New York State Office of Homeland Security Eyes on Banking Finance and Commercial Facilities 1 July - 14 July 2010

8/8/2019 New York State Office of Homeland Security Eyes on Banking Finance and Commercial Facilities 1 July - 14 July 2010

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Eyes on Banking, finance and

Commercial Facilities:

Open Source Week in Review

1 July14 July

New York State Division of Homeland Security andEmergency Services, Office of Counter Terrorism -

Intelligence Division

________________________________________________________________________This weekly product is designed to provide those with an interest in the Banking, Finance, and Commercial FacilitiesSector with situational awareness of potential threats and terrorist attacks worldwide. It is a compilation of OpenSource information only; no operational, classified or law enforcement sensitive information is contained within thereport. This information has been compiled by the New York State Division of Homeland Security and EmergencyService, Office of Counterterrorism - Intelligence Division. For questions, comments, suggestions or additional

information please contact: Jeff Rizzo [email protected]
mailto:[email protected]:[email protected]:[email protected]


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Table of Contents

Week in review- Summary & Analysis ................... 3

New York State ........................................................ 4

North America .......................................................... 4

International ........................................................ 10


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This weekly product is designed to provide those with an interest in the Banking,

Finance, and Commercial Facilities Sector with situational awareness of potential

threats and terrorist attacks worldwide. It is a compilation ofOpen Source information

only; no operational, classified or law enforcement sensitive information is contained

within the report. This information has been compiled by the New York State Division of

Homeland Security and Emergency Service, Office of Counterterrorism - IntelligenceDivision. Your comments on the report are welcome.

Open Source Week in review- Summary & Analysis

This weeks Banking, Finance, and Commercial Facilities report focuses on the targetingof public events by Al Qaeda and their affiliated groups, and ongoing regional meetingsthroughout the world focused on strengthening money laundering and terrorism financeregulations.

On July 11th

, the Al Qaeda-linked, Somali-based group al-Shabab claimed responsibility

for three blasts that that killed 74 people and wounded 70 others as they watched theWorld Cup finals in Ugandas capital, Kampala. The first blast struck an Ethiopianrestaurant at approximately 10:25pm, followed by two more explosions at a rugby clubabout 50 minutes later. The bombings mark the first timeal-Shabab carried out an attack outside Somalia.

The following day, investigators found a suicide vest andball bearings in a disco-hall in the suburbs of Kampala. Thevest and bearings are consistent with blast material found atthe bomb sites. To date, police have arrested fivenationalsfrom three African countries and suggest that the Ugandan

militant group, the Allied Democratic Forces, may havebeen involved in the bombings claimed by al-Shabab.

In Norway, three Al Qaeda suspects were arrested forplotting a terrorist attack. Police were able to find three menusing the US Terrorism Finance Tracking Program (TFTP)which searched through international bank transactionsrecorded by the Society for Worldwide Interbank Financial Telecommunication(SWIFT), a Belgium based company. Officials state the suspects were planning to use aperoxide-based explosive as a weapon. The three suspects, an Uzbek, Uighur, and Iraqi,all had Norwegian citizenship at the time of their arrest.

Senegal hosted the 13th Annual Meeting, and 9th Annual Technical Assistance andTraining Forum, of the Asia/Pacific Group (APG), July 12-16. In addition to discussingissues and progress regarding anti-money laundering and anti-terrorism financeprocedures of the APG, Nepal will sign a Memorandum of Understanding (MoU) withMongolia, Thailand, and Malaysia regarding the exchange of financial information.Nepal and India also plan to sign a similar MoU in the next few months.


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Similarly, Senegal hosted the Inter-governmental Action Group against MoneyLaundering in West Africa (GIABA) on July 9. Abdullah Shehu, Director General ofGIABA, urged banks and other financial institutions to fulfill their obligations regardingmoney laundering laws to promote financial integration in Western Africa.

New York State

Nothing Significant to Report

North America

Title: Security tower unveiled at Square One MallPublished: July 1, 2010Source: Boston.com, MASSACHUSETTSAuthor: Ellen NakashimaLink:(http://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.html)

Simon Property Group, a large national mall company whose portfolio includes 14 mallsin Massachusetts, said that it is deploying a mobile security observation tower that willvisit its local malls as part of a crime-prevention effort.

According to Simon, this portable tower is the first of its kind to be used in New England.The tower is also adjustable; its maximum height is 21 feet, a Simon spokeswoman said.

"The tower is initially located at Square One Mall in Saugus, MA, beginning on June 30,and will be periodically relocated to other New England Simon malls," the company saidin a press release. "In addition, the tower will be made available from time to time to lawenforcement and other community organizations in the communities served by the mallsas an extension of the partnership between the two."

In a statement, Simon regional senior vice president Ron Hanson said, We are confident

the mobile tower will be an effective crime deterrent and make our shoppers feel evenmore safe and comfortable while visiting our shopping centers.

The deployment of the tower is part of a strategic alliance with AlliedBarton SecurityServices, Simon's release said.

Other Simon malls in Massachusetts include Burlington Mall, Northshore Mall inPeabody, and South Shore Plaza in Braintree.
http://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/06/28/AR2010062805052.html


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Title: What's the Next Big Money Laundering Threat?Published: July 8, 2010Source: bankinfosecurity.com, UNITED STATES

Author: Tom FieldLink: (http://www.bankinfosecurity.com/articles.php?art_id=2727&opg=1)

Bulk cash smuggling and mobile technologies - these are among the latest, greatest

money laundering risks to banking institutions.

