Paid Cash for Real Estate or via LLC, Read on…

Note, there are other cities where real estate money laundering occurs with frequency. They include San Diego, Los Angeles, Houston, Dallas, Las Vegas, Chicago and Atlanta.

There are guidelines for real estate professionals, click here.

Money laundering also occurs in commercial real estate, click here.

The official 21 page document on real estate money laundering is here.

Click here to see an actual case that involved a Russian.

U.S. targets money laundering in all-cash home sales in Miami, Manhattan

Reuters: The United States is hunting down international criminals who launder money through real estate deals, with the Treasury Department ordering title insurance companies to report the identities of people paying cash for high-end properties in Miami and Manhattan.

The Financial Crimes Enforcement Network, an arm of the U.S. Treasury, said on Wednesday it is concerned that individuals buy residential real estate in cash through shell companies to hide their assets and veil their identities.

“We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money,” FinCEN Director Jennifer Shasky Calvery said in a statement.

FinCEN has issued rules aimed at preventing laundering through the mortgage market, but “cash purchases present a more complex gap that we seek to address,” Calvery added.

Title insurers will have to disclose buyer identities in deals of at least $1 million in Miami and at least $3 million for Manhattan, the Miami Herald reported. FinCEN did not answer Reuters’ requests for details.

Research conducted by the Homeland Security officials suggests that the majority of real estate purchases of at least $1 million in Florida’s Miami-Dade and Broward counties are made through shell companies, said John Tobon, deputy special agent in charge at Homeland Security Investigations in Miami.

Money trails linked to drug trafficking, foreign corruption and other criminal activity often lead to luxury real estate properties, but when agents try to determine the true, or “beneficial” owners, they find only documents listing shell companies, many of which in turn are owned by other shell companies, Tobon said.

“It is a part of every single significant investigation that we have ongoing right now,” he added.

But the threshold for reporting cash purchases is so low in the two markets that it will include many mainstream buyers, said Terrence Oved, lawyer with Manhattan real estate and commercial litigation firm Oved & Oved LLP.

“You’re going to get a lot of small fish caught up in this net,” he said.

The temporary orders begin on March 1 and last 180 days, and Oved expects a surge in deals to be completed March. Buyers may turn to other major metropolitan markets such as Los Angeles, as well, he added.

In November 2015, the most recent month for which data is available, 17 percent of the 82,595 all-cash purchases of single family homes and condos went to buyers with an “LLC” in the name, according to the housing data company RealtyTrac, indicating they were purchased by companies. Altogether, a third of home purchases in the United States since 2011 were all-cash.

Meanwhile, there were about $104 billion in transactions involving foreign investors in the U.S. real estate market between April 2014 and March 2015. More than half the buyers in those deals were from China, Canada, India, Mexico, and the United Kingdom, and the majority of transactions involving overseas buyers were in cash, said Deborah Friedman, who works in the FBI’s money laundering intelligence unit, in September.

Those purchases were concentrated in Florida, Texas, Arizona and California, she said.

The Patriot Act of 2001 required the Treasury to either issue rules on anti-money laundering controls and reporting of suspicious activity by real estate professionals or grant an exemption. The exemption has been in place now for more than a decade.

POTUS in 2016, No Lame Duck, Cure Cancer?

What about what Barack Obama said at the 2015 State of the Union? Fact checking:

#LastSOTU FACT CHECK: A Disastrous Foreign PolicyJanuary 12, 2016|Speaker Ryan Press Office

State of the Union: President Obama pushes for cancer cure

 CBS: |In his final State of the Union address, President Obama announced a new national effort to find a cure for cancer and put Vice President Joe Biden, who lost his son to the disease, “in charge of Mission Control.”

State of the Union 2016 ~ Mr. Speaker, Mr. Vice President, Members of Congress, my fellow Americans:

Tonight marks the eighth year I’ve come here to report on the State of the Union. And for this final one, I’m going to try to make it shorter. I know some of you are antsy to get back to Iowa.

I also understand that because it’s an election season, expectations for what we’ll achieve this year are low. Still, Mr. Speaker, I appreciate the constructive approach you and the other leaders took at the end of last year to pass a budget and make tax cuts permanent for working families. So I hope we can work together this year on bipartisan priorities like criminal justice reform, and helping people who are battling prescription drug abuse. We just might surprise the cynics again.

