visa applications from more than 2,200 people with a “suspected connection to terrorism,” a senior Homeland Security Investigations official, Lev Kubiak, told lawmakers last month.

One official associated with State Department efforts to address the vulnerabilities said a “coordinated mitigation plan” has already “remediated” the visa-related gaps, and further steps continue with “appropriate [speed] and precision.”

“[We] view this issue in the lowest threat category,” the official said, noting that any online system suffers from vulnerabilities.

But speaking on the condition of anonymity, some government sources with insight into the matter were skeptical that CCD’s security gaps have actually been resolved.

“Vulnerabilities have not all been fixed,” and “there is no defined timeline for closing [them] out,” according to a congressional source informed of the matter.

“I know the vulnerabilities discovered deserve a pretty darn quick [remedy],” but it took senior State Department officials months to start addressing the key issues, warned another concerned government source.

Despite repeated requests for official responses by ABC News, Kirby and others were unwilling to say whether the vulnerabilities have been resolved or offer any further information about where efforts to patch them now stand.

PHOTO: U.S. Customs and Border Protection test new biometric technologies with face and iris cameras at the Otay Mesa border pedestrian crossing in San Diego, Calif. on Dec. 10, 2015.Richard Eaton/Demotix/Corbis
U.S. Customs and Border Protection test new biometric technologies with face and iris cameras at the Otay Mesa border pedestrian crossing in San Diego, Calif. on Dec. 10, 2015.more +

Nevertheless, many State Department officials questioned whether terrorists or other adversaries would have the capabilities to access and successfully exploit CCD data — even if the security gaps were still open.

CCD allows authorized users to submit notes and recommendations directly into applicants’ files. But to alter visa applications or other visa-related information, hackers would have to obtain “the right level of permissions” within the system -– no easy task, according to State Department officials.

There is also continuous oversight of the database and a series of other “fail-safes” built into the process, including rigorous in-person interviews and additional background checks, the officials said.

Kirby, the spokesman, described any recent security-related findings as a product of his department’s “routine monitoring and testing of systems” to “identify and remediate vulnerabilities before they can be exploited.”

PHOTO: The U.S. Department of State non-immigrant visa application website is seen in a screen grab made on March 30, 2016.ceac.state.gov
The U.S. Department of State non-immigrant visa application website is seen in a screen grab made on March 30, 2016.

State Department documents describe CCD as an “unclassified but sensitive system.” Connected to other federal agencies like the FBI, Department of Homeland Security and Defense Department, the database contains more than 290 million passport-related records, 184 million visa records and 25 million records on U.S. citizens overseas.

Without getting into specifics, sources said the vulnerabilities identified several months ago stem from aging “legacy” computer systems that comprise CCD.

“Because of the CCD’s importance to national security, ensuring its data integrity, availability, and confidentiality is vital,” the State Department’s inspector general warned in 2011.

The database’s software and infrastructure will be overhauled in the years ahead, according to the State Department.

Internet Provider Fees Going up to Subsidize the Poor?

More government freebies and paid for without your consent via hidden communications charges in those bills in your mailbox. No legislative measures for this? Sigh….

Commission voted 3-2 along party lines to approve Democrats’ plan:

WSJ: The expansion of the Lifeline subsidy, which has been in the works for several years, is intended to help lower-income people who have trouble affording broadband service on their own. Many experts worry that a digital divide is emerging between lower-income and higher-income households, at a time when Internet service has become important for everything from school work to job searches to veterans benefits.

Commissioners Mignon Clyburn and Jessica Rosenworcel cited examples of students who lurk on sidewalks outside coffee shops or schools to take advantage of Wi-Fi hot spots to complete schoolwork assignments.

FCC approves Internet subsidies for the poor

TheHill: Millions of poor Americans will be eligible for federal subsidies to help pay the cost of Internet service after new regulations were approved in a whirlwind Federal Communications Commission (FCC) meeting on Thursday.

The FCC voted to expand its 30-year-old Lifeline program, which has offered the monthly $9.25 subsidy for voice-only phone service.

The three Democratic commissioners approved the proposal over opposition from the two Republicans, who have concerns about the program’s budget.

The vote was delayed for more than three hours as Republicans accused FCC Chairman Tom Wheeler of scuttling a late-night compromise to bring them on board.

They said they had a deal with Democratic commissioner Mignon Clyburn before it fell apart under pressure from the chairman, members of Congress and outside groups.

“I must address the elephant in the room: the delay in the meeting and rumors about a proposed cap on the Lifeline program,” Clyburn said at the meeting. She said she engaged in negotiations with Republicans but ended up backing out because the deal did not “fully achieve my vision.”

Clyburn told reporters said she is five feet two inches tall but “not easily bullied.” Wheeler gave a one word response to charges that he bullied his fellow Democrat: “Balderdash.”

The expansion is a major win for advocates who increasingly see Internet access as a necessity for education, finding a job or simply communicating. They point to the 15 percent of Americans, concentrated in poor and rural communities, who do not use the Internet.

Families will only be able to receive one subsidy per household, which they can put toward paying for home Internet, phone or smartphone service — or a combination of the three under the program. Many current participants receive free basic cell service because the $9.25 subsidy covers the entire cost, but they would have to cover the remaining cost of a broadband connection.

The mobile industry waged a late lobbying campaign to get the FCC to lower some of its minimum standards of service, which cover the Internet speed, data allowance and minutes that companies must offer to participate. They also warned against completely phasing out voice-only cellphone service. They won some concessions, including reducing the number of minutes voice-only services will have to offer starting in December.