And in an exclusive interview, former police investigator Sullivan outlines:

How bulk cash smuggling works;

Red flags institutions should monitor;

Why mobile technology poses the next big money laundering threat.

Sullivan is a former Investigator with the NY State Police and was the state investigations

coordinator assigned to the NY HIFCA El Dorado Task Force in Manhattan. He has more

than 20 years of police experience. Sullivan possesses a Masters in Economic Crime

Management and is both a certified anti-money laundering specialist and certified anti-

money laundering professional. He is also the director of AMLtrainer.com.

TOM FIELD: What are the latest trends in money laundering? Hi, this is Tom Field,

editorial director with Information Security Media Group, and I'm talking with our

resident expert in money laundering, former police officer Kevin Sullivan. Kevin, it's a

pleasure to talk with you again.

KEVIN SULLIVAN: Hi, Tom it's a pleasure to be here. Thank you very much.

FIELD: You and I have talked an awful lot about trends over the years. We've talked

about virtual money laundering. We've talked about money mules. A year ago we were

talking about rabbis being arrested in money laundering schemes. What do you find to be

the hot topic so far this year in money laundering?

SULLIVAN: So far this year, the hot topic is the old expression 'What's old is new.' It

seems to be bulk cash smuggling, and what that is - it's usually the result of an illegalnarcotic operation or some form of black market peso exchange, trade-based money

laundering process or perhaps just the final pieces of the puzzle of some type of scam or

fraud or associated crime.

Now, the department of justice described the Mexican drug trafficking organizations as

the greatest organized crime threat to the United States. Well, when you sit back and

think about that for a minute, that's pretty interesting, and with that is the cross border
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pipeline, which moves products between Mexico and the United States both north and

south. And the primary goods flowing northbound are cocaine, human traffic, gang

members that they hire to be enforcers for the drug lords and marijuana.

The products that head southbound are large amounts of cash, stolen cars and weapons.

Now, it's estimated that the Mexican cartels smuggle approximately $20 to $30 billion ayear. And about 25% to 50% of that money is laundered through a Mexican financial

institution. Unfortunately, financial institutions in Mexico are not always regulated with

AML in mind. However, several Mexican financial institutions have recently ceased to

accept cash deposits, specifically in geographical areas that have a high criminal

enterprise history.

Now, they've also done very recently -- the Mexican government has announced that it

would limit individual bank account holders to deposits of no more than $4,000 a month.

Now, this may not sound like much to you or I, especially when I know that high salary

that you make there, Tom, but does not affect the average Mexican household becausethey make--the average Mexican household makes far less than $4,000 a month. So what

happens here is that the bulk cash that is made in the U.S. from the criminal organizations

has got to get transported across the border. There are 417 official border crossings

between the U.S. and Mexico, and note I said "official" border crossings. One of the

methods that the bulk cash smugglers will use is a form of smurfing or structuring where

an individual carries approximately $5,000 to $10,000 on his person and crosses the

border.

Now, that certainly seems easy enough, but they also use a non-bulk cash format. They'll

use their criminal proceeds through wire transfers. They will use stored value cards,

which I'm not sure if we talked about. We may have talked about that in one of the

webinars. And another example of a trade-based money laundering is something

interesting that's popping up on the borders - second-hand clothing stores. And reportedly

there are hundreds of establishments that sell large quantities of second-hand clothing,

which is then introduced into Mexico via illegal methods, of course, because of

importation of second-hand clothes into Mexico is prohibited due to sanitary reasons.

So, as I said a million times before on any of webinars and we've talked before, anything

of value can be laundered. So here's an example of second-hand clothing being

laundered. Stored value cards used for laundering. So let me just--to give your listeners

an idea of what I'm talking about here let me just take you through a typical bulk cashsmuggling scenario. Money from the local drug sales here where I am in New York is

usually taken to a stash house, or they may refer to it as a central counting location. That

money arrives in the streets in the form of small bills, usually fives, tens, 20's because

much to my chagrin the local drug dealers don't usually take an AMEX card, so

everything happens in small bills.


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Well, small bills need to be refined, and when I say refined what that means in AML

terms is you take small bills and turn them into large bills, and the reason you turn them

into large bills is because it reduces the mass size and makes it easier to conceal. It's a lot

easier to conceal $1 million of hundred dollar bills than it is $1 million of singles.

Further, what they do is they vacuum pack it in plastic bags and surround it with coffee

grounds and pepper or smelly substances to attempt to thwart the drug-sniffing dogs, andthey hide it in a vehicle, usually cars or trucks and usually use some sort of advanced

electronic trap compartment.

And they rotate vehicles, they rotate drivers so they don't see the same car, the same

driver, the same license plates. They're not stupid about it; they're very bright. Further,

they use advanced counter surveillance techniques, so they're surveying us. They will

also be at the border crossings on both sides, using high tech communication gear, and

they're just watching the border crossing to look and see what lane looks to be the best

lane to go through and if there's anybody getting pulled out.

So they're very high tech. Don't ever think that they're just dopey guys just moving some

cash around. They're very, very sophisticated techniques that they use. So that's what's

the latest that's been going on and a really hot topic right now back in the money

laundering world.

FIELD: How do you recommend that banking institutions on the U.S. side of the border

deal with an issue like bulk cash smuggling? What do they have to be looking out for?

