Boeing Secret Deals with Iran, Skirting Sanctions

Why Boeing kept Iran dealings under the radar

Author: Saam Borhani

alMonitor: Barely a week after the Jan. 16 lifting of nuclear-related sanctions on Iran, Tehran hosted its first international business summit in years. The event, sponsored by the Centre for Aviation (CAPA), brought together 400 executives of the global aviation industry to re-establish links with their Iranian counterparts after a decades-long estrangement. What raised eyebrows in Tehran and Washington, however, was the conspicuous absence of Boeing, the world’s largest aircraft manufacturer. Boeing’s curious decision to skip the CAPA event raised questions about the United States’ commitment to the sanctions relief mandated under the July 14, 2015, Joint Comprehensive Plan of Action (JCPOA). The decision Boeing made to stay home, likely prompted by unease as to the confusing web of remaining US sanctions, is a harbinger of things to come for the delicate dance between Iran and American business.

It turns out that Boeing, while skipping the high-profile CAPA event in Tehran, has actually been unofficially negotiating behind the scenes with Iranian civil aviation officials for a considerable time. Indeed, weeks after European rival Airbus signed a multibillion dollar deal for 118 passenger jets with Iran, Washington finally gave the go-ahead for Boeing to begin official negotiations and to apply for special licenses to sell aircraft to the Iranians.

As the world cashes in on an Iran ready to do business, the United States risks being late to the game because of a mixture of political sensitivities, confusion about the remaining American sanctions and structural impediments that make trading with Iran prohibitively risky for all but the most adept American companies.

American trade with Iran is known to attract seething headlines in both countries. A simple form on McDonald’s website about franchise opportunities in Iran last year prompted warnings of an impending cultural invasion of the country in the Iranian right-wing media. Similarly, US companies risk the wrath of special interest groups devoted to inflicting reputational damage because of trade with Iran. Halliburton and Hewlett-Packard are prominent examples of companies that have been attacked in the American media for previous legal business relations with Iran.

Groups such as United Against a Nuclear Iran have also been successful in convincing around half of the state legislatures to pass measures punishing companies operating in Iran. These local laws have directed state pension funds with billions of dollars in assets to divest from targeted companies and sometimes have barred these companies from public contracts. The impact of these state “sanctions” on the JCPOA is not clear and may yet prompt a political and legal battle between the federal government and state officials. Indeed, the harm to the reputations of US companies by such local punitive measures is a strong deterrent to engaging with the Iranian consumer. It is also an issue that is likely to continue, as long as Iran remains listed as a state sponsor of terrorism by the State Department.

For American companies large enough to weather bad publicity, the remaining and now largely unilateral US sanctions on Iran represent a potentially costly minefield. The JCPOA allows for licensed sales of American airliners to Iran and the legal importation of Iranian foodstuffs and rugs. Besides these specific carve-outs, US companies may trade with Iran under the general licenses that were available before the JCPOA and under specific licenses granted by the Office of Foreign Assets Control (OFAC), the Treasury Department’s sanctions administrator. In addition, foreign subsidiaries of US companies that are not under the control and direction of US persons may trade directly with Iran. Maintaining a robust compliance system and routinely checking company interactions with Iran to make sure that they do not run afoul of OFAC regulations is a costly and time-consuming endeavor. Indeed, any American company that trades with Iran under the terms of the JCPOA, and especially under the complicated foreign subsidiary clause, must be large enough to support sufficiently adept legal compliance teams. Small and medium-size US businesses are thus effectively shut out of a presence in Iran for this very reason.

For the large multinational American companies that may be able to gain a foothold in Iran, there remain structural constraints that residual US sanctions place on legal trade with Iran. The United States has made it clear that no payments linked to Iran may be processed through its financial system. This means that profits made by American businesses in Iran will likely not be able to be directly repatriated and probably will remain offshore in segregated foreign accounts. American companies must also contend with strict bars on doing business with any Iranian entities that remain on OFAC’s “specially designated nationals” list, the Iranian government and the Islamic Revolutionary Guard Corps. Each of these barred entities took over vast parts of the Iranian economy as a result of the international sanctions that have now been lifted.

