AIR FORCE SECRETARY JAMES OUTLINES CONTRIBUTIONS TO SPACE FLIGHT

FROM:  U.S. DEFENSE DEPARTMENT

Right:  Secretary of the Air Force Deborah Lee James. DoD photo  

AF Secretary Describes Space Flight Milestones, Challenges
By Amaani Lyle
DoD News, Defense Media Activity

WASHINGTON, June 4, 2015 – Air Force Secretary Deborah Lee James yesterday outlined the Air Force’s contributions to human space flight advancement and discussed projected milestones and investments in space.

James delivered the keynote address at the Center for American Progress at an event marking the 50th anniversary of Air Force Maj. Ed White leaving his Gemini 4 spacecraft to become the first American to walk in space.

“Space-based capabilities and effects are vital today to U.S. warfighting, homeland security and, indeed, to our way of life,” James said. “Space provides us with position, navigation and timing … [and] helps us with communications used in international banking, global commerce and remote sensing to deter against nuclear war.”

And space is not only an enabler for other domains, the secretary said, but also directly affects the calculus of national security. Though for many years people largely perceived the space environment as peaceful, James warned that is no longer necessarily so.

“Today our satellites … are threated by a proliferation of man-made space debris and by those who would deliberately seek to counter some of our advantages or capabilities in space,” the secretary said.

New Threats Require Different Thinking

The United States needs to think differently about strategies to buffer against increasing threats in space, James said, and posturing for defense and situational awareness in the domain are good starts. “We need to … prepare for the day when a conflict on Earth could translate to effects in space,” she added.

She cited success with the Air Force’s launch provider, United Launch Alliance.

“The Air Force [Evolved Expendable Launch Vehicle] program has had an unprecedented 100 percent launch success rate for almost 13 years,” James said. “We also have been encouraging newer launch providers … like SpaceX, to help us re-energize the industrial base and to reintroduce competition into the launch service arena.”

Recently, SpaceX and its Falcon 9 rocket were certified as the national security space launch service provider, which James said enables the Air Force to compete launch services for the first time in almost a decade. Leveraging competition will help the Air Force drive down taxpayer costs and boost space resiliency, she added.

Humans Will Soon Go to Mars

James said President Barack Obama’s national space transportation policy calls on NASA to develop the necessary capabilities to support human exploration of Mars.

During a recent speech at the Kennedy Space Center, Obama proclaimed that by the mid-2030s, he believes the United States can safely send humans to orbit Mars and return to Earth, and that landing on Mars will follow.

“The day we land on Mars -- and I, for one, hope that an airman will be on that mission … who will do so in the spirit of Ed White, this will be huge,” James said.

The Air Force’s support of the evolving space enterprise that will continue the exploration and development of space is equally important, the secretary said.

“The U.S. space infrastructure will grow to include capabilities such as on-orbit servicing, assembly of large orbiting structures and routine use of extraterrestrial resources,” she said, adding that returning to manned missions from U.S. soil will also be among the Air Force’s significant developments.

Innovation With Industry

Innovation and collaboration with industry keep the Air Force at the forefront of space capabilities nationally and globally, James said, and pays dividends for national space programs.

“The Gemini IV launch and Ed’s spacewalk … serve as shining examples of what our government can do when we work in close collaboration with industry,” she said. “So much of what we do depends on that innovation that comes to us from industry.”

With last year’s announcement that NASA selected SpaceX and Boeing to develop the commercial crew capsule, the secretary said she believes it’s “very likely” that airmen will return to space by way of Air Force launch facilities before the decade’s end. “That will mean the days of relying on Russians in this way will be numbered,” she added.

As the Defense Department’s executive agent for space, James said, she looks broadly across the enterprise at its strategy, budgets and threats. This, she told the audience, calls for greater investments in training, doctrine and tactics, just in the air and cyber domains.

Space situational awareness, or “the eyes in the sky,” underpins the domain’s programs, specifically related to launching humans and national security payloads into orbit, the secretary said. In July 2014 for example, the Air Force launched two geosynchronous space situational awareness program vehicles that are currently progressing with on-orbit research, development, testing and evaluation.

“This program is going to provide us with unprecedented awareness of the activities of other satellites and geosynchronous and geostationary orbits,” James said, adding that it will be “one of our key neighborhood watch programs.”

Pending an approved budgetary request, the Air Force is on track for the 2019 introduction of the Space Fence, which the secretary said can track smaller objects in low-Earth orbit, adapting capabilities to the trend of smaller and more capable satellites. “Even very small pieces of debris can do enormous damage to these precious satellites,” she said.

People are Greatest Factor in Space

Airmen, James said, have been seminal contributors to space advancement over the decades, including pioneers such as Astronaut Buzz Aldrin, who became the second moonwalker as part of the Apollo 11 mission and set a spacewalk record with five and a half hours outside the spacecraft during the Gemini 12 mission.

More recent examples, she said, include retired Air Force Gen. Kevin Chilton, who logged more than 704 hours in space before serving as commander of U.S. Strategic Command, and retired Air Force Col. Eileen Collins, who logged 872 hours in space and was the first woman to pilot a shuttle and command a shuttle mission.

James also noted Air Force Col. Terry Virts’ service as commander of the International Space Station, which, over the past 15 years, has been inhabited by astronauts from around the globe to advance space goals for humanity.

Orbiting 250 miles above the Earth, Virts and his team are responsible for “the most comprehensive study of year-long effects of space on the human body,” James said. The study, she added, will yield “absolutely essential information and insight … that will be pivotal in determining how humans will ultimately survive a mission to Mars.”

But in considering how to inspire and motivate future airmen in space, James noted that the Air Force’s contributions don’t begin and end with astronauts. Thousands of engineers, scientists, maintainers and other dedicated professionals also work toward sustaining America’s leadership in space, and launch infrastructure rockets such as the Atlas and Delta have been “workhorses” for space exploration, she said.

Defense Department investments include billions of dollars in the space industrial base and James said she predicted a budget uptick in that area due to the program’s significance.

Encouraging Future Airmen, Astronauts

But capabilities alone will not suffice in keeping an advantage in space, James said.

“Our airmen … must continue and become even more well versed in space, its application and its defense,” the secretary said. “Our airmen have to enhance their knowledge of how information … permeates all military systems and contributes to critical information and vital intelligence.”