SULLIVAN: Well, that's a good questions because on the surface it may seem like, well,

what does that got to do with the U.S. bank? So let me tell you that about two years ago

the DEA, ICE in conjunction with FinCEN created a list of possible red flags of

suspicious behavior that might be indicative of bulk cash smuggling. So allow me to go

through a couple of them.

One would be an increase in the sale of large denomination U.S. bank notes to Mexican

institutions. Another might be large volumes of small denominations of U.S. bank notes

being sent from Mexican casa de cambios to their accounts in the U.S. via armored

transport or sold directly to U.S. banks. There could be multiple wire transfers, which

would be initiated by a casa de cambio that directs U.S. financial institutions to remit

funds to jurisdictions outside of Mexico that have absolutely no apparent business

relationship with that casa de cambio.

And of course, there's the refining or the exchange of small denomination U.S. bills for

large bills. So they came out with a list of about eight, nine, 10 different red flag

scenarios, which is available on the FinCEN website. Not a bad concept for all banks to

look at just to see if they are being used in some form of cross border bulk cash

smuggling, because banks are not immune to this.


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FIELD: Now, Kevin, you mentioned FinCEN, and I know there's been some AML

clarification and guidance issued so far this year. What's your take on the most important

elements for banking institutions to be paying attention to?

SULLIVAN: The very most interesting one actually was something quite recently that

had to do with broker and beneficial ownership. Several of the brokered dealerassociations have complained to FinCEN about the guidance or lack thereof concerning

beneficial ownership, and their point to FinCEN was that one, there was no manual like

the FFIEC manual that really spelled out what you should or shouldn't do or what

examiners need to do when they come walking in the door. They really don't have that for

broker-dealers.

Another one of their grievances was specifically on how beneficial ownership is detailed,

and I think their quote was that they think that it is impossible for financial institutions to

verify beneficial owners, as the guidance that FinCEN suggested, given that most entities

organized under U.S. law are not required to disclose information about their beneficialownerships. So it does bring up a, kind of, a catch 22 situation.

And finally the broker-dealer association last thought was that if the new FinCEN rule on

beneficial ownership, that was initially to deal with U.S. Patriot Act Section 312, which

has specifically to do with private banking and correspondent accounts and beneficial

owners, and you had to know the beneficial owner of your private banking and

correspondent accounts. And now it seems that FinCEN wants to expand that to all

accounts across the board, but it just isn't written up that way, and there is a little

confusion and debate with the trade associations about that and does that rule expand to

all accounts, or is it just private banking and correspondent banking?

FIELD: We're headed into the second half of the year now. In terms of the threats that

you're taking a look at and guidance you might expect, what are the trends that we really

ought to keep an eye for as we make the rush toward 2011?

SULLIVAN: Okay, I'm going to give you one big one, and I like to look at this like a

baseball scout, where a scout goes out and looks at college players and high school

players and minor league ball players and tries to figure out what guy has the five tools

necessary to become a major league ballplayer. Well, I try to look at it where would I

focus myself if I had unlimited funds. Which of course, law enforcement does, and the

banks don't, but if I had to predict what's going to be the next big thing -- it's mobiletechnology. I'll tell you why mobile technology's going to be big, or it has the potential of

being big, and also a big money laundering issue.

With the addition of the smart phones there's a new key technology that's called near field

communication. What that is, it's a form of radio frequency identification that lets a cell

phone act like a contact list card, and with all the benefits that a smart phone brings also.


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And what this does is this intelligence allows for the conception of an e-wallet. Now, just

think of where the problems could be here? As you know, Tom, every time there's a new

technology out there it takes a while before the good guys catch on to where the holes are

-- where to plug the leaks. But the bad guys are out there right now. The bad guys are

there exploiting this technology, and they know that it'll be a long time before the good

guys figure out what the problem is and how to react to it.

And also what confused matters just like with one of the issues with stored value and

ATM's, you're no longer talking about just a customer-bank relationship. You're talking

about several entities in the way. A lot of third parties are involved. There're a lot of third

parties that will be involved in mobile phone technology. Who's responsible? Who is

responsible for checking beneficial ownership? Who is responsible for doing customer

due diligence? It's a nightmare, and it'll be 10 years before we get on the stick and try to

figure this out. And so if I were going to turn to the dark side tomorrow, one of the things

I would do is heavily investigate mobile phone technology and how that's going to affect

money laundering.

FIELD: Well, that's a good point because we've got lots of banking institutions now that

are investing in mobile technologies and person to person payments, and it's good advice

to go in there with your eyes wide open.

SULLIVAN: And don't get me wrong. I don't say that's a bad technology. Hey, look, if

you look at credit cards and you can look at it from one aspect and say, well, gee there's a

lot of credit card fraud going on there, therefore it must be bad. No, not at all. Of all the

fraud that goes in credit cards, maybe it's a half of a percent. You know, there is a lot of

check kiting that happens. Does that mean all checks are bad? No. I don't think that this is

a bad thing. I think it's a good thing. Anytime you can move forward and get new

technology and make life easier for people, that's a great thing. However, we have to

realize with every great thing and every new technology, comes the timeframe when

people will learn to abuse it, and we have to figure out how they can abuse it and how we

take countermeasures.

FIELD: Kevin, as always I appreciate your time and your insights. Thank you so much.

SULLIVAN: Well, thank you very much, Tom.

FIELD: We've been talking about anti-money laundering trends. We've been talkingwith Kevin Sullivan. For Information Security Media Group I'm Tom Field. Thank you

very much.


