India's commercial capital, Mumbai (Bombay), was the scene of a major attack on 11 July when seven coordinated explosions ripped apart local trains during the rush hour commute, killing more than 230 people and injuring more than 700 injured. A day later, this tragedy was pushed aside by the widening conflict in the Middle East. Already launching major operations in Gaza, Israel opened a second front against Hezbollah and Lebanon. Meanwhile, the issues of nuclear terrorism and the unresolved issues regarding the nuclear programs in North Korea and Iran continue to fester, and global security is plumbing new depths. On a different note, the Happy Planet Index, which measures consumption levels, life expectancy, and happiness rather than national economic wealth, finds that Vanuatu is the happiest nation - islands in general performed well.

---

3. AML/CFT Monitor

The AML/CFT Monitor is a monthly 16-page print publication. News highlights from the past week are provided in this free email update, but detailed analysis, background information and source documents are only available to subscribers. Purchase a subscription at our online store:
TAMNI Publications

--------------------------------------------------
AML/CFT Incidents/Cases
--------------------------------------------------
Alan Drazek has been sentenced in US court to two months in prison, two years probation, 200 hours of community service, and a $15,000 fine for his role in a tax fraud that stemmed from his laundering nearly $400,000 through his direct mail company. The republican political consultant did this as a favor to lobbyist Donald Udstuen, a close associate of Illinois Governor Ryan.
http://www.chicagotribune.com/news/custom/newsroom/chi-060712drazek,1,1580010.story?

A family of travelers (gypsies) was sentenced in English court to prison terms and other punishments for crimes associated with money laundering operations involving nearly GBP 1 million.
http://www.harboroughtoday.co.uk/ViewArticle2.aspx?SectionID=760&ArticleID=1625111

Animal dealer C.C. Baird and his wife were sentenced to probation and fines amounting to more than $1 million following their conviction for money laundering related to sale of dogs and cats to research facilities.
http://www.semissourian.com/story/1160388.html

Federal authorities in California have blocked the sale of three condominiums tied to Lorenzo Arce Flores, recently designated under the Foreign Narcotics Kingpin Act (see below).
http://www.signonsandiego.com/news/metro/20060714-9999-7m14launder.html

Jean-Cyril Spinetta, the CEO of air France-KLM, is being questioned in France as part of an investigation into alleged money laundering and illegal employment practices.
http://www.forbes.com/2006/07/12/spinetta-air-france-cx_cn_0712autofacescan06.html
--------------------------------------------------
AML/CFT Legislation and Regulation
--------------------------------------------------
The EU's Court of First Instance has clarified the rights of individuals whose funds have been frozen in connection with the fight against international terrorism. It provides for judicial rule before national courts and calls for Member States to:
* Ensure so far as possible that the persons concerned are put in a position to argue their point of view effectively before the competent national authorities;
* Not refuse to initiate the review procedure solely because the persons concerned could not provide precise and relevant information, owing to their having been unable to ascertain the precise reasons for which they were included in the list in question, on account of the confidential nature of those reasons; and
* Be bound to act promptly in order to ensure that such persons? cases are presented without delay and fairly and impartially to the Sanctions Committee, if that appears to be justified in the light of the relevant information supplied.
http://www.europa.eu/rapid/pressReleasesAction.do?reference=CJE/06/57&format=HTML&aged=0&language=EN&guiLanguage=en

Australia has released a revised exposure draft of the anti-money laundering and counter-terrorist financing bill for public comment. The current version reflects suggestions from the superannuation sector, to implement customer identification requirements on payout from a fund rather than up front.
http://www.ag.gov.au/agd/WWW/justiceministerHome.nsf/Page/Media_Releases_2006_3rd_Quarter_13_July_2006_-_Revised_exposure_draft_of_anti-money__laundering_and_counter-terrorist_financing_Bill__released_for_public_comment

Cambodia's cabinet endorsed proposed AML/CFT legislation and approved a draft counterterrorism bill.
http://www.philstar.com/philstar/NEWS_FLASH07162006313_7.htm

Indonesia's Financial Transaction Reports Analysis Center (PPATK) has proposed amending the 2003 Money Laundering Law to give PPATK the power to sanction entities that fail to report suspicious transactions.
http://www.thejakartapost.com/yesterdaydetail.asp?fileid=20060711.L01
http://www.ppatk.go.id/

Financial Services Ireland (FSI), an industry group, warned that the absence of a national identity card system puts Ireland at a major disadvantage in fighting organized crime and terrorist financing.
http://www.ibec.ie/ibec/press/presspublicationsdoclib3.nsf/wvPCSN/E78787126012E526802571AA00385415?OpenDocument

The State Bank of Pakistan has issued changes to AML regulations to better comply with FATF recommendations, including stronger Know Your Customer rules and more rigorous suspicious transaction investigation and reporting, particularly in any case that may be associated with terrorist financing.
http://www.sbp.org.pk/bpd/2006/C5.htm

Swaziland's Anti-Corruption Act has come into force, permitting the Anti-Corruption Unit to seize assets illegally acquired through bribery or kickbacks, and includes penalties for those offering bribes. The law will be enforced following a public education campaign.
http://www.irinnews.org/report.asp?ReportID=54618

The Bank of England has added Dragan Zelenovic to the list of those subject to financial sanctions against individuals indicted by the International Criminal Tribunal for the Former Yugoslavia.
http://www.bankofengland.co.uk/publications/news/2006/074.htm

HM Revenue and Customs has released a leaflet providing AML advice to money transmitters and bureau de change. It is available n English, Bengali, Farsi, Hindi, Punjabi, Spanish, and Urdu.
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_PROD1_025708

