The news this week was again dominated by worsening security in the Middle East, but this Newsletter covers all the other key events as well. For example, you can find information about new AML/CFT modalities including Hezbollah fundraising in the tri-border area of South America, money laundering through tax havens, and "sandwiching" illegal logs. There are also stories about emergency preparedness, soccer teams working against sectarianism and prejudice, and summer reading lists. On another matter, if you are interested in joining an advisory/editorial board or speakers bureau drop us a note to .

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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

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AML/CFT Incidents/Cases
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Indian police investigating the 7/11 train explosions have identified Saudi IT professional Rizwaan as the man who channeled hawala money from Lashkar-e-Toiba commander Azam Cheema to Faizal Ataur Rehman Sheikh, believed to be Lashkar's head in Mumbai (Bombay), who is in police custody.
http://www.indianexpress.com/story/9767.html

Nigerian state official Goke Olatuniji and project consultant Gbenga James pleaded not guilty to 15 counts of money laundering and other offenses.
http://allafrica.com/stories/200608020399.html

Arthur Budovsky and Vladimir Kats have been arraigned in US court for money laundering involving some $30 million of illegal transmissions, using the cash to purchase E-Gold, a digital currency backed with gold bullion, then opening other channels through which to move money.
http://www.manhattanda.org/whatsnew/press/2006-07-27.html

Kenneth Christopher Ketner pleaded guilty in California court to federal wire fraud and money laundering in connection with a $7 million fraud in which he pretended to finance loans but instead diverted the funds for personal use. Sentencing will take place in December.

Simon Taylor and Charles Wells were sentenced in Mississippi court to 41 months and 33 months in prison, respectively, for laundering drug money from Starsky Redd, a drug kingpin now serving a life sentence.

Seattle prosecutors have arrested a third attorney since last fall connected to drug trafficking. The latest incident involved real estate attorney Joel Manalang.
http://seattlepi.nwsource.com/local/279734_badlawyer02.html
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AML/CFT Legislation and Regulation
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Australian Attorney General Philip Ruddock said the government stands by its listing of Hezbollah as a terrorist group, and warns that charitable contributions should be made to established charities lest they contravene CFT laws.
http://www.ag.gov.au/agd/WWW/MinisterRuddockHome.nsf/Page/Media_Releases_2006_Third_Quarter_1552006_-_4_August_2006_-_Government_Stands_by_Hizballah_ESO_Listing
http://www.theage.com.au/news/national/terror-warning-over-lebanon-charities/2006/08/02/1154198193675.html

The Bahamas' Compliance Commission have revised AML/CFT guidelines to address risks specific to industries and professions.
http://www.jonesbahamas.com/?c=47&a=9563

India's Insurance Regulatory and Development Authority has issued Guidelines on Anti Money Laundering program for Insurers. It includes relaxed know your customer guidelines.
http://www.irdaindia.org/cirnonlife/guidelinesonaml27jul06.htm

Japan's Financial Services Agency announced draft revisions to tighten money transfer rules.
http://mdn.mainichi-msn.co.jp/business/news/20060803p2g00m0bu021000c.html
http://www.fsa.go.jp/

The Swiss Banking Institute released "Die Massnahmen zur Geldwaschereipravention im internationalen Vergleich". The international comparison of AML prevention measures examined practices in Switzerland, Germany and Singapore. They find the regulations are costly and have little impact on preventing drug trafficking or organized crime. Regulations among the countries were comparable, and use of standard practices helps maintain competitiveness. Strong AML measures have become a requirement for doing business internationally.
http://www.isb.unizh.ch/publikationen/amls/pdf/Aml2006-SbiVhv-pdf.pdf (in German)

The Bank of England issued additional financial sanctions against entities involved with al Qaeda and the Taleban.
http://www.bankofengland.co.uk/publications/news/2006/080.htm

The UK Treasury launched a consultation on proposed implementation of the EU's Third Money Laundering Directive.
http://www.hm-treasury.gov.uk/consultations_and_legislation/money_laundering_directive/consult_thirdmoney_index.cfm
http://www.timesonline.co.uk/article/0,,200-2292683,00.html

The UK Serious Organized Crime Agency (SOCA) released its first report since it was launched four months ago. This UK Threat Assessment 2006/7 finds that serious organized crime is increasing in scope and complexity, and that drug and people trafficking and fraud present the greatest threats to the UK. SOCA estimates the cost of organized crime at GBP20 billion.
http://www.soca.gov.uk/assessPublications/downloads/threat_assess_unclass_250706.pdf

The Police Service of Northern Ireland is working with the Assets Recovery Agency to train financial investigators across the UK to track money gained from illegal activity.
http://www.psni.police.uk/index/media_centre/press_releases/pg_press_releases_2006/pr_2006_august/pr_training_drive_to_seize_crime_cash_030806.htm

The US Treasury has designated the Philippine and Indonesian branches of the Saudi-based International Islamic Relief Organization (IIRO) for facilitating fundraising for al Qaeda and affiliated groups. Branch director Abd Al Hamid Sulaimann Al-Mujil was also directed. Both the Philippines government and the Moro Islamic Liberation Front (MILF) have supported the designation, and offered their help. These entities have also been added to the UN consolidated list.
http://www.ustreas.gov/press/releases/hp45.htm
http://newsinfo.inq7.net/breakingnews/metroregions/view_article.php?article_id=13640
http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/issues/terrorism/updates/2006_08_04_e.pdf

