UK Money-laundering $2.9 Billion Linked to Azerbaijan

Posted on September 4, 2017September 4, 2017 by Denise Simon

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

4^th 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)

Now al Shabaab has Ownership of Uranium Set for Iran

Posted on August 31, 2017August 31, 2017 by Denise Simon

In 2015:

Somali Minister of Petroleum and Mineral Resources, Mohamed Muktar Ibrahim has talked about the Somalia’s Mineral Resources saying that they have made contacts with International Atomic Energy Agency (IAEA) on the controlling of minerals that can be use chemical weapons.

He noted they are taking measures to prevent raw materials like Uranium to fall into the hands wrong people.

In an exclusive interview he gave to Universal TV, the minister highlighted that they also held talks with UNDP which had information on mining depots in the country as it has surveyed on the country’s mineral deposits in the years between 1965 and 1975.

In a UN report released in 1968 shows that Somalia is a hotspot for uranium.

Somali government is busy amending some provision in the Mineral Law 1984 and compliance with the current conditions in the country now.

To read the full letter, go here.

An Al Qaeda affiliate has seized control of uranium mines in Africa with the intent of supplying the material to Iran, according to a diplomatic letter from a top Somali official appealing to the U.S. for “immediate military assistance.”

The letter, reviewed by Fox News, was addressed to U.S. Ambassador to Somalia Stephen Schwartz. Somalia’s Ambassador to the U.S. Ahmed Awad confirmed to Fox News on Thursday that the letter “has indeed been issued” by Minister of Foreign Affairs Yusuf Garaad Omar, whose signature is on the document.

The Aug. 11-dated letter delivered an urgent warning to the U.S. that the al-Shabaab terror network has linked up with the regional ISIS faction and is “capturing territory” in the central part of the country.

“Only the United States has the capacity to identify and smash Al-Shabaab elements operating within our country. The time for surgical strikes and limited engagement has passed, as Somalia’s problems have metastasized into the World’s problems,” the letter said. “Every day that passes without intervention provides America’s enemies with additional material for nuclear weapons. There can be no doubt that global stability is at stake.”

The State Department would not comment on the diplomatic letter, but did not dispute its authenticity and referred Fox News to the government of Somalia. Iran was supposed to pull back on its nuclear program under the terms of the agreement struck with the Obama administration. More here from FNC.

***

Background:

Is Somalia a safe haven for terrorists?

On one hand, Somalia is a chaotic, poor, battle-weary Muslim country with no central government and a long, unguarded coastline. Its porous borders mean that individuals can enter without visas, and once inside the country, enjoy an almost complete lack of law enforcement. Somalia has long served as a passageway from Africa to the Middle East based on its coastal location on the Horn of Africa, just a boat ride away from Yemen. These aspects make Somalia a desirable haven for transnational terrorists, something al-Qaeda has tried to capitalize on before, and is trying again now.

On the other hand, Somalia is different from other failed states in several ways. While it is roughly the size of Afghanistan, its landscape lacks Afghanistan’s many natural hiding places and does not offer the topographical haven of other states like Yemen. It is also a fiercely clan-oriented culture with an aversion to foreign presence of any kind, including Arab jihadi organizations. “When you get these extremist ideologies, the Somalis look at them and they are immediately perceived as foreign,” says Bruton, “They’re perceived as Arab. It’s an Arab ideology. And just as the Somalis are hostile to American ideology, they’re hostile to Arab ideology as well.” Finally, the Somalis–Sufi Muslims since the birth of Islam in the seventh century–have moderate religious views; until recently, Taliban-style fundamentalism was unfamiliar in the country.

These factors were responsible for al-Qaeda’s failure in the 1990s, when it tried working closely with al-Ittihad al-Islami (AIAI). Al-Qaeda was unable to root itself in Somalia’s clan system, and, according to former ambassador to Ethiopia David Shinn, “overestimated the degree to which Somalis would become jihadists.” The experience of the al-Qaeda operatives was so treacherous that Bruton says: “U.S. intelligence officials came up with a verdict that Somalia was actually inoculated from foreign terrorist groups, that it’s just fundamentally inhospitable, that the clan system is so closed to foreigners that there’s just no way that these groups can operate.”