A joint assessment of United States' AML/CFT standards by the Financial Action Task Force (FATF) and the Asia Pacific Group (APG) found:
* The US has a comprehensive legal and institutional framework for investigating and prosecuting money laundering and terrorist financing offenses.
* The US vigorously pursues, seizes and confiscates the assets of criminals involved in money-laundering and terrorist financing.
* The US has an effective regulatory and supervisory framework for monitoring compliance with AML/CFT measures and has imposed severe financial penalties on financial institutions that do not comply with the measures.
* Customer identification requirements apply to most types of financial institutions; however, these could be strengthened, particularly in relation to the identification of beneficial owners.
* AML/CFT measures presently apply to a broad range of financial institutions; however, the FATF recommends that comprehensive AML/CFT measures should also apply to a wider range of non-financial businesses and professions.
* Company formation procedures and reporting requirements are such that the information on beneficial ownership of legal persons may not, in most instances, be adequate, accurate or available on a timely basis.
http://www.fatf-gafi.org/dataoecd/44/12/37101706.pdf (summary)
http://www.fatf-gafi.org/dataoecd/44/9/37101772.pdf (report)
http://www.fatf-gafi.org/dataoecd/44/11/37101744.pdf (annexes)

The US Treasury Office of Foreign Assets Control (OFAC) identified 34 companies and individuals associated with two Mexican drug cartels, the Arellano Felix Organization and the Arriola Marquez Organization, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). OFAC states that under the leadership of Lorenzo Arce Flores, this financial network uses money services businesses and other front companies in Mexico to launder drug monies.
http://www.treas.gov/press/releases/hp08.htm

The Financial Crimes Enforcement Network (FinCEN) took action regarding two Latvian banks. In the case of Multibanka, FinCEN withdrew its April 2005 finding that Multibanka was a financial institution of primary money laundering concern and also withdrew the notice of proposed rulemaking against Multibanka. The second action involved VEF Banka. In this case, FinCEN issued a final rule which imposed a special measure against VEF Banka as an institution of primary money laundering concern, thereby prohibiting US financial institutions from opening or maintaining correspondent accounts for or on their behalf. FinCEN determined that VEF was a banking resource for illicit shell companies in financial fraud rings, permitting ATM withdrawals in significant amounts, which is an essential component of the execution of large financial fraud schemes. Although VEF has revised its policies and procedures, closed approximately 600 questionable accounts, and changed its management, reported links between VEF owners and organized crime groups continue to raise concern.
http://www.fincen.gov/latvia_311_withdraw.html
http://www.fincen.gov/311multibanka070706.pdf
http://www.fincen.gov/vef_final_rule_070706.pdf"

FinCEN announced the termination of the unsuccessful Bank Secrecy Act (BSA) Direct Retrieval and Sharing Component project.
http://www.fincen.gov/bsa_direct_nr.html
http://www.fincen.gov/bsa_direct_report_071306.pdf"

The Office of Thrift Supervision (OTS) announced an industry-wide conference call on "BSA/AML - Getting it Right", to provide information on best practices, common violations, and consequences of noncompliance to the BSA and AML regulations.
http://www.ots.treas.gov/docs/7/776030.html

Note the Congressional Research Service report, "Treasury's Terrorist Finance Program's Access to Information Held by the Society for Worldwide Interbank Financial Telecommunication (SWIFT)".
http://www.fas.org/sgp/crs/natsec/RS22469.pdf

The State of Nevada's Gaming Control Board is considering repealing the state AML Regulation 6A, to instead comply with the more stringent Patriot Act and FinCEN regulations.
http://www.casinocitytimes.com/news/article.cfm?contentID=159735
http://gaming.nv.gov/

The Florida International Bankers Association (FIBA) trade association has launched the FIBA Anti-Money Laundering Institute to focus on special training for higher risk business and international transactions.
http://www.fiba.net/index.cfm/id/234.html
--------------------------------------------------
AML/CFT Modalities
--------------------------------------------------
Canadian troops in Afghanistan were able to confirm the connection between the drug trade and financing of Taleban activities, when they found evidence including about $3 million in opium, inside the Taleban compound they were battling.
http://www.canada.com/topics/news/story.html?id=34814976-7f4f-40f3-870e-a25c0f427920&k=97691

Afghan President Karzai has urged people to replace their poppy crops with pomegranates, but a kilo of dry opium fetches about $140 while a kilo of pomegranates garners only between .50 and $2.
http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=2&article_id=73948

---

4. Emerging Threat Monitor

For detailed analysis, background information and source documents consider subscribing. Subscriptions to Emerging Threat Monitor can be purchased at our online store:
TAMNI Publications

--------------------------------------------------
ETM Corruption and Transnational Crime
--------------------------------------------------
Some two dozen Egyptian newspapers suspended publication on Sunday to protest a draft law that makes it a crime punishable by prison to question the financial integrity of an individual. Journalists say this will prevent investigations into corruption.

Insider trading charges against Taiwan President Chen Shui-Bian's son-in-law, Chao Chien-ming have further undermined Chen's political standing. These charges join prior scandals involving Chen's family and close allies. In June, more than half of the legislature backed a recall motion, but fell short of the two-thirds majority required to pass.

Tongsun Park has become the first person convicted of criminal charges in connection with Iraq's oil-for-food program. The South Korean businessman was found guilty in US court of conspiracy, and sentencing was scheduled for 26 October.
http://times.hankooki.com/lpage/nation/200607/kt2006071418395911990.htm
http://www.tongsunpark.com/

Swaziland's King Mswati III has signed the law putting into force a government Anti-Corruption Unit, ten years after it was established.
http://www.irinnews.org/report.asp?ReportID=54618

The UK "cash for peerages" scandal has reached a new level with the arrest of Lord Levy, the Labor party's chief fundraiser, Middle East envoy, and close friend of Prime Minister Blair. As the investigation proceeds, at least two Ministers and politicians from multiple parties are being questioned, as suspects and as potential witnesses.
http://news.bbc.co.uk/2/hi/uk_news/politics/4812822.stm
http://politics.guardian.co.uk/funding/story/0,,1820055,00.html
http://www.timesonline.co.uk/article/0,,59-2269187,00.html

