Russia and Ukraine's Flap at the Kerch Strait

Russia and Ukraine had agreed to share the Kerch Strait under a 2003 bilateral treaty. To give some background on the area, the Kerch Strait is a narrow waterway that connects the Sea of Azov to the north with the Black Sea to the south. Russia is on the east side of the strait, and Crimea the west. In 2014 Russia made a territorial claim to annex Crimea from Ukraine; the annexation is not currently recognized by Ukraine or the UN. Ukraine’s third largest port, Mariupol, is located on the high northern side of the Sea of Azov; so Russia taking control of the strait could greatly restrict Ukrainian commercial and military flows through the area. The Sea of Azov is bounded by Ukraine and Russia and is not governed by international maritime law.

On Sunday, Russia moved a tanker to block the straight, just hours before Russian coast guard vessels fired upon three Ukrainian navy ships, injuring six sailors. The Ukrainian boats and 24 sailors were seized and taken to Crimea. The straight was reopened on Monday. Russia alleges that Ukraine provoked Russia to act. Ukraine had previously lost 80% of its navy when Russia annexed Crimea in 2014; most of its ships were moored there when Russia seized them.

Ukraine's President Petro Poroshenko made a request on Monday for martial law, primarily for areas bordering Russia. His first request for an order of 60 days was rejected by parliament in light of the upcoming elections on March 31. Under martial law civil activities like elections and freedom of the press can be restricted. Poroshenko's second proposal for martial law, for 30-days, was approved by parliament and is to take effect on Wednesday. President Poroshenko says that Ukraine has been facing a hybrid war from Russia for five years and that a looming Russian ground offensive revealed by intelligence reports could cause the escalation of an open war.

The international community, including European leaders and NATO, has condemned the activity and called for de-escalation. President Trump said he is “not happy about it” and did not like the situation "either way." Nikki Haley, the U.S. ambassador to the UN, tweeted “This is no way for a law-abiding civilized nation to act. Impeding Ukraine’s lawful transit through the Kerch Strait is a violation under international law. It is an arrogant act that the international community must condemn and will never accept.” Trump and Russia will both be at the G20 summit in Argentina later this week.

Summarized in part from the November 26, 2018 Los Angeles Times article "Ukraine imposes martial law as tensions with Russia soar"

Additional resources:
The Guardian "Kerch strait confrontation: what happened and why does it matter?"
The Economist "Explaining the naval clash between Russia and Ukraine"

Catch up with the latest events in the #KerchStrait and Ukraine with the Kyiv Post's live updates.https://t.co/yvwm13d2qI pic.twitter.com/cZYTk05vSV

— Kyiv Post (@KyivPost) November 26, 2018

Hearing Key Points: "Combating Money Laundering and Other Forms of Illicit Finance: Regulator and Law Enforcement Perspectives on Reform"

(Working Draft)

"Combating Money Laundering and Other Forms of Illicit Finance: Regulator and Law Enforcement Perspectives on Reform"

Hearing held on November 29, 2018 before the:
U.S. Senate Committee on Banking, Housing, and Urban Affairs
Full Committee Hearing

Witnesses:

Mr. Kenneth A. Blanco, Director, Financial Crimes Enforcement Network (FinCEN), U.S. Department of Treasury

Written Testimony (9 pages) Key Points:

• Intro
• The Importance of Bank Secrecy Act Information
• Regulatory Reform - Strengthening the AML/CFT Framework
• Understanding BSA Value
• Promoting Responsible Innovation
• Public-Private Information Sharing
• Conclusion

Mr. Steven D'Antuono, Section Chief, Financial Crimes Section, Federal Bureau of Investigation (FBI)

Written Testimony (12 pages) Key Points:

• I. Background
• II. Money Laundering Threats
• Illicit Cash
• Trade-Based Money Laundering (“TBML”)
• Misuse of Banks
• Obscured Beneficial Ownership
• Misuse of MSBs
• Prepaid Access Cards
• Virtual Currencies
• Purchase of Real Estate and Other Assets
• III. FBI Efforts to Counter Money Laundering Threats
• Working Groups and Task Forces
• Use of BSA Filings
• Outreach to Financial Institutions
• IV. Current Challenges to Law Enforcement Activities
• Opaque Corporate Structures
• Evidence Collection Involving Foreign Entities
• Small Dollar Transactions
• V. Conclusion

Ms. Grovetta Gardineer, Senior Deputy Comptroller For Compliance And Community Affairs, Office of the Comptroller of the Currency

Written Testimony (13 pages) Key Points:

#3ve

US-CERT issued an alert for 3ve, a major online ad fraud operation.