Nurturing greater interest in science, technology, engineering and mathematics careers focused on space will ensure future airmen have a sustained zeal and curiosity for the field, James said. The Air Force and the Air Force Association partnered with industry to develop a program, Stellar Explorers, a STEM-themed group encouraging friendly competition in innovation and this year, coincided with the Space Symposium in Colorado, she noted.

“I’m hopeful … that programs like Stellar Explorers will inspire our youth and put them on a path toward careers involving space that is enriching, rewarding and fun. … Let’s face it -- space is fun,” James said.

WHITE HOUSE READOUT: PRESIDENT OBAMA'S MEETING WITH CONGRESSIONAL LEADERSHIP

FROM:  THE WHITE HOUSE  
January 13, 2015
Readout of the President’s Meeting with Members of the Congressional Leadership

 This morning, the President and the Vice President hosted the bipartisan, bicameral leadership of Congress in the Cabinet Room. The leaders discussed a wide range of issues, and the President highlighted areas where Republicans and Democrats can work together to protect our national security and continue the progress we have seen in the economy. The President underscored there are priorities that rise above politics – including keeping Americans safe by promptly and fully funding the Department of Homeland Security without delay so the men and women working there can operate with the confidence they need, and working together to pass legislation to combat the cyber security threats we face. The President committed to working with members of both parties on text for an AUMF that Congress can pass to show the world America stands united against ISIL. The President also underscored the importance of our diplomatic efforts aimed at preventing Iran from obtaining a nuclear weapon, reiterating his strong opposition to additional sanctions legislation that could derail the negotiations and isolate the United States from our international coalition. Coming off the strongest year for private-sector job growth since the 1990s, the President asked that leaders from both parties work together to build on our growth. The President looks forward to working with Congress to make progress for the middle class, and ensure every American feels like they’re part of their country’s comeback.

WHITE HOUSE READOUT: HOMELAND SECURITY ASSISTANT MEETS WITH NEW YOUR CITY OFFICIALS

FROM:  THE WHITE HOUSE 

October 14, 2014

Readout of Lisa Monaco’s Meeting with New York City Officials

The Assistant to the President for Homeland Security and Counterterrorism, Lisa Monaco, met at the White House this afternoon with New York City Mayor Bill De Blasio and New York City Police Commissioner William Bratton to discuss strengthening federal, state, and local coordination on counterterrorism issues as well as the U.S. government’s response to the Ebola epidemic in West Africa.  On counterterrorism, they reviewed threat streams overseas associated with al-Qa’ida in the Arabian Peninsula, the Islamic State of Iraq and the Levant, and the Khorasan Group, and discussed measures to take to better protect the U.S. homeland from potential threats posed by these groups as well as homegrown violent extremists.  They specifically noted the threat from foreign fighters, including Western passport-holders, and the comprehensive, whole-of-government strategy to counter it.  On Ebola, they reviewed the status of additional airport screening measures that were implemented at New York’s John F. Kennedy Airport on Saturday and that will be rolled out later this week at Newark and other domestic airports. They also reviewed ongoing efforts to prepare hospitals and healthcare workers nationwide, including in New York City, to identify and treat Ebola patients safely and effectively.

U.S. COUNTERTERRORISM STATEMENT ON THREAT POSED BY ISIL TERRORISTS WITH WESTERN PASSPORTS

FROM:  U.S. STATE DEPARTMENT 

Counterterrorism: Statement for the Record for the Homeland Security Subcommittee on Border and Maritime Security: An Examination of the Threat Posed by ISIL Terrorists with Western Passports

Remarks

Washington, DC

September 10, 2014

As Delivered

Statement by Hillary Batjer Johnson

Chairwoman Miller, Ranking Member Jackson Lee, and distinguished Members of the Subcommittee, thank you for the opportunity to appear today on behalf of the State Department with my colleagues from the Department of Homeland Security (DHS). We are deeply supportive of DHS’ efforts to protect the U.S. homeland and make every effort to amplify its work through diplomatic engagement and information sharing with our allies and partners.

We remain gravely concerned by the activities of terrorists in Syria and Iraq, including the Islamic State of Iraq and the Levant (ISIL) and al-Nusrah Front. ISIL is an extremely dangerous organization operating in a chaotic part of the world. It has exploited the conflict in Syria and sectarian tensions in Iraq to entrench itself in both countries, now spanning the geographic center of the Middle East. ISIL’s attacks in Iraq and Syria have resulted in the deaths of thousands of people and the displacement of hundreds of thousands more from their ancestral homelands. ISIL has brutally targeted all groups who do not fit their narrow world view including some Sunnis, Shia, and religious and ethnic minority groups. In Syria, as in Iraq, ISIL has committed widespread atrocities, including torture, murder, the taking and execution of hostages sexual violence, and forcible displacement.

We have seen in Syria a trend of foreign fighter travel for the purposes of participating in the conflict – largely driven on an unprecedented scale by global connectivity that is available through the internet and social media. ISIL operates an extremely sophisticated propaganda machine and disseminates timely, high-quality media content on multiple platforms, including on social media. We have seen ISIL use a range of media to attempt to aggrandize its military capabilities, including showcasing the executions of captured soldiers, and evidence of consecutive battlefield victories resulting in territorial gains. More recently, the group’s supporters have sustained this momentum on social media by encouraging attacks in the United States and against U.S. interests in retaliation for our airstrikes. ISIL has also used its propaganda campaign to draw foreign fighters to the group, including many from Western countries.

It is difficult to provide a precise figure of the total number of foreign fighters in Syria, though the best available estimates indicate that approximately 12,000 fighters from at least 50 countries – including over 100 U.S. persons – may have traveled to Syria to fight for ISIL or al-Nusrah Front since the beginning of the conflict. These fighters not only exacerbate regional instability, but create real threats to U.S. interests and our allies. We are working closely with countries affected by the foreign fighter problem set to counter the threat these fighters pose. As we have built a common picture of the threat with our allies, so, too, we continue our efforts to build consensus around joint initiatives and complementary approaches to sustain a broad and comprehensive approach.