The UK Department for International Development issued a new white paper, "Making Governance Work for the Poor". Key points include:
* Delivering the promises made in 2005
* Putting governance at the center of our work
* Increase our effort to help people have security, incomes through growth and public services, committing 50 percent of all future bilateral aid to public services for poor people
* Working internationally to tackle climate change
* Helping create a 21st century international system with more effective international bodies
http://www.dfid.gov.uk/wp2006/default.asp
--------------------------------------------------
ETM Economies and Financial Systems
--------------------------------------------------
World Trade Organization (WTO) members have approved a new transparency mechanism under which regional trade agreements can be assessed early to see if they are consistent with WTO rules, helping speed assessment and reduce the current approvals backlog.
http://www.wto.org/english/news_e/news06_e/rta_july06_e.htm

Russia and the US failed to agree on terms for Russia to join the WTO.
http://news.bbc.co.uk/2/hi/europe/5183892.stm

The Organization for Economic Cooperation and Development (OECD) has invited public comment on draft guidelines to help governments and regulators improve the funding and benefit security of pensions, part of a broader effort to restore public confidence in pensions.
http://www.oecd.org/document/3/0,2340,en_2649_34853_37083779_1_1_1_1,00.html

Vietnam's stock market valuation increased by nearly 50 percent following the listing of its first bank, Saigon Commercial Bank (Sacombank). With a market capitalization of nearly $1 billion, it is the largest company on the exchange.
http://vietnamnews.vnagency.com.vn/showarticle.php?num=01BAN130706
http://www.bloomberg.com/apps/news?pid=20601087&sid=aH31vQii2KtU
http://www.sacombank.com/
--------------------------------------------------
ETM Environment and Climate Change
--------------------------------------------------
15 July is the International Day of Direct Action Against Climate Change.
http://www.climateimc.org/?q=node/493

The US Senate Committee on Environment and Public Works, Subcommittee on Clear Air, Climate Change and Nuclear Safety, held a hearing on the Environmental Protection Agency's proposed revisions to particulate matter air quality standards.
http://epw.senate.gov/hearing_statements.cfm?id=258490
http://www.epa.gov/pmresearch/

Republican committee members took an opportunity to criticize recent documentaries on global warming.
http://www.cbsnews.com/blogs/2006/07/13/publiceye/entry1799623.shtml
http://www.bloomberg.com/apps/news?pid=20601088&sid=aioxPLZizTeg

Scottish environmentalists warned of threats to Firth of Forth wildlife while oil is transferred from smaller tankers to a supertanker for onward shipment
http://news.scotsman.com/index.cfm?id=1028982006
http://www.mcga.gov.uk/c4mca/mcga-newsroom/mcga-press-releases.htm?id=BB4ADD8240095F5D&m=7&y=2006

Tara Arctic 2007 is a 2-year scientific expedition investigating the impact of climate change in the Arctic.
http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=483&ArticleID=5310&l=en
--------------------------------------------------
ETM Human Rights
--------------------------------------------------
The US state of Ohio has executed Rocky Barton under new guidelines for lethal injection.
http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060713/NEWS01/607130347/1077
http://www.drc.state.oh.us/Public/press246.htm

Australia's Ministerial Council on Immigration and Multicultural Affairs held their annual meeting. One of the topics discussed was the use of racial descriptions by police, such as "of Middle Eastern appearance". The current application of such descriptors will be subject to an independent review.
http://www.smh.com.au/news/national/which-faces-fit-middle-east-tag/2006/07/14/1152637872158.html

The UN has published a strategy for review, which would address exploitation and abuse by UN staff and related personnel.
http://www.un.org/Docs/journal/asp/ws.asp?m=A/60/
--------------------------------------------------
ETM Infectious Diseases
--------------------------------------------------
As of 14 July, there have been 230 confirmed cases of human H5N1 avian influenza, of which 132 have died. Indonesia confirmed that a child who died last week was the 41st H5N1 victim in the country, in which there have been 53 cases in total.
http://www.who.int/csr/disease/avian_influenza/country/cases_table_2006_07_14/en/index.html
http://www.who.int/csr/don/2006_07_14/en/index.html

Avian influenza is being controlled in Western Europe and in Southeast Asia apart from Indonesia, but is still expanding in Africa, presenting a threat that will remain for many years. Africa faces particular difficulties in enforcing control measures and addressing the illegal poultry trade.
http://www.fao.org/newsroom/en/news/2006/1000359/index.html

Following the New England Journal of Medicine letter in which Chinese scientists reported a case of avian influenza in 2003, China's Ministry of Health has contacted the scientists and is investigating the matter.
http://english.people.com.cn//200607/10/eng20060710_281704.html
--------------------------------------------------
ETM Populations
--------------------------------------------------
European and African countries held an emergency meeting to address growing levels of illegal immigration. Representatives of 57 countries agreed to closely coordinate and collaborate, to establish a tracking system, to increase awareness of the dangers of illegal migration, and to offer incentives such as financial support and employment. Human trafficking networks will also be targeted.
http://www.unhcr.org/cgi-bin/texis/vtx/news/opendoc.htm?tbl=NEWS&id=44b513f76
http://www.un.org/News/Press/docs//2006/dsgsm291.doc.htm
http://www.un.org/events/tenstories_2006/story.asp?storyID=2200

The Happy Planet Index surveyed 178 nations, evaluating consumption levels, life expectancy, and happiness rather than national economic wealth. The index concludes that Vanuatu is the happiest nation, followed by several south and central American countries. G8 countries scored poorly, with Italy 66th, Germany 81st, Japan 95th, UK 108th, Canada 111th, France 129th, US 150th, and Russia 172nd. The report says that "Islands perform well. Perhaps a more acute awareness of environmental limits has sometimes helped their societies to bond better and to adapt to get more from less. Combined with the enhanced well-being that stems from close contact with nature, the world as a whole stands to learn much from the experience of islands".
http://www.happyplanetindex.org
Also note, "What's so great about living in Vanuatu?"
http://news.bbc.co.uk/2hi/uk_news/magazine/5172254.stm

South Africa's investment in subsidized housing is no closer to overcoming shortages. In its place the pace of homelessness and informal settlement continues to increase.
http://www.irinnews.org/report.asp?ReportID=54511