But tonight, I want to go easy on the traditional list of proposals for the year ahead. Don’t worry, I’ve got plenty, from helping students learn to write computer code to personalizing medical treatments for patients. And I’ll keep pushing for progress on the work that still needs doing. Fixing a broken immigration system. Protecting our kids from gun violence. Equal pay for equal work, paid leave, raising the minimum wage. All these things still matter to hardworking families; they are still the right thing to do; and I will not let up until they get done.

Who attended as the First Lady, Michelle Obama’s guests? Click here to find out. The DNC Chairwoman, Debbie Wasserman Schultz instructed several in Congress to bring a Muslim along as a guest and they did. A few of them were associated with terrorism.

The we have retired Army Colonel Allen West as he wrote his summary on the SOTU.

Townhall:  My assessment is that Obama spoke much about nothing that is pertinent to where we find ourselves today in America. His defined policy objectives were criminal justice reform, heroin abuse, our immigration system (meaning amnesty for illegals), gun violence, equal pay, paid leave, and raising the minimum wage.

President Obama talked about giving everyone a “fair shot” at opportunity in a new economy. First of all, who defines what a “fair shot” is? It appears that this is just more coded language for government-guaranteed equality of outcomes. The “every kid gets a trophy mentality” is not what America is about. That ideology is what gave us Carter’s Community Reinvestment Act, and eventually, the financial crisis and meltdown. Government decided that it was their mandate to give a “fair shot” to everyone who wanted to buy a home, and it did not end well. Government works best when it creates the policies that advance individual sovereignty so individuals may pursue their own defined dreams, the pursuit of happiness. Anything else, as we have seen and as President Obama champions, is antithetical to who we are.

Somehow, President Obama failed to address the 40-year low workforce participation rate and the fact that more Americans have been dropped from the workforce under his “fair shot” policies. Obama said nothing about a national debt that threatens the future of America. The poverty and food stamp rolls have exploded in these past seven years. That is not the best of America. It is certainly not the best that we can do. We must grow this economy and we can do so, along with reforming government spending, and eliminating crony capitalism and corporate welfare.

Obama’s vision of the future is centered on an ideological agenda that puts in peril the hopes and aspirations of our children and grandchildren. They will have less economic freedom and certainly less liberty if the Islamic terrorists prevail.

I have additional concerns from President Obama’s final SOTU address. First of all, if our military was so very strong then why did we have 10 U.S. Navy Sailors detained by the Iranians because the engines on two riverine assault boats malfunctioned? That makes no real sense to me. Nor have we taken care of our Veterans. I wear a ring on my salute hand trigger finger to remind me about the 22 Veterans a day who are committing suicide in America. While we know there are problems in our VA system, no major reform has been made and many perpetrators of this heinous wrong still hold their positions.

Obama said nothing about the Taliban’s resurgence and their hold on more territory than any time since 2001. It was just last week that the Taliban had an American Special Forces team trapped in Helmand province, yet Obama cannot bring himself to refer to this as “combat.” Obama’s own former acting CIA Director Mike Morrell testified Tuesday during a House Armed Services Committee that ISIS affiliations have grown far more Al Qaeda’s and that they comprise a legitimate strategic threat to the world and our homeland. There was no mention of ISIS’ most recent attacks in Baghdad and Istanbul. Again, Obama just could not bring himself to say Islamic terrorists or jihadists. In Obama’s mind, they are just “killers and fanatics,” and shutting down GITMO will reduce their recruiting efforts. No, Mr. President, your fecklessness and exhibited weakness emboldens ISIS and their allies which are growing from Boko Haram in Nigeria to Abu Sayyaf in the Philippines. Obama asked for Congress to vote on an Authorization for Use of Military Force (AUMF) but first we need a strategic plan to defeat ISIS. He could have articulated that but chose more lofty rhetoric and lecturing instead.

Russia has expanded and is in Crimea, Ukraine and Syria. China is building manmade islands by destroying reef systems and landing planes on these islands. Where are the environmentalists? China is also about to open up its first military base in Africa in Djibouti, as we have announced we are departing. The Iranian nuclear deal is a failure and has only served to empower and fund the number one state sponsor of Islamic terrorism. Iran is now exploiting their new-found strength and becoming a regional hegemony. Hence, the very open schism between Iran and Saudi Arabia.