Since the Ethiopian invasion, al-Qaeda has seen a resurgent connection to the country, and HI and al-Shabaab control most of the territory. However, experts disagree over whether Somalia could be the base for an international attack or whether the group will continue its domestic focus. “Personally, my view is that they don’t have much to gain by [partnering with al-Qaeda to conduct an international attack],” Bruton says. “And they probably don’t have the capacity to do it. But it’s worrisome that they’re making the threats, so I think it’s something to be watched and assessed very carefully. But right now, I would say the odds of a transnational attack are very, very low.” More here.

Hawaii, Missile Defense Test MRBM Success

Posted on August 30, 2017August 30, 2017 by Denise Simon

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.”

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.

Italian Mafia Running Libyan Migrant Operation(s)

Posted on August 23, 2017August 23, 2017 by Denise Simon

Question is this: Is the Mafia trying to save Italy from the migrant crisis or could they be exploiting the crisis coming out of Libya?

A newly formed militia may be the reason why the number of migrants arriving in Italy from Libya has plummeted over the past month.

Sources told Reuters a “former mafia boss” is leading a group of several hundred policemen, army officials and civilians as part of a “very strong campaign” to stop boats taking off from Sabratha, an ancient city 45 miles west of Libya’s capital, Tripoli.

The number of arrivals in Italy has dropped by more than 50 per cent since mid-July in what is usually a surge period, when smugglers encourage Mediterranean crossings before winter approaches and the sea gets rougher.

Dawn

Since 2015, Sabratha has been the most regular departure point for migrants and refugees attempting to reach Europe.

Migrants coming from across Africa told The Independent they usually pay smugglers between $1,700 (£1,300) and $2,200 (£1,700) for the dangerous sea journey from Libya to Italy. However, many are captured by militias inside Libya, some of whom hold them hostage while demanding more money from their families.

A recent report by British charity Oxfam found that 84 percent of refugees and migrants who have come through Libya suffered inhuman or degrading treatment, extreme violence or torture there. Some 80 percent were regularly denied food and water, while 70 percent said they had been tied up.

A 2016 UN report documented sexual abuse, beatings, forced labour and malnutrition inside Libyan immigration detention centres. More here.

ISIS Accused of Beheading 11 in Libya as Jihadis’ Strength Grows in North Africa

At least 11 people have been beheaded in southern Libya following an attack apparently carried out by the Islamic State militant group (ISIS).

Nine fighters loyal to the Libyan National Army (LNA), the force aligned with Libya’s eastern government, and two civilians were executed following an assault on a checkpoint 300 miles south of the Libyan capital, Tripoli, in Jufra.

No group has claimed responsibility for the killings, but according to Agence France-Presse, LNA spokesman Colonel Ahmed al-Mesmari, ISIS carried out the gruesome attack.

The onslaught against the LNA forces, under the command of Gaddafi-era General Khalifa Haftar, comes as Libyan military sources warn ISIS is regrouping following catastrophic defeats in December 2016.

Related: African migrants smuggled into Libya sold at ‘Modern-Day Slave Markets’

The Times of London reported there were now believed to be 1,000 ISIS fighters in Libya. While the number is a fraction of the 6,000 said to be present in the country when ISIS was in its ascendency in Libya in 2015, the militants are said to be expanding.

Forces loyal to Tripoli’s western government, which ousted ISIS from its stronghold of Sirte in December 2016, have said the jihadis are attempting to regroup to the southwest of the city, close to the scene of the beheadings.

“They are looking for a new haven in the central region, the number is increasing bit by bit by the hundreds,” a spokesman for the anti-ISIS forces said.

An armed motorcade belonging to ISIS drives along a road in Derna, in eastern Libya, October 3, 2014. ISIS is accused of beheading 11 prisoners in the desert south of Tripoli. Reuters

Following ISIS’ defeat in Sirte, the U.S. military said it killed more than 80 militant fighters in air strikes. Among those killed were said to be individuals plotting attacks in Europe.

In 2014, at the start of Libya’s civil war, widespread anarchy in Libya provided a breeding ground for ISIS and allowed the black market trade in guns, petrol and people to flourish in the North African nation.

Similar conditions now continue in Libya’s lawless south, where forces loyal to the eastern and western governments trade territory in sporadic fighting.