World Population Day was marked on 11 July.
http://www.un.org/News/Press/docs/2006/sgsm10553.doc.htm"
http://www.unfpa.org/news/news.cfm?ID=821
--------------------------------------------------
ETM Technology
--------------------------------------------------
The Organization for Economic Cooperation and Development (OECD) has released proposed new Guidelines for Quality Assurance in molecular Genetic Testing for public comment.
http://www.oecd.org/sti/biotechnology/qualityassurance

Diamond Light Source, the largest scientific facility built in the UK for 30 years, has produced its first "synchotron" light beam that will launch a series of breakthrough physics experiments.
http://www.diamond.ac.uk/default.htm
http://news.bbc.co.uk/2/hi//science/nature/5178034.stm

The National Institute of Allergy and Infectious Diseases (NIAID) has launched the Program in Systems Immunology and Infectious Disease Modeling (PSIIM), which uses computational systems biology to better understand the complex biochemical networks that regulate the interactions between infectious organisms and the human or animal cells they infect.
http://www3.niaid.nih.gov/news/newsreleases/2006/systemsbio.htm

Freescale has unveiled a magnetoresistive random-access memory (MRAM) chip that can store data as a hard disc does.
http://www.freescale.com/webapp/sps/site/overview.jsp?nodeId=015424&tid=FSH
http://www.mram-info.com/
--------------------------------------------------
ETM Weapons (WMD, Proliferation)
--------------------------------------------------
There have been no advances in diplomatic efforts to resolve disagreements over the nuclear program in Iran.

North Korea has rejected a unanimous UN Security Council resolution that imposes limited sanctions in response to its recent missile tests, bans all trade in weapons material or technology, and demands suspension of the ballistic missile program. North Korea says it will instead expand its weapons programs.
http://www.un.org/apps/news/story.asp?NewsID=19211&Cr=Korea&Cr1=

Interpol held a workshop for the American on Preventing Bioterrorism. 78 delegates from 26 countries committed to measures including:
* regular threat and risk assessments to be made through the sharing of information between health, medical and law enforcement agencies
* creation or development of appropriate national legislation, inter-agency protocols, joint working procedures, early warning systems, equipment and regular training
* enabling of the implementation of necessary measures to prevent, respond to and investigate bioterrorism.
http://www.interpol.int/Public/BioTerrorism/Workshops/ChileJuly2006/default.asp

An historical case of proposed bioterrorism has been found in a letter from US General George Washington written to John Hancock in 1775, discussing the threat of smallpox.
http://www.usnews.com/usnews/news/articles/060716/16gw_eye.htm

The UK Ministry of Defense published The Historical Survey of the Porton Down Service Volunteer Programme 1939-1989. The chemical weapons testing it documents included a small number of tests that involved serious departures from ethical standards.
http://www.mod.uk/DefenceInternet/DefenceNews/DefencePolicyAndBusiness/ModPublishesPortonDownVolunteersHistoricalSurvey.htm

Papua New Guinea has established a Chemical Weapons Convention National Authority, under the Department of Foreign Affairs.
http://www.opcw.org/pressreleases/2006/PR37_2006.html

---

5. Critical Infrastructure Monitor

Critical Infrastructure Monitor gives you the background and analysis missing from these news briefings. Subscriptions can be purchased from our online store:
TAMNI Publications

--------------------------------------------------
CIM Banking and Finance
--------------------------------------------------
The European Anti-Fraud Office (OLAF) issued its annual report, which says that in 2005 OLAF recovered EU203 million lost through fraud and other irregularities, and is investigating 452 cases involving nearly EU2 billion.
http://ec.europa.eu/comm/anti_fraud/reports/index_en.html

In the UK fraud, error and overpayment costs the country some GBP1.7 billion each year. HM Revenue and Customs explained measures it is taking to tackle error and fraud in tax credits, including significant improvements to its IT systems.
http://www.hmrc.gov.uk/about/random-enquiry.pdf">Child and Working Tax Credit error
http://www.hmrc.gov.uk/about/error-and-fraud.pdf

The US Securities and Exchange Commission has published a Concept Release in advance of guidance for management in assessing internal controls for financial reporting, and addressing ways to mitigate compliance costs.
http://www.sec.gov/news/press/2006/2006-112.htm

The US House of Representatives voted to approve HR2990, the Credit Rating Agency Duopoly Relief Act of 2006, which would make the credit rating industry more transparent and competitive, and subject to greater oversight.
http://financialservices.house.gov/news.asp?FormMode=release&id=834&NewsType=1

The Financial Services held oversight hearings on diversity and industrial loan corporations, and the terror finance tracking program.
http://financialservices.house.gov/hearings.asp?formmode=All&congress=11
--------------------------------------------------
CIM Chemical
--------------------------------------------------
A leaky pipe in a chemical factory sent toxic chlorine fumes through the town of Yinchuan in northwestern China, hospitalizing 164 people, in a population of 210,000.

The State Environmental Protection Administration (SEPA) warns that nearly half of China's chemical plants pose serious risks of major environmental harm unless effective safety measures are taken. The chlorine gas leak is just one example of far too many cases of poor construction or maintenance that are increasingly posing threats to rivers, lakes, and densely populated areas.
http://news.xinhuanet.com/english/2006-07/11/content_4818672.htm
http://www.zhb.gov.cn/
--------------------------------------------------
CIM Cybersecurity
--------------------------------------------------
Microsoft's latest security update includes five patches for critical vulnerabilities.
http://www.microsoft.com/technet/security/bulletin/ms06-jul.mspx
http://www.us-cert.gov/cas/techalerts/TA06-192A.html
http://www.microsoft.com/technet/security/bulletin/ms06-036.mspx
http://www.microsoft.com/technet/security/bulletin/ms06-035.mspx

The US Department of State was subjected to a large-scale break-in involving backdoors in computers at headquarters and offices dealing with Asia. Recovery and investigation are ongoing.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/11/AR2006071101032.html