The Independent Community Bankers of America (ICBA) called for the Senate to review provisions in the Internet Gambling Prohibition and Enforcement Act passed by the House to address concerns over the burden of additional compliance, including payment monitoring and other requirements.
http://www.icba.org/news/newsreleasedetail.cfm?ItemNumber=23612&sn.ItemNumber=1733
http://www.icba.org/files/ICBASites/PDFs/ltr072806.pdf (letter)
http://www.online-casinos.com/news/news2636.asp
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AML/CFT Modalities
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Hezbollah financing in the tri-border area of Brazil, Argentina, and Paraguay is discussed here:
http://www.atimes.com/atimes/Front_Page/HH03Aa01.html
http://www.atimes.com/atimes/Front_Page/HH04Aa01.html

The US Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations, held a hearing on "Offshore Abuses: The Enablers, The Tools and Offshore Secrecy" in conjunction with an investigative report on this topic. The hearing presented case histories on the use of offshore trusts and corporations to circumvent tax, securities, and AML laws.
http://hsgac.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=385
http://hsgac.senate.gov/_files/TaxHvnAbRPT.pdf

The Philippines' National Anti-Environmental Crime Task Force has identified a new method of operating in illegal logging. The "sandwich" places a documented log from common plantation species on top of an undocumented log from rare premium hardwood to hide it and avoid detection.
http://www.sunstar.com.ph/static/zam/2006/08/06/news/denr.uncovers.illegal.loggers.modus.operandi.html

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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

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ETM Corruption and Transnational Crime
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The Corporate Library issued "Predicting Securities Class Actions". The update to last years study further clarifies the linkage between poor governance and future securities class action suits. Key findings include:
* Companies rated D or F are three times more likely to be hit by class-action suits
* Excessive CEO pay is the single most important warning flag of governance risk
* Companies in such industries as financial services, healthcare, high tech and pharmaceuticals are more prone to securities class action suits
http://www.thecorporatelibrary.com/

An Indian government inquiry has found former foreign minister Natwar Singh and his son guilty of misconduct over Iraq's oil-for-food program.
http://www.indianexpress.com/printerFriendly/10045.html

The Special Inspector General for Iraq Reconstruction reports that "Corruption continues as a serious threat to Iraq's fledgling democracy. Iraqi officials estimate the cost of corruption at $4 billion a year, and the Commission for Public Integrity has more than 1,400 criminal cases involving about $5 billion. A poll conducted this quarter found that one-third of Iraqis reported that they have paid bribes for products or services this year, and that they mistrust police and the army. More resources and stronger support will be needed for Iraq's nascent anticorruption entities to battle corruption effectively. SIGIR sees some positive signs in the Prime Minister's recent supportive commitment for anticorruption and a World Bank-sponsored anticorruption workshop for Iraqis and international donors.
http://www.sigir.mil//reports/pdf/Lessons_Learned_July21.pdf

Kenya's high Court has ruled that former Vice-President George Saitoti should not be charged in connection with the country's billion-dollar financial fraud known as the Goldenberg Affair. This decision is seen as a blow to the country's war against corruption.
http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=1&newsid=78532

Malawi's Director of Public Prosecutions Ishmael Wadi has dropped corruption charges against former President Bakili Muluzi because he determined that the charges could not proceed following the suspension by President Bingu wa Mutharika  of the case's chief investigator, Gustav Kaliwo. Parliament's Legal Affairs Committee will investigate why charges were dropped. Former ministry of education principal secretary Sam Safuli has been sentenced to two years in prison for aiding and abetting theft of public funds in connection with a $2 million scandal involving funds in his ministry.
http://www.nationmalawi.com/articles.asp?articleID=18081
http://allafrica.com/stories/200608020125.html
http://www.mg.co.za/articlePage.aspx?articleid=279628
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ETM Economies and Financial Systems
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Zimbabwe's inflation rate of nearly 1,200 percent has led the central bank to take three zeros off every bank note. The current exchange rate is 250,000 Zimbabwe dollars to one US. The new rate is 250 Zimbabwe dollars to one US. Now, police are setting up roadblocks to seize money from people they believe to be black marketers.
http://www.newzimbabwe.com/pages/inflation78.14480.html
http://www.irinnews.org/report.asp?ReportID=54998
http://www.rbz.co.zw/
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ETM Environment and Climate Change
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A massive oil spill in Lebanon has polluted the Lebanese and Syrian coasts and is threatening the Eastern Mediterranean as far as Turkey and Cyprus. The spill resulted from an Israeli air strike on the fuel tanks of Jiyeh power station on 13 and 15 July. The continued conflict is hindering response efforts, in what is rapidly becoming a regional catastrophe.
http://www.zaman.com/?bl=national&alt=&hn=35374
http://www.irinnews.org/report.asp?ReportID=54980
http://www.bloomberg.com/apps/news?pid=20601087&sid=aw92uvXiSPNM&refer=home

The Los Angeles Times has published "Altered Oceans", a 5-part series of articles on the crisis in the seas by Kenneth Weiss and photographer Usha Lee McFarling.
http://www.latimes.com/news/local/oceans/la-oceans-series,0,7842752.special

The UK Royal Society explains, "International scientific consensus agrees that increasing levels of man-made greenhouse gases are leading to global climate change. Possible consequences of climate change include rising temperatures, changing sea levels, and impacts on global weather. These changes could have serious impacts on the world's organisms and on the lives of millions of people, especially those living in areas vulnerable to extreme natural conditions such as flooding and drought". Launching an updated climate change web site, five prominent scientists offered their personal viewpoints:
http://www.royalsoc.ac.uk/page.asp?id=4607