Securing U.S. Borders

The Department of State works closely with the Department of Homeland Security (DHS) to support its mission in protecting the United States by promoting effective aviation and border security screening with our foreign partners through enhanced information sharing. For example, an important effort in our counterterrorism work is Homeland Security Presidential Directive Six (HSPD-6), a post-9/11 White House initiative. Through HSPD-6, the State Department works with the Terrorist Screening Center to negotiate the exchange of identities of known or suspected terrorists with foreign partners to enhance our mutual border screening efforts.

The Terrorist Screening Center implements these agreements with foreign partners. These agreements allow partners to namecheck incoming flights to their countries, which helps us deter terrorist travel, creating an extra layer of security for the United States.

HSPD-6 agreements or arrangements are a pre-requisite to participate in the Visa Waiver Program (VWP). To date, we have forty-three such agreements in place which includes VWP partners, and we continue to actively seek out new partners.

The Department of State also works closely with its partners at the Department of Homeland Security to strengthen global aviation security by engaging foreign partners in bolstering aviation screening at last point of departure (LPD) airports with direct flights to the United States to identify and prevent known or suspected terrorists from boarding commercial flights.

Foreign Terrorist Fighters

Additionally, the Department of State is leading interagency efforts to engage with foreign partners to prevent in the first place and, where possible, to interdict foreign extremist travel to Syria. We strongly believe that a whole-of-government approach is the only way to truly address the threat, and we work closely with our interagency colleagues to facilitate comprehensive approaches. This work includes facilitating information exchanges with foreign partners, building partner capacity, and developing shared objectives focused on addressing the foreign fighter threat. Ambassador Robert Bradtke, Senior Advisor for Partner Engagement on Syria Foreign Fighters, leads this work for the State Department and has met with officials from European Union member countries, North Africa, the Gulf, the Balkans, and East Asia and Pacific, to discuss and examine our shared serious concerns about the foreign terrorist fighter threat. Ambassador Bradtke and other Department counterparts have led sustained efforts to urge reform and build capacity for whole-of-government and whole-of-society approaches to counter this threat, notably encouraging information sharing and border security, legal reform and criminal justice, and countering violent extremism.

Important progress has been made, but more work remains. Countries in the Balkans recently have adopted or are considering more comprehensive counterterrorism laws. In the Gulf, countries such as Kuwait, Qatar, and Saudi Arabia have increased penalties related to terrorist financing and several have established the necessary architecture to enforce their counterterrorism laws more effectively, such as Kuwait’s newly created Financial Intelligence Unit and Qatar’s establishment of a charity abuse review board.

Some of our partners have implemented legal reforms aimed more directly at countering foreign terrorist fighters. For example, traveling overseas to participate in combat has been newly criminalized in the Balkans, Canada, and Jordan. The United Kingdom and Indonesia have banned participation in groups such as ISIL, while Malaysia has publicly opposed ISIL and its activities.

Countries have taken a variety of steps under existing laws and regulations to inhibit foreign fighter’s resources or travel. Canada, New Zealand, Australia, and eight European countries have the authority to revoke the passports of suspected foreign fighters.

The European Council recently called for the accelerated implementation of EU measures in support of Member States to combat foreign fighters, including finalizing an EU Passenger Name Record (PNR) proposal by the end of this year, and increasing cooperation with partner nations such as the United States to strengthen border and aviation security in the region.

In all our efforts with our partners, we stress the importance of – and facilitate implementation of – adhering to a rule of law framework. We are encouraged by these and other reforms to counter the foreign fighter threat. While we have seen progress, our efforts must be sustained and intensified. We will continue to work closely with partners, particularly those in the Middle East, North Africa, and Europe in the coming months to enhance cooperation and build on efforts to date.

Multilateral Initiatives and the Global Counterterrorism Forum

We are also working the foreign terrorist fighter issue actively on the multilateral front. The week of September 24, President Obama will chair a United Nations Security Council (UNSC) Summit on the rising threat posed by foreign terrorist fighters, no matter their religious ideology or country of origin. This rare UNSC leader-level session is the first U.S.-hosted Head of Government-level UNSC session since President Obama led a UNSC Summit on non-proliferation in September 2009, and it presents a unique opportunity to demonstrate the breadth of international consensus regarding the foreign terrorist fighter threat and to build momentum for policy initiatives on this topic at home and abroad. In addition to a briefing from UN Secretary-General Ban Ki-Moon and brief remarks from leaders of all 15 UNSC members, this summit is expected to adopt a U.S.-drafted UNSC Resolution during the session.

That same week, Secretary Kerry and Turkish Foreign Minister Cavusoglu (chah-voosh-OH-loo) will co-chair a Global Counterterrorism Forum (GCTF) ministerial meeting, where GCTF members will adopt the first-ever set of global good practices to address the foreign terrorist fighter threat (FTF) and launch a working group dedicated to working with GCTF members and non-members alike to mobilize resources and expertise to advance their implementation. The good practices cover the four central aspects of the phenomenon: (1) radicalizing to violent extremism; (2) recruitment and facilitation; (3) travel and fighting; and, (4) return and reintegration. They are also intended to shape bilateral or multilateral technical or other capacity-building assistance that is provided in this area. This effort will allow our practitioners and other experts to continue to share expertise and broaden skills in addressing the FTF challenge.

Conclusion

We remain deeply supportive of DHS’ efforts to protect the U.S. homeland and make every effort to support its work through diplomatic engagement.

The State Department is involved in an array of activities to counter terrorism and the phenomenon of foreign terrorist fighters, such as capacity building, countering terrorist finance, and countering violent extremism, my State Department colleagues would be happy to brief Congress about these lines of effort at another time.

Our terrorist adversaries are nimble, and given the vitally important imperative to protect the United States and to stay “one step ahead,” we should ensure that the tools of civilian power continue to adapt to serve national security. As I hope you will agree, we have focused and sharpened our efforts, but there remains much to do.

I look forward to answering your questions and working closely with you in making the United States safer, in conjunction with our friends and allies across the globe.

LISA MONACO'S REMARKS ON COUNTERING VIOLENT EXTREMISM

FROM:  THE WHITE HOUSE 

Remarks by Assistant to the President for Homeland Security and Counterterrorism Lisa O. Monaco

As Prepared for Delivery
“Countering Violent Extremism and the Power of Community” 

Harvard Kennedy School Forum
Tuesday, April 15, 2014 

Thank you so much, Farah [Pandith], for your kind introduction, and for your service to our country as the first Special Representative to Muslim communities during your time at the State Department, and as a leading advocate for a community of voices to counter extremism. 