President Obama talks about “protecting the American people” yet we had the biggest Islamic terrorist attack since 9-11 on his watch, San Bernardino. Before that it was Ft. Hood. And in the U.S., the enemy attacks our men and women in uniform with impunity, such as at the Naval Reserve Support Facility in Chattanooga. In the last week, we have arrested former refugee ISIS supporters in Sacramento and Houston. And who can forget the video of the horrific attempt to assassinate Philadelphia Police Officer Hartnett by an admitted Islamic jihadist. The American people are kind and willing to open up our arms to embrace those fleeing persecution, such as the Assyrians, Chaldeans, Coptics, and Yazidis, but those were not mentioned by President Obama. What the American people will not allow is what is happening in Germany and the rest of Europe. We will not allow a war on our women, as we are seeing there due to a clash of civilizational values, principles, and morals.

I can only wish that President Obama saw the enemy for who it is, and not the ideologically driven “threat” of climate change. Please read his entire response here.

No Rules of Engagement Leads to U.S. Humiliation by IRGC

Never fire unless fired upon, not even warning shots. It is alleged that 2 U.S. Navy ‘riverines’ had strayed into Iranian waters in the Persian Gulf. Exactly how do 2 boats ‘drift’ when those waters are in fact well known to all U.S. naval vessels? Don’t believe the story…. The United States is humiliated by Iran and John Kerry says thank you. Additional statements from VP Joe Biden and Defense Secretary Ash Carter.

In part from NYT’s: The waters in question are a frequent site of intelligence collection by the United States, Iran and many gulf countries. The American and Iranian Navies frequently encounter each other there.

The detention and release of the sailors comes at a particularly delicate moment in the tense American-Iranian relationship, just days before a nuclear deal is to be formally put in place, and under which the United States is to unfreeze about $100 billion in Iranian assets.

That step is to be made after international nuclear inspectors verify that Iran has shipped 98 percent of its nuclear fuel out of the country, has disabled and removed centrifuges, and has taken a large plutonium reactor permanently offline.

Riverines are valued at $3.0 million each and are fast boats complete with very advanced communications gear and guns including .50 cal weapons.

At 12:30 PM, EST, word came into the Pentagon that the Iranian Revolutionary Guard Corps, which reports directly to the Iranian mullahs had arrested 10 U.S. sailors near Farsi Island, a small island of several in the Persian Gulf. Farsi island is exclusively an IRGC base and is surrounded by mines in the water and gunboats. Drifting is the excuse but hardly likely while there were other naval vessels in those exact waters. The ten sailors were 9 males and 1 female. The female sailor was forced to cover her head.

Negotiation began as soon as the Pentagon was notified and further contacted the State Department Secretary, John Kerry and the White House situation room. The official statement was Iran was cooperating and the sailors were being treated with mercy.

In part from FreeBeacon: Iran asserts the sailors were released after the United States apologized, prompting a flurry of denials from senior Obama administration officials.

Ali Fadavi, commander of the IRGC Navy, said that Tehran had missiles locked on the United States at the time of the incident.

“They were in sight of our missiles,” Fadavi said in Persian, according to a statement carried by the IRGC’s official news outlet. “If this had happened, it would have led to their annihilation.

“We had high preparedness with coast-to-sea missiles, rocket-firing fast boats, and various capabilities,” he said. “We prevented their additional irresponsible movement with the statements we broadcasted internationally. It was proven to them that the IRGC Navy has the first and final word.”

The U.S. cannot stand up to Iran, according to Fadavi.

It appears our sailors were stripped of all communications gear as were the boats as the IRGC said the USS Truman, a carrier strike group was not behaving so a hostile arrest was made. John Kerry groveled, likely pledged other promises, offered profound apologies. Humiliating.

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Much more perspective from Michael Rubin:

AEI: There’s a common delusion out there that when the Islamic Revolutionary Guard Corps (IRGC) fires off ballistic missiles or kidnaps sailors it’s either hardline elements trying to embarrass moderates, or rogue actors. It may be a comforting conceit to believe that any element of the Iranian government is on “our side” but evidence suggests that at best, the Islamic Republic is playing a game of good cop-bad cop, and that outrages such as taking American sailors hostage are welcome, not rogue actions.

A riverine command boat operates during a maritime air support operations center exercise in the Arabia Gulf in this June 12, 2012 handout photo, provided by the U.S. Navy, January 12, 2016. U.S. Navy/Handout via Reuters .