The Institute for Public Police Research (IPPR) warns that apocalyptic visions of climate change turn off the public and lead to feelings of despair that result in inaction.
http://www.ippr.org.uk/pressreleases/?id=2240
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ETM Human Rights
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Jordan has decided to abolish the death penalty for some crimes, including possession of illegal explosives and weapons, and using force to prevent authorities from performing their duties..
http://www.irinnews.org/report.asp?ReportID=55000

Algeria, Morocco, and Tunisia are important allies in the US "war on terrorism". The US provides security assistance, but funding is restricted in cases of human rights violations. "Security Assistance: Lapses in Human Rights Screening in North African Countries Indicate Need for Further Oversight" is a report from the Government Accountability Office (GAO) addressing how well agencies comply with congressional human restrictions. GAO recommends that the secretaries of State and Defense establish systematic monitoring to ensure vetting procedures are carried out at foreign posts.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-850

The Indian Medical Association and the State Medical Council have launched inquiries into a television network sting operation that revealed physicians soliciting and being paid for amputation of healthy limbs from children and adults to increase income from begging.
http://www.ibnlive.com/news/docs-chop-off-limbs-for-beggars/17015-3.html
http://www.ibnlive.com/news/beggars-recount-their-horrific-tales/17094-3.html
http://www.ibnlive.com/news/doctors-hack-off-medical-ethics/17018-3.html
http://www.ibnlive.com/news/no-fir-so-butcher-docs-roam-free/17190-3.html
http://www.ibnlive.com/blogs/prime-time-reservation/11708/comments.html
http://www.medindia.net/news/view_news_main.asp?x=12876
http://www.imanational.com/

Scotland's Rangers football (soccer) team has launched a program to overcome sectarianism. "Pride Over Prejudice" encourages fans to sing traditional songs, and other measures to counter discrimination. Linfield Football Club in Northern Ireland has also launched an anti-sectarianism campaign. The "True Blues" project is meant to attract more families to games.
http://www.rangers.premiumtv.co.uk/page/PrideAndPrejudice/0,,5,00.html
http://www.linfieldfc.com/trueblues.asp?tbid=1645

The UK Parliament Joint Committee on Human Rights released "Counter-Terrorism Police and Human Rights: Prosecution and Pre-Charge Detention", "Legislative Scrutiny: Thirteenth Progress Report", and "Future Working Practices". The committee calls for more accountability and the need for a new oversight mechanism over security services.
http://www.parliament.uk/parliamentary_committees/joint_committee_on_human_rights.cfm
http://news.bbc.co.uk/2/hi/uk_news/politics/5232756.stm
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ETM Infectious Diseases
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Thailand continues to face a serious outbreak of avian influenza, but so far only one human case has been confirmed. Officials in Indonesia and Thailand are concerned that bird vaccination could contribute to the development of more virulent strains, but have agreed to proceed with importing vaccine from China and begin a vaccination program.
http://www.who.int

US Centers for Disease Control researchers have developed a new research method to help identify genetic changes necessary for H5N1 avian influenza to be transmitted more easily among humans. Their series of experiments finds that the pandemic capabilities may not be as strong as feared, but there are multiple paths through which a transmissible strain could emerge.
http://www.cdc.gov/od/oc/media/pressrel/r060731.htm

China has ordered more than 50,000 dogs in southwestern Mouding County to be culled to combat a rabies outbreak that has killed a 4-year-old girl and two adults, and in which at least 360 people have been bitten.
http://www.guardian.co.uk/china/story/0,,1837454,00.html?gusrc=ticker-103704

Links between tuberculosis and HIV, and the implications for programmatic and clinical responses to the dual epidemics, are discussed in "Towards universal access to HIV prevention, treatment, care and support: the role of tuberculosis/HIV collaboration", published in The Lancet Infectious Diseases
http://www.thelancet.com/journals/laninf/article/PIIS1473309906705497/abstract
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ETM Legal Systems
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The Scottish Parliament's Justice Committee details fresh concerns regarding fingerprint evidence. "Why Experts Make Errors" is a report that finds fingerprint experts are swayed by background information, suggesting many possible miscarriages of justice. These findings have led to calls for comprehensive reviews of convictions based on fingerprint evidence.
http://www.ecs.soton.ac.uk/~id/JFI%20expert%20error.pdf
http://www.scottish.parliament.uk/business/committees/justice1/index.htm

A report by the Metropolitan Police and Prison service was leaked to the BBC, which reports the study finds at least a thousand staff are corrupt and more than 500 have inappropriate relationships with prisoners. This represents a small minority of staff, but is a growing problem.
http://news.bbc.co.uk/2/hi/uk_news/5230126.stm

Judge Lewis Kaplan ruled that the US Department of Justice violated the rights to a fair trial and to effective assistance of counsel by pressuring accounting firm KPMG into not paying the legal fees of individual employees and breaching a fee agreement with one person. This policy was laid out in a 2003 memo written by Deputy Attorney General Larry Thompson, and was one of the measures adopted to help ensure conviction of white collar criminals. Now considered coercive, its application led to a ruling that some statements made by defendants cannot be used at trial.
http://www.abanet.org/journal/redesign/jy7memo.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=aSXyWxn5hBLM
http://www.usdoj.gov/dag/cftf/corporate_guidelines.htm
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ETM Natural Resources
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As Madagascar becomes "the next staging post of Africa's energy boom", Global Witness urges transparency and other measures to ensure that the windfall does not challenge the fledgling democracy/
http://www.irinnews.org/report.asp?ReportID=54976