I want to thank everyone at the Harvard Kennedy School for doing so much to develop our future public servants and political leaders, and I’m honored to be with you today.  It’s an honor to be part of the great Forum tradition.  I’d like to thank my colleague Deputy Secretary Alejandro Mayorkas, as well as Jeffery Brown from the Ten Point Coalition and Haris Tarin from the Muslim Public Affairs Council for joining me for what I am sure will be an excellent discussion.         

Of course, we’re here today because of a tragedy.  This morning I joined Vice President Biden at the memorial service marking the anniversary of the Boston Marathon bombings – marking one year since we were shocked by those awful images at the finish line; one year since we lost Krystle Campbell, Lingzi Lu, eight-year-old Martin Richard and Officer Sean Collier – all innocent lives and all lost far too soon.  It’s been one year since we saw how Boston responds in the face of terrorism—with resilience and resolve and unbending strength. 

When the bombs went off, I had been President Obama’s chief advisor on homeland security and counterterrorism for just a few weeks.  It was a deeply personal introduction to the demands of this job.  I was raised a few miles from here—in Newton.  I went to high school in the shadow of Fenway Park and then made the long trek down Storrow Drive to come here for college.  Growing up, I spent every Patriot’s Day lining that marathon route – usually at the crest of Heartbreak Hill – cheering on the runners and taking part in a great Boston tradition.  And last year, my twin brother was there in the crowd, alongside thousands of other Bostonians.  It was not only an attack on the homeland; it was an attack on my hometown.   

We’ve faced violent expressions of extremism throughout our history, including 19 years ago this week in Oklahoma City.  And, sadly, we continue to face it, as we saw just two days ago in Overland Park, Kansas, when a gunman—allegedly a white supremacist with a long history of racist and anti-Semitic behavior—opened fire at a Jewish community center and retirement home, killing three.  And, while the American people continue to stand united against hatred and violence, the unfortunate truth is that extremist groups will continue targeting vulnerable populations in an effort to promote their murderous ideology.  

That’s why stemming domestic radicalization to violence has been a key element of our counterterrorism strategy from day one.  President Obama has been laser-focused on making sure we use all the elements of our national power to protect Americans, including developing the  first government-wide strategy to prevent violent extremism in the United States.  At the same time, we recognize that there are limits to what the federal government can do.  So we must rely on the partnership of those who are most familiar with the local risks, those who are in the best position to take action—local communities. 

Local communities are the most powerful asset we have in the struggle against violence and violent extremism.  We’ve crunched the data on this.  In the more than 80 percent of cases involving homegrown violent extremists, people in the community—whether peers or family members or authority figures or even strangers—had observed warning signs a person was becoming radicalized to violence.  But more than half of those community members downplayed or dismissed their observations without intervening.  So it’s not that the clues weren’t there, it’s that they weren’t understood well enough to be seen as the indicators of a serious problem. 

What kinds of behaviors are we talking about?  For the most part, they’re not related directly to plotting attacks.  They’re more subtle.  For instance, parents might see sudden personality changes in their children at home—becoming confrontational.  Religious leaders might notice unexpected clashes over ideological differences.  Teachers might hear a student expressing an interest in traveling to a conflict zone overseas.  Or friends might notice a new interest in watching or sharing violent material. 

The government is rarely in a position to observe these early signals, so we need to do more to help communities understand the warning signs, and then work together to intervene before an incident can occur, while always respecting our core commitment to protecting privacy and civil liberties.  During the past several years, that’s what we’ve attempted to do. 

We’ve built partnerships and expanded our engagement with communities across the nation, especially those that may be targeted by extremist groups.  We are working to improve our understanding of how and why people are drawn to violence.  And we have made it a priority to uphold and defend the qualities from which we draw strength—our openness, our diversity, and our respect for the equal rights of all Americans.

We know all too well that Muslim-American, Sikh-American, Arab-American communities and others, including Jewish-Americans, have been victimized by violence that is rooted in ignorance and prejudice, in suspicion and fear.  American Muslims and Americans of all faiths have enriched our way of life – contributing to our safety and security as patriotic service members, police, firefighters, first responders.  Violent extremism is not unique to any one faith.  And, as Americans, we reject violence regardless of our faith. 

Here in Massachusetts, over the past decade, government and law enforcement officials have built a dialogue to reinforce that shared commitment to non-violence and to build trust with a range of Boston-area communities.  The local U.S. Attorney’s office brings together representatives from federal agencies with community leaders, some of whom I just had the opportunity to meet.   I can tell you, the benefits go both ways.  Law enforcement is better able to understand the specific challenges these communities face, and community participants can bring their concerns directly to the government.  We all care about keeping our families and neighborhoods safe.  

These connections were critical in the chaotic days after the bombing – helping to minimize the potential for backlash against Muslim and Sikh communities.  In Malden, after a local Muslim woman was assaulted, purportedly in retribution for the bombings, the Department of Justice Community Relations Service worked with local officials to request additional security for the local mosque.  The Malden Chief of Police personally stood watch the first night.

Still, despite the broader security improvements we’ve put in place since 9/11, despite our outreach to reduce the risk of radicalization to violence, more work remains.  We need a comprehensive prevention model that allows us to work with communities and intervene with at-risk individuals before violent extremism takes root.  And we need to meet the evolving challenge, including terrorists’ use of the internet to recruit those who are most vulnerable to violent extremist ideologies, whether it be from neo-Nazis or groups like al-Qaeda.

So today, as we honor the memory of all those who were killed and injured one year ago, we recommit ourselves to building greater resilience into our communities to resist the pull of violent extremism.  We will continue to work closely with community leaders, local law enforcement and partners outside government who work with at-risk populations every day.  Faith leaders, school teachers, police chiefs – and especially mothers and fathers and families – will always be the best positioned to identify individuals in a community who might be susceptible to radical messages and violence—and to help them resist hateful ideologies.  So we must do more to connect those leaders to resources they need to be part of a comprehensive approach.  Let me just briefly describe a few of the steps we’re taking along those lines. 