The US Department of Veterans Affairs' Inspector General issued " Review of Issues Related to the Loss of VA Information Involving the Identity of Millions of Veterans". The report is highly critical of management and information security policies and operations that led to the loss of personal data of more than 26 million veterans, and slow notification and recovery.
http://www.va.gov/oig/51/FY2006rpts/VAOIG-06-02238-163.pdf
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/13/AR2006071301609.html

A recent fraud demonstrates ways phishers are circumventing two-factor authentication.
http://blog.washingtonpost.com/securityfix/2006/07/citibank_phish_spoofs_2factor_1.html
http://www.schneier.com/crypto-gram-0503.html#2

Cornell University researchers with the Global Positioning System Laboratory have broken the codes used by Europe's Galileo navigation satellite.
http://www.news.cornell.edu/stories/July06/GPS.code.cracked.TO.html

Stephen Pincock writes in The Scientist of how "Biology fights computer viruses", modeling defenses after animal immune systems in a crowded environment.
http://www.the-scientist.com/article/daily/23794/

UK Information Commissioner Richard Thomas released his annual report, calling for personal data to be protected lest public trust be damaged by the huge costs of getting details wrong, confused, or outdated. He also warned that just because technology can enable data sharing does not mean that it should be. Carelessness has led to fraud and even mistaken criminal cases. Guidance on transferring personal data abroad was also released.
http://www.ico.gov.uk/cms/DocumentUploads/share_data_properly_or_risk_losing_public_confidence_13070.pdf
http://www.ico.gov.uk/cms/DocumentUploads/Guidance_issued_on_transferring_personal_information_overseas_100706.pdf

Memoranda obtained from the Times (London) suggest that the UK Identity Card scheme is likely to fail. The Home Office denies the plan will be scrapped, but reports suggest it is likely to face alterations or delays. Identity cards were not included in the new counterterrorism strategy (GTM/Europe, above).
http://www.timesonline.co.uk/article/0,,2087-2261631,00.html
http://www.identitycards.gov.uk/index.asp
--------------------------------------------------
CIM Dams
--------------------------------------------------
In Iraq, there is a special US Marine unit that focuses on dam protection: the Dam Security Unit.
http://www.usmc.mil/marinelink/mcn2000.nsf/0/AADB459ECBA68BC7852571A400360C32?opendocument

Israeli targets in Lebanon included the Barad river dam, as well as many bridges. The damage has been extensive.

A dam security guard in Thailand's southern Yala province was shot dead by militants, who also stole his pistol. The dam was unharmed.
--------------------------------------------------
CIM Defense Industrial Base
--------------------------------------------------
The UK Ministry of Defence and Swan Hunter have agreed to end a Tyneside ship building contract, which will now be transferred to BAE Systems in Scotland.
http://www.mod.uk/defenceinternet/defencenews/presscentre/pressreleases/wayaheadonlsdaprogrammeannounced.htm
http://www.swanhunter.com/

The US Army has terminated Halliburton's lucrative logistics contract in favor of splitting contracts among several companies, helping ensure better prices, as well as more accountability and transparency.
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/11/AR2006071101459_pf.html
http://www.halliburton.com/
http://www.afsc.army.mil/home/index.htm

The US Government Accountability Office (GAO) reviewed "Weapons Acquisition: DOD Should Strengthen Policies for Assessing Technical Data Needs to Support Weapon Systems".
http://www.gao.gov/cgi-bin/getrpt?GAO-06-839
--------------------------------------------------
CIM Emergency Services
--------------------------------------------------
Emergency responders in the US city of Cleveland, Ohio, have acquired a new emergency vehicle that incorporates on-site identification of potential biological or chemical agents.
http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1152693074277600.xml&coll=2
http://www.mccrone.com/

A UK bill making its way through parliament would impose tough penalties against those obstructing emergency services.
http://www.24dash.com/content/news/viewNews.php?navID=7&newsID=8152
--------------------------------------------------
CIM Energy
--------------------------------------------------
The G8 meeting plans to focus on energy and energy security. Other key issues include combating infectious diseases, education and demography, counterterrorism, and WMD proliferation. The unforeseen crisis in the Middle East will likely have a major impact on the discussions.
http://en.g8russia.ru/
http://ec.europa.eu/commission_barroso/president/focus/g8_en.htm

A 19-nation poll finds that energy policies pose grave threats of harming the Earth?s environment and climate, destabilizing the global economy, and sparking conflict and wars:
* 81 percent are concerned about the impact current energy policy is having on the Earth?s environment and climate.
* 77 percent express concern that energy shortages and prices will destabilize the world economy and 73 percent that competition for energy will lead to greater conflict and war between nations
* Strong majorities favor tax incentives to develop renewable energy supplies and higher fuel efficiency standards for automobiles
* Just one-half favor nuclear energy to reduce reliance on oil and coal. http://199.202.238.2/news_archives/bbcwsenergy/

China is the largest consumer of energy in the world after the US, and every two years adds as much power generation capacity as the total in France of Canada. Rapid growth has raised tensions with the needs for environmental protection and greater equity. The International Energy Agency discusses these issues in "China's Power Sector Reforms: Where to Next?"
http://www.iea.org/Textbase/press/pressdetail.asp?PRESS_REL_ID=183

The UK has published the conclusions of the Energy Review. Among proposals are:
* New nuclear power stations
* Electricity companies increasing from 15 to 20 the percent generated from renewables
* Storing carbon dioxide in old oil fields
* Energy efficiency incentives for homes and businesses
* Placing generators close to where power is used
http://www.dti.gov.uk/energy/review/index.html

The UK Commons Trade and Industry Select Committee suggested that the energy review dialogue should continue and the government should not rush into key policy decisions. The committee, which has issued reports on nuclear power, suggests that it may be advisable to extend the life of some nuclear plants rather than shut them down.
http://www.parliament.uk/parliamentary_committees/trade_and_industry.cfm

The US Senate Committee on Energy and Natural Resources held a hearing regarding Geothermal Energy and other renewable energy production on federal lands in western states. Among those testifying was a representative from the Government Accountability Office (GAO), who addressed the findings in the GAO report, "Renewable Energy: Increased Geothermal Development Will Depend on Overcoming Many Challenges".
http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=1576
http://www.gao.gov/cgi-bin/getrpt?GAO-06-629

The Baku-Tbilisi-Ceyhan pipeline, which links Azerbaijan, Georgia and Turkey, has been officially opened.
http://www.europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/282&format=HTML&aged=0&language=EN&guiLanguage=en
--------------------------------------------------
CIM Information Technology
--------------------------------------------------
Colorado State University (US) researchers are working on models to predict the likely flaws in the next version of a particular application or operating system.
http://www.cs.colostate.edu/testing/

Microsoft has ended support for the Windows 98 operating system.