To remediate a malware infection associated with 3ve, DHS and FBI recommend the following: use and maintain antivirus software, avoid clicking links in emails, change your passwords, keep your OS and app software up-to-date, and use anti-malware tools.

The alert gives indicators of compromise (IOCs) as well as examples of anti-malware tools, those being: ESET Online Scanner, F-Secure, Malwarebytes, Microsoft Safety Scanner, and others.

From Google Security Blog:

In partnership with White Ops, we have published a white paper about how we identified this ad fraud operation, the steps we took to protect our clients from being impacted, and the technical work we did to detect patterns across systems in the industry. Below are some of the highlights from the white paper, which you can download here.

TA18-331A: 3ve – Major Online Ad Fraud Operation https://t.co/csj8qzgWQp #NCCIC #cyber #cybersecurity #infosec

— US-CERT (@USCERT_gov) November 27, 2018

Hearing Key Points: "Oversight of the Federal Trade Commission"

(Working Draft)

"Oversight of the Federal Trade Commission"

Hearing held on November 27, 2018 before the:
U.S. Senate Committee on Commerce, Science, and Transportation
Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security

Witnesses:

The Honorable Joseph J. Simons, Chairman, Federal Trade Commission
The Honorable Rohit Chopra, Commissioner, Federal Trade Commission
The Honorable Noah Joshua Phillips, Commissioner, Federal Trade Commission
The Honorable Rebecca Kelly Slaughter, Commissioner, Federal Trade Commission
The Honorable Christine S. Wilson, Commissioner, Federal Trade Commission

Written Testimony (26 pages) Key Points:
I. Introduction
II. Consumer Protection Mission

• A. Protecting Consumer Privacy and Data Security
• B. Truthfulness in National Advertising
• C. Protecting Consumers from Fraud
• D. Illegal Robocalls
• E. Consumer and Business Education and Outreach

III. Competition Mission
IV. International Cooperation
VII. Conclusion

Additional resources:
C-SPAN "Federal Trade Commission Oversight"
Broadcasting & Cable "Cruz Control: Senator Says Big Tech Needs Reigning In"

A Senate panel has summoned all five FTC Commissioners to testify at an oversight hearing today. You can tune in at 2:30 PM ET. https://t.co/QuGPrFSdbu

— Rohit Chopra (@chopraftc) November 27, 2018

Hearing Key Points: "Multilateral Economic Institutions and U.S. Foreign Policy"

(Working Draft)

"Multilateral Economic Institutions and U.S. Foreign Policy"

Hearing held on November 27, 2018 before the:
U.S. Senate Committee on Foreign Relations
Subcommittee on Multilateral International Development, Multilateral Institutions, and International Economic, Energy, and Environmental Policy

Witnesses:

Panel 1:
The Honorable David Malpass, Under Secretary, International Affairs, United States Department of Treasury

Written Testimony (Pending) Key Points:

The Honorable Roland de Marcellus, Acting Deputy Assistant Secretary, International Finance and Development, Bureau of Economic and Business Affairs, United States Department of State

Panel 2:
The Honorable Clay Lowery, Visiting Fellow, Center for Global Development
Mr. Scott Morris, Senior Fellow and Director, United States Development Policy Initiative, Center for Global Development
Ms. Elizabeth Drake, Partner, Schagrin Associates
Ms. Thea Lee, President, Economic Policy Institute
Ms. Stephanie Segal, Senior Fellow and Deputy Director, Simon Chair in Political Economy, Center for Strategic and International Studies

Today at 2:30 PM ET, @Morris_ScottA will testify as a joint witness at the “Multilateral Economic Institutions and U.S. Foreign Policy” hearing via @USSenate Foreign Relations Committee.

