Category Archives: Cyber War

UK Money-laundering $2.9 Billion Linked to Azerbaijan

Posted on by

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.

Photo

UK Companies at the Heart of $2.9 Billion Money-Laundering Circle

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?

Posted on by

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.

Photo

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. 

 

3 More Russian Locations in U.S. Shuttered

Posted on by

Putin promises retaliation in growing diplomatic feud with US

Russian President Vladimir Putin plans to retaliate against the State Department’s latest rebuke of his policies, his spokesman warned.

“We regret the unconstructive stance taken by our counterparts in the United States and, of course, we cannot afford to leave unfriendly, and sometimes hostile steps towards us without retaliation,” Kremlin spokesman Dmitry Peskov said Thursday, according to state-run media.

That statement suggests that the diplomatic feud will escalate following the State Department’s decision to close three Russian facilities in the United States. Secretary of State Rex Tillerson’s team justified that move as a response to Putin’s requirement that the United States cut hundreds of personnel operating in Russia. But the State Department called for an end to the tit-for-tat, saying that the two sides had reached “parity” in the fight.

Tillerson ordered the closure of Russia’s consulate general in San Francisco, as well as two other facilities in New York and Washington, D.C., respectively.

“While there will continue to be a disparity in the number of diplomatic and consular annexes, we have chosen to allow the Russian government to maintain some of its annexes in an effort to arrest the downward spiral of our relationship,” State Department spokeswoman Heather Nauert said Thursday.

The State Department said it had implemented the Putin team’s order to remove hundreds of U.S. personnel from Russia. Putin issued that requirement in response to Congress passing legislation that sanctions Russia on three fronts: the cyberattacks against the Democratic party and state election systems in 2016; the invasion of Ukraine; and Russia’s support for Syrian President Bashar Assad.

“The United States hopes that, having moved toward the Russian Federation’s desire for parity, we can avoid further retaliatory actions by both sides and move forward to achieve the stated down of both of our presidents: improved relations between our two countries and increased cooperation on areas of mutual concern,” Nauert said.

Russian diplomats maintain that the United States is to blame for the strained ties between the former Cold War rivals. “By tradition we are for good-natured relations with the United States,” Peskov said. “Moreover, we believe that these relations must be advanced in the interests of peace and global stability and in the interests of settling crucial world and regional problems.”

*** Meanwhile, this Dmitry Peskov cat is well know to the Trump orbit and described below.

Moscow (CNN) Kremlin spokesman Dmitry Peskov confirmed Wednesday he got an email from Michael Cohen, US President Donald Trump’s lawyer, asking for help moving a Moscow real estate deal forward, but said he did not respond and did not pass it to Russian President Vladimir Putin.

Peskov was responding to a question from CNN on a conference call with reporters.
Cohen — who was executive vice president of the Trump Organization at the time he sent the email — said Monday that he had contacted the Kremlin for assistance in mid-January 2016 about building a Trump Tower in Moscow when the mogul was running for president, but denied that the project was related to Trump’s campaign. But the revelation appears to contradict Trump’s vehement denials of any such business connections to Russia in the past.
Cohen told CNN on Monday his message to Peskov was “an email that went unanswered that was solely regarding a real estate deal and nothing more.”
Peskov confirmed that his office had located a copy of the email, which said the development deal wasn’t moving forward and requested support.

 

Hawaii, Missile Defense Test MRBM Success

Posted on by

Aegis BMD System Intercepts Target Missile

Aug. 30, 2017

The Missile Defense Agency and U.S. Navy sailors aboard the USS John Paul Jones (DDG 53) successfully conducted a complex missile defense flight test, resulting in the intercept of a medium-range ballistic missile (MRBM) target using Standard Missile-6 (SM-6) guided missiles during a test off the coast of Hawaii today.

Photo

John Paul Jones detected and tracked a target missile launched from the Pacific Missile Range Facility on Kauai, Hawaii with its onboard AN/SPY-1 radar, and onboard SM-6 missiles executed the intercept.

“We are working closely with the fleet to develop this important new capability, and this was a key milestone in giving our Aegis BMD ships an enhanced capability to defeat ballistic missiles in their terminal phase,” said MDA Director Lt. Gen. Sam Greaves. “We will continue developing ballistic missile defense technologies to stay ahead of the threat as it evolves.”

ddg 53 uss john paul jones rim-174 standard eram sm-6 missile     Photo

This test, designated Flight Test Standard Missile-27 Event 2 (FTM-27 E2), marks the second time that an SM-6 missile has successfully intercepted a medium-range ballistic missile target.

Aegis BMD is the naval component of the Ballistic Missile Defense System. MDA and the U.S. Navy cooperatively manage the Aegis BMD program. Additional information about all elements of the ballistic missile defense system can be found here.

