ISIS, Islamic State has a Help Desk

The Islamic State in Iraq and Syria (ISIS) uses a 34-page manual to instruct its followers on how to stay invisible on the Internet.

The Arabic document was translated and released this week by analysts at the Combating Terrorism Center, an independent research group at the U.S. Military Academy at West Point. It includes warnings to avoid Instagram because it is owned by Facebook, and Dropbox because former secretary of State Condoleezza Rice sits on its board of investors. Famous government leaker Edward Snowden has also criticized Dropbox over its privacy, the document notes.

Users are also directed to use Apple’s encrypted FaceTime and iMessage features over regular unencrypted text and chat features. More here.

New ISIS ‘help desk’ to aid hiding from authorities

TheHill: The Islamic State in Iraq and Syria (ISIS) has opened up a new technical “help desk” that instructs terrorists on how to hide from Western authorities, according to researchers.

The Electronic Horizon Foundation (EHF) was launched on Jan. 30 as a joint effort of several of the top ISIS cybersecurity experts, the Middle East Media Research Institute (MEMRI) said in a new report.

While researchers have previously uncovered an ISIS “help desk” and 34-page manual that help extremists encrypt their communications, MEMRI said the EHF takes these services to an “alarming” new level.

“Jihadis have long sought technical information, which has been confined in the past to various password-protected jihadi forums,” said the MEMRI report, shared exclusively with The Hill. “However, the freedom and ease by which they can now obtain that information is alarming, especially when such information is shared over private and secure channels.”

The EHF operates on the encrypted messaging platform Telegram but also maintains a Twitter account that disseminates information and directs followers to its secure Telegram channel.

The group’s self-stated goal is clear: “Spreading security and technical awareness among the monotheists.”

According to an announcement celebrating the EHF launch, ISIS has spent a year establishing the group with the goal of “unifying the technical and security efforts, and uniting the ranks of the mujahideen’s supporters.”

It brings together several technical support entities, such as the Information Security channel on Telegram and the “Islamic State Technician,” an ISIS security specialist thought to be behind a leading password-protected technical forum.

The announcement, which the MEMRI translated, was also direct that the EHF had been formed “due to the electronic war and tight surveillance imposed by the Western intelligence apparatuses over Internet users, and their tracking and following of the mujahideen and their supporters, and targeting them based on their data and information, which they share over the Internet.”

EHF pledged to provide resources to help combat this surveillance.

“It is time to face the electronic surveillance, educate the mujahideen about the dangers of the Internet, and support them with the tools, directives and security explanations to protect their electronic security, so that they don’t commit security mistakes that can lead to their bombardment and killing,” the announcement said.

As of early this week, the EHF Telegram account had over 2,200 members.

MEMRI said EHF has not posted much yet, “but it is expected to take the lead nonetheless in content posted as time goes by.”

If the group follows in the footsteps of its creators, its content will be “defensively-oriented,” such as tutorials on mobile phone security, instead of “offensively-oriented,” such as instructions on launching cyberattacks, MEMRI said.

In the wake of the terror attacks in Paris and San Bernardino, Calif., law enforcement officials have cautioned that potential terrorists are increasingly using encryption to hide from investigators, a phenomenon they call “going dark.”

The warnings have led to some calling for legislation that would guarantee government access to encrypted data, although momentum on Capitol Hill for such a bill has cooled in recent months.

“I don’t think we’re any closer to a consensus on that than we were, I think, six months ago,” Rep. Adam Schiff (D-Calif.), the House Intelligence Committee’s top Democrat, said last week. “Or if there is a consensus, it is that a legislative solution, I think, is very unlikely.”

 

IS Encryption Guide by AlyssaBereznak

Putin Demands a Stand-down or Escalation of War

As you read this, Obama is in California fundraising. Poor guy, he is sleeping at a Sheraton rather than his usual Fairmont….sigh.

Russia proposes Syria ceasefire but warns foreign troops risk ‘world war’

Munich (Germany) (AFP) – Moscow said Thursday it had made a “quite specific” ceasefire proposal for Syria as foreign ministers gathered in Munich, hoping to revive a floundering peace process amid warnings of a “new world war”.

With Syria peace talks derailed by the regime onslaught on Aleppo, the UN said 51,000 Syrians had fled the northern city this month as government forces backed by Russian bombers and Iranian fighters left the opposition there virtually surrounded.