Watch live: https://t.co/N2DfGkUnM1

— CGD (@CGDev) November 27, 2018

Hearing Key Points: "Findings and Recommendations of the Commission on the National Defense Strategy"

(Working Draft)

"Findings and Recommendations of the Commission on the National Defense Strategy"

Hearing held on November 27, 2018 before the:
U.S. Senate Committee on Armed Services

Witnesses:

Ambassador Eric S. Edelman, Co-Chair, Commission On The National Defense Strategy
Admiral Gary Roughead, USN (Ret.), Co-Chair, Commission On The National Defense Strategy

Joint Written Testimony (3-Pages) Key Points:

• "The strategic landscape is more ominous and dynamic as violent jihadist groups, aggressive regional challengers, and ambitious authoritarian regimes challenge U.S. interests"
• "The United States must restore the hard‐power strengths that buttress its foreign policy and the global environment."

Additional resources:
MeriTalk "National Defense Strategy Commission Calls for Stronger Cyber Capabilities"

I'm catching up on reading the National Defense Strategy Commission's report, "Providing for the Common Defense," which has some sobering assessments. https://t.co/Tbh58f8liO

— Elsa B. Kania (@EBKania) November 21, 2018

US-China Economic and Security Review Commission's 2018 Annual Report

(Working Draft)

The US-China Economic and Security Review Commission published their 2018 Annual Report on November 14, 2018. Here are some notes from the report.

Chapters:

Chapter 3 Section 2- China's Relations with U.S. Allies and Partners

• Key Findings
• Introduction
• Recommendations
• Beijing’s Objectives in Its Relations with U.S. Allies and Partners
• Undermine U.S. influence in the Indo-Pacific and reorder the region to China’s advantage
• Acquire critical technologies and political influence in Europe
• Undermine the EU’s ability to coordinate China policy
• Suppress criticism and promote positive views of the CCP
• Advance the Belt and Road Initiative (BRI).
• Beijing’s Influence Toolbox
• Large-Scale Investment: Potent Tool of Active and Passive Influence
• Investment Screening Mechanism under Discussion in Europe
• Diplomatic Engagement: High-Level Visits from the Pacific Islands to Central Europe
• Signs of European Concern and Resilience
• Economic Punishment for Countries Opposing Beijing
• Targeted Countries Struggle to Respond
• “Sharp Power” and Perception Management
• [Soft, Hard, and “Sharp” Power]
• Media Pressure and Partnerships
• Co-opting and Subverting Opponents
• [CCP Influence Operations and the United Front]
• Influencing China Policy in Australia, New Zealand, and Latin America
• Purchasing Political Influence
• Canberra Responds Aggressively, Wellington Begins to Take Threat Seriously
• [Beijing’s Multifaceted Pressure Campaign against Taiwan]
• Implications for the United States

ODI's Data Ethics Canvas

The Open Data Institute (ODI) developed a helpful Data Ethics Canvas.

ODI's Data Ethics Canvas | Source: theodi.org

The Data Ethics Canvas evaluates data under 15 sections and provides a list of questions for each. For example, sections cover topics like Data Sources, Positive effects on people, Negative effects on people, and Communicating risks and issues.

Check out ODI's Data Ethics Canvas to learn more about data ethics.

Apple Inc. v. Pepper

The Supreme Court will hear a case on Apple’s App Store pricing and practices. The suit, Apple Inc. v. Pepper, centers on antitrust laws as they relate to third party resellers. A decision is expected by late spring.

The consumer complaint is that Apple has a monopoly on App Store apps and that its pricing model raises prices unfairly for consumers. Apple requires that app developers pay a 30% commission to Apple on whatever they sell; they are also prohibited from selling their apps in other marketplaces. There is a question whether the inflated prices come from the developers, or Apple’s commission structure.

The Trump administration along with the U.S. Chamber of Commerce and several computer and software industry groups support Apple. On the other side are 31 states and other groups fighting antitrust practices. If Apple were to lose the case, consumers would be able to sue Apple directly.