First, the Department of Homeland Security is building partnerships with key cities across the country to establish a locally-based envoy dedicated to coordinating government engagement on the threat of homegrown violent extremism.  Piloted in Los Angeles, this effort has already helped focus our resources and strategic efforts by streamlining federal, state, and local outreach.  And tonight I’m proud to announce that the next such DHS envoy will be based in Boston. 

Second, DHS is also going to make more resources available to officials countering violent extremism in their communities.  Every year, DHS offers hundreds of millions of dollars in grant money to local law enforcement to bolster homeland security at the municipal and county level.  Now, in addition to preparing to respond to an attack once it’s happened, state and local officials can apply for these grants to explicitly develop models for preventing violent extremism in their communities, drawing on the expertise of social service providers, education administrators, mental health professionals, and religious leaders. 

Finally, I want to mention the expertise developing right in your backyard.  With support from the Department of Justice, the Children’s Hospital of Boston is studying why some Somali refugees embrace violent extremism, while others move towards gangs and crime and still others channel their energies into non-violent activism.  The answers to these kinds of questions will be essential to developing more effective models of intervention. 

And here at Harvard, the Berkman Center is establishing a new research network dedicated to understanding and ultimately preventing radicalization to violence on the internet.  Hate speech and extremism take on complex new dimensions and dangers when conducted online, and this will be a valuable asset as we strive to identify more effective ways to intervene and to address violent extremism in the internet age.   

During the past year, Boston has been a crucible for our nation-wide efforts to counter violent extremism and enhance our focus on resilience.  The bombings brought into sharp relief what we have been doing well and where we still need to hone our efforts.  The programs that are operating here set the example for cities across the nations.  And—as a Boston-girl, I say this with absolutely no surprise—the strength of the people of Boston made it wicked clear that this city and this country cannot be intimidated by the ideologies of hatred and violence that poison the hearts of a few disturbed individuals.  We reject that thinking.  And when people gather next Monday—in numbers as great and as proud as ever—to celebrate the running of the 118^thBoston Marathon, it will also show that we reject the fear terrorism seeks to breed.  It will show the true depth of what it means to be Boston Strong.  Thank you. 

ACTING ASSISTANT AG RAMAN'S SENATE TESTIMONY ON VIRTUAL CURRENCIES

FROM:   U.S. JUSTICE DEPARTMENT 
Monday, November 18, 2013

Statement of Mythili Raman Acting Assistant Attorney General U.S. Justice Department Criminal Division Before the Committee on Homeland Security and Governmental Affairs United States Senate for a Hearing Entitled “Beyond the Silk Road: Potential Risks, Threats and Promises of Virtual Currencies”

Chairman Carper, Ranking Member Coburn, and distinguished Members of the Committee: Thank you for the opportunity to appear before the Committee today to discuss the Department of Justice’s work regarding virtual currencies.   I am honored to represent the Department at this hearing and to describe for you our approach to virtual currencies, our recent successes in prosecuting criminals who use virtual currencies for illicit purposes, and some of the challenges we face as virtual currency systems continue to evolve.

            The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce.   We have also seen, however, that certain aspects of virtual currencies appeal to criminals and present a host of new challenges to law enforcement.

            The concept of virtual currencies is not new to the Department and, indeed, the Department has investigated and prosecuted the illicit use of virtual currencies since the late 1990s, when criminals first began using systems such as WebMoney and e-Gold to conduct their business.   Over the last 15 years, however, virtual currencies have evolved and diversified significantly, challenging the Department to adapt our capabilities to deal with new systems and threats.

            As with all emerging technologies, the Department has aggressively used our existing tools and capabilities to combat illegal activities involving virtual currencies.   The Department has two primary law enforcement interests in virtual currency:   (1) deterring and prosecuting criminals   using   virtual currency systems to move or hide money that is used to facilitate, or is derived from, criminal or terrorist acts, i.e., money laundering; and (2) investigating and prosecuting those virtual currency services that themselves violate laws aimed at illegal money transmission and money laundering.   As I will describe in my testimony, the Department is committed to using all the tools at our disposal to ensure that those law enforcement interests are met, even as virtual currency systems evolve.

            “Virtual currency” is a medium of exchange circulated over a network, typically the Internet, which is not backed by a government.   These systems can be both centralized and decentralized.

            Early centralized models, where the currency is controlled by a single private entity, have expanded and now encompass a wide range of business concepts.   Some centralized virtual currencies take the form of digital precious metals, such as e-Gold and Pecunix, where users exchange digital currency units ostensibly backed by gold bullion or other precious metals.   Others exist within popular online games or virtual worlds, such as Farmville, Second Life, or World of Warcraft.   Still others are online payment systems such as WebMoney and Liberty Reserve, which are available generally outside of specific online communities and denominate users’ accounts in virtual currency rather than U.S. Dollars, Euros, or some other national currency.   Decentralized systems such as Bitcoin, which have no centralized administrating authority and instead operate as peer-to-peer transaction networks, entered the scene relatively recently but are growing rapidly.   A network of sites and services, including exchangers who buy and sell virtual currencies in exchange for national currencies or other mediums of value, have developed around virtual currency systems, as well.

            Criminals are nearly always early adopters of new technologies and financial systems, and virtual currency is no exception.   As virtual currency has grown, it has attracted illicit users along with legitimate ones.   Our experience has shown that some criminals have exploited virtual currency systems because of the ability of those systems to conduct transfers quickly, securely, and often with a perceived higher level of anonymity than that afforded by traditional financial services.   The irreversibility of many virtual currency transactions additionally appeals to a variety of individuals seeking to engage in illicit activity, as does their ability to send funds cross-border.

            Cyber criminals were among the first illicit groups to take widespread advantage of virtual currency.   We have seen that many players in the cyber underground rely on virtual currency to conduct financial transactions.   Early users of virtual currency also included criminals involved in the trafficking of child pornography, credit card fraud, identity theft, and high-yield investment schemes.   As virtual currency became more widespread and criminals became increasingly computer savvy, other criminal groups moved to capitalize on virtual currency, as well.   There are now public examples of virtual currency being used by nearly every type of criminal imaginable.