The European Commission has imposed a penalty payment of EU280.5 million on Microsoft for continued non-compliance with its March 2004 competition decision.
http://www.europa.eu/rapid/pressReleasesAction.do?reference=IP/06/979&format=HTML&aged=0&language=EN&guiLanguage=en
http://www.europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/277&format=HTML&aged=0&language=EN&guiLanguage=en (FAQ)
--------------------------------------------------
CIM Nuclear Reactors, Materials, and Waste
--------------------------------------------------
"Securing the Bomb 2006 is a report commissioned by the Nuclear Threat Initiative that warns, "Urgent actions are needed to prevent a nuclear 9/11. Terrorists are actively seeking nuclear weapons and the materials to make them. With the needed nuclear materials in hand, making at least a crude nuclear bomb, capable of turning the heart of any modern city into a smoking ruin, is potentially within the capabilities of a sophisticated terrorist group. Yet scores of sites where the essential ingredients of nuclear weapons exist, in dozens of countries around the world, are clearly not well enough secured to defeat the kinds of threats that terrorists and criminals have demonstrated they can pose". The report goes on to review securing stockpiles in the former Soviet Union and the rest of the world, and provides recommendations to reduce the risks.
http://www.nti.org/e_research/stb06webfull.pdf

Russian President Putin and US President Bush have announced a global initiative to combat nuclear terrorism.
http://www.whitehouse.gov/news/releases/2006/07/20060715-3.html

"Nuclear Cleanup of Rocky Flats: DOE Can Use Lessons Learned to Improve Oversight Of Other Sites' Cleanup Activities" is a new report from the US Government Accountability Office (GAO). GAO identified four factors leading to clean-up of the former nuclear weapons production facility at Rocky Flats: overcoming challenges, an accelerated cleaning process, specific site characteristics, and financial incentives to the contractor. GAO recommended that the Department of Energy systematically track lessons learned at all of its cleanup sites.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-352
--------------------------------------------------
CIM Public Health and Healthcare
--------------------------------------------------
The US Food and Drug Administration (FDA) has approved a once-a-day, 3-drug combination antiretroviral treatment for HIV-1.
http://www.fda.gov/bbs/topics/NEWS/2006/NEW01408.html
--------------------------------------------------
CIM Telecommunications
--------------------------------------------------
The European Commission has proposed a regulation that would introduce the "European Home Market Approach" to telecommunication roaming charges within EU member states. If adopted, the a cap on roaming charges could cause the cost of making calls while traveling in the EU to fall by up to 70 percent.
http://ec.europa.eu/commission_barroso/president/focus/roaming_en.htm
http://www.europa.eu/rapid/pressReleasesAction.do?reference=CJE/06/59&format=HTML&aged=0&language=EN&guiLanguage=en
http://www.europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/276&format=HTML&aged=0&language=EN&guiLanguage=en (FAQ)

US District Judge Emmet Sullivan wants to call new witnesses to examine the Department of Justice's approval last October of SBC Communication's acquisition of AT and T. and Verizon Communication's acquisition of MCI. He said there are doubts that the deals are in the public interest.
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9001743&source=NLT_PM&nlid=8
http://www.dcd.uscourts.gov/

India's launch of the INSAT-4C on Monday failed when the rocket carrying it veered off course and exploded. The loss of the satellite was a blow to both the space program (following an equally unsuccessful test-fire of a nuclear-capable ballistic missile) and to the telephone, television, and other business applications relying on the enhancements that would have been made available through the satellite.

The world's two-billionth mobile phone user was connected earlier this month, and new users are signing up at the rate of 1,000 per minute..
http://www.gsmworld.com/news/press_2006/press06_29.shtml

Computing Which? Studied free Voice over Internet Protocol (VoIP) services, finding useful features, but limitations that suggest the continued need for a backup landline.
http://www.which.co.uk/press/press_topics/product_news/computing_which_magazine/dialling_over_the_internet_571_89148.jsp
--------------------------------------------------
CIM Transportation
--------------------------------------------------
Israel has destroyed the international airport in Lebanon and launched a total blockade of Lebanese ports.

The US Department of Homeland Security (DHS) has announced a rule proposing that DHS collect passenger information for flights and cruises bound for the US prior to their departure.
http://www.dhs.gov/dhspublic/display?content=5735

Australia's air marshal program is struggling with an internal investigation into accusations of preferential positions and other breaches of professional standards.
http://www.news.com.au/story/0,10117,19768362-421,00.html

An incident in which a Canadian national was able to pass through airport security checks has led to calls to tighten security at Indian airports. Seven kilos of heroin escaped detection in a suitcase cavity that could also have held an explosive or weapon.
http://www.hindustantimes.com/news/181_1745363,000600010001.htm

Panama's congress has approved a plan to widen the Panama Canal. A referendum on the matter will be held later this year.
http://www.acp.gob.pa/

The US Subcommittee on Government Management, Finance, and Accountability, House Committee on Government Reform held a hearing on "Securing Our Ports: Information Sharing is Key to Effective Maritime Security". Testimony found improvement, including an update to a prior Government Accountability Office (GAO) report on the topic.
http://reform.house.gov/GMFA/Hearings/EventSingle.aspx?EventID=46675
http://www.gao.gov/cgi-bin/getrpt?GAO-05-394