The JCPOA has opened small opportunities for trade between American and Iranian firms. However, the remaining labyrinth of hard-to-understand restrictions will likely spook most Americans.

Both the Iranian and US governments have a vital interest in seeing that the JCPOA is an enduring agreement — and this partly depends on sanctions relief benefiting Iranian and American private sectors in a way that would effectuate the “buy-in” of JCPOA skeptics. A mutually beneficial trading arrangement that connects the private sectors of the United States and Iran — despite political differences — would strengthen the nuclear deal by attaching a direct economic cost to nonadherence. The limited avenues for legal trade, if quickly institutionalized, can be insulated from the historically volatile political relationship between Iran and the United States.

In this vein, a quiet Iranian commitment to protect American investors in Iran and to tone down the harshest anti-US rhetoric, at least with respect to American business, would give space for Wall Street to influence a change in Washington’s largely monolithic view of a hostile Iran. More importantly, a quiet US commitment to actively support legal trade with Iran — with the same zeal that it uses to enforce sanctions — would give the Iranians space to consider future negotiated compromises.

 

Syria in Blackout, Country at a Halt

Lights out in Syria: Nationwide blackout brings country to a halt

DAMASCUS, Syria, March 3 (UPI) Officials are scrambling to determine the cause of a nationwide blackout in Syria.

“Electricity has been cut across all provinces and teams are trying to determine the reason for this unexpected cut,” state news agency SANA reported. “Engineers and technicians are working on finding out why this sudden power cut happened in order to fix it promptly and restore electricity in the next few hours.”

Although electricity is available for only 2-4 hours a day in war-torn Syria — or not available at all — nationwide blackouts are rare.

The Syrian Telecommunication Establishment said some Internet services have partially halted “as a result of sudden damage to one of the network hubs” and that repair teams are working to fix it.

Syria has been blighted by a complex civil war in which the Islamic State, the Syrian government and multiple Syrian rebel groups fight for control of territory. The Syrian government under President Bashar al-Assad has previously blamed blackouts on rebel attacks, while the United Nations has said that electricity has been restricted as a weapon of war.

A cease-fire in the Syrian civil war between the government and rebels that was brokered by the United States and Russia began midnight Friday.

Efforts to relaunch power service could take two to 12 hours, a Ministry of Electricity official said in a video posted online late Thursday afternoon.

Shortly before the reports of the outage, the ministry said on its Facebook page Thursday that militants had hit part of a power-generating station with rockets in the western city of Hama. The Syrian government hasn’t said whether this attack was linked to the nationwide outage; the ministry said maintenance workers were fixing the damage.

CNN: Syria’s power infrastructure has been damaged during the war, accounting in part for frequent outages even in areas that it still serves.

Thursday’s outage came in the middle of a two-week truce between government forces and certain militant groups — a pause in fighting that is meant to allow humanitarian aid to reach people who have been cut off by the war.

U.N. envoy: ‘visible’ progress in Syria truce, success ‘not guaranteed’

Syria’s ceasefire has shown clear signs of progress, the top UN envoy for the war-ravaged country said Thursday, but warned there was no guarantee it would succeed.

“The situation… on the ground could be summarized as fragile. Success is not guaranteed, but progress has been visible,” Staffan de Mistura told reporters in Geneva as the cessation of hostilities entered its sixth day.

The ceasefire brokered by the United States and Russia came into effect on Saturday but does not include territory controlled by the ISIS group or Al-Nusra.

“The level of violence in the country is being greatly reduced. Ask the Syrian people,” de Mistura said.

His comments came shortly before entering a meeting of a UN-backed international task force co-chaired by Moscow and Washington that is overseeing the truce.

“In general, the cessation has been holding,” he said, while acknowledging that “there are still a number of places where fighting has continued,” including in parts of Damascus and Homs.