A riverine command boat operates during a maritime air support operations center exercise in the Arabia Gulf in this June 12, 2012 handout photo, provided by the U.S. Navy, January 12, 2016. U.S. Navy/Handout via Reuters .

Let’s put aside the fact that Article 110 of the Iranian constitution (backed by practice and the statue of the Islamic Revolutionary Guard Corps) makes the Supreme Leader the “supreme commander of the armed forces” with the power to appoint and dismiss the chief of the general staff, IRGC commanders, and the commanders of the army, navy, and air force. In other words, if Supreme Leader wanted to make heads roll in response to such provocations, he could.

There’s a history here of Western diplomats excusing bad Iranian behavior out of a desire to exculpate “reformers” or to dismiss provocations as the action of rogues.

  • In 1989, for example, there was the Ghassemlou assassination, when Iranian officials — meeting an Iranian Kurdish leader and his aides to negotiate an end to strife between Iranian Kurds and the central government — ended up assassinating the Kurdish team at an apartment in downtown Vienna.
  • Then, in 1992, after the German foreign minister announced a policy to re-integrate Iran into the global community and increase trade, the Iranian government responded by assassinating another Kurdish delegation at a restaurant in Berlin.
  • In 1994, an Iranian terrorist team blew up the Jewish community center in Buenos Aires.
  • Beginning in 2003, the IRGC (despite the promises of then UN ambassador and now Foreign Minister Mohammad Javad Zarif) began infiltrating Iraq and equipping militias to murder American soldiers.

In each case, Western diplomats sought to deny Iranian government responsibility. What they did not realize until later was that in each case, the gunman or chief planner ended up with a promotion. Mohammad Jaafari Sahraroudi, for example, the man behind Abdol-Rahman Ghassemlou’s murder, subsequently became a brigadier-general in the Qods Force and was placed in charge of its intelligence directorate. Ahmad Vahidi, the mastermind of the 1994 Buenos Aires bombing, became President Mahmoud Ahmadinejad’s defense minister. Hassan Kazemi Qomi, a Qods Force operating serving as ‘ambassador’ to Iraq later won promotion to the Supreme Leader’s office, and Col. Amangah, the commander of the operation that seized the British sailors, later was decorated as soldier of the year. Promotions are hardly the punishment one would expect if the Iranian behavior really was not blessed, encouraged, and supported from the very top.

It’s time to stop deluding ourselves, and to judge Iran by what its actions are rather than what we would wish them to be.

 

Saudi Arabia Reveals Iran Spy Ring and JPOA

Saudi Cites Iran Spy Ring

ABU DHABI [MENL] — Saudi Arabia, amid a propaganda war, has reported an Iranian espionage presence in the Gulf Cooperation Council kingdom.

Officials said authorities have launched prosecution of four Iranians on charges of espionage. They said at least one of the defendants was accused of working for Iranian intelligence and recruited Saudi nationals.

This marked the second alleged Iranian spy cell dismantled in Saudi Arabia over the last year. Officials said a fifth Iranian was also accused of being part of the cell and linked to attacks in the Gulf Cooperation Council kingdom since 2003.

Officials said the fifth Iranian, sentenced to 13 years, was convicted of recruiting Saudis in Iran and sending them to fight in Afghanistan. The Iranian, who was not identified, was also charged with relaying funds for recruitment.

The Iranian espionage cell, reported in the Saudi-controlled media, was disclosed amid the crisis with Teheran fueled by Riyad’s execution of a leading Shi’ite cleric. The Saudi leadership has responded to Iranian condemnations by releasing information on Teheran’s executions of hundreds of dissidents over the last two years.

The Saudi media said the latest Iranian espionage cell stemmed from the arrival of an Iranian intelligence officer to the annual pilgrimage in the Saudi city of Mecca. The media said the cell, detected as early as 2014, also planned attacks but did not elaborate.

Riyad was said to have dismantled a previous Iranian cell in 2013. The Saudi media said the cell consisted of at least 27 alleged members, 24 of them Saudis and the rest nationals from Iran, Lebanon and Turkey.

Officials said Iran has sought to infiltrate Saudi Arabia from both the northern and southern border. On Jan. 8, the Saudi military battled hundreds of Iranian-backed Houthi fighters from neighboring Yemen, 35 of them were killed in the Raboua region.

“We are looking at additional measures to be taken if it [Iran] continues with its current policies,” Saudi Foreign Minister Adel Al Jubeir said on Jan. 9.