Chittagong anchorage, Bangladesh remains subject to an International Maritime Bureau piracy alert. The Barguna Trawler Owners' Association and the Workers' Association report multiple cases of mass piracy n the Bay of Bengal, citing injuries to some 80 fishermen and crew; abduction of 90; theft of 10 trawlers, and other crimes in the past week. Hefty ransoms are demanded for ships, cargo, and crew.
http://www.southasianmedia.net/cnn.cfm?id=308106&category=Law&Order&Country=BANGLADESH
http://www.thedailystar.net/2006/07/10/d60710061781.htm
http://www.icc-ccs.org/prc/piracyreport.php

Following the devastating rail explosions in Bombay (Mumbai), Rekha Chakravarthi, with the Institute of Peace and Conflict Studies, explains why terrorists target public transport systems: "... they present high concentrations of people, and provide ample scope for large-scale destruction. Ensuring effective security is difficult because of the high traffic volume. A large number of access points with few or no inspection procedures compound security problems. The lack of mandatory passenger identification for boarding these systems also makes mass transit systems preferred targets when compared with government or military facilities".
http://www.ipcs.org/whatsNewArticle1.jsp?action=showView&kValue=2084&status=article&mod=b

Australian rail passengers will no longer be locked inside trains after a crash or terrorist attack. RailCorp had adopted this policy to protect passengers from electric rails, but now plan to refit all carriage doors to better protect passengers from new threats and in accordance with the findings of the Waterfall accident inquiry.
http://www.smh.com.au/news/national/train-system-open-to-terrorist-attack/2006/07/13/1152637808194.html
http://www.smh.com.au/news/national/passengers-wont-be-locked-in--railcorp/2006/07/14/1152637872188.html
http://www.cityrail.info/general/waterfall.jsp

---

6. Disaster Reduction Monitor

News highlights from the past week are provided in this free email update, but detailed analysis, background information and source documents are only available to subscribers. Disaster Reduction Monitor subscriptions and other titles can be purchased here:
TAMNI Publications

--------------------------------------------------
DRM Incidents
--------------------------------------------------
Typhoon Bilis has killed at least 115 people in southeastern Chine.

A Pakistan International Airlines (PIA) aging Fokker passenger plane crashed, killing all 45 people on board. Preliminary analysis suggests a technical fault caused engine failure, and has ruled out a terrorist attack. The other planes in the fleet have been barred from passenger use and will be limited to freight.

In northern Bangladesh, a train collided with a crowded bus at an unmanned level crossing. At least 32 people were killed and 30 injured. An inquiry is under way.

Heavy rains in the Punjab has killed at least 25 Pakistanis.

Landslides in western Nepal have killed at least 17 people, with 15 missing. Local villagers, the Red Cross, and Maoist rebels are helping the rescue operation.

Flooding in Chile have left at least 15 people dead, and many communities cut off by mudslides.

Ten people are dead and 17 missing following flash floods and landslides in South Korea.

Soaring temperatures have contributed to raging wildfires in at least six locations in Portugal. In the Famalicao area, five Chileans employed to aid the local fire brigade, and a local man died when the wind suddenly changed and they were trapped in the fire.

The US state of California has declared a state of emergency in San Bernardino county where two huge brush fires have merged, creating a raging wildfire. One fatality has been found.
http://www.latimes.com/news/local/la-me-yucca15jul15,1,3636644.story?coll=la-headlines-california
http://www.cnn.com/2006/US/07/15/wildfires.ap/
--------------------------------------------------
DRM Response and Recovery
--------------------------------------------------
The collapse of a roof section in Boston, Massachusetts "Big Dig" tunnel system has been traced to compromised bolts or connector rods. Investigators have sent out a national appeal to try to identify any other tunnels using the same bolt-and-epoxy ceiling fasteners.
http://www.boston.com/news/traffic/bigdig/articles/2006/07/15/nationwide_search_begun_for_other_flawed_tunnels/

Entrepreneurial villagers affected by the devastating toxic mudflow that followed a gas well leak have been using the mud to build bricks. The chemical qualities of the toxic mud made them stronger, and production was less expensive in part because the hot mud needs less firing.
http://www.thejakartapost.com/yesterdaydetail.asp?fileid=20060712.A06

Individual Disaster Assistance Programs: Framework for Fraud Prevention, Detection, and Prosecution, by Gregory D. Kutz, managing director, forensic audits and special investigations, before the Subcommittee on Management, Integration, and Oversight, House Committee on Homeland Security. GAO-06-954T, July 12.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-954T

The US Army Corps of Engineers and the Bush administration submitted to Congress the Preliminary Technical Report on Louisiana Protection and Restoration. Apart from saying it would be expensive and take a long time, it was short on detail.
http://www.hq.usace.army.mil/cepa/releases/lacpr.htm

The Louisiana Insurance Commissioner has ordered property insurance providers in the state to give homeowners and business owners an extended deadline, to two years, to file lawsuits. Companies that do not grant the extension could face penalties including fines and license revocation.
http://www.ldi.state.la.us/
--------------------------------------------------
DRM Risks
--------------------------------------------------
Philippines residents near Mayon volcano have evacuated as it began a slow eruption.

Ecuador's Tungurahua volcano began releasing ash, gas, and magma at the end of the week. Increasingly active since May, high risk villages are being evacuated.

Colombia is urging residents at the foot of the Galeras volcano to evacuate, following an explosion of rock and gas.