“We made propositions for a ceasefire that are quite specific,” Russian Foreign Minister Sergei Lavrov said as he sat down for talks with US counterpart John Kerry.

Moscow has refused to confirm reports that its ceasefire would take effect only on March 1, giving another three weeks to an offensive which the UN says could place 300,000 people under siege.

Observers say the bombardments on Aleppo have killed 500 people since they began on February 1.

Russian Prime Minister Dmitry Medvedev, meanwhile, warned that any move by Gulf nations to send in troops to support the rebels would risk a “new world war”.

“The Americans and our Arabic partners must think hard about this: do they want a permanent war?” he told Germany’s Handelsblatt newspaper.

US diplomats said that any ceasefire in the Syria conflict should be “immediate”.

“This is an issue of commitments we all took, and that we have to respect,” added EU foreign affairs chief Federica Mogherini.

But Russia and Iran have repeatedly labelled the rebels in Aleppo as “terrorists” and suggested there can be no settlement until they have been militarily defeated.

“Those who are outside Syria should help the peace process and not seek to impose conditions on the Syrian people,” Iranian Foreign Minister Javad Zarif told Iran’s state TV after arriving for the talks.

– US ‘Plan B’ –

A first round of talks between the Syrian government and the opposition in Geneva collapsed earlier this month over the attacks on Aleppo.

The rebels say they will not return to talks, pencilled in for February 25, unless government sieges and air strikes end.

Hosted by Kerry and Lavrov, foreign ministers from the 17-nation Syria contact group came together late Thursday for a meeting billed as a moment of truth for the floundering peace process.

Washington has threatened an unspecified “Plan B” if talks fail, as tension mounts with Moscow over its air campaign.

The two sides traded accusations on Thursday about bombing in Aleppo, with the Pentagon claiming two hospitals had been destroyed, and Moscow saying US planes had struck the city — which was flatly denied by Washington.

– Weakening the West –

Analysts see little hope of reconciling differences.

Syria is a crucial ally and military staging post for Russia and Iran, while a growing number of observers say Moscow has benefited from the chaos created by the war, particularly the refugee crisis in Europe.

“The goal of Russian President Vladimir Putin is to destabilise and weaken the West,” Koert Debeuf, a research fellow at the University of Oxford, told the Carnegie Europe think tank.

But they also see little chance of a decisive victory for Syrian President Bashar al-Assad.

“The idea of a full reconquest… seems neither credible nor durable. It will simply turn into a terrorist or guerrilla situation,” said Camille Grand, of the Foundation for Strategic Research in Paris.

Many have criticised the United States for not doing more to support the rebels.

Even outgoing French Foreign Minister Laurent Fabius could not hide his frustration as he announced his resignation on Wednesday, saying: “You don’t get the feeling that there is a very strong commitment” by the US in Syria.

Washington has been reluctant to involve itself in another war after the quagmires of Afghanistan and Iraq, and has sought to focus more on combatting the Islamic State group than getting involved in the civil war between Syria’s regime and rebels.

“The US has given up the idea of toppling Assad,” said Grand. “Kerry seems willing to accept pretty much anything to resolve the crisis.”

The conflict has also strained relations between Turkey and its Western allies.

Turkish President Recep Tayyip Erdogan hit back at UN calls that his country, which is already hosting 2.5 million refugees, should do more for those fleeing Aleppo.

“We do not have the word ‘idiot’ written on our foreheads,” he said. “The United Nations should give advice to other countries. And then we can send the refugees to these countries.”

He has also slammed Washington’s increasingly close alliance with the Kurdish militias in the fight against IS, saying it was turning the region into “a pool of blood”.

*** A deeper dive on Putin

Mounting Evidence Putin Will Ignite WWIII

By letting Putin get away with whatever he likes in Syria, Obama has created a deeply dangerous situation

Schindler-Observer: Relations between Russia and Turkey have been dismal since late November, when a Turkish fighter jet shot down a Russian bomber on the border with Syria, killing its pilot. That began a war of words between Moscow and Ankara that ought to concern everyone, since the former has several thousand nuclear weapons and the latter is a member of NATO.