            It is not surprising that criminals are drawn to services that allow users to conduct financial transactions while remaining largely anonymous.   And, indeed, some of the criminal activity occurs through online black markets, many of which operate as Tor hidden services.   Tor hidden services are sites accessible only through Tor, an anonymizing network that masks users’ Internet traffic by routing it through a series of volunteer servers, called “nodes,” across the globe.   Online black markets capitalize on Tor’s anonymizing features to offer a wide selection of illicit goods and services, ranging from pornographic images of children to dangerous narcotics to stolen credit card information.

            At the same time, we have seen that though virtual currency systems are growing rapidly, few systems currently exist that could easily accommodate the hundreds of millions of dollars often moved in a single large-scale money laundering scheme.   Transaction size is limited by the carrying capacity of the virtual currency systems and the exchangers.   When taken in the aggregate, however, the relatively small dollar values associated with most illicit virtual currency transactions quickly add up.   At their prime, e-Gold and Liberty Reserve, two virtual currency systems prosecuted by the Department, each moved the equivalent of over $1 billion in illegal proceeds annually.   As virtual currencies grow, the capacity for larger single transactions grows, as well.

            The Department has prosecuted several of these systems, such as e-Gold, based on evidence that they can be, and often are, intentionally designed to facilitate illegal activity.   These services typically do not conduct any meaningful customer due diligence and do not screen for transactions related to money laundering or terrorist financing.   At the same time, these complicit and illicit businesses allow users to conceal their identities and maintain high levels of anonymity during transactions.

            To be clear, virtual currency is not necessarily synonymous with anonymity.   A convertible virtual currency with appropriate anti-money laundering and know-your-customer controls, as required by U.S. law, can safeguard its system from exploitation by criminals and terrorists in the same way any other money services business could.   As virtual currency systems develop, it is imperative to law enforcement interests that those systems comply with applicable anti-money laundering and know-your-customer controls.

            Exploitation by malicious actors is a problem faced by all types of financial services and is not unique to virtual currency systems.   Although malicious actors have utilized emerging technologies to further their criminal schemes, the Department has thus far been able to apply existing tools to ensure vigorous prosecution of these schemes.

            The Department relies on money services business, money transmission, and anti-money laundering statutes to curtail this sort of unlawful activity.   Many virtual currency systems, exchangers, and related services operate as money transmitters, which are part of a larger class of institutions called money services businesses.   Money transmitters are required under 31 U.S.C. § 5330 to register   with the Financial Crimes Enforcement Network (FinCEN).   Most states also require money transmitters to obtain a state license in order to conduct business in the state.   Any money transmitter that fails to register with FinCEN or to obtain the requisite state licensing may be subject to criminal prosecution under 18 U.S.C. § 1960.   Additionally, the general money laundering and spending statutes, 18 U.S.C. §§ 1956 and 1957, cover financial transactions involving virtual currencies.   Finally, where virtual currencies are used in furtherance of underlying criminal activity, the Department can rely on traditional criminal statutes proscribing that activity, such as narcotics, cybercrime, child exploitation, and firearms laws.

            Some of the major prosecutions in recent years involving virtual currency services are as follows.

            The Department first took major action against an illicit virtual currency service in 2007, when it indicted e-Gold and its three principal owners on charges related to money laundering and operating an unlicensed money transmitting business.   E-Gold offered digital accounts purportedly backed by physical gold bullion.   A valid e-mail address was the only information required to set up an account, allowing users to conduct highly anonymous international transactions over the Internet.   As a result, e-Gold became a popular payment method for sellers of child pornography, operators of investment scams, and perpetrators of credit card and identity fraud.   At its peak, e-Gold reportedly moved over $6 million each day for more than 2.5 million accounts.   In 2008, e-Gold and the three individuals pleaded guilty.

Following the e-Gold indictment, several similar but smaller systems and exchangers were indicted or closed themselves down to evade law enforcement detection.   According to publicly filed charging documents, an executive of one of those businesses, Arthur Budovsky, then set out to create Liberty Reserve, an improved centralized virtual currency variation allegedly designed to evade U.S. law enforcement.   Among other things, Liberty Reserve operated offshore –it was based in Costa Rica--and purportedly recommended that its customers use money exchangers located in countries without significant governmental money-laundering oversight or regulation.   Moreover, Budovsky, the principal founder of Liberty Reserve, was so committed to avoiding the reach of U.S. law that, according to the indictment, in 2011, he formally renounced his U.S. citizenship and became a Costa Rican citizen in order to avoid facing justice in the United States .
         
Despite Budovsky’s alleged efforts, earlier this year, the Department indicted Liberty Reserve and its executives, including Budovsky, for running a $6 billion money laundering operation.   In a coordinated action, the Department of the Treasury identified Liberty Reserve as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act, effectively cutting it off from the U.S. financial system.

According to the indictment, Liberty Reserve allowed users to send and receive funds with a high level of anonymity by not requiring users to validate their identities and allowing users to make untraceable fund transfers in exchange for a privacy fee.   Many of the transactions were sent to or from users in the United States, but Liberty Reserve never registered with the appropriate U.S. authorities.   As revealed in the Department’s filings, Liberty Reserve became a system of choice for cyber criminals and was used in a wide array of illegal activity, including credit card fraud, identity theft, investment fraud, computer hacking, and child pornography. As a result of the Department’s action, the site was shuttered and effectively put out of business, and five defendants were arrested.   One is in custody in the United States, one has entered a guilty plea, and three others, including the lead defendant Budovsky, are pending extradition.   The case exemplifies the Department’s resolve to pursue purported major money laundering facilitators, even those who hide offshore.

Just last month, the Department took action against one of the most popular online black markets, Silk Road.   Allegedly operated by a U.S. citizen living in California at the time of his arrest, Silk Road accepted bitcoins exclusively as a payment mechanism on its site.   The Department’s complaint alleges that, in less than three years, Silk Road served as a venue for over 100,000 buyers to purchase hundreds of kilograms of illegal drugs and other illicit goods from several thousand drug dealers and other criminal vendors.   The site also purportedly laundered the proceeds of these transactions, amounting to hundreds of millions of dollars in bitcoins.   In addition to arresting the site’s operator and shutting down the service, the Department to date has seized over 170 thousand bitcoins, valued as of Friday, November 15, 2013, at over $70 million.