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International

Title: South Africa Has Big Goals After Cup SuccessPublished: June 24, 2010

Source: National Public Radio, INDONESIAAuthor: David TidmarshLink: (http://www.npr.org/templates/story/story.php?storyId=128029207)

South Africa defended itself against criticism about violent crime, disruptive labor strikesand lackluster organization ahead of the 2010 World Cup. Now the country is winningwidespread praise after a successful tournament, boosting its ambitions to host othermajor sporting events.

"It's not the safest country and this was our problem," said Franz Beckenbauer, a memberof FIFA's executive committee who was one of the people who acknowledged the

challenges South Africa was facing in hosting the World Cup, which ended Sunday withSpain's 1-0 defeat of the Netherlands. "But this organizing committee, with help fromFIFA, has done a very good job," said Mr. Beckenbauer, who won Cups as both a playerand coach.

Absent from international competitions for most of its apartheid era due to sanctions,South Africa is just beginning to build a track record of staging sporting events. Part ofthat entails showing off infrastructure, winning over visitors and reversing what manydescribe as an image problem.

"The general view is that South Africa has done an excellent job in staging the World

Cup. There have been far fewer, if any, issues than were expected," said Michael Payne,former chief marketing officer of the International Olympic Committee. "The fact thatthey have proved they can do this will be a very good calling card to go after otherevents."

Indeed, South Africa has been so encouraged by the response to the World Cup here thatofficials have set their sights on hosting the summer Olympics in 2020, possibly in thecity of Durban. On Saturday, President Jacob Zuma met Jacques Rogge, who heads theInternational Olympic Committee.

"This has proved to the world that we are capable of hosting any international event. We

have the resources and infrastructure," Mr. Zuma said.

South Africa may have been the first World Cup host to be knocked out after the firstround, but that doesn't appear to have diminished interest in the event. Stadiumattendance passed the three million mark with two games to be played, only the third timethe World Cup has topped that figure, according to FIFA, the global soccer federation.(South Africa still lags behind U.S. in 1994 and Germany in 2006 for averageattendance).
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To be sure, the World Cup hasn't swept South Africa's problems away. The country isburdened with a bulging underclassunemployment hovers at 25%and violent crimeremains a threat. Meanwhile, labor unrest poses a constant threat to event planners. Thecountry endured a transportation strike just before the World Cup and South Africa's

leading electricity supplier narrowly averted a work stoppage during the tournament.

And there have been a few significant organizational glitches for fans. A lack of publictransportation caused massive traffic jams. On Wednesday, congestion at Durban's newairport caused hundreds of people, including a handful of FIFA executives, to missSpain's semifinal 1-0 defeat of Germany. Stadium security workers also went on strike atfour stadiums, prompting South Africa's police to assume security duties.

Still, South Africa is winning important converts. It previously staged successful rugbyand cricket championships, and stepped in to host last year's popular Indian PremierLeague cricket tournament, after it was moved amid tensions during Indian elections.

FIFA President Sepp Blatter said last week that if it can host a World Cup it can certainlyorganize the summer Olympics.

"Africa can be proud to have organized this World Cup. South Africa can be evenprouder," Mr. Blatter said during a briefing in Johannesburg Thursday.

As the first World Cup to be hosted by an African country, this has very much been thecontinent's tournament. Many Africans have expressed hope that the continent as a wholewill benefit from the mainly positive coverage of sport's most-watched spectacle. After2016, Africa will be the only continent not to have hosted an Olympic Games.

"This has given a major lift to African football, not just because South Africa hosted butbecause Ghana did so well," said Neil Armstrong-Mortagbe, president of the Ghanasupporters club and a consultant for the Ghana Football Association. Ghana was the onlyAfrican team to reach the final group of eight.

Meanwhile, World Cup sponsors have used their presence in South Africa to targetconsumers from Cape Town to Cairo.

For Visa, which is also a top level Olympic sponsor, the move was part of efforts to opennew markets in the developing world and in countries where the Olympic sports are farless popular than soccer such as in Africa, the Middle East and South America. Inanticipation of the World Cup, Visa was able to get its cards accepted with 14,000merchants and in 200 malls across South Africa. Visa signed an eight-year, $180 milliondeal to become FIFA's exclusive world-wide banking partner in 2007.

"In an emerging market, you're trying to build an acceptance type of infrastructure and anevent like this helps accelerate that," said Antonio Lucio, Visa's chief marketing officer."If the Olympics or the World Cup come to Africa, we'll be there."


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For some major brands, there is an expectation by customers they will sponsor theworld's biggest sporting event and the business payoff is expected later. "The World Cupwill come and go. The real test will be what happens after," said Don Thompson,president of McDonald's Corp., which has more than 130 restaurants in South Africa.

For many who associate Africa with war, poverty and AIDS, South Africa's World Cuphas shown another side to the continent. The country boasts a transparent democracy, arich class of consumers and a nationwide network of roads.

Now South African officials want to parlay that success into an Olympics bid, in part tofind a use for the many stadiums that were built to host the World Cup.

In Durban, the new stadium has room for a track around the soccer field. It also has aniconic arch built above the top that can be scaled and is also accessible by cable car. Thestadium's southern end is open and has a large empty platform that could serve as a stagefor an Olympic torch.