Russian Prime Minister Vladimir Putin walks near a new Russian fighter jet Sukhoi T-50, after its flight in Zhukovksy, outside Moscow on June 17, 2010. AFP PHOTO / RIA NOVOSTI / POOL / ALEXEY DRUZHININ (Photo credit should read ALEXEY DRUZHININ/AFP/Getty Images)

Kremlin propaganda against Ankara has increased of late, setting the stage for further confrontation. As I explained here last week, Russian media outlets initially blamed the Sinai crash of Metrojet 9268 last autumn on the Islamic State, an atrocity which killed 224 innocents, nearly all of them Russians—a quite plausible claim. However, the Kremlin has abruptly shifted course and now blames the mass murder on Turkish ultranationalist terrorists, without any evidence provided to support that explosive assertion.

Where things may be going between Russia and Turkey, ancient enemies who have warred many times over the centuries, was evidenced this week, when the Kremlin announced large-scale surprise military exercises in the regions of the country that are close to Turkey. Troops were moved to full combat readiness, the last stage before a shooting war, with Sergei Shoygu, the Russian defense minister, announcing on TV: “We began our surprise check of the military preparedness in the Southwest strategic direction.”

That would be the direction of Turkey. These snap exercises involve the Southern Military District and the navy’s Black Sea Fleet, which are deeply involved in Russia’s not-so-secret secret war in eastern Ukraine. However, they also involve the navy’s Caspian Sea flotilla, which is nowhere near Ukraine.

It’s difficult to see how Turkey could stand idly by as an ancient city of two million is crushed just fifty miles from its frontier.

This implies that the snap exercises, which have been prominently featured in Kremlin media, are about Turkey, not Russia. This goes back to recent events on the ground in Syria, where the Kremlin-backed regime of Bashar al-Assad is slowly crushing its opponents, thanks to prodigious military help from both Russia and Iran. Regime forces are closing in on Aleppo, Syria’s biggest city, and 50,000 civilians have already fled the city in panic.

The Russian military displays scant regard for civilian casualties. Mr. Putin’s air force killed almost 700 Syrian civilians last month (to compare, the Islamic State killed less than a hundred Syrian civilians in January), and if the crushing of the Chechen capital of Groznyy in 1994-95, when Russian forces killed roughly 35,000 Chechens, mostly civilians, in just six weeks, is any guide, residents of Aleppo are wise to get as far away as they can.

Needless to add, such a bloody siege of Aleppo would set off a humanitarian crisis that the world could not fail to notice. It’s difficult to see how Turkey could stand idly by as an ancient city of two million is crushed just fifty miles from its frontier.

That is precisely the scenario that has seasoned analysts worried. In Pentagon circles, among those who are watching the budding war between Moscow and Ankara, citations of this famous movie clip are now commonplace. Distressingly, smart Russian analysts are thinking along similar lines.

Today Pavel Felgenhauer published his analysis under the alarming title, “Russia has begun preparations for a major war,” and he marshals a convincing case that the snap exercises in the country’s southwest are really a cover for a shooting war with Turkey—and therefore with NATO too, if Ankara is perceived as defending itself and can assert its right to Article 5, collective self-defense, which obligates all members of the Atlantic Alliance to come to Turkey’s aid.

‘It’s clear that there has to be some actual ‘redline’ for Mr. Obama, something that the United States cannot tolerate Russia doing – but where is it? If I don’t know, I’m sure the Kremlin doesn’t either.’

As The New York Times dryly noted of the Kremlin, “The [Defense] Ministry has ordered surprise maneuvers over the last three years as tensions between the East and West have worsened. The maneuvers have at times come as combat escalated in Ukraine and Syria.” In fact, using large-scale military exercises as a cover for aggression is old hat in Moscow. It was used during the August 1968 Soviet invasion of Czechoslovakia, which explains why NATO always got jumpy when Moscow held military exercises anywhere NATO territory, while snap exercises like this week inevitably caused Cold War panic.

Mr. Felgenhauer paints an alarmingly plausible scenario. As rebel forces defend Aleppo in Stalingrad fashion, the Syrian military, with Russian help, commences a protracted siege of the city, employing massive firepower, which becomes a humanitarian nightmare of a kind not seen in decades, a tragedy that would dwarf the 1992-95 siege of Sarajevo. However, any Turkish move to lift that siege, even with international imprimatur, would quickly devolve into all-out war.