A separate indictment charges Silk Road’s operator with drug distribution conspiracy, attempted witness murder, and using interstate commerce facilities in the commission of murder-for-hire.   With regard to the murder-related charges, the indictment alleges that the Silk Road operator paid an undercover federal agent to murder one of the operator’s employees.

The cases I just described illustrate not only Department successes in combating illicit use of virtual currency, but also many of the challenges investigators face when they encounter these systems, some of which may ultimately require additional legal or regulatory tools.
         
Virtual currency allows users to send money across the globe without dealing with a traditional financial institution.   While this feature provides several benefits for legitimate customers, it can significantly complicate law enforcement efforts to follow the money.

Virtual currency systems have a global reach and clientele.   Virtual currency businesses can cater to U.S. clientele while operating on the other side of the world.   Investigations into illicit virtual currency businesses therefore often require considerable cooperation from international partners.   The Liberty Reserve investigation and takedown, for example, involved coordinated law enforcement action in 17 countries.

The international nature of the transactions poses an additional challenge where the overseas regulatory regime treats virtual currency differently or, as is true in some cases, fails to cover it at all.   While this challenge may diminish with the Financial Action Task Force’s recent guidance addressing the need for all countries to develop a risk-based approach to new payment products and services, incongruent regulatory regimes will likely remain a challenge when dealing with virtual currency services overseas.

Among the most significant challenges the Department faces in dealing with virtual currency is the difficulty in obtaining customer records.   Because decentralized systems lack any sort of administering authority to collect user information or receive legal process, investigators must rely on information collected by other sources, such as exchangers.   Even if the target used a centralized system or exchanger, however, accurate customer records may still be difficult to obtain, or may not exist at all.   Illicit users are typically attracted to systems with lax anti-money laundering and know-your-customer controls.   These services often attempt to evade U.S. action by operating out of countries that have poor regulatory oversight and are less willing to cooperate with U.S. law enforcement.   Even if the system at issue operates in a country with effective regulation and a cooperative relationship with the United States, the legal process for obtaining foreign records is relatively slow when compared to the near-instantaneous speed at which the virtual currency user can send the funds to another jurisdiction.

A final challenge arises from the link between virtual currency and encryption.    Decentralized virtual currencies typically rely on an encryption algorithm, rather than a central authority, to administer the currency.   These encryption-based currencies, also known as cryptocurrencies, lack a central administering authority that might otherwise possess valuable evidence.   In addition, users of these currencies often encrypt their digital wallets, complicating our efforts to seize and forfeit criminal proceeds.

The Department recognizes that virtual currency’s ability to facilitate the global movement of funds by a wide array of illicit actors necessitates a comprehensive and collaborative approach with our domestic and international partners.   To promote such coordination, the Department is an active participant in the Virtual Currency Emerging Threats Working Group (VCET).   VCET was founded by the Federal Bureau of Investigation (FBI) in early 2012 to mitigate the cross-programmatic threats arising from illicit actors’ use of virtual currency systems.   The group leverages the collective subject matter expertise of its members to address issues arising from illicit actors’ use of virtual currency, and deconflicts and shares information and concerns.   VCET members represent an array of U.S. Government agencies, including, within the Department, the FBI, the Drug Enforcement Administration, multiple U.S. Attorney’s Offices, and the Criminal Division’s Asset Forfeiture and Money Laundering Section and Computer Crime and Intellectual Property Section.

The Department contributes to several additional interagency groups concerning virtual currencies and emerging payment systems, including the New Payment Methods Ad Hoc Working Group, a subgroup of the Terrorist Finance Working Group, led by the State Department.   The FBI specifically has issued numerous intelligence products related to virtual currency, many of which were coauthored with other members of the U.S. Intelligence Community.

The Department is committed to working with our regulatory partners to ensure appropriate coordination on regulatory issues related to virtual currency.   The Department participated in meetings and discussions with FinCEN regarding the July 2011 Final Rule on Money Services Businesses and its applicability to virtual currencies, as well as the related March 18, 2013, FinCEN guidance.   The Department regards FinCEN’s regulation of many virtual currency services as money transmitters, as well as the resulting applicability of anti-money laundering and know-your-customer requirements under the Bank Secrecy Act, as crucial tools in preventing malicious actors from exploiting virtual currency systems in furtherance of illicit activity.

The Department works closely with FinCEN and the Department of Treasury to coordinate enforcement actions when appropriate.   This relationship allowed the Department to unseal the Liberty Reserve indictment in coordination with Treasury’s announcement naming the company as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act.   Such coordinated actions are integral tools in combating illicit finance.

The Department anticipates that virtual currency will continue to evolve and grow in popularity.   That growth inevitably will be accompanied by an increase in illicit transactions, which makes it critical that virtual currency services understand their legal obligations and requirements.   The Department is encouraged by the increasing prominence of legitimate virtual currency services that are attempting to comply with U.S. law.   While a number of services have registered at the federal level, many are still struggling with implementing appropriate anti-money laundering, know-your-customer, and customer due diligence programs, as well as complying with state-level regulations and licensing requirements.   As members of the U.S. financial community, virtual currency services can and must safeguard themselves from exploitation by criminals and terrorists by implementing legally required anti-money laundering and know-your-customer controls.

As the Administration’s Strategy to Combat Transnational Organized Crime recognizes, transnational organized crime networks are increasingly involved in cybercrime, and can imperil consumers’ faith in emerging digital systems.   We must also pay close attention to the critical role of facilitators who cross both the licit and illicit worlds and provide services to legitimate customers and criminals alike.

The Department recognizes that malicious actors are often resourceful, and even legitimate virtual currency services can become unwitting conduits for illicit transactions when these actors are able to defeat or circumvent anti-money laundering controls.   Outreach to these systems, much as the Department conducts with the formal financial sector, is an important tool in combating the exploitation of the systems for criminal and terrorist purposes.   Because centralized payment systems and exchangers often interact with the traditional financial sector and hold bank accounts at major financial institutions, the range of such Department outreach extends to the financial services community at large, complementing the outreach and training efforts of FinCEN, the primary BSA regulator, and the Department of the Treasury.    Department of Justice personnel routinely provide trainings to the private sector, as well as to domestic and international law enforcement and intelligence personnel, and specifically address virtual currency.
         