But the good thing, he stressed, is that incidents of fighting “have been contained”.

As a result of the relative calm, aid workers have been delivering desperately-needed assistance to besieged areas where nearly half a million people are trapped.

Another four million people are living in hard-to-reach areas.

Following a meeting of the task force overseeing the delivery of humanitarian aid, de Mistura’s special advisor Jan Egeland voiced hope that the ceasefire would “lead to a big leap forward… in reaching many hundreds of thousands more people.”

“Considering how it has been, we are obviously making great progress, but there is a lot left to be done,” he told AFP.

In the last three weeks, 236 trucks had been sent out to 115,000 people in besieged areas, he said, adding that by the weekend, aid workers were hoping to have reached another three or four areas in Kfar Batna in the Eastern Ghouta region, which are home to another 20,000 people.

De Mistura has said a new round of peace talks will resume in Geneva on March 9, after his first attempt to engage the warring parties in indirect negotiations floundered last month.

He had been hoping to get started on March 7, but acknowledged that logistical problems, such as finding hotel rooms for participants as the Swiss city hosts one of the world’s biggest car shows, had forced him to push the talks back.

Since the talks would consist of indirect “proximity talks”, participants would not all need to arrive by March 9, with some expected to arrive as late as the 14th, he said.

It might be a good idea to invest in a NBN battery for sale to power backup broadband to improve internet speed and keep locals connected during a blackout. My friend told me that it was really helpful for him in his blackout.

When Sharia/ISIS Goes Capitalist and Trading

Islamic State ‘earning millions by playing the stock market’

Group using cash looted from banks in Mosul to speculate on international currency markets

Telegraph: Isil is making millions of dollars for its war chest by playing foreign currency markets under the noses of bank chiefs, it was revealed today.

The terror group is earning up to $20m (£14.29m) a month by funnelling dollars looted from banks during its takeover of the Iraqi city of Mosul into legitimate currency markets in the Middle East.

It then makes huge returns on currency speculation, which are then wired back via unsuspecting financial authorities in Iraq and Jordan, a parliamentary committee was told on Wednesday.

Islamic State of Iraq and the Levant’s (Isil) extraordinary venture into white collar crime is now a major source of income, along with oil smuggling and extortion from people living in Isil-controlled areas.

Details of the scam emerged during a hearing of a specially-convened Foreign Affairs sub-committee set up to examine Britain’s role in Isil financing.

The hearing was told that Isil finance chiefs would play the international stock markets using cash looted during their 2014 take over of Mosul, in which the group got its hands on an estimated $429m from the city’s central bank.

They also used money “siphoned off” from pension payments that are still being made by the Iraqi government to civil servants living in the city.

The details were revealed to the hearing by John Baron, the sub-committee’s chair, who demanded to know whether the British government – which has pledged to help cut off Isil’s finance networks – was taking proper action against it.

“The cash that Isil has looted, along with siphoned off pension payments, is routed into Jordanian banks and brought back into the system via Baghdad,” he said. “That allows the system to be exploited by Isil, in that they take a turn (profit) on the foreign currency actions and siphon that cash back.”

The profits were channeled back into Isil coffers by “hawala” transfers, an unregulated system of money transfer whereby cash payments are made via agents in one country after a similar amount is presented as collateral in another.

Infographic: How Does ISIS Fund Itself?  | Statista

Tobias Ellwood, a junior Foreign Office minister, admitted to the committee that there was a “porousness” in the local financial system but said that work was now underway to shut it down. It had been done without the active connivance of bank staff, he added.

In December, the Central Bank of Iraq named 142 currency-exchange houses in Iraq that the US suspected of moving funds for Islamic State. It banned them from its twice-monthly dollar auctions in a bid to stop the terror group getting its hands on the cash – a main source of exchange in war-torn Iraq.

But Mr Ellwood conceded: “Iraq could have moved faster on this”. Asked if the similar moves had been made in Jordan, he said he was unable to give an answer.