Mr. Felgenhauer minces no words about this: “Russia has begun the deployment of forces and resources for a major war with Turkey.” Mr. Putin has decided to let his client, the Assad regime, win its bloody civil war, first in the north around Aleppo, and any moves by Turkey or NATO to stop them will be met with force. So far, President Barack Obama has let Mr. Putin do whatever he likes in Syria, no matter the cost in innocent lives, so the Kremlin has no reason to think that will change.

The Yom Kippur War of October 1973, when the United States and the Soviet Union came alarmingly close to great power war, is cited as an ominous precedent by Mr. Felgenhauer—albeit one that ended happily when nuclear war was averted thanks to wise diplomacy. There is no reason to think the befuddled Obama administration is that diplomatically deft.

But who is Pavel Felgenhauer? Regrettably, he is not a guy in furry slippers in someone’s basement spouting weird conspiracy theories. Instead, he is one of Russia’s top defense analysts with solid connections in that country’s military. He is a frequent critic of the Russian military and the Putin regime; it’s noteworthy that he published his analysis in Novoe Vremya (New Times), a Ukrainian newsmagazine, not a Russian outlet, perhaps because this sort of truth-telling is unwelcome at home. His prognostications are often correct, for instance his prediction of the Russian invasion of Georgia in August 2008, which he called two months before it happened.

That is NATO’s top concern right now: that after years of weakness and vacillation, the Obama administration may find itself backed into a corner by aggressive Russian action.

Is Mr. Felgenhauer’s alarmism warranted? Many Western insiders think along similar lines. By letting Mr. Putin get away with whatever he likes in Syria, Mr. Obama has created a deeply dangerous situation in the region. By abandoning his infamous Syria “redline” in September 2013, the White House in effect outsourced American policy there to Mr. Putin, as I warned you at the time, and which the Obama administration, powerless to influence terrible events in Syria, is slowly realizing.

“Are we heading for our ‘Sarajevo moment’?” a senior NATO official bluntly asked: “It’s clear that there has to be some actual ‘redline’ for Mr. Obama, something that the United States cannot tolerate Russia doing – but where is it? If I don’t know, I’m sure the Kremlin doesn’t either.”

That is NATO’s top concern right now: that after years of weakness and vacillation, the Obama administration may find itself backed into a corner by aggressive Russian action. Particularly if coupled with intemperate Turkish reactions, that could create a nightmare of historic proportions around Aleppo. Although the White House has foresworn any military intervention in Syria’s fratricide, it’s worth noting that Mr. Obama led NATO to war in Libya exactly five years ago to prevent possible slaughter in Benghazi, a far smaller humanitarian threat than the terrifying sword of Russian artillery and airpower that’s hanging over Aleppo right now.

For their part, the Russians are upping the ante, with regime media publishing claims by the Defense Ministry that air attacks on Aleppo yesterday that killed civilians, including the bombing of a hospital, were actually perpetrated by U.S. Air Force A-10s, a war crime that they say the Pentagon has tried to pin on Moscow. In fact, American intelligence knows this was the work of the Russian Air Force: “We have intercepts of the Russian pilots talking during the attack,” explained a Pentagon official, “as usual, the Russians are lying.” Yet this sort of dishonest Kremlin propaganda, what spies term disinformation, is exactly what the Obama administration has refused to counter, as I’ve explained in this column, in a futile effort to keep the Kremlin happy.

Mr. Putin instead has taken his measure of Mr. Obama and has doubled down, saving his client regime in Syria. Russia has won in Syria and NATO and the West are stuck with that outcome, as are the unlucky residents of Aleppo. “I hope Obama doesn’t decide to get a backbone now,” suggested a retired American general who knows the Russians well, “since the Kremlin is in ‘drive’ in Syria and isn’t about to do ‘reverse’.”

There seems to be little chance of this White House taking on the Russians in Syria. However, there are no guarantees that Ankara is equally inclined to let the Kremlin do whatever it wants on its southern border, and that is how NATO could get embroiled in World War III over the Levant. Cooler heads may prevail, and all sensible people should hope they do here.

 

 

Syria, now Uncontrollable

Opposition Leader: U.S. Diplomacy Costs Syrian Lives

Bloomberg: In the days since the collapse of the Syria peace talks championed by U.S. Secretary of State John Kerry, the humanitarian catastrophe in northern Syria has grown, tens of thousands of new refugees were created, and the Russian- and Iranian-backed killing of civilians has increased. These are all consequences of the flawed U.S. strategy, according to the lead negotiator for the Syrian opposition.