In June, the LNA seized key strategic positions in Jufra from opposing forces, the Benghazi Defense Brigades coalition. The group, some of whose forces have been aligned with Al-Qaeda in the past, includes a wide variety of Islamists with competing allegiances.

Spain Terrorists Captured Killed, and Spain’s History

Posted on August 21, 2017August 21, 2017 by Denise Simon

SUBIRATS, Spain (Reuters) – Spanish police on Monday shot dead an Islamist militant who killed 13 people with a van in Barcelona last week, ending a five-day manhunt for the perpetrator of Spain’s deadliest attack in over a decade.

Police said they tracked 22-year-old Younes Abouyaaqoub to a rural area near Barcelona and shot him after he held up what looked like an explosives belt and shouted “Allahu Akbar” (God is Greatest). The bomb squad used a robot to approach his body.

Photo

*** Meanwhile…

al Qaeda and the Spanish Taliban have real history in Spain where even some planning for the 9/11 attack also took place in addition to Hamburg, Germany. Further, a previously released Gitmo detainee has been arrested in 2014 in Spain. See more here.

Spain has a long history of militant Islam just as noted as the many arrests in 2015. Yet it appears these are intermittent events and they are causes for concern not only for Europe due to the Schengen agreement but the United States due to the visa waiver program.

Al-Andalus, which means, “to become green at the end of the summer” is referred to the territory occupied by the Muslim empire in Southern Spain, which refer to the cities of Almeria, Malaga, Cadiz, Huelva, Seville, Cordoba, Jaen and Granada.

For the Arab world, Spain, or at least the romanticized and nostalgic image of Al-Andalus, is still a concept to conjure with.[3] The great liberal Syrian writer Abdel Salam Al-Ujayli (ironically, from a prominent family in the ISIS stronghold of Raqqa) dealt with this theme in his evocative and sympathetic story “The Lanterns of Seville” (1954).[4] Much of the narrative is about an idealized past being lost and this as part of a larger decline. In this sense, the lament is as much or more about “the Muslims” than about Spain itself. This is a common theme. In 2014, the commander of Iran’s Islamic Revolutionary Guard Corps (IRGC), Qasim Suleimani, listed the decline of the Muslim world as beginning with the fall of Muslim Spain.[5]

Other echoes of Al-Andalus are more subtle or diplomatic. In 1997, the Saudi ruling family built a massive white mosque at the foot of the great cliff of Gibraltar (Gibraltar is named, of course, for the conqueror of Al-Andalus, Tariq Ibn Ziyad, and so Gibraltar is “Tariq’s Mountain”) in the British Overseas Territory of the same name. The December 22, 1997 account in Al-‘Alam Al-Islami, published by the Muslim World League and translated by MEMRI, is surprisingly straightforward. It is mostly a historical account of the struggle for supremacy of the site between the Muslims, the Spanish and later, the English, but noting that “the flag of Islam waved high in the Iberian Peninsula, for eight centuries of glory, culture, thought and science.” There is little or no whining, special pleading, or loaded language.

But much more common is the idea that the loss of Spain is an historic wrong that must be erased by violence. Salafi-jihadis from Osama bin Ladin to ISIS fighters in North Africa have frequently made this point. “Let the whole world know that we will never accept that the tragedy of Al-Andalus would be repeated,” was a sentence used by bin Ladin in October 2001 in a video message after the September 11 attacks.[6] In 2013, the Taliban called for reconquering Spain, accusing the infidel West of having “alienated Muslims from their glorious history.”[7] Urdu-speaking jihadis compared the loss of Kashmir to that of Al-Andalus.[8]

The official media arm of Al-Qaeda in the Islamic Maghreb (AQIM) official media arm is called Al-Andalus.[9] Launched in 2009, the name was intentionally chosen “because it is the Muslims’ lost paradise.” AQIM justified the name by quoting seminal jihadist activist and founder of Al-Qaeda, Dr. Abdullah Al-Azzam, as saying, “Jihad has been an individual obligation since 1492, when Granada fell to the infidels – the Christians – and is to this day. And jihad will remain an individual obligation until we restore every bit of land that was once Islamic to the lands of Islam and to the Muslims.”[10] In another dispatch from 2007, AQIM called Spain “the stolen land.”[11]

Read much more here of the excellent summary by MEMRI