Meanwhile, there is little in the news about the JOPA, the P5+1 Iranian nuclear deal and there are good reasons…..lifting sanctions.

The Implications of Sanctions Relief Under the Iran Agreement

Congressional testimony by Mark Dubowitz

 

 

(1) The Joint Comprehensive Plan of Action’s (JCPOA) major design flaws, which provide Iran with patient paths to nuclear weapons and greater ballistic missile, heavy weaponry, and economic capabilities;

(2) The interplay between the P5+1 economic sanctions “snapback” and Iran’s “nuclear snapback” in limiting the ability of the United States to impose sanctions (a) to address Iranian non-compliance with the JCPOA and, (b) to punish Iranian illicit conduct in a range of non-nuclear activities such as support for terrorism; and,

(3) How sanctions relief under the JCPOA benefits the most hardline elements in Iran including the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Supreme Leader Ali Khamenei.

First, on so-called “Implementation Day,” Iran will receive substantial sanctions relief with which it can defend its economy against future sanctions pressure. Iran may also use sanctions relief to increase its support for terrorism and other rogue regimes and to expand its conventional military power. The JCPOA front-loads sanctions relief, providing Iran with access to around $100 billion in restricted oil revenues and reconnecting Iranian banks, including the Central Bank of Iran, back into the global financial system. Sanctions on Iran’s crude oil export transactions will be lifted, as will sanctions on key sectors of the Iranian economy including upstream energy investment and energy-related technology transfers, the auto industry, petrochemicals, and shipping, as well as the precious metals trade. This sanctions relief will enable Iran to build greater economic resilience against future pressure—both sanctions aimed at isolating other illicit financial conduct and so-called “snapback” sanctions in the event of Iranian nuclear non-compliance.

Then, after five years, or earlier if the International Atomic Energy Agency (IAEA) reaches a broader conclusion that Iran’s nuclear program is only for peaceful purposes, the international arms embargo will be lifted, meaning that Iran can also expand its conventional military capabilities and those of its proxies. Former Under Secretary of State for Political Affairs Nicholas Burns, one of the other witnesses at this hearing, noted one week before the announcement of the JCPOA that lifting the arms embargo “would be a great mistake. Iran is selling arms, giving arms, fueling civil wars in Yemen, in Lebanon, in Syria and Iraq, and so those arms prohibitions on Iran are very important.”1 He also has explained that the arms embargo was put in place “for very good reason.” He continued that it is not in the interest of the United States “to see these arms embargos lifted from Iran. It is an issue that should not be part of these negotiations. … I think we ought to maintain these U.N. embargos.”2 In five years, however, they will disappear, giving Iran access to combat aircraft, attack helicopters, battle tanks, among other advanced weapons systems. Read the full testimony here.

 

Secret Companies with Secret Objectives Near You

Is the nation’s largest online retailer part of a spy network? Have you given thought to the countless databases, harvesting data, human behavior, and all the interactions you have through the internet? Is Amazon now part of a larger incubation center for the federal government? You decide.

 Amazon network

Why Amazon’s Data Centers Are Hidden in US Spy Country

DefenseOne: Of all the places where Amazon operates data centers, northern Virginia is one of the most significant, in part because it’s where AWS first set up shop in 2006. It seemed appropriate that this vision quest to see The Cloud across America which began at the ostensible birthplace of the Internet should end at the place that’s often to blame when large parts of the U.S. Internet dies.

Northern Virginia is a pretty convenient place to start a cloud-services business: for reasons we’ll get into later, it’s a central region for Internet backbone. For the notoriously economical and utilitarian Amazon, this meant that it could quickly set up shop with minimal overhead in the area, leasing or buying older data centers rather than building new ones from scratch.

The ease with which AWS was able to get off the ground by leasing colocation space in northern Virginia in 2006 is the same reason that US-East is the most fragile molecule of the AWS cloud: it’s old, and it’s running on old equipment in old buildings.

Or, that’s what one might conclude from spending a day driving around looking for and at these data centers. When I contacted AWS to ask specific questions about the data-center region, how they ended up there, and the process of deciding between building data centers from scratch versus leasing existing ones, they declined to comment.