Riyad Hijab was prime minister of Syria in 2012 under the dictator Bashar al-Assad; he became the highest-ranking defector from the regime when he switched sides and joined the rebels. He is now the leader of the High Negotiating Committee that represented the Syrian opposition at last week’s meetings in Geneva, which collapsed after two days. Kerry had pressured the Syrian opposition leaders to attend, even warning they could lose their U.S. funding if they boycotted. Hijab says that Kerry’s approach — to try to persuade Assad and Russia to negotiate while the offensive continues — has actually made things much worse.

“The administration is saying it is testing the good faith of the other side,” Hijab told me in a phone interview on Monday. “But when you are testing these things and it fails, the price that is being paid is horrendous death and the expansion of extremism and terrorism on the ground.”

Syrian forces backed by Russian air power are pressing an offensive against rebel groups in and around Aleppo, the nation’s largest city, that began before the scheduled peace talks. Kerry said Friday, “This has to stop.” He said he would know if the other parties, such as Russia, were “serious” about upholding United Nations Security Council resolutions on protecting civilians after a meeting later this week in Munich of the international group of countries supporting proxies in the Syrian civil war.

In the eyes of the Syrian opposition, Russia and Iran are making a mockery of the peace process, and Kerry’s reluctance to acknowledge this is putting them in deadly harm. It also creates more problems for America’s regional allies, aids the Islamic State and dims the prospects for future peace talks. “The failures of the negotiations end up lowering the credibility of the moderate opposition in front of the Syrian people,” said Hijab. “United States credibility is plummeting within the population of Syria but also in the region as a whole.”

This week, it is Syrians near Aleppo who are paying the price. Regime forces, with Russian support, are advancing toward the Turkish border, threatening to cut off opposition groups and civilians from their source of aid. At least 35,000 people have joined the flood of refugees since the collapse of the talks, ahead of what many anticipate will be another in a long line of starvation sieges the regime is perpetrating on cities. Hijab said there are now 18 cities under siege, three more than when the talks began. More here.

Syria, already a catastrophe, seems on the verge of an uncontrollable disaster

WaPo: Suddenly, after four years of brutal civil war, Syria this week became even more of an uncontrollable military, diplomatic and humanitarian disaster.

“We are not blind to what is happening,” Secretary of State John F. Kerry said Tuesday, as he prepared for a meeting in Munich of stakeholders from outside Syria. “We are all very, very aware of how critical this moment is.”

The Thursday gathering could well be the last gasp of a three-month, Kerry-orchestrated effort to bring together powerful countries on all sides of the conflict — from Russia and Iran on behalf of the government of Syrian President Bashar al-Assad, to the United States and its partners on the opposition side — to try and forge a political solution that would allow them all to focus their efforts on defeating the Islamic State.

What seemed possible even two weeks ago, however, now seems all but hopeless. Failure of planned peace negotiations could lead President Obama finally to a decision he has long resisted — whether to more fully arm and back rebel groups whose cohesion and commitment to a democratic and secular Syria he mistrusts.

In recent days, Russian bombardment of opposition forces north of Aleppo, a rebel stronghold, has severed opposition supply lines and threatens to allow government-aligned forces to encircle the city. In a letter sent to the Obama administration this week, Russia proposed to stop the bombing on March 1, allowing it to continue for another three weeks

The Russian blitz has allowed pro-government ground forces, mostly composed of Iranian-trained militias from Iraq, Iran and Lebanon’s Shiite Hezbollah, to push north to with 20 miles of the Turkish border. This is the same area where the United States and Turkey have planned to carve out an opposition-held zone to combat Islamic State forces approaching it from the east.

Tens of thousands of new refugees have fled Aleppo and its environs to the recently closed Turkish border. Mercy Corps, one of the few aid agencies in a position to help them, said Tuesday that its supplies will soon run out. For those who haven’t fled, the encirclement of Aleppo “would leave up to 300,000 people, still residing in the city, cut off from humanitarian aid unless cross-line access could be negotiated,” the United Nations said.

In Europe, where a flood of nearly a million migrants and refugees from the region, most of them Syrians, have already arrived, political and social tensions are threatening the foundation of European unity constructed over the past 70 years.