Title: Somali militants claim responsibility for Uganda bombingsPublished: July 12, 2010Source: CNN, UGANDALink: (http://edition.cnn.com/2010/WORLD/africa/07/12/uganda.bombings/?fbid=ZljnPkpNo6z)

Somali Islamist militant movement on Monday claimed responsibility for a trio ofbombings that killed at least 74 people Sunday at two venues in the Ugandan capitalwhere crowds had gathered to watch the World Cup final.

"And the best of men have promised and they have delivered," said an Arabic statementissued by Al-Shabaab's press office and obtained by CNN. "Blessed and exalted amongmen -- (taking) full responsibility. ...We wage war against the 6,000 collaborators; theyhave received their response."

The 6,000 is an apparent reference to African Union peacekeepers in Somalia. Ugandacontributes troops to the peacekeeping effort.

"We are behind the attack because we are at war with them," Al-Shabaab spokesman AliMohamoud Rage told reporters at a news conference in Mogadishu, Somalia.

"We had given warning to the Ugandans to refrain from their involvement in our country.We spoke to the leaders and we spoke to the people and they never listened to us."

Rage said young suicide bombers carried out the attacks but did not specify theirnationalities. "May Allah accept these martyrs who carried out the blessed operation andexploded themselves in the middle of the infidels," he said.
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However, Police Chief Maj. Gen. Kale Kayihura told reporters arrests have been made inconnection with the bombings. He would not say how many people have been arrested orprovide details.

Earlier Monday, Sheikh Abu Al Zubeir, identified as "the Emir of Al-Shabaab in

Somalia," said in an Arabic website posting, "My message to the Ugandan and Burundiannations is that you will be the target for our retribution to the massacres perpetratedagainst the Somali men, women and children in Mogadishu by your forces." Thestatement was posted on an al-Qaeda affiliated website that previously has carriedstatements and videos from Al-Shabaab.

The website set up a page Monday to "receive congratulations" on Al-Shabaab's behalffor the "blessed operations" in Uganda.

Suspicion had centered on Somali Islamist groups shortly after the explosions inKampala, Uganda. Islamic militants battling Somalia's U.N.-backed transitional

government had previously threatened attacks on Uganda and Burundi, which alsocontributes troops to the peacekeeping effort in Somalia.

President Yoweri Museveni declared a week of national mourning for victims of thebombings, beginning Tuesday, according to a government statement. All flags on publicbuildings will be lowered to half-staff during the mourning period, the statement said.

Meanwhile, a journalist in Mogadishu reported that shelling was under way in the city asof Monday night.

Eighty-five people were injured in the Ugandan blasts, Kayihura told reporters. Of those,three are Americans, he said. They were transferred from the national hospital to aprivately owned hospital in Kampala, he said.

"This incident shows that it was terrorism," he said. Kayihura said he could not confirmthat Al-Shabaab was responsible, but said the nature of the explosives used wereconsistent with the group. Police are using forensics to analyze the explosives, he said,and will deliver a report in a day or two.

The 74 fatalities included 28 Ugandans, one Irish citizen, one Indian, one American and11 people who are either Ethiopian or Eritrean, according to the Ugandan government.

"If you want to fight, why don't you attack soldiers or military installations instead offighting innocent people watching football?" said Museveni, who on Monday visited arugby sports center where two of the blasts occurred Sunday.

The blasts hit in the capital, Kampala, within 50 minutes of each other. The first onestruck an Ethiopian restaurant in a neighborhood dotted with bars and popular amongexpatriates; two others exploded at the rugby center.


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A senior Ugandan government official confirmed there were three bombs. The secondone at the rugby club was the most severe, said the official, who was not authorized tospeak to the media because of the sensitivity of the situation.

The U.S. Embassy confirmed the death of one American. An organization that works

with children in Uganda identified him as Nate Henn.

In a post on its website, the organization -- Invisible Children -- said Henn was in thecountry working with Ugandan students. CNN could not independently verify theinformation.

"Nate was not a glory-seeker and never sought the spotlight. He asked not to be made ahero of," the post said. "But the life he lived inspires reflection and imitation."

Mike Hammer, a spokesman for the U.S. National Security Council, said PresidentBarack Obama is "deeply saddened by the loss of life resulting from these deplorable and

cowardly attacks."

Obama called Museveni on Monday morning and offered to provide support andassistance, White House spokesman Robert Gibbs said. "I'm told the FBI will assist in theinvestigation of the bombings."

Museveni said, "We wish to condemn the criminality of these attacks. From a casual lookat the scene, I'm confident police will be able to reconstruct the crime scene. ... We shallgo after them because we know where they come from."

The bombings, he said, show "criminality and terrorism has always been hovering overus."

In a government statement, Somali President Sharif Sheikh Ahmed said he "condemns inthe strongest terms the despicable terrorist acts that killed over 60 people in Kampala."

Ahmed said "the fact that the victims were enjoying the World Cup reveals the evil andugly nature of the perpetrators and the need to uproot from [the] region those who do notvalue the sanctity of human life," the statement said.

"The president also denounces the fringe Al-Shabaab terrorist groups [that] rejoice of thecarnage and stated that Somalia mourns with the brotherly people of Uganda."

Stone Atwine was watching the game at the rugby center when the blast occurred.

"It happened toward the 90th minute of the game ... this loud explosion," he said. "Wedidn't know what was happening, we were running around, scampering for safety. I sawdead guys still seated in their chairs with blood."


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Atwine said a second explosion struck the venue seconds later, knocking out power. "Atthat point, we ran off. My friends and I ran into the car and drove off."