The rules approved Thursday would set up a single national database to allow phone and Internet providers to verify whether individuals are eligible by sharing information from other lower-income programs like Social Security, Medicaid and food subsidies.

One of the priorities was removing the burden on companies to determine whether a person is eligible for a subsidy. Some said that structure encouraged abuse and put companies in the uncomfortable position of holding sensitive customer information, opening them up to extra security and liability.

“The fox is no longer guarding the henhouse,” Wheeler said.

Lifeline currently has about 13 million subscribers, only a fraction of the 40 million who are eligible. The vote Thursday imposed a budget of $2.25 billion per year. The funds come from fees imposed by the phone companies.

The FCC expects the overhaul to increase participation, and it has projected that about 7 million more people could enroll before hitting the budget ceiling.

The First Drone, bin Ladin: No Trigger to Pull

The drone was a rather experimental aircraft and used for surveillance, none at the time were armed. Why? To arm a new UAV was out of the box thinking that quickly took on a new mission, the hellfire. Furthermore, even President GW Bush had to deal with a major impediment at the time, the missile treaty.

Remember the year as you listen. America has come a very long way..

WiB: Months before the 9/11 terror attacks, U.S. Air Force captain Scott Swanson was controlling a Predator drone over Afghanistan. Swanson and his team were looking for Osama Bin Laden … and they found him.

But this was months before the Predator could fire missiles. The drone operators could only watch as the terrorist leader walked away. When the military finally gave the drones weapons, Swanson became the first Predator operator fire a Hellfire missile in combat.

This week on War College, Swanson walks us through the early history of America’s killer drone program. To learn more, Swanson recommends reading Predator: The Secret Origins of the Drone Revolution by journalist Richard Whittle.

ISIS Caliphate Cyber Army Next Soft Targets

 

Companies could be the next ISIS target

MarketWatch: Companies could become larger targets of pro-Islamic State hackers, according to a security company that analyzes the group’s online activity.

The hacking capabilities of ISIS, which has spread propaganda through online channels such as Facebook and Twitter, remain nascent and relatively unsophisticated, according to researchers at the New York-based intelligence company Flashpoint. But the group has gained supporters with hacking skills who are helping propel the group’s online campaigns, the researchers say.

“These are individuals that are hackers first, ISIS supporters second,” says Laith Alkhouri, cofounder and director of research and analysis for the Middle East and North Africa at Flashpoint. “This is definitely a problem in the U.S. for individual businesses, especially individually businesses that are catering to customers digitally.”

Alkhouri says the pro-ISIS hackers typically deface websites to post messages in support of the group to gain notoriety and spread their propaganda. Flashpoint tracked one pro-ISIS hacking group by the end of 2014 and since then, at least five different groups have emerged, typically by defacing their websites. It’s difficult to know the full scope and number of ISIS-backing hackers because they’re behind computers, he says.

Pro-ISIS hackers have in the last year targeted government agencies, universities, businesses and media outlets of all sizes, according to a report released in August by the Middle East Media Research Institute, a Washington, D.C.-based nonprofit. While ISIS hacking capabilities have been considered relatively unsophisticated and focused on companies that may not have a large security apparatus, some still worry the group could bring on more skilled hackers.

For example, on Aug. 8, ISIS supporters posted messages saying “i love you Islamic State & Jihad” on the website of a Cincinnati restaurant, according to the Middle East Media Research Institute. French media outlets held an emergency meeting after hack attacks on TV5Monde’s website in April 2015, according to The Guardian.

Small or medium-sized companies with amateur websites should monitor each page to ensure a subsection of the website hasn’t been defaced with pro-ISIS messages, Alkhouri says. Often, he says, companies may not immediately realize a subsection of their website has been taken over by ISIS supporters, and the message could hurt the brand among customers. Alkhouri says the group’s attacks could escalate as the hackers seek more notoriety and publicity for their acts.

One pro-ISIS hacking group claimed it planned to take down Google, according to Newsweek, but instead posted its messages on the website of an Indian company called Add Google Online.

The Pentagon has launched an online offensive against ISIS, according to reports, in an attempt to frustrate the group’s computer and phone networks.

A prominent ISIS hacker was killed in a drone strike last year, The Wall Street Journal reported, after U.S. and British officials determined he played a key role in sharpening the group’s computer skills.

*****

Meanwhile, the FBI is on the trail stemming from the attacks in Belgium where investigations of internet and electronic communications could reveal more on the cyberwar, soft targets.

FBI examining laptops linked to Belgian militants: source

Reuters: The Federal Bureau of Investigation is examining laptop computers linked to suspects in last week’s deadly Brussels bombings as investigators work to unravel the militant network behind the attacks.

The laptops arrived in the U.S. on Friday and now are being examined by FBI experts, a U.S. government source familiar with the matter said on Tuesday.

The Wall Street Journal reported on Monday that Belgian authorities had provided copies of laptop hard drives to the FBI. It is not yet clear whether FBI technicians have recovered any significant data from the equipment the Belgians turned over, the source told Reuters.

U.S. officials have pledged support for Belgian efforts to crack down on militants behind the March 22 suicide bomb attacks at a Brussels Metro station and the city’s Zaventem Airport and other recent attacks.

The death toll from the attack on the airport, and the subsequent bombing of a rush-hour metro train, rose to 35 on Monday, excluding the three men who blew themselves up.

On Saturday, President Barack Obama said the a team of FBI agents was helping investigators on the ground in Belgium.

U.S. officials have said that Belgium’s security and intelligence agencies are overstretched and also hampered by internal political, financial and cultural problems, including a linguistic divide between French and Flemish speaking investigators.