Summarized in part from the November 26, 2018 PBS News Hour article "Supreme Court hears Apple monopoly case on App Store pricing"

Additional resources:
USA Today "Supreme Court skeptical of Apple's monopoly on app purchases through its App Store"
SCOTUSblog "Apple Inc. v. Pepper"

Supreme Court hears Apple monopoly case on App Store pricing. https://t.co/gY4PU1ywq8

— PBS NewsHour (@NewsHour) November 26, 2018

Acting AG Whitaker Speaks to NYC's Joint Terrorism Task Force

Acting Attorney General Matthew Whitaker spoke to NYC’s Joint Terrorism Task Force (JTTF) on November 21, 2018. The NYC JTTF is the oldest in the country with 500 members from 50 different partner agencies.

Prior to 9/11 there were 35 JTTFs in the U.S. After 9/11 the FBI implemented JTTFs in all of its field offices. There are now at least 100 JTTFs nationwide. The JTTFs are composed of members from federal, state, and local law enforcement agencies as well as private organizations. The FBI participates in the JTTF under its Counterterrorism Division. The regional JTTFs coordinate under a National Joint Terrorism Task Force (NJTTF) that is located in Washington D.C. and has representatives from 35 federal agencies.

Acting AG Whitaker praised the NYPD in his speech:

And over the past three decades, your achievements have been staggering. In 1990, there were 2,245 murders in New York City. Last year there were 292. Since 2000, burglaries are down by nearly two-thirds and robberies have been cut in half. One weekend in October there were zero murders or shootings in New York City for the first time in 25 years.

These results are a testament to the effectiveness of NYPD, and of many people in this room. You’ve been able to start a virtuous cycle of safety, prosperity—and more safety. That is what we want to achieve all across America.

He also confirmed that the DoJ is taking additional steps to implement the objectives of one of Trump's first Presidential Executive Orders that was issued to improve safety for state and local law enforcement officers. A new $56 million grant announced by Whitaker includes funding for bulletproof vests, body-worn cameras, and health and safety research.

Summarized in part from the November 21, 2018 U.S. Department of Justice news release "Acting Attorney General Matthew Whitaker Delivers Remarks to the Joint Terrorism Task Force"

Additional resources:
Wikipedia "Joint Terrorism Task Force"

Acting Attorney General Matthew Whitaker Delivers Remarks to the Joint Terrorism Task Force https://t.co/2m5QFCJBo4 pic.twitter.com/6kEsqxtcFf

— Justice Department (@TheJusticeDept) November 21, 2018

Hearing Key Points: "Interagency Cyber Cooperation: Roles, Responsibilities and Authorities of the Department of Defense & the Department of Homeland Security"

(Working Draft)

"Interagency Cyber Cooperation: Roles, Responsibilities and Authorities of the Department of Defense & the Department of Homeland Security"

Hearing held on November 14, 2018 before the:

U.S. House Armed Services Committee
Subcommittee on Emerging Threats

U.S. House Homeland Security Committee
Subcommittee on Cybersecurity and Infrastructure Protection


Witnesses:

Ms. Jeanette Manfra, Assistant Secretary, Office of Cybersecurity and Communications, National Protection Programs Directorate, U.S. Department of Homeland Security

Written Testimony Key Points:

• Intro
• Threat Assessment
• Joint DoD and DHS Cybersecurity Efforts
• Cybersecurity Priorities
• In May of this year DHS published a Cybersecurity Strategy
• In September the President released the National Cyber Strategy
• Last year President signed Executive Order (EO) 13800, Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure
• Under EO 13800, DHS and DOE, in consultation with ODNI, assessed potential impact and response readiness for a power outage associated with a significant cyber incident
• Department of Homeland Security's Cybersecurity Responsibilities
• National Risk Management
• Secretary Nielsen announced rebranding of the Office of Cyber and Infrastructure Analysis as the National Risk Management Center (NRMC)
• Enables private and public sector to assess and mitigate risks
• NRMC's core mission focuses on systems or functions that cut across sectors
• The NRMC will support the NCCIC and the NICC
• Conclusion

Facebook Is in the Dog House with Users, Lawmakers, and Marketers

Facebook is in the dog house with users, lawmakers, and marketers. Other tech firms have been calling it “big tobacco” or even comparing it to Yahoo.