Relatives flocked to hospitals and mortuaries to look for loved ones Monday.

"I was watching the game with my brother at the rugby center," said Ian Lule, who wasamong a group gathered at a city hospital. "The blast left him unconscious. I don't knowhow he is."

In the capital, crowds huddled around newspapers, talking in hushed tones.

"Everyone is shocked, everyone is talking about it," said Mark Keith Muhumuza, whowas watching the game at a stadium near the rubgy center explosion. "We were in panicmode at the stadium because we thought we would be attacked next."

Muhumuza said when the game ended, he went to the rugby center. "People were

wailing, some were trying to find their relatives, others were trying to run away from thescene."

"You can never stop attacks in the world," said FIFA president Sepp Blatter. "During theWorld Cup, the world should have been touched by the emotions of football. I'm very sadand I was very touched.

"Can you link this to the World Cup? I don't know," Blatter said. "It was when the WorldCup was on TV, but it's not for us to investigate a link. But being linked or not tofootball, we as human beings condemn the attacks. ... I deplore what has happened andlook forward to the good that football can bring to our world."

The sites of the bombings remained cordoned off as authorities intensified security in theeast African nation. Police and military forces patrolled the capital.

Some of the injured at the restaurant included six members of an American churchmission working with a local congregation, according to the Rev. Kathleen Kind, pastorof Christ Community United Methodist Church in Selinsgrove, Pennsylvania.

All the church members were accounted for and families had been contacted, Kind said.Their injuries ranged from broken bones and flesh wounds to temporary blindness andhearing problems, she said.

Kayihura said the bombings could have been avoided if the two venues had used securitymeasures such as metal detectors and the placement of guards to frisk those entering.

The African Union summit is scheduled to be held in Kampala next week.


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Title: Unexploded bomb vest found in Uganda; 4 arrestedPublished: July 13, 2010Source: Yahoo News, UGANDALink: (http://news.yahoo.com/s/ap/20100713/ap_on_re_af/af_uganda_explosions)

Investigators found an unexploded suicide vest with ball bearings in a disco hall inUganda's capital, suggesting that militants had planned a third bombing during the WorldCup final, officials said Tuesday. Four foreign suspects were arrested in connection withthe find.

The discovery of a suicide vest in a suburb of Kampala on Monday was consistent withwhat was seen at the two blast sites in Kampala, said the inspector general of police, KaleKaihura. The vest contained ball bearings, as did the bombs that exploded Sunday.Officials believe suicide bombers took part in the twin blasts during the World Cup final.

"What we found here is consistent with what we found on both scenes of crime. And sothis is a very significant lead in our investigation," Kaihura said.

Four people were arrested in connection with the discovery of the unexploded vest, saidEdward Ochom, the director of criminal investigations. He said the four were notUgandan but would not say their nationalities. Kale hinted that Somali nationals could beamong those arrested.

Kaihura said a Ugandan militant groupthe Allied Democratic Forcesmay alsohave played a role in the attack. Like al-Shabab, the ADF is primarily a Muslim radical

group.

The death toll from Sunday's attack rose to 76, Kaihura said. Officials found a bomb vest,detonator, wires and ball bearings in a bag at the disco similar to a laptop computer bag,he said.

In Washington, U.S. State Department spokesman P.J. Crowley said five injuredAmericans have been evacuated, and that the fatalities included one American.

"We have Diplomatic Security agents on the ground, along with a small number of FBIagents," Crowley said. "I think the FBI is going to send a significant team, flyaway team,

this afternoon ... at the request of Ugandan authorities to assist in the investigation."

Al-Shabab, Somalia's most dangerous militant group, claimed responsibility for theattacks. The Islamists are calling for Uganda to withdraw their African Unionpeacekeeping forces from Somalia.

The claim by al-Shabab, whose fighters are trained by militant veterans of the conflicts inAfghanistan and Iraq, raises the security stakes in East Africa and has broader
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implications globally. The group in the past has recruited Somali-Americans to carry outsuicide bombings in Mogadishu.

Al-Shabab, an ultra-conservative Islamic group that has drawn comparisons to theTaliban, has long threatened to attack outside of Somalia's borders, but the bombings late

Sunday are the first time the group has done so.

"We warned Uganda not to deploy troops to Somalia, they ignored us," said Sheik AliMohamud Rage, al-Shabab's spokesman. "We warned them to stop massacring ourpeople, and they ignored that. The explosions in Kampala were only a minor message tothem. ... We will target them everywhere if Uganda does not withdraw from our land."

Rage said a second country with peacekeeping forces in MogadishuBurundicouldsoon face attacks. Fighting in Mogadishu between militants and Somali troops or AfricanUnion peacekeepers frequently kills civilians.

The militants attacked two sites in Uganda's capital, one at an Ethiopian restaurant, theother at a rugby club where World Cup fans were watching the tournament's final at anoutdoor screening.

Title: Five arrested as FBI agents jet inPublished: July 14, 2010Source: The Monitor, UGANDAAuthor: Emmanuel GyezahoLink: (http://www.monitor.co.ug/News/National/-/688334/957540/-/view/printVersion/-

/vdtl3x/-/index.html)

American security agents dispatched by the US government are in Uganda aidinginvestigations into Sunday nights terrorist attacks which killed 74 people who were

watching the World Cup finals.