The fact that northern Virginia is home to major intelligence operations and to major nodes of network infrastructure isn’t exactly a sign of government conspiracy so much as a confluence of histories (best documented by Paul Ceruzzi in his criminally under-read history Internet Alley: High Technology In Tysons Corner, 1945-2005). To explain why a region surrounded mostly by farmland and a scattering of American Civil War monuments is a central point of Internet infrastructure, we have to go back to where a lot of significant moments in Internet history take place: the Cold War.

Postwar suburbanization and the expansion of transportation networks are occasionally overlooked, but weirdly crucial facets of the military-industrial complex. While suburbs were largely marketed to the public via barely concealed racism and the appeal of manicured “natural” landscapes, suburban sprawl’s dispersal of populations also meant increased likelihood of survival in the case of nuclear attack. Highways both facilitated suburbs and supported the movement of ground troops across the continental United States, should they need to defend it (lest we forget that the legislation that funded much of the U.S. highway system was called the National Interstate and Defense Highways Act of 1956).

Unlike Google and Facebook, AWS doesn’t aggressively brand or call attention to their data centers. They absolutely don’t give tours, and their website offers only rough approximations of the locations of their data centers, which are divided into “regions.” Within a region lies at minimum two “availability zones” and within the availability zones there are a handful of data centers.

I knew I wasn’t going to be able to find the entirety of AWS’ northern Virginia footprint, but I could probably find bits and pieces of it. My itinerary was a slightly haphazard one, based on looking for anything tied to Vadata, Inc., Amazon’s subsidiary company for all things data-center-oriented.

Facebook data-center

Google’s web crawlers don’t particularly care about AWS’ preference of staying below the radar, and searching for Vadata, Inc. sometimes pulls up addresses that probably first appeared on some deeply buried municipal paperwork and were added to Google Maps by a robot. It’s also not too hard to go straight to those original municipal documents with addresses and other cool information, like fines from utility companies and documentation of tax arrangements made specifically for AWS. (Pro tip for the rookie data-center mapper: if you’re looking for the data centers of other major companies, Foursquare check-ins are also a surprisingly rich resource). My weird hack research methods returned a handful of Vadata addresses scattered throughout the area: Ashburn, Sterling, Haymarket, Manassas, Chantilly. Much more of the report is here.

 Amazon’s Cloud center

CNBC: Palantir is notorious for its secrecy, and for good reason. Its software allows customers to make sense of massive amounts of sensitive data to enable fraud detection, data security, rapid health care delivery and catastrophe response.

Government agencies are big buyers of the technology. The FBI, CIA, Department of Defense and IRS have all been customers. Between 30 and 50 percent of Palantir’s business is tied to the public sector, according to people familiar with its finances. In-Q-Tel, the CIA’s venture arm, was an early investor.

Annual revenue topped $1.5 billion in 2015, sources say, meaning Palantir is bigger than top publicly traded cloud software companies like Workday and ServiceNow. It has about 1,800 employees and is growing headcount 30 percent annually, said the sources, who asked not to be named because the numbers are private.

Palantir serves up free meals for employees at 542 High Street, home to its cafeteria. A red sign reading “Private Company Meal” is attached to the window, and a neon blue sign on the inside says “Hobbit House.”

Other perks, according to people with knowledge of the company’s policies, include subsidized housing for employees who live in the neighborhood and help with monthly commuter Caltrain passes for those traveling down from San Francisco or up from San Jose. Employees who drive in get complimentary parking permits.

“They’re making a commitment here,” said Cannon.

“The idea is that it’s physically locked down and there’s no way you can take information out.” -Avivah Litan, Gartner analyst

For Palantir to stay, it has no choice but to spread out. Only one building in downtown Palo Alto even tops 100,000 square feet, and last year city officials limited total annual development in the commercial districts to 50,000 square feet.

There’s another benefit to having a disparate campus. In doing highly classified work for government agencies, some contracts require the use of particular types of units called Sensitive Compartmented Information Facilities, or SCIFs.

Avivah Litan, a cybersecurity analyst with Gartner, says qualities of a SCIF building include advanced biometrics for security, walls that are impenetrable by radio waves and heavily protected storage of both physical items and digital data.

“They have to make the walls so that no signals can be transmitted out of those walls,” said Litan, who is based in Washington, D.C. “The idea is that it’s physically locked down and there’s no way you can take information out.”

Having entirely separate facilities makes it easier to clear that hurdle, but even so, the vast majority of Palantir’s offices aren’t SCIFs. Read the full summary here.