The social media firm, who owns Instagram, WhatsApp, and Facebook Messenger in addition to its core service, has recently suffered a major security breach affecting 50m users, acknowledged that it shared the data of 90m users with outside companies without user permission, and has been accused of not doing nearly enough to stop the spread of disinformation during the 2016 elections.

Facebook executives are starting to leave, much as they did before Yahoo’s collapse. Mark Zuckerberg, Facebook’s CEO, is not likely to leave as he controls the majority of Facebook’s voting shares, but rumors are that COO Sheryl Sandberg could be out in a year. Some employees at Facebook have described the atmosphere there as “Horrible.” The company has allegedly hired lobbyists and “opposition research” firms to find uncomplimentary information on its critics and to deflect blame.

Article resources:
New York Times "Delay, Deny and Deflect: How Facebook’s Leaders Fought Through Crisis"
The Economist "Facebook should heed the lessons of internet history"
ThinkProgress "In latest blow, Britain seizes internal Facebook documents"

An investigation by The New York Times revealed how Facebook fought back against its critics: with delays, denials and a full-bore campaign in Washington. Here are 6 takeaways for those of you who didn't have time to read the entire story. https://t.co/rMZXETk5v2

— The New York Times (@nytimes) November 15, 2018

AI R&D and AI-Driven Asymmetric Warfare (ADAW)

The world’s major powers are investing in AI research and development. China has a national AI strategy with a plan to invest $150 billion by 2030. The U.S. DoD invests $7.4 billion a year on unclassified R&D for AI and related fields. Russia, who is currently both light on human capital and financial resources, is currently investing $12.5 million a year.

With a lack of available resources Russia has adjusted its tactical approach to one of asymmetric warfare, where strategic influences and attacks have the potential to produce the greatest impact for their cost. For example, it is estimated that Russia spent about $1 million to influence the 2016 U.S. elections: $100,000 on Facebook ads, $4,700 on Google ads, $240,000 over two years on the IRA troll farm, $50,000 for an intelligence gathering trip by agents in 2014, plus costs for setting up 36,000 automated Twitter bot accounts, costs for creating divisive content, and costs related to the cyber-attacks on the Clinton campaign and the DNC.

The new threat in the information space is AI-driven asymmetric warfare (ADAW). As AI technology advances, the content of disinformation is changing from static (memes, ads, fake news stories) to dynamic (video, audio, "deep-fakes"). AI is also being researched for the purpose of understanding and manipulating human emotions and responses. The manipulative content is able to selectively reach targets via existing advanced content distribution networks.

Summarized from a November 15, 2018 Brookings Report "Weapons of the weak: Russia and AI-driven asymmetric warfare."

Additional resources:
Congressional Artificial Intelligence Caucus
CSIS "Promising Start, but Few Details in House AI Report"

“Digital information warfare is cost-effective and high-impact, making it the perfect weapon of a technologically and economically weak power,” @apolyakova writes on Russian disinformation campaigns https://t.co/8s4qNNpv7v pic.twitter.com/qG9e4hALlh

— Brookings (@BrookingsInst) November 26, 2018

Ambassadors Confront China About Muslim Uighur Mass Detention Camps

A group of at least 14 Western-country ambassadors are confronting China about ‘education camps’ in the far-west province of Xinjiang where an estimated one million Uighurs are being detained.

The Chinese government fears that this Muslim subset of the Chinese population has terrorist proclivities. In recent years Uighur fanatics have been responsible for terrorist attacks.

It is reported that these million Uighurs have been sent to the gulag-esque camps for an indefinite period, and without a trial. Millions more who are not in the camps are under heightened watch by facial-recognition technology, smart phone scanners, and police patrols.

Muslim countries who receive loans from China have been slower to criticize the arrangement. However, Turkey, from where the Uighurs originate, denounced China at a recent UN Human Rights Council meeting.

Multiple countries signed a letter asking to meet with Xinjiang's Communist Party boss, Chen Quanguo, who oversees the camps. Australia who exports heavily to China did. New Zealand who also exports to China did not.

Those involved are unsure what Trump will say at the G20 meeting in Argentina later this month where China's President Xi Jinping will be in attendance -- whether he will keep the party line or praise China.