Yesterday, officials said the death toll had risen to 76 after two more victims died in

hospital. There were conflicting accounts yesterday about the number of people arrested

in connection with the bombings; with a government minister putting the number of

suspects at five, while a military official said at least eight people were apprehended.

African suspects

The official, a senior member of the Chieftaincy of Military Intelligence, spoke to Daily

Monitor on condition of anonymity given the sensitive nature of the investigations.

But State Minister for Internal Affairs Matia Kasaija told Parliament that the government

had arrested five people.
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He gave no further details about their nationality or where they were being detained but

the military source said that the suspects were nationals from three African countries,

and they are being held at a location in Kampala. None of the suspects talked in

English, said the source.

Police chief Kale Kayihura was tight-lipped about the arrests at a news conferenceyesterday morning. While he admitted that some arrests had been made, he gave no

further details.

On Monday, detectives attached to the American Federal Bureau of Investigations (FBI)

busied themselves gathering evidence from the bomb blast scenes at the Kyadondo

Rugby grounds and Ethiopian Village restaurant in Kabalagala, a US government official

told Daily Monitor yesterday.

Yesterday (Monday), a three-person FBI team was on the ground in Kampala collecting

evidence, said Ms Joann Lockard, the public affairs officer at the US Mission in

Kampala, in email correspondences with this newspaper. She also revealed thatDiplomatic Security (DS) special agents have been assisting the Ugandan police since

the incident first occurred.

The FBI investigators flew in from Nairobi, Kenya, she said and came to assist by

providing initial bomb forensics to assist the Ugandan authorities. Ms Lockard said the

FBI and DS will be assisting security agencies here with all aspects of the bombing

investigation, to include: forensics, evidence collection, and analysis.

Investigators will want to ascertain what forms of explosives were used in the triple

blasts, whether they were manufactured in Uganda or imported into the country andwhether the attacks were suicide bombings.

Somali al Shabaab Islamists linked to Osama Bin Ladens al Qaeda network said on

Monday that they had carried out the attacks. Asked whether the US government is

accepting the claim of responsibility from the Somali group, Ms Lockard said:

Obviously, the investigation itself is ongoing, but the preliminary information that we

have certainly would confirm that link.

Ms Lockard insisted that Ugandan law enforcement authorities remain in the lead of this

investigation, and said an additional FBI team was on standby in the US ready to assistif needed. But we will continue to do everything in our power to assist Uganda in

bringing the perpetrators of these attacks to justice, she added.


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Title: 'Swift' used in Norway's al Qaeda sting, US saysPublished: July 9, 2010Source: EUobserver.com, NORWAYAuthor: Valentina PopLink: (http://www.cambridgenetwork.co.uk/news/article/default.aspx?objid=71585)

Three al Qaeda suspects arrested in a Norway bomb plot were tracked down via the USanti-terrorism program searching through international bank transactions recorded by theBelgium-based company Swift, an American official said.

Norwegian police on Thursday said they had arrested three men suspected of having linksto al Qaeda in a conspiracy with links to the US and UK. The men, one of whom wasarrested in Germany, are suspected of planning to use bombs containing peroxide whichare both powerful and easily transported.

One of the suspects is a 39-year old Norwegian citizen, a Muslim Uighur from China,

who had lived in Norway since 1999. Another is an Iraqi citizen, aged 37, who wasgranted Norwegian residency on humanitarian grounds, while the third is an Uzbeknational, 31, who was granted permanent residency in Norway on grounds of familyreunification.

"I can tell you the 'Terrorism Finance Tracking Program' (TFTP) provided support to theNorwegian investigation of that al Qaeda threat," under-secretary for terrorism andfinancial intelligence Stuart Levey told Brussels journalists in a conference call onThursday (8 July).

His comments were made in connection to a vote in the European Parliament inStrasbourg the same day approving an EU-US agreement on the flow of data from theSociety for Worldwide Interbank Financial Telecommunication (Swift), which wasinterrupted in February when MEPs struck down an earlier deal due to privacy concerns.

Mr Levey explained that the TFTP stopped receiving new data, but continued to"generate leads" based on data it had at the end of 2009, when Swift moved storage ofEuropean transactions from the US to the Netherlands.

The TFTP program started as a covert operation in 2001, following the terrorist attackson New York and Washington. It was outed only in 2006, when the New York Times rana front page story on it.

Following the outrage of Europeans when they found out that US prosecutors weresecretly snooping on their bank transactions, Swift decided to reconfigure its databasestructure, so that no EU data would be kept on US soil, where it can be subject to"national security orders."
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Referring to extra privacy safeguards inserted into the new Swift deal, the US officialsaid they are "intended to give assurances to Europeans" that the checks and balancesincluded in the program from its beginning in 2001 "are real and effective."

"At the same time, nothing in the agreement compromises the functioning of the

program," he added.

Asked about the average amounts of terrorist funding the TFTP is able to track down, MrLevey said even if it was a transaction of a couple of hundreds of euros, it could providevaluable information, particularly on the location of the suspect.

"With respect to al Qaeda, it's under very significant financial stress. In fact it is in theworst financial position it's been in in years. And able to generate donations fromindividuals, but only small amounts," he said.

Despite all the publicity generated by the EU-US negotiations and the outing of the

program in 2006, terrorist suspects continued to use banks for money transfers.

"Sometimes they're not aware we know about them, sometimes they simply have nochoice, because there is no other way to make a payment in another country," one USofficial familiar with the program told journalists in Washington on 23 June.