Indonesia has lowered the highest alert status for Mount Merapi after the volcano's activity has declined.
--------------------------------------------------
DRM Mitigation
--------------------------------------------------
The Tsunami Evaluation Coalition has released its report, calling for a fairer system of emergency funding. The report finds that emergency relief is not given on the basis of need as much as in response to political pressure and demands of the donating public. For the 2004 tsunami, a total of over US $7,100 for every affected person was raised. In stark contrast, only $3 per head was spent on someone affected by the 2004 floods in Bangladesh. The report calls for independent monitoring to ensure funding is impartial, flexible, transparent, and in line with the principles of Good Humanitarian Donorship.
http://www.tsunami-evaluation.org/The+TEC+Synthesis+Report/Press+Release.htm

Only three buildings were left standing in the Indonesian village of Wonokromo after the 27 May earthquake in Java. These three buildings were built following earthquake resistance advice in a manual from Indonesian Islamic University's Center for Earthquake Engineering, Dynamic Effect and Disaster Studies.
http://www.thejakartapost.com/yesterdaydetail.asp?fileid=20060714.S01

The UN has reached an agreement with Thuraya Satellite Telecommunications Company to provide portable satellite terminals for rescue operations.
http://www.itu.int/newsroom/press_releases/2006/12.html

The Central Bank and Financial Services Authority of Ireland released "Business Continuity Oversight Expectations for Systemically Important Payment Systems (SIPS)".
http://www.centralbank.ie/frame_main.asp?pg=nws%5Farticle%2Easp%3Fid%3D199&nv=nws_nav.asp

---

7. Recommended Reading

Cover-ups and racist attacks are a contemporary reality, but as the number and scale of such incidents have mounted around the world, one incident in history helps place such cases in a broader context.

The Dreyfus Affair began in September 1894 when an anonymous note to the German military attache in Paris was found. It appeared to implicate Captain Alfred Dreyfus is leaking French military secrets. Because Captain Dreyfus was the highest-ranking Jewish artillery officer in the army, military authorities feared the wrath of a virulently anti-Semitic press and rushed the case to trial. Although it quickly became clear there was little evidence against Dreyfus, a court martial was rushed through, rife with procedural errors, and false or secret evidence. Dreyfus was convicted of high treason and sentenced to life in prison on Devil's Island, French Guiana. Soon after, it became obvious that the responsible officials had made a catastrophic error. The cover-up that followed involved at least eight generals and other officers, including the actual criminal, Commandant Ferdinand Esterhazy, whose guilt was established by 1896.

Dreyfus, his family and friends fought to expose the anti-Semitic conspiracy that had driven the conviction, and prove Drayfus's innocence. The case split society between liberal intellectuals and the conservative opposition supported by the military and clergy.

On 13 January 1898, novelist Emile Zola published an open letter to French President Felix Faure that was published in the L'Aurore newspaper. The publication of "J'accuse" became a seminal event in the history of journalism and a masterpiece of polemic writing against abusive authority. Zola provided a detailed explanation of the case, revealed the cover-up, disclosed the guilty party (who had since been tried and acquitted) and went on to accuse each of the conspirators of their crimes. J'Accuse can be found in collections of Zola's writings, or online here:
http://www.chameleon-translations.com/sample-Zola.shtml

Zola was charged with criminal libel. During the high-profile trial that followed, the truth did come out, but it did not prevent Zola's conviction (and subsequent personal ruin). It did however dramatically swing public opinion and, in 1899 Dreyfus was given a second trial. Again he was convicted, but was quickly pardoned and released. Only in 1906 was he formally cleared of the charges, when France's highest court reversed the judgement. Dreyfus was adjudged innocent, reinstated in the army, promoted, and awarded the Legion of Honor.

The centenary of Dreyfus's exoneration was marked on 12 July, with ceremonies to honor him and the principles of freedom and challenging authority that represents the French republic today, and reminds us all of the need to continue the fight against racism, anti-Semitism, and other hate crimes. Coverage of the centennial commemoration can be found here:
http://www.elysee.fr/elysee/elysee.fr/francais/actualites/deplacements_en_france/2006/juillet/centieme_anniversaire_de_la_rehabilitation_d_alfred_dreyfus.55159.html (in French)
http://tf1.lci.fr/infos/france/0,,3314263,00.html (in French)
http://www.lemonde.fr/web/article/0,1-0@2-3224,36-792598,0.html?xtor=RSS-3224 (in French)
http://www.mahj.org/gb/cadres/02_encemoment/c_expos.htm
http://www.justice.gouv.fr/musee/themes/detenus/34l.htm
http://news.bbc.co.uk/2/hi/europe/5166904.stm
http://www.guardian.co.uk/commentisfree/story/0,,1819221,00.html

Books detailing the Dreyfus affair, its aftermath, and the historical context include:
* Jean-Denis Bredin, "The Affair: The Case of Alfred Dreyfus" (Braziller)
* Michael Burns, "France and the Dreyfus Affair: A Brief Documentary History"
* William I. Brustein, "Roots of Hate: Anti-Semitism in Europe Before the Holocaust", Cambridge University Press
* Guy Chapman, "The Dreyfus Trials", (Stein and Day)
* Christopher E. Forth, "The Dreyfus Affair and the Crisis of French Manhood", (Johns Hopkins University Press)
* Martin P. Johnson, "The Dreyfus Affair: Honour and Politics in the Belle Epoque" (Palgrave Macmillan)
* Jacques Kayser, transl. Nora Bickley, "The Dreyfus Affair", (Kessinger Publishing)
* Albert S. Lindemann, "The Jew Accused: Three Anti-Semitic Affairs (Dreyfus, Bellis, Frank), 1894-1915", (Cambridge University Press)

This website provides a comprehensive digital bibliography:
http://www.dreyfuscase.com/

There have been a number of movies of the case, beginning with silent short films in 1899, soon after Zola's J'Accuse letter was published.
http://www.imdb.com/find?s=all&q=dreyfus

---

8. Asset Management Network News

For the first anniversary of the 7 July London bombings, we compiled "Report of the Official Account of the Bombings in London on 7 July", "Intelligence and Security Committee Report into the London Terrorist Attacks on 7 July 2005", and the government response to that report, on a single CD. Email [email protected] if you're interested in this, or if you'd like more information about out publications and services.

Visit our online store to purchase subscriptions to the Monitor series as well as our Special Reports, including our new Special Report "Trends in Terrorism: 2005".

Email [email protected] for details about the new products, publications, and information about services, including custom research.