Additional resources:
Business Insider "Beijing says it's 'very rude' for 14 countries and the EU to ask them about detaining 1 million Muslims"
The Economist "The West begins to stir over China’s massive abuse of Muslims"
CSIS "Responding to the Xinjiang Surveillance State—and Its Likely Progeny"

Smuggled Documents for Syrian War Crime Victims

Syria’s civil war started in 2011. Based on photos and other evidence smuggled out of the country, prosecutors have issued arrest warrants for several high-ranking Syrian officials for war crimes. The evidence shows signs of detainee torture and murder.

Several groups are collecting the evidence including the Commission for International Justice and Accountability (CIJA) and the UN. Those accused could be held for trial in places like Germany where there is universal jurisdiction to prosecute war crimes.

Russia and China support the Assad regime and are fighting to keep the UN Security Council from referring it to the International Criminal Court. With Assad on the verge of winning the war, it is likely that those who have allegedly committed these crimes will not face justice unless they travel to a country who could prosecute them.

Article resources:
The Economist "Will smuggled files lead to justice for the Assad regime's victims?"
Lawfare "Justice for Syria: Civil Society, The UN Mechanism and National Proceedings"
Wikipedia "Casualties of the Syrian Civil War"

Interesting Congressional Hearings, November 2018

Links to selected Congressional Hearings for November 2018:


U.S. House Armed Services Committee

11-14-18: Interagency Cyber Cooperation: Roles, Responsibilities and Authorities of the Department of Defense & the Department of Homeland Security


U.S. House Foreign Affairs Committee

11-29-18: U.S. Policy Toward Syria (Part II)

11-14-18: U.S. Department of State Counterterrorism Bureau: Ensuring Resources Match Objectives


U.S. House Homeland Security Committee

11-14-18: Interagency Cyber Cooperation: Roles, Responsibilities and Authorities of the Department of Defense & the Department of Homeland Security


U.S. House Committee on Oversight and Government Reform

.11-29-18: Evaluating Federal Disaster Response and Recovery Efforts

.11-28-18: BOP Management of Its Female Inmate Population, and Other Challenges


U.S. House Committee Veterans’ Affairs

11-14-18: 180-Day Review of the Electronic Health Record Modernization Program


U.S. Senate Committee on Armed Services

.11-28-18: CLOSED: Cyber Command’s Relationship with the National Security Agency

11-27-18: Findings and Recommendations of the Commission on the National Defense Strategy

11-14-18: Department of Defense’s Cybersecurity Acquisition and Practices from the Private Sector


U.S. Senate Committee on Banking, Housing, and Urban Affairs

11-29-18: Combating Money Laundering and Other Forms of Illicit Finance: Regulator and Law Enforcement Perspectives on Reform


U.S. Senate Committee on Commerce, Science, and Transportation

11-27-18: Oversight of the Federal Trade Commission


U.S. Senate Committee on Foreign Relations

.11-28-18: The Global Fight to End Modern Slavery

11-27-18: Subcommittee Hearing Multilateral Economic Institutions and U.S. Foreign Policy


U.S. Senate Committee on Homeland Security & Governmental Affairs

11-19-18: Examining the Effects of Tariffs and Trade Policy on Alabama Manufacturing and Agriculture


U.S. Senate Committee on the Judiciary

11-13-18: Big Bank Bankruptcy: 10 Years After Lehman Brothers


U.S. Senate Committee on Rules and Administration

.11-28-18: Nomination Hearing for Donald L. Palmer an Benjamin W. Hovland

Interesting Congressional Hearings, October 2018

Links to selected Congressional Hearings for October 2018:


U.S. Senate Committee on Banking, Housing, and Urban Affairs

10-11-18: Exploring the Cryptocurrency and Blockchain Ecosystem

10-02-18: Implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act


U.S. Senate Committee on Commerce, Science, and Transportation

10-12-18: The Race to 5G: A View from the Field

10-10-18: Consumer Data Privacy: Examining Lessons From the European Union’s General Data Protection Regulation and the California Consumer Privacy Act

10-04-18: Broadband: Opportunities and Challenges in Rural America


U.S. Senate Committee on Homeland Security & Governmental Affairs

10-10-18: Threats to the Homeland