*** Meanwhile in Nevada, testing of upgraded nuclear weapons components were performed.

WASHINGTON, D.C. – The Department of Energy’s National Nuclear Security Administration (DOE/NNSA) and U.S. Air Force completed two qualification flight tests of B61-12 gravity bombs August 8 at Tonopah Test Range in Nevada.

The non-nuclear test assemblies, which were dropped from an F-15E based at Nellis Air Force Base, evaluated the weapon’s non-nuclear functions and the aircraft’s capability to deliver the weapon.

These tests are part of a series over the next three years to qualify the B61-12 for service. The first qualification flight test occurred in March.

“The B61-12 life extension program is progressing on schedule to meet national security requirements,” said Phil Calbos, acting NNSA deputy administrator for Defense Programs. “These realistic flight qualification tests validate the design of the B61-12 when it comes to system performance.”

The flight test included hardware designed by Sandia and Los Alamos National Laboratories, manufactured by the Nuclear Security Enterprise plants, and mated to the tail-kit assembly section, designed by the Boeing Company under contract with the Air Force Nuclear Weapons Center.

The B61-12 consolidates and replaces four B61 bomb variants in the nation’s nuclear arsenal. The first production unit is scheduled to be completed by March 2020.

These activities are not exclusive to the nuclear threat posed by North Korea, but include other rogue nations such as Iran, Pakistan, Russia and those allied such that any weapons are transferred to another nation as in Syria or worse Venezuela.

The United States is not alone in these activities which does bring some comfort.

Theresa May refuses to rule out military action and cyber attacks over North Korea missile launches

Theresa May has refused to rule out using cyber warfare or even taking part in military action against North Korea if it does not stop firing missiles in “illegal” acts of provocation.

Mrs May arrived in Japan on Wednesday morning in the midst of an escalating crisis over Pyongyang’s latest missile launch, and will have lengthy discussions with Prime Minister Shinzo Abe about what can be done.

She arrived with a message for China’s President Xi Jinping, telling him in no uncertain terms that it is his responsibility to rein in Kim Jong-un.

She said China, which has the military might to remove Mr Kim from power if it chose to, must do “everything it can” to make North Korea desist from firing more missiles.

On Tuesday, Pyongyang launched a missile that flew over Japan before landing in the Pacific, triggering the national J-alert system which tells the Japanese population to take cover.

President Donald Trump has made it clear that all options remain on the table for dealing with North Korea, and during her overnight flight to Osaka Mrs May was asked four times by journalists if she would rule out joining military action against the Kim regime. Each time, she refused to address the question directly.

She also refused to rule out cyber warfare. Separately, a Whitehall source even raised the possibility that cyber warfare might already be in use, saying: “If we were doing that we certainly wouldn’t be telling you.”

Mrs May said: “The actions of North Korea are illegal, they are significant actions of provocation, it’s outrageous, that’s why we will be redoubling our efforts with our international partners to put pressure on North Korea to stop these illegal activities.

“China has a key role to play in this… I have said this to President Xi, I know others have as well, we think that China has that important role to play and we would encourage China to do everything it can to bring pressure to bear on North Korea to stop this.

“The UK is looking at the discussion around further sanctions and the sort of change that China can bring. We see China as being the key in this.”

During her three-day visit to Japan, Mrs May will become only the second foreign leader to attend a meeting of the country’s national security council, at which she will speak to Mr Abe and his advisers.

One of the key aims of the trip is to strengthen Britain’s cooperation with Japan over security and defence, and Mrs May will tomorrow board the aircraft carrier Izumo, the flagship of the Japanese Navy, where she will be briefed by Japanese and British military personnel.

She said: “It’s an important, long-standing relationship between the UK and Japan, they’re our closest partner in Asia and I’m looking forward to the opportunity to talk about a number of subjects – trade, of course, but also building on our defence and security co-operation.”

The Prime Minister’s visit came as  the United Nations condemned North Korea’s “outrageous” firing of a ballistic missile over Japan on Tuesday, demanding Pyongyang halt its weapons programme but holding back on any threat of new sanctions on the isolated regime.

US Ambassador Nikki Haley said “something serious has to happen” but didn’t specify what.

British Ambassador Matthew Rycroft suggested members need to look at further strengthening of sanctions. Read more here to include graphics and video.

 

Location of N Korea Missile Launch over Japan, What we Know

Posted on by

Why no country shot it down?

In part: While the US and Japan have conducted ballistic missile defense exercises and both have Aegis-equipped ships capable of shooting down some ballistic missiles, it would be extremely difficult for the US or Japan to intercept a North Korean intermediate or intercontinental ballistic missile in flight over Japan toward a target such as Guam. The Aegis system is capable of intercepting shorter-range missiles in mid-course with the SM-3 missile, and it also provides “terminal phase” defense with the SM-2 missile closer to the ballistic missile’s target. But it’s uncertain whether either system would be successful against a “pop up” attack with an ICBM.