“There are fault lines emerging that we thought we had overcome,” said Peter Wittig, Germany’s ambassador to the United States, who described the situation as an existential threat to Europe.

“The United States has been slow to recognize this is a much bigger thing than anything else we’ve experienced since the beginning of the European Union,” Wittig said. “We didn’t see it earlier, we were totally unprepared. . . . We’re not blaming the United States. It takes time for this country to realize that it’s really that serious.”

Germany has taken in the bulk of the migrants and refugees, while some Eastern European members of the E.U. have closed their borders to them.

Negotiation track derided

U.S. ties have become strained with partners closer to the conflict. These allies fear the Obama administration has been blinded to the threat from Russia and Iran by its desire to believe they can be swayed by diplomatic reason and appeals to shared worries about expansion of the Islamic State.

One senior official from a close partner nation described the negotiation track as a farce. The official said that it was unrealistic to expect the opposition to come to the table when its forces are being decimated on the ground and civilians are being starved by Russian bombing and the government gains it has enabled, in violation of United Nations resolutions that Moscow agreed to in order to get the talks started. The official, who said that U.S. leadership is still essential if the war is to end, did not want to be identified by name or nationality in order to speak candidly.

Frontline Turkey, a NATO ally and member of the U.S.-led coalition against the Islamic State, has dithered over its priorities, concerned that a U.S. alliance with Syrian Kurds fighting against the militants will give advantage to Turkish Kurds who seek independence. Even as pro-government forces expand north from Aleppo, Kurdish fighters in Syria’s northwest corner are pushing into the same area.

Turkish President Recep Tayyip Erdogan has demanded that the United States choose between Turkey and the Syrian Kurdish Democratic Union Party. After State Department spokesman John Kirby said this week that the United States does not consider the Syrian Kurds to be terrorists while recognizing that Turkey does, the Ankara government called in U.S. Ambassador John R. Bass on Tuesday for a dressing-down.

Talks between the Syrian government and opposition were suspended before they began this month after rebel representatives said they would not sit at the table until the government provided humanitarian access to besieged areas and released women and children it is holding prisoner. The Munich meeting, originally scheduled to monitor progress in the negotiations, became a final effort to get them started.

Scorched-earth policy

Kerry has long sought a more muscular U.S. policy than Obama has allowed. But he also firmly believes that if negotiations can begin, Assad will eventually be forced from power, with Russian acquiescence in the face of the inevitable.

For the moment, Moscow seems more interested in adjusting the balance of power on the ground — where just months ago, the rebels were on the ascendant — to strengthen Assad’s position before entering talks about his future.

Near the Turkey-Syria border Tuesday, rebels said they fear they are being betrayed by the countries they thought were their allies — most notably the United States. Without significant new injections of arms and ammunition, they said, they will not survive the combined onslaught of intense Russian airstrikes and advances by pro-government ground forces.

“Russia is the second superpower in the world, and Russia is using all of its power against the rebels,” said Mohammed Adib, a political officer with Jabhat Shamiya, the main rebel group fighting in northern Aleppo province. “They’re using a scorched-earth policy, and they don’t care what the international community says.”

“The problem is the friends of the regime are really good friends and give lots of support, whereas our friends sometimes give support and sometimes not,” he said.

While they don’t expect they will receive anti-aircraft missiles, which would have a major impact on the balance of power, rebels said they still hope to receive upgraded weapons, including new-generation models of the TOW missiles that have proved effective at taking out the Syrian government’s aging battle tanks, though these are no match for newly supplied Russian T-90 tanks.

If the rebel fighters cannot rebound, Adib and other rebel spokesmen said, there is a risk that opposition fighters will join more radical organizations, including the Islamic State. “People will not surrender to [Assad] under any circumstances,” said Khaled Shihabeddine, a political adviser to the Noureddin al-Zinki rebel group. “If things stay as they are, with no support and no one stopping Russia, the rebels will be pushed into a corner and . . . all possibilities will be open.”

Keeping Islamic State from Money Exchanges

Denying The Islamic State Access To Money-Exchange Houses

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

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

BACKGROUND

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

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

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

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

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

US says Russian campaign in Syria helping the Islamic State

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

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

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

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

Clapper Breaks with Obama’s Threat Crisis Plank

North Korea has restarted plutonium reactor: US

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

Intel Chief Breaks From Obama Narrative On Iran Deal

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

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

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

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

***

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

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