“Jordan plays an important role in the (anti-Isis) coalition,” he added. “Work is being done to close it down, I don’t think there is anything near as much from that source of revenue as before.”

The committee heard claims that Isil’s “rake off” from foreign currency speculation was a “significant part of their income stream”, although Mr Ellwood said he thought that estimates of $20m were excessive.

**** 

Spiegel: Some members of the intelligence community even view spying in the global financial system with a certain amount of concern, as revealed by a document from the NSA’s British counterpart — the Government Communications Headquarters (GCHQ) — that deals with “financial data” from a legal perspective and examines the organization’s own collaboration with the NSA. According to the document, the collection, storage and sharing of “politically sensitive” data is a highly invasive measure since it includes “bulk data — rich personal information. A lot of it is not about our targets.”

Indeed, secret documents reveal that the main NSA financial database Tracfin, which collects the “Follow the Money” surveillance results on bank transfers, credit card transactions and money transfers, already had 180 million datasets by 2011. The corresponding figure in 2008 was merely 20 million. According to these documents, most Tracfin data is stored for five years.

Monitoring SWIFT

The classified documents show that the intelligence agency has several means of accessing the internal data traffic of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a cooperative used by more than 8,000 banks worldwide for their international transactions. The NSA specifically targets other institutes on an individual basis. Furthermore, the agency apparently has in-depth knowledge of the internal processes of credit card companies like Visa and MasterCard. What’s more, even new, alternative currencies, as well as presumably anonymous means of payment like the Internet currency Bitcoin, rank among the targets of the American spies.

The collected information often provides a complete picture of individuals, including their movements, contacts and communication behavior. The success stories mentioned by the intelligence agency include operations that resulted in banks in the Arab world being placed on the US Treasury’s blacklist.

In one case, the NSA provided proof that a bank was involved in illegal arms trading — in another case, a financial institution was providing support to an authoritarian African regime. Full article here.

Hey Pentagon, Hiring Hackers, a Good Idea?

Personally I do see some positives, but I see more downsides….what say you?

The Department of Defense announced today that it will invite vetted hackers to test the department’s cybersecurity under a unique pilot program.  The “Hack the Pentagon” initiative is the first cyber bug bounty program in the history of the federal government.

 

Under the pilot program, the department will use commercial sector crowdsourcing to allow qualified participants to conduct vulnerability identification and analysis on the department’s public webpages.  The bug bounty program is modeled after similar competitions conducted by some of the nation’s biggest companies to improve the security and delivery of networks, products, and digital services. The pilot marks the first in a series of programs designed to test and find vulnerabilities in the department’s applications, websites, and networks.

 

Participants in the bug bounty will be required to register and submit to a background check prior to any involvement with the pilot program.  Once vetted, these hackers will participate in a controlled, limited duration program that will allow them to identify vulnerabilities on a predetermined department system.  Other networks, including the department’s critical, mission-facing systems will not be part of the bug bounty pilot program.  Participants in the competition could be eligible for monetary awards and other recognition.

This innovative project is a demonstration of Secretary Carter’s continued commitment to drive the Pentagon to identify new ways to improve the department’s security measures as our interests in cyberspace evolve.

Pentagon to Establish Defense Innovation Advisory Board

WASHINGTON, March 2, 2016 — In an effort to enhance the Defense Department’s culture, organization and processes by tapping innovators from the private sector in Silicon Valley and beyond, Defense Secretary Ash Carter announced plans today to establish a Defense Innovation Advisory Board, Pentagon Press Secretary Peter Cook said.

 Google, CEO

The initiative represents the secretary’s enduring commitment to building lasting partnerships between the public and private sectors, Cook said in a statement.

“Just as the Defense Business Board provides advice to the department on best business practices from the private sector, the Defense Innovation Advisory Board will provide advice on the best and latest practices in innovation that the department can emulate,” Cook added.

The board’s mandate is to provide department leaders independent advice on innovative and adaptive means to address future organizational and cultural challenges, the press secretary said, including the use of technology alternatives, streamlined project management processes and approaches — all with the goal of identifying quick solutions to DoD problems.

Areas Deeply Familiar in Silicon Valley

The board will seek to advise the department on areas that are deeply familiar to Silicon Valley companies, such as rapid prototyping, iterative product development, complex data analysis in business decision making, the use of mobile and cloud applications, and organizational information sharing, Cook said, and will not engage in discussion of military operations or strategy.

Alphabet Executive Chairman Eric Schmidt will chair the board, which will be composed of up to 12 people who have successfully led large private and public organizations and excelled at identifying and adopting new technology concepts, Cook said.

Carter and Schmidt will jointly select the board, Cook said. “Members will represent a cross-section of America’s most innovative industries, drawing on technical and management expertise from Silicon Valley and beyond,” he added.

As chairman of Alphabet and as the author of “How Google Works,” Schmidt has a unique perspective on the latest practices in harnessing and encouraging innovation and in the importance of technology in driving organizational behavior and business operations, Cook said.

**** Background

US spy chief James Clapper highlights cyber threats

BBC: US intelligence agencies have placed cyber attacks from foreign governments and criminals at the top of their list of threats to the country.

Online assaults would increasingly undermine US economic competitiveness and national security, said Director of National Intelligence James Clapper.

A report issued by his office said Russia’s military was setting up a cyber command to carry out attacks.

The report also describes China, Iran and North Korea as leading threats.

In testimony to a congressional committee on Thursday, Mr Clapper said he no longer believed the US faced “cyber Armageddon”.

The idea that major infrastructure such as financial networks or power grids could be disabled by hackers now looked less probable, he said.

However he warned: “We foresee an ongoing series of low-to-moderate level cyber attacks from a variety of sources over time, which will impose cumulative costs on US economic competitiveness and national security.”

Mr Clapper highlighted the case of Russia, which he said posed the greatest a cyber risk to US interests. He said that threat from the Russian government was “more severe” than previously realised.

He also said profit-minded criminals and ideologically driven hackers were also increasingly active.

Over the past year there have been a series of high-profile cyber attacks against US targets.

North Korea was accused of being behind the theft of a huge data cache from Sony Pictures in November.

Mr Clapper also mentioned the example of an alleged Iranian attack on the Las Vegas Sands Casino Corporation last year.

Meanwhile in January the Twitter and YouTube accounts of the US military command were hacked by a group claiming to back Islamic State (IS).

During the hearing, Mr Clapper acknowledged that the US had its own “offensive capabilities”.

In 2010 Iran experienced a cyber attack on its nuclear program. Tehran accused Israel and the US of planting malware.

ISIS in Pakistan and 51 countries Sourced for IED’s

Islamic State group in competition for recruits in Pakistan

KARACHI, Pakistan (AP)— Trying to lure him into the Islamic State group, the would-be recruiter told Pakistani journalist Hasan Abdullah, “Brother, you could be such an asset to the Ummah”— the Islamic community. Abdullah replied that he was enjoying life and had no plans to join the jihadis.

“The enjoyment of this life is short-lived. You should work for the Akhira” — the Afterlife, the recruiter pressed.

IS had its eye on Abdullah not because he adheres to any extremist ideology but because, as a journalist, the group believed he could be a boon to its propaganda machine, Abdullah told The Associated Press, recounting his meeting with the recruiter.

His encounter was a sign of how the Islamic State group is looking for sophisticated skills as it builds its foothold in new territory: Pakistan. It is courting university students, doctors, lawyers, journalists and businessmen, and using women’s groups for fundraising. It is also wading into fierce competition with the country’s numerous other militant groups, particularly the Pakistani Taliban and al-Qaida in the Subcontinent, the new branch created by the veteran terror network.

Here in Karachi, Pakistan’s largest city, IS loyalists have set up their strongest presence, carrying out multiple attacks in the past year and setting up networks.