Nigeria's Delta State assembly has passed a law that established a Commission to manage half of the 13 percent derivation fund that goes to the state, thereby helping to ensure that the oil monies are used to help the local community.
http://www.vanguardngr.com/articles/2002/niger_delta/nd102082006.html
http://www.vanguardngr.com/articles/2002/niger_delta/nd103082006.html

Following the discovery of oil in Uganda's Bunyoro district, an investigation into a possible presidential land grab has been launched.
http://www.monitor.co.ug/news/news08031.php
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ETM Populations
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UNICEF's "Study on Violence Against Children" reports that as many as 275 million children are currently exposed to domestic violence, which can have severe, permanent effects on children.
http://www.unicef.org/media/media_35151.html

Thousands of people remain in limbo a year after Zimbabwe's Operation Murambatsvina (drive out trash).
http://www.irinnews.org/report.asp?ReportID=54997
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ETM Technology
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The UK Parliament Commons Committee on Science and Technology issued "Identity Card Technologies: Scientific Advice, Risk and Evidence". The case study reviews the Home Office's identity cards scheme, which incorporates biometrics, information and communication technology (ICT) and smart cards. In addition to areas of good practice primarily related to oversight, the report also identified scientific weaknesses:
"We are disappointed with the lack of transparency surrounding the incorporation of scientific advice, the procurement process and the ICT system. Potential suppliers are confused about the extent to which the scheme will be prescriptive and when technical specifications will be released. .... Whilst the Home Office has determined some aspects of the scheme such as the biometrics, it has left other aspects such as the structure of the database undetermined. Its decisions demonstrate an inconsistent approach to scientific evidence and we are concerned that choices regarding biometric technology have preceded trials. Given that extensive trialling is still to take place, we are skeptical about the validity of costs produced at this stage".
http://www.publications.parliament.uk/pa/cm200506/cmselect/cmsctech/1032/103202.htm

Bangladesh's home ministry has scrapped its efforts to develop a machine readable passport (MRP) and national identity card and instead have asked the immigration and passport directorate to focus only on the MRP and visa.
http://www.thedailystar.net/2006/08/06/d6080601022.htm
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ETM Weapons (WMD, Proliferation)
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The UN Security Council adopted by a vote of 14 in favor to one (Qatar) against, adopted resolution 1696. It states that Iran has not taken the steps necessary to guarantee that its nuclear program is solely for peaceful purposes, therefore the Council demands suspension of all enrichment-related and reprocessing activities, including research and development. Iran must comply by the end of August, or face the possibility of economic and diplomatic sanctions.
http://www.un.org/News/Press/docs//2006/sc8792.doc.htm

The Guardian exposed a legal loophole that could be used by terrorists to make a bio-weapon.
http://www.guardian.co.uk/terrorism/story/0,,1834549,00.html

Engineering custom bioterror organisms is the topic of this article from Washington Post writer Joby Warrick:
http://www.washingtonpost.com/wp-dyn/content/article/2006/07/30/AR2006073000580.html

A US judge in the state of Massachusetts has ordered further environmental review of Boston University Medical Center's construction of a high-security biological laboratory. Judge Ralph Gants found that earlier assessments had not adequately considered worst-case scenarios for release of the world's deadliest viruses and bacteria.
http://www.boston.com/news/globe/city_region/breaking_news/2006/08/judge_orders_fu.html

Researchers at the US Food and Drug Administration (FDA) National Center for Toxicological Research (NCTR) are developing a mass-spectrometry technique to quickly and effectively screen for and identify bioterror agents and other substances used in hoax incidents.
http://www.fda.gov/bbs/topics/NEWS/2006/NEW01424.html

The UN Security Council voted unanimously to extend for another year the arms embargo against militia groups in the Democratic Republic of Congo (DRC), which continue to fuel and exacerbate conflicts throughout the Great Lakes region of Africa.
http://www.un.org/News/Press/docs//2006/sc8794.doc.htm

The UK Commons Quadripartite Committee released its report on Strategic Export Controls, finding that the government does little or nothing to police the internet as a weapons supermarket.
http://www.publications.parliament.uk/pa/cm200506/cmselect/cmquad/873/87302.htm

The US Department of State's Bureau of International Security and Nonproliferation has listed seven additional entities for allegedly supplying chemicals used to make weapons of mass destruction or long-range missiles to Iran: Korean Mining and Industrial Development Corporation ((North Korea), Korea Pugang Trading Corporation (North Korea), Center for Genetic Engineering and Biotechnology (Cuba), Balaji Amines (India), Prachi Poly Products (India), Rosoboronexport (Russia), and Sukhoy (Russia). Those listed and their respective governments have protested the action.
http://frwebgate1.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=900816194648+0+0+0&WAISaction=retrieve

Swedish defense manufacturer Saab Group says it can no longer supply weapons to Venezuela lest if fall foul of a US arms embargo. Saab subsidiary Bofors has supplied Venezuelan forces for two decades.
http://news.bbc.co.uk/2/hi/americas/5243880.stm

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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

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CIM Banking and Finance
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Japan Post has submitted to the government a proposed 10-year privatization plan.
http://mdn.mainichi-msn.co.jp/business/news/20060731p2g00m0bu021000c.html
http://search.japantimes.co.jp/cgi-bin/nb20060801a3.html

The US Federal Deposit Insurance Corporation (FDIC) has put a 6-month moratorium on decisions regarding Industrial Loan Companies (ILCs) to provide time to assess developments in the industry.
http://www.fdic.gov/news/news/press/2006/pr06073.html

The Senate Banking Committee passed legislation giving the Securities and Exchange Commission (SEC) authority to regulate credit rating agencies, including issues regarding conflict of interest and anti-competitive or abusive practices. This bill will now be reconciled with the version previously passed by the House.
http://www.easybourse.com/Website/dynamic/News.php?NewsID=35889&lang=fra&NewsRubrique=2
http://thomas.loc.gov/cgi-bin/query/z?c109:S.3662:
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CIM Chemical
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The US Senate Committee on Environment and Public Works held an oversight hearing on the Toxic Substances Control Act and the Chemicals Management Program at the Environmental Protection Agency (EPA). Among the testimony presented was that from the Government Accountability Office (GAO) based on a June 2005 report, "Chemical Regulation: Options Exist to Improve EPA's Ability to Assess Health Risks and Manage Its Chemical Review Program".
http://epw.senate.gov/hearing_statements.cfm?id=260423
http://www.gao.gov/cgi-bin/getrpt?GAO-05-458
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CIM Commercial Facilities
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Nigeria has approved a national building code to help reduce the recent spate of building collapses.
http://allafrica.com/stories/200608030856.html
http://www.thisdayonline.com/nview.php?id=54792

British architect Gillian Beckingham was found not guilty of seven manslaughter charges but was found guilty of breaching the Health and Safety at Work Act for failing to test a central air conditioning unit that later caused an outbreak of Legionnaires' disease that caused five of 170 infected to die.
http://www.workplacelaw.net/display.php?resource_id=7384

The US House Committee on Energy and Commerce, Subcommittee on Energy and Air Quality, held a hearing on Pipeline Safety Improvement and whether to reauthorize safety provisions.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-1027T
http://energycommerce.house.gov/108/Hearings/07272006hearing2004/hearing.htm
http://www.enewsbuilder.net/aopl/e_article000502826.cfm
http://www.phmsa.dot.gov/
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CIM Cybersecurity
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McAfee has fixed a serious vulnerability in versions 4.3 to 6.0.22 of SecurityCenter.
http://ts.mcafeehelp.com/faq3.asp?docid=407052
http://www.eeye.com/html/research/upcoming/20060719.html

Xerox has issued a new security patch to address additional serious flaws in multifunction WorkCenter and WorkCenter Pro.
http:/www.xerox.com/downloads/usa/en/c/cert_Xerox_Security_Statement.pdf
http://www2.csoonline.com/blog_view.html?CID=23666

A new version of Commwarrior.Q is particularly complex and aggressive, and could pose an increasing threat to mobile communications.
http://www.f-secure.com/weblog/archives/archive-052005.html#00000562

Austrian virus writers have developed experimental malicious code written in Microsoft's command line and scripting language, Windows PowerShell. MSH/Cibyz worm is currently a low risk virus, but the novel technique could pose future threats.
http://www.sci-tech-today.com/story.xhtml?story_id=001000000YPT

Symantec has issued an updated report on potential Windows Vista vulnerabilities.
http://www.symantec.com/avcenter/reference/Windows_Vista_Security_Model_Analysis.pdf

DEFCOM 14 and the Black Hat briefings took place 4-6 August. The hacker convention included demonstrations on RFID hacking, wireless, VOIP security, and many other topics.
http://www.defcon.org/

Alert Logic reports a dramatic increase in brute force attacks against small and mid-size businesses.
http://www.alertlogic.com/news/press_releases/Alertlogic_Press_Release_07-31-06.php

The Open Voting Foundation reports what "may be the worst security flaw we have seen in touch screen voting machines.... Upon examining the inner workings of one of the most popular paperless touch screen voting machines (Diebold's AccuVote) ... it has been determined that with the flip of a single switch inside, the machine can behave in a completely different manner compared to the tested and certified version".
http://www.openvotingfoundation.org/tiki-read_article.php?articleId=1

The Backdoor.Haxdoor.M Trojan has infected some 10,000 home computers in Australia, including users of the online tax service, seriously compromising confidential data.
http://www.theage.com.au/news/security/alert-over-stolen-tax-file-numbers/2006/08/02/1154198183117.html
http://www.theage.com.au/articles/2006/08/03/1154198244503.html
http://www.symantec.com/security_response/writeup.jsp?docid=2006-061510-5124-99

Australia, Canada, the UK and US, have launched a virtual identity card to help increase children's online safety.
http://www.netidme.net/
http://www.techweb.com/wire/security/191800677
http://www.net-security.org/secworld.php?id=4105

Jewelers Mutual Insurance has launched a free identity theft for their commercial policyholders.
http://www.jewelersmutual-idtheft.com/home.htm

The US National Association of Manufacturers' Manufacturing Institute and Stanford University report that supply chain security benefits far outweigh the costs, and were readily quantified. Customers security their supply chains found they:
*Reduced their Customs inspections by 48 percent;
* Increased the automated handling of their imports by 43 percent;
* Saw a 29 percent reduction in transit times;
* Improved their asset visibility in the supply chain by  50 percent;
* Improved on-time shipping to customers by 30 percent;
* Reduced time taken to identify problems by 21 percent;
* Reduced theft in inventory management by 38 percent;
* Reduced excess inventory by 14 percent; and
* Reduced customer attrition by 26 percent.
http://www.nam.org/s_nam/doc1.asp?CID=14&DID=237230

The New York State Office of Cyber Security and Critical Infrastructure and Idaho National Laboratory are working with utilities and suppliers of supervisory control and data acquisition (SCADA) systems to improve security. "Cyber Security Procurement Language for Control Systems" offers guidelines for security requirements, including standardized contracting language.
http://www.cscic.state.ny.us/msisac/scada/
http://www.inl.gov/
http://www.securityfocus.com/news/11351

The US Department of Homeland Security's Inspector General released "Improved Administration Can Enhance Science and Technology Laptop Computer Security (Redacted)".
http://www.dhs.gov/dhspublic/interweb/assetlibrary/OIGr-06-42_June06.pdf
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CIM Dams
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Turkey has begun construction of the Ilisu Reservoir and Hydroelectric Power Plant in the southeast amid large demonstrations opposing personal displacement and destruction of the historical Hasankeyf site as the dam is built.
http://www.thenewanatolian.com/tna-12003.html
http://news.bbc.co.uk/2/hi/in_pictures/5247034.stm
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CIM Emergency Services
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The US Conference of Mayors 2006 emergency preparedness survey from 183 cities representing 38 states, the District of Columbia and Puerto Rico reports that 80 percent of respondents said there were not sufficient federal resources to achieve full communications interoperability for first responders. The average estimate for time to achieve full communications interoperability was estimated at 4 years.
http://www.usmayors.org/uscm/news/press_releases/documents/disasterpreparednesssurvey_2006.pdf

Recognizing they could not cope on their own, in the US state of Washington, county officials have announced the formation of Public Health - Seattle and King County's Public Health Reserve Corps. This would be an army of volunteers who can respond to a flu pandemic, bioterrorism attacks and other public-health emergencies.
http://www.metrokc.gov/health/phreservecorps/

Researchers at New York's Montefiore Medical Center, writing in the American Journal of Respiratory and Critical Care Medicine, describe "The World Trade Center Collapse: A Continuing Tragedy for Lung Health?" Comparing lung functioning of firefighters and paramedics screened prior to 9/11 with tests a year later, they found significant deterioration in lung function, which has persisted. Tests of 11,766 first responders found the loss of lung function a year later was equivalent to an average of 12 years of age-related decline, and was most severe among firefighters who had arrived first, compared to those arriving two days later.
http://ajrccm.atsjournals.org/cgi/content/full/174/3/235
http://www.officer.com/article/article.jsp?siteSection=1&id=31882
http://www.newsday.com/news/health/ny-hswtc0802,0,6144114.story
http://www.montefiore.org/services/pulmonary/world_trade_center_program/
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CIM Energy
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India, Iran, and Pakistan continued discussions over a proposed new gas pipeline linking the three countries. Talks failed to reach agreement on gas pricing, and have called on a global consultant to study the issue.
http://www.financialexpress.com/fe_full_story.php?content_id=136309

Russian oil firm Yukos has been declared bankrupt by a Russian court and will now be liquidated, opening the issue of which companies will control those assets: state-owned oil company Rosneft, or gas monopoly Gazprom.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=100585&version=1&template_id=48&parent_id=28
http://www.kommersant.com/page.asp?idr=530&id=694769
http://jamestown.org/edm/article.php?article_id=2371353

Cape Town, South Africa, has agreed to install the country's first full wind energy power system.
http://www.capetown.gov.za/press/Newpress.asp?itemcode=1708

The US Federal Energy Regulatory Commission has finalized guidelines for transmission rights and investment. The final rule includes seven guidelines. The long-term firm transmission right:
* Should specify a source (injection node or nodes) and sink (withdrawal node or nodes), and a quantity
* Must provide a hedge against day-ahead locational marginal pricing congestion charges or other direct assignment of congestion costs for the period covered and quantity specified, not modified except in the case of extraordinary circumstances or through voluntary agreement of both the holder of the right and the transmission organization
* Be made available upon request to any party that pays for such upgrades or expansions in accordance with the transmission organization’s prevailing cost allocation methods for upgrades or expansions
* Have term lengths (and/or rights to renewal) sufficient to meet the needs of load serving entities to hedge long-term power supply arrangements made or planned to satisfy a service obligation
* Load-serving entities must have priority over non-load serving entities in the allocation of long-term firm transmission rights
* A right to support a service obligation should be re-assignable to another entity that acquires that service obligation
* Initial allocation of the long-term firm transmission rights shall not require recipients to participate in an auction.
http://www.ferc.gov/press-room/press-releases/2006/2006-3/07-20-06-E-2.asp
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CIM Information Technology
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The One Laptop Per Child (OLPC) program will begin production when it has orders for 5-10 million. Pre-orders from Argentina, Brazil, Nigeria, and Thailand have reached four million.
http://laptop.org/
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CIM Nuclear Reactors, Materials, and Waste
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Australian officials are working on the G8 initiative to identify all the sources of radioactive material and come up with a strategy to secure it.
http://www.theaustralian.news.com.au/story/0,20867,20012791-31477,00.html
http://www.acfonline.org.au/

The Australian Conservation Foundation (ACF) warned that Australia's proposed nuclear co-operation treaty for uranium exports to China and other measures are undermining international efforts to control nuclear proliferation.
http://www.news.com.au/story/0,23599,20026295-1702,00.html

India has increased security of nuclear installations following threats from Lashkar-e-Toiba.
http://timesofindia.indiatimes.com/articleshow/1832245.cms

The Swedish Nuclear Power Inspectorate held emergency meetings following the closure of four of the country's ten nuclear reactors due to electrical failures. Analysis is under way to see if any other nuclear facilities face a similar risk, but there is no danger to continued operations. Sweden is phasing out nuclear power.
http://www.ski.se/se/index_english.html

The US National Nuclear Security Administration (NNSA) removed more than 5,500 curies of radioactive cobalt-60 and cesium-137 from Chechnya to Russia.
http://www.nnsa.doe.gov/docs/newsreleases/2006/PR_2006-08-03_NA-06-32.htm

The UK Committee on Radioactive Waste Management (CoRWM) has released its final recommendations for the long-term management of the UK's radioactive waste, warning there is no time to waste towards moving forward with burying the waste deep underground.
http://www.corwm.org.uk/content-1092
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CIM Public Health and Healthcare
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French Polynesia's high incidence of thyroid cancer is linked to France's nuclear tests in the Pacific during the late 1960s.
http://www.pacificislands.cc/pina/pinadefault2.php?urlpinaid=23795
http://www.radioaustralia.net.au/pacbeat/stories/s1703767.htm

The UK Parliament's Science Select and Technology Committee has called for the current designation of drugs by class should be replaced with one that relies on scientific assessment to reflect the harm they cause.
http://www.parliament.uk/parliamentary_committees/science_and_technology_committee/scitech310706.cfm (press)
http://www.publications.parliament.uk/pa/cm200506/cmselect/cmsctech/1031/103102.htm (browse report)

University of Iowa researchers completed two studies of medical error disclosure, finding it a desirable by difficult practice.
http://itsnt166.iowa.uiowa.edu/uns-archives/2006/august/080306medical-errors.html
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CIM Telecommunications
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Angola has launched a regional telecommunications satellite.
http://allafrica.com/stories/200608030956.html

Russia successfully launched Europe's Hot Bird 8 satellite to provide broadcasting for European, North African, and Middle Easter TV and radio stations.
http://en.rian.ru/russia/20060805/52294030.html

Kazakhstan has launched a criminal inquiry into the crash last week of Russia's Dnepr rocket, which failed shortly after take-off. The 18 satellites on board were destroyed, and rocket fuel seriously polluted the large area involved in the crash. Russia will pay compensation for the damage.
http://www.interfax.ru/e/B/0/28.html?id_issue=11564156
http://en.rian.ru/russia/20060805/52294030.html
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CIM Transportation
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"Transportation Security Administration: Oversight of Explosive Detection Systems Maintenance Contracts Can Be Strengthened" is a new report from the US Government Accountability Office (GAO). The report explains that TSA was mandated to screen all checked baggage by using explosive detection systems at airports by 31 December 2003. Both explosive detection systems that use computer-aided tomography and trace detection systems that use chemical analysis are in use. GAO reports on expanding maintenance costs that followed unsound contracting practices. They recommend establishing a timeline to close out and complete current contracts and revise policies to require that maintenance contracts are monitored.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-795

The British Medical Journal warns that patients having radiation treatment may falsely trigger security alarms. Dr. Kalyan Kumar Gangopadhyay and colleagues described the case of a man who received radioiodine treatment for recurrent thyrotoxicosis. Six weeks later, he was detained at Orlando airport in the US after he triggered a radiation alarm, and was released only after a long period of investigation and much embarrassment. They have found four similar cases, and recommend that guidelines should include the half life of the isotope and the increasing sensitivity of the detectors in airports when treatment warnings are given.
http://bmj.bmjjournals.com/cgi/content/full/333/7562/0-a

Bangladesh's National Committee on Smuggling Prevention will ask the finance and shipping ministries to take steps to acquire port scanners to stop explosives or firearms smuggling, since their installation has been delayed for more than two years.
http://www.thedailystar.net/2006/07/31/d6073101119.htm

The International Maritime Bureau (IMB) continues to pose an alert regarding piracy attacks at Chittagong anchorage in Bangladesh.
http://www.icc-ccs.org/prc/piracyreport.php

Malaysia's Maritime Enforcement Agency has increased patrols in the Strait of Malacca following complaints by fishermen that Indonesian authorities are harassing them in Malaysian waters, including seizure of two fishing boats.

A 2-day conference in Malaysia focused on the Strait of Malacca, including discussion of charging mechanisms for Strait users.
http://www.mima.gov.my/mima/htmls/conferences/som06/
http://www.bernama.com.my/bernama/v3/news_business.php?id=211703

The US Department of Homeland Security's Inspector General released "DHS Must Address Significant Security Vulnerabilities Prior To TWIC Implementation (Redacted)". The report warns that the Transportation Worker Identification Credential (TWIC) program includes high risk security weaknesses including false positives, inappropriate information disclosure, and other internal and external security threats.
http://www.dhs.gov/dhspublic/interweb/assetlibrary/OIGr_06-47_Jul06.pdf

The Inspector General also released "Review of CBP Actions Taken to Intercept Suspected Terrorists at U.S. Ports of Entry" and " Letter Report: TSA's Development of Its Weapons Management System Using RFID (Redacted)",
http://www.dhs.gov/dhspublic/interweb/assetlibrary/OIG-06-43_June06.pdf
http://www.dhs.gov/dhspublic/interweb/assetlibrary/OIGr-06-44_July06.pdf

German officials have stepped up security and launched an investigation after finding two bombs on trains this week.
http://service.spiegel.de/cache/international/0,1518,430160,00.html

Rail industry leader Tim Smith has joined the Coalition for Luggage Security.
http://www.luggagesecuritycoalition.com/

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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

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DRM Incidents
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Some 200 people have died after a river burst its banks and floodwater swept through the eastern city of Dire Dawa.

Tropical Storm Prapiroon struck China, killing at least 48 people in Guangdong province. Damage from the storm is estimated at $300 million.

Heavy rains in Pakistan's northwestern city of Mardan led to a bridge collapse that killed 40 people. The rain in North West Frontier Province triggered floods and landslides that have killed at least 18 people. Rains in Karachi have left nine dead, including seven children.

In Democratic Republic of Congo an aircraft clipped a mount as it attempted to land in bad weather. The 14 passengers and three crew, all Russian, were killed in the crash.

The heatwave in the eastern US has led to the deaths of some 20 people.

A mine wall collapse in northern China freed toxic gas that killed 18 miners. Three escaped and 13 were rescued and survived, and one rescued and died.

A school bus in northern India fell into a canal, leaving at least six children dead. High water is hindering rescue efforts.

A fire apparently caused by an unattended charcoal stove set fire to a Ugandan boarding school, killing six students. The 270 students in the dormitory, all children of officers stationed nearby, lost their belongings, and the families will be compensated.

Two moderate earthquakes hit Tajikistan's southern Kumsangir and Panj districts last weekend, affecting some 11,000 people. Three children were killed and 19 people were seriously injured.

Heavy rains in Ethiopia caused the Awash River to flood, forcing the emergency evacuation of 15,000 people.
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DRM Response and Recovery
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In Pakistan's North West Frontier Province, the district of Mansehra is preparing guidelines to guide appropriate dress and behavior for earthquake relief workers.

"Coast Guard: Observations on the Preparation, Response, and Recovery Missions Related to Hurricane Katrina" is a report prepared by the US Government Accountability Office (GAO) that describes challenges and lessons learned during this major natural disaster.
http://www.gao.gov/cgi-bin/getrpt?GAO-06-903
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DRM Risks
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The Tropical Meteorology Project has lowered the projected storm forecast from 17 to 15, which is still an above-average season.
http://typhoon.atmos.colostate.edu/

Population density, building structures, and proximity to the sea present difficulties in moving Indonesian communities on the southern coast from tsunami areas.
http://www.thejakartapost.com/yesterdaydetail.asp?fileid=20060801.G01

Philippines Department of Environment and Natural Resources Mines and Geosciences Bureau reports that 70 percent of Baguio's land area is prone to landslides and other geological hazards. Residents were warned to be particularly cautious during the rainy season, and suggests banning high-risk construction.
http://www.mgb.gov.ph/

The UK Home Office and security service MI5 have launched the new terrorist threat warning system on their respective web sites.
http://www.intelligence.gov.uk/
http://www.homeoffice.gov.uk/security/current-threat-level/

CDC Business Mapping's RiskMeter Distance to Fire Station Report now maps driving distances, names of stations, and staffing for any US location.
http://www.RiskMeter.com/RiskMeter/press%20releases/RisMeter%20Distance%20to%20Fire%20Station%20Repor%20Goes%20National_August06.pdf
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DRM Mitigation
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The UN Economic and Social Commission for Asia and the Pacific (UNESCAP) has called for increased efforts to ensure effective development of an end-to-end tsunami early warning system, which must including enhancing national capacity building.
http://www.unescap.org/unis/press/2006/jul/g31.asp

To address possible volcanic debris flows from Mount Merapi, Indonesia plans to construct four dams to block flows. Construction will begin soon, and is planned for completion before the rainy season.

Shanghai has completed construction of an underground bunker that can shelter 200,000 people (a little over one percent of the population) in case of bombings, poisonous gas, or radiation. Parts can be used for garages or warehouses when not needed.
http://www.chinamallonline.net/news/newindex_en.cfm?urlid=244122

The US Conference of Mayors has released "Five Years Post 9/11 and One Year Post Hurricane Katrina: The state of America’s Readiness". Survey responses were received from 183 cities representing 38 states in the nation, and the District of Columbia and Puerto Rico. Key findings include:
* 80 percent said there were not sufficient federal resources to achieve full communications interoperability for first responders
* The average estimate for time to achieve full communications interoperability was 4 years.
* 56 percent of cities have recently created or updated an evacuation plan - increasing to 73 percent yes for the largest cities.
* On a ten point scale with one the lowest, respondents measured their level of confidence that FEMA will respond quickly in the event of a major disaster at 5.2.
* Preparedness for a city to survive on its own for up to 72 hours following a disaster, the average response was 6.9.
* 72 percent said the federal government, or the city, has not established a plan with a nearby military base to provide personnel and equipment to help stabilize a city in an emergency. Similar numbers had not been notified of a pre-assigned Principal Federal Official.
* 70 percent are not prepared to handle a bird flu pandemic on their own, but most have been contacted by the federal or state government to discuss a possible outbreak.
http://www.usmayors.org/uscm/news/press_releases/documents/disasterpreparednesssurvey_2006.pdf

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7. Recommended Reading

In an effort to avoid the growing violence in the Middle East, Afghanistan, and elsewhere, we are taking advantage of the Northern Hemisphere's summer season to recommend summer reading lists.

For adults, here is a list of authors' summer reading lists:
http://www.authorsontheweb.com/Reading_Lists/
And recommendations from National Public Radio:
http://www.npr.org/templates/story/story.php?storyId=5435740

To read with your children, try this list from the American Library Association:
http://www.ala.org/ala/alsc/alscresources/summerreading/recsummerreading/recommendedreading.htm

Enjoy the season!

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8. Asset Management Network News

Email if you are interested in joining an advisory/editorial board or speakers bureau.

Take a look at our online store to see the range of titles we have, including the Monitor series and our Special Reports, ranging from avian influenza to trends in terrorism. "Trends in Terrorism: 2005".

Email info@tamni.com for details about the new products, publications, and information about services, including custom research.