The SM-3 Block IIA has an operational range of about 1,350 miles. But range isn’t the issue as much as the speed required to intercept. If a North Korean missile were fired to an altitude of over 500 kilometers, success in a shoot-down would depend greatly on how quickly the missile was tracked and the timing of an interceptor launch. Based on the time/distance envelopes for SM-2 and SM-3 missile intercepts calculated from Joan Johnson-Freese (a professor at the Naval War College and a lecturer at Harvard University) and Ralph Savelsberg (an assistant professor at the Netherlands Defence Academy), an Aegis defender would only have a few minutes to get off a shot at an ICBM launch from North Korea. Aegis-equipped destroyers and cruisers would have to be dangerously close to the North Korean coast to get a chance to strike an ICBM in “boost” phase as it rose and could be vulnerable to North Korean submarines if an actual attack were planned. Read more here.

***

North Korea has taken steps in recent months to disguise their missile-related activities, including fueling rockets inside structures, outside of aerial view.

There are three basic ways the U.S. gathers most of its foreign intelligence: collecting information from human spies; intercepting electronic communications; and observing what’s happening on the ground, mainly with satellites.

The National Security Agency, which hacks computers and intercepts email, has had some success pulling bits and bytes out of North Korea, former officials say, but North Korea is much less forgiving than most of its targets. That’s because most of the country is not connected to the internet and few people have cellphones. To the extent that the regime communicates electronically, it has made increasing use of encryption, experts say.

“If you look at that satellite picture [of Asia] of the lights at night from the satellite, there is one dark area with no lights on, and that is North Korea,” Coats told Congress. “Their broadband is extremely limited. So using that as an access to collection — we get very limited results.” More here.

N. Korea must be met with stronger action: U.S. experts

WASHINGTON, Aug. 29 (Yonhap) — North Korea must be met with stronger action if it is to be stopped from triggering a catastrophe on the Korean Peninsula, U.S. experts said Tuesday.

The firing of an intermediate-range ballistic missile over Japan earlier in the day was a rare hostile act that increased the chances of a military confrontation in the volatile region.

The United States and South Korea must take decisive action to demonstrate that the regime in Pyongyang will not be allowed to get away with any more provocations, and China, they noted, will have to play a key role in that effort.

KCNA has released photos of the HS-12 launch that overflew Japan

“China has the power to increase the pressure on North Korea and must take steps towards doing so,” said Donald Manzullo, president of the Korea Economic Institute of America. “The longer China continues to refrain from using all of the leverage at its disposal to convince North Korea to return to talks, the more likely North Korea is to miscalculate.”

Beijing is Pyongyang’s only major ally and key benefactor. U.S. President Donald Trump and others have urged China to do more to rein in its wayward neighbor, but Beijing has refused to bear responsibility for the North Korean nuclear problem.

Bruce Bennett, a senior researcher at RAND Corp., said the latest launch could have resulted in part from a lack of action by the U.S. and South Korea against what was seen as a low-intensity provocation Saturday. North Korea launched three short-range ballistic missiles then.

“If the (U.S. and South Korea) fail to act seriously against (Tuesday’s) test, the North may feel that it can commit an even more serious provocation, while the exercises are ongoing, perhaps even another intercontinental ballistic missile test or a nuclear weapon test,” he said in an email.

Bennett was referring to the Ulchi Freedom Guardian military exercise currently under way between South Korea and the U.S. Analysts have said the back-to-back provocations were staged in response to the annual drills, which Pyongyang views as rehearsals for an invasion.

North Korea may also believe it has China’s backing because Beijing recently proposed the allies cancel their drills in exchange for a halt to North Korea’s missile and nuclear testing, he noted.

Robert Manning, a senior fellow at the Atlantic Council, said the U.N. Security Council is likely to adopt tougher sanctions against Pyongyang.

“There may be other steps Trump is considering to take unilaterally, whether cyber or kinetic. The key question is: How far is China prepared to go?” he said in a separate email. “But even if effective, sanctions will take time to have an impact — nine to 12 to 15 months. The danger is that this cycle of tensions rises to the point where the U.S. seeks more immediate results. That could be catastrophic.”

Media preview

The North Korean single stage Hwasong-12 is a liquid fueled IRBM of estimated 4500 km range.

The Hwasong-2 appears to be a stretched improved version of the Hwasong-10 IRBM and appears to be single staged.

The missile was first shown in the 2017 military parade and has conducted its first successful flight after three failures in May 2017 from a site near Kuosong, likely Panghyon Air Base, on a lofted short range trajectory of 787 km range and 2111 km apogee height, which hints to a maximum range of about 4500 km.

For more information regarding the DPRK airfields and what is underground at those airfields across the country, go here.