The port city of some 20 million people on the Arabian Sea has always been a favorite for militants to operate. Wealthy districts running on the city’s profitable commerce hold potential for fundraising, while the crowded, cramped poorer districts that have spread around the city provide recruits and places to hide. It also gives recruiters links to other parts of the country, since its population is full of people who have migrated from tribal regions or Afghanistan, looking for work.

The Karachi police’s top counterterrorism official, Raja Umer Khitab, warns that IS has great potential to grow in Pakistan, not only because of its large reservoir of Sunni extremists but also because of the virulent anti-Shiite sentiment among their ranks. Hatred of Shiites and attacks against them are a keystone of the Islamic State group’s ideology and one source of its appeal among some hard-line Sunnis as it set up its self-declared “caliphate” in Iraq and Syria.

IS first announced its presence in Pakistan with a bloody attack in May in Karachi in which gunmen boarded a bus carrying Shiites, ordered them to bow their heads, then opened fire, killing 45. The gunmen left behind a tattered piece of paper proclaiming, “Beware … We have entered the battlefield for retribution and the implementation of Shariah.”

Since then, it has killed more than 35 policemen in targeted attacks, attacked two schools and killed rights activist Sabeen Mehmud, who was gunned down in her car with her mother at her side.

IS was able to expand into two tribal regions near the border with Afghanistan — Bajour and Orakzai — when Taliban leaders there switched allegiance to the Islamic State group. The IS branch in neighboring Afghanistan is also aggressively trying to expand its presence, putting it in direct competition with the Taliban.

The number of IS loyalists in Pakistan is not known. Government officials only recently admitted that they have a presence and insist loyalists here have no known operational links to the IS leadership in Iraq and Syria. Still, in one of the first warnings by an official about IS, intelligence chief Aftab Sultan told a Senate committee earlier this month that hundreds of Pakistanis have gone to fight in Syria, and some are now coming home to Pakistan to recruit.

One way IS militants are trying to recruit and build is through women. One academy for women in Karachi’s Baloch Colony neighborhood recruited women by playing IS videos in the classrooms, Khitab told the AP. The 20 female students then reached out to middle-class and wealthy Karachi women, urging them to donate their religious tithes to the IS cause of establishing a caliphate.

Several women were detained, including the wife of a suspected IS operative, and were released after questioning, Khitab said.

IS recruiters have been stalking university campuses. For example, the suspected mastermind in the bus attack, Saad Aziz, was a graduate of the U.S.-funded Institute of Business Administration in Karachi.

A professor at the Institute, Huma Baqai, said there are radicalized professors teaching in some of the country’s top universities. They “are using the classrooms to mold (students’) minds,” she said. “There is no scrutiny in what happens in the classroom.”

An intelligence official told the AP that security officials have interrogated several university professors suspected of supporting IS and trying to recruit students. The official spoke on condition of anonymity because he is not allowed to talk to the press.

“Finding people who are willing to strap on a suicide vest and blow themselves up is easy. There are hundreds, thousands,” said Abdullah, the journalist. But the educated are a bigger prize. He said he knows two other journalists whom IS tried to enlist. Abdullah said IS probably sought him because he was known from his work writing on extremism in the region and has met many militants personally.

Abdullah said his courtship by IS began when he received a message on social media from someone offering information for him for a story. Abdullah didn’t hear from him again until weeks later, when a man using the same name approached Abdullah as he had lunch in a park outside his office. The man told Abdullah he closely followed his writings — then said he was from the Islamic State group. Abdullah quizzed him about militants he knew to verify his claims. Near the end of the conversation, the man noted that many professionals were joining IS.

“This was basically his invitation to me to join their rank,” Abdullah said. And the man made his pitch.

Professionals can hold leadership posts or be involved in the group’s prolific and powerful propaganda machine, which includes sophisticated videos produced with the latest technology and vigorous use of social media.

Al-Qaida in particular is pursuing a similar caliber of recruits. Khitab said it isn’t clear who is winning the competition but there are known instances of al-Qaida militants in Pakistan crossing over to IS. Most notably, Khitab said, al-Qaida operatives Abdullah Yusuf and Tayyab Minhas defected to IS and are believed to have orchestrated much of the group’s violence in Karachi.

The past stereotype of a militant as a tribesman from the mountains in traditional garb with bandoliers of ammo slung over his shoulder has been replaced, said analyst Bruce Hoffman, director of the Center for Security Studies at Georgetown University in Washington.

The new generation comes from “well-educated, cosmopolitan, university educated Pakistanis from middle-class backgrounds who can navigate our globalized space whether virtually or physically with facility and confidence.” They can use social media, cross borders and fit “seamlessly into global societies.”

“They are the new force multipliers of terrorist groups,” he said.

****

Islamic State IED Sources?

WiB: Islamic State builds its improvised explosive devices using components from 51 different companies in 20 countries. That’s the startling conclusion of a new report from Conflict Armament Research.

“These findings support growing international awareness that [Islamic State] forces in Iraq and Syria are very much self-sustaining — acquiring weapons and strategic goods, such as IED components, locally and with ease,” said James Bevan, CAR’s executive director.

The group’s investigation, spanning 20 months, took researchers to Kirkuk, Mosul and Kobani alongside anti-Islamic State groups including the Iraqi Popular Mobilization Unit, the Iraqi Federation Policy and the Kurdistan Regional Security Council.

Some products Islamic State used in its IEDs are commercially available, including cell-phones and transistors. Products such as aluminum paste, urea and other chemicals as well as detonators are also widely available in the region.

map
CAR map

Turkey and Iraq boast large mining and agriculture industries that rely on these products. For this reason, these products are rarely, if ever, subject to transfer controls and export licensing that could help prevent such goods from moving across border with such ease.

Potential bomb components that are subject to controls, such as detonators, are still easy for Islamic State to acquired due to their popularity among farmers. “Licensing alone has not been sufficient to prevent acquisition by IS forces,” CAR reports.

Islamic State IEDs. Photo via CAR

“In all identified cases, producers have lawfully traded components with regional trade and distribution companies,” the investigation concludes.

“These companies, in turn, have sold them to smaller commercial entities. By allowing individuals and groups affiliated with IS forces to acquire components used in IEDs, these small entities appear to be the weakest link in the chain of custody.”

Due to their proximity to Islamic State territory, Turkish firms have been the main supplier of IED parts. “With 13 companies involved in the supply chain, Turkey is the most important choke point for components used in the manufacture of IEDs by IS forces,” CAR explains, adding that “proximity is a major reason why the goods traded by Iraqi and Turkish companies appear throughout the supply chains of components that IS forces use to manufacture IEDs.”

Dual-purpose technologies with civilian and military uses have long played a role in irregular warfare. In Vietnam, the Viet Cong made small bombs out of rubber bands, mason jars and drink cans. Similarly, the Irish Republican Army became highly adept at building out IEDs out of commercial materials and explosives the group smuggled from Libya.

The IED Islamic State allegedly used to destroy a Russian passenger jet in October 2015

The device the IRA used in the bombing of Brighton’s Grand Hotel on Oct. 12 1984 — Prime Minister Margaret Thatcher and her cabinet were the targets — used a delay made from a video recorder and a memo park timer, which allowed for the bomb to be planted almost a month before its detonation. Five people died, but Thatcher and the cabinet survived.

In the post-9/11 wars in Iraq and Afghanistan, IEDs have become insurgents’ weapons of choice. In 2007, IEDs were responsible for three out of five combat deaths in Iraq and one in four in Afghanistan. The Pentagon’s Defense Casualty Analysis System found that in 2009, 56 percent of casualties in Iraq and Afghanistan resulted from IEDs, a figure that increased to 63 percent in 2011.

CAR’s report should make it clear — with Islamic State benefiting from an extensive, albeit informal, bomb-supply network, the IED problem is not going away.