Law enforcement, Congress, and regulators must remain vigilant to ensure that the U.S. legal and regulatory structure is sufficiently robust to cover decentralized virtual currencies.   The Department looks forward to working with Congress to ensure that law enforcement continues to have the tools necessary to combat the use of virtual currency for illicit purposes.

Chairman Carper and Ranking Member Coburn, I thank you for this opportunity to discuss the Department’s work on virtual currency.

I look forward to any questions that you may have.

READOUT: WHITE HOUSE OFFICIAL'S CALL WITH PRESIDENT HADI OF YEMEN

FROM:  THE WHITE HOUSE
Readout of Assistant to the President for Homeland Security and Counterterrorism Lisa Monaco's Call with President Hadi of Yemen

Assistant to the President for Homeland Security and Counterterrorism Lisa Monaco called President Abdo Rabu Mansour Hadi of Yemen today to reaffirm the U.S. government’s strong support for Yemen’s political transition.  Ms. Monaco commended the National Dialogue for its efforts to develop a shared vision for a more just and democratic Yemen, and expressed U.S. support for President Hadi’s efforts to bring the National Dialogue to conclusion and move forward with implementation of the Gulf Cooperation Council Initiative.  She praised the contributions that Yemeni women, youth, and civil society have made to the National Dialogue, and expressed the hope that they will continue their engagement in subsequent stages of the transition.   Ms. Monaco also reaffirmed the U.S. government’s commitment to stand with the Yemeni government and people as they implement the National Dialogue’s outcomes, foster economic development, and combat the security threat from al-Qa’ida in the Arabian Peninsula.

PRESIDENT OBAMA, FBI DIRECTOR COMEY MAKE REMARKS REGARDING COMEY'S NEW POSITION

FROM:  THE WHITE HOUSE 
Remarks by the President and FBI Director James Comey
12:34 P.M. EDT

 THE PRESIDENT:  Thank you.  Thank you, FBI.  (Applause.) Thank you so much.  Please, everybody, be seated -- those of you who have seats.  (Laughter.)

Well, good afternoon, everybody.  I am so proud to be here and to stand once again with so many dedicated men and women of the FBI.  You are the best of the best.  Day in and day out, you work tirelessly to confront the most dangerous threats our nation faces.  You serve with courage; you serve with integrity.  You protect Americans at home and abroad.  You lock up criminals.  You secure the homeland against the threat of terrorism.  Without a lot of fanfare, without seeking the spotlight, you do your jobs, all the while upholding our most cherished values and the rule of law.

Fidelity, Bravery, Integrity:  That’s your motto.  And today, we’re here to welcome a remarkable new leader for this remarkable institution, one who lives those principles out every single day:  Mr. Jim Comey.

Before I get to Jim, I want to thank all the predecessors who are here today.  We are grateful for your service.  I have to give a special shout-out to Bob Mueller, who served longer than he was supposed to, but he was such an extraordinary leader through some of the most difficult times that we've had in national security.  And I consider him a friend and I'm so grateful for him and Ann being here today.  Thank you very much.  (Applause.)

Now, Jim has dedicated his life to defending our laws -- to making sure that all Americans can trust our justice system to protect their rights and their well-being.  He’s the grandson of a beat cop.  He’s the prosecutor who helped bring down the Gambinos.  He’s the relentless attorney who fought to stem the bloody tide of gun violence, rub out white-collar crime, deliver justice to terrorists.  It’s just about impossible to find a matter of justice he has not tackled, and it’s hard to imagine somebody who is not more uniquely qualified to lead a bureau that covers all of it -- traditional threats like violent and organized crime to the constantly changing threats like terrorism and cyber-security.  So he’s got the resume.

But, of course, Jim is also a famously cool character -- the calmest in the room during a crisis.  Here’s what a fellow former prosecutor said about him.  He said, “You know that Rudyard Kipling line -- ‘If you can keep your head when all about you are losing theirs’-- that’s Jim.”

There’s also a story from the time during his prosecution of the Gambino crime family.  One of the defendants was an alleged hit man named Lorenzo.  And during the trial, Jim won an award from the New York City Bar Association.  When the court convened the next morning, everybody was buzzing about it, and suddenly, a note was passed down from the defendant’s table, across the aisle to the prosecutor’s table.  It was handed to Jim, and it read:  “Dear Jim, congratulations on your award.  No one deserves it more than you.  You’re a true professional.  Sincerely, Lorenzo.”  (Laughter.)  

“Sincerely, Lorenzo.”  Now, we don't know how sincere he was.  (Laughter.)  We don't know whether this was a veiled threat, or a plea for leniency, or an honest compliment.  But I think it is fair to say that Jim has won the respect of folks across the spectrum -- including Lorenzo.  (Laughter.)  

He’s the perfect leader for an organization whose walls are graced by the words of a legendary former director:  “The most effective weapon against crime is cooperation.”  Jim has worked with many of the more than 35,000 men and women of the FBI over the course of his long and distinguished career.  And it’s his admiration and respect for all of you, individually, his recognition of the hard work that you do every day -- sometimes under extraordinarily difficult circumstances -- not just the folks out in the field, but also folks working the back rooms, doing the hard work, out of sight -- his recognition that your mission is important is what compelled him to answer the call to serve his country again.

The FBI joins forces with our intelligence, our military, and homeland security professionals to break up all manner of threats -- from taking down drug rings to stopping those who prey on children, to breaking up al Qaeda cells to disrupting their activities, thwarting their plots.  And your mission keeps expanding because the nature of the threats are always changing.

Unfortunately, the resources allotted to that mission has been reduced by sequestration.  I’ll keep fighting for those resources because our country asks and expects a lot from you, and we should make sure you’ve got the resources you need to do the job.  Especially when many of your colleagues put their lives on the line on a daily basis, all to serve and protect our fellow citizens -- the least we can do is make sure you’ve got the resources for it and that your operations are not disrupted because of politics in this town.  (Applause.)

Now the good news is things like courage, leadership, judgment, and compassion -- those resources are, potentially, at least, inexhaustible.  That's why it’s critical that we seek out the best people to serve -- folks who have earned the public trust; who have excellent judgment, even in the most difficult circumstances; those who possess not just a keen knowledge of the law, but also a moral compass that they -