Title: Regional meeting on money laundering opens in DakarPublished: July 10, 2010Source: Afrique en ligne, SENEGALLink: (http://www.afriquejet.com/news/africa-news/regional-meeting-on-money-

laundering-opens-in-dakar-2010071052481.html)

The Inter-governmental Action Group against Money Laundering in West Africa(GIABA) is hosting a two-day regional meeting here on policies against moneylaundering and financing terrorism.

The meeting, which began Friday, is being attended by Directors General of financialinstitutions of member countries of the Economic Community of West Africa States(ECOWAS).

Declaring the meeting open, the Director General of GIABA, Abdullahi Shehu, said that

the implementation of a robust policy against money laundering would streng then anti-fraud controls and promote financial integration.

To do otherwise would expose financial institutions to the risk of losing their goodreputation and clients as well as their operating licence, Shehu said.

He urged financial institutions to strive to fulfill their obligations regarding the money-laundering laws.
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Shehu said 11 countries had been evaluated according to the procedure of the FinancialAction Task Force, noting that money laundering was a criminal offence in 15 GIABAmember countries.

He urged member countries to take the necessary measures to rid the West African regionof threats of money laundering and financing terrorism.

Title: Singapore To Host Asia Pacific Group Money Laundering ConferencePublished: July 8, 2010Source: Gov Monitor, SINGAPORELink: (http://www.thegovmonitor.com/world_news/united_states/singapore-to-host-asia-pacific-group-money-laundering-conference-35194.html)

Singapore will host the 13th Annual Meeting and the related 9th Annual Technical

Assistance and Training Forum of the Asia/Pacific Group (APG) on Money Launderingconcurrently from 12 to 16 July 2010 at the Suntec Singapore International Convention

and Exhibition Centre.

More than 300 senior government officials from the Asia/Pacific region and around the

world will convene in Singapore to discuss key developments and policy responses to

pertinent issues related to anti-money laundering and the counter-financing of terrorism

(AML/CFT). The APG Annual Meeting will also review the progress made by APG

members in implementing the international standards on AML/CFT established by the

Financial Action Task Force.

Mr K Shanmugam, Minister for Law and Second Minister for Home Affairs is the Guest-

of-Honour and will deliver the opening address during the opening ceremony on

Tuesday, 13 July 2010.

The week-long series of meetings will be chaired by the current APG Co-Chairs Mr Ong

Hian Sun, Director, Commercial Affairs Department, Singapore Police Force, and

Commissioner Tony Negus, Australian Federal Police.

This annual high level gathering demonstrates the continued commitment and

cooperation of APG members to combat money laundering and terrorist financing.

Mr Ong Hian Sun said Singapores hosting of the meeting demonstrates Singapores

strong commitment to help promote robust anti-money laundering/counter terrorism
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financing standards in the Asia Pacific region, and enhance international cooperation to

combat cross-border financing of illicit activities.

Further information about the APG can be found atwww.apgml.org.

History and Objectives of APG

The APG was officially established as a regional organisation in 1997 at the fourth

Asia/Pacific Money Laundering Symposium in Bangkok.

The mission of the APG is to combat money laundering and terrorist financing in the

Asia/Pacific region through implementation of the international AML/CFT standards in

APG member.

To achieve this, the APG:

Provides a strong and autonomous regional AML/CFT body for APG members and

observers, including all strategically important jurisdictions in the Asia/Pacific region;

Actively participates in, and co-operates with, the global AML/CFT network, including

the FATF, other FATF-style regional bodies and relevant international and regional

organizations;

Assesses APG members compliance with the global standards;

Provides assistance to APG members to implement the global standards through effective

planning and guidance; and

Ensures that mechanisms are in place for international cooperation, given the

international dimension to money laundering and terrorist financing.

APG Membership

The APG currently has 40 members and a number of observer jurisdictions and

organisations.

While it is not a pre-condition of membership that laws to criminalise money laundering

and terrorist financing are already enacted, members must make a commitment to

implement legislation and other measures based on the accepted international standards

for AML/CFT.
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Title: Nepal to strike deal on money launderingPublished: July 5, 2010Source: nepalnews.com, NEPALLink: (http://www.nepalnews.com/main/index.php/business-a-economy/7321-nepal-to-strike-deal-on-money-laundering.html)

Nepal is all set to strike a deal with Mongolia, Thailand and Malaysia regarding financialinformation exchange to prevent money laundering and terrorist financing.

The Memorandum of Understanding (MoU) to this effect will be signed at the 13thannual general meeting of the Asia-Pacific Group on Money Laundering (APG) to beheld in Singapore from July 12-16. Nepal is a member of the APG.

The MoU will make it mandatory for the two sides to provide each other financialinformation on bank balance, investment in real estate, shares and about personssuspected to have been involved in money laundering and terrorist financing.

It is also learnt that Nepal and India are also all set to sign such a MoU within a fewmonths.

Nepal has also asked Hong Kong to sign a MoU in the light of alleged capital flight toHong Kong in the name of importing wool, it is reported.

During the AGM, Nepal will forward its opinions on compliance on anti-moneylaundering (AML) and combating financing on terrorism (CFT) measures. Nepal hasalready enforced anti-money laundering laws and enforced them in several areasincluding government agencies, banks and financial institutions, insurance companies,

money transfer agencies, money changers, cooperatives and casinos already.
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Documents

New York State Office of Homeland Security Eyes on Banking Finance and Commercial Facilities 1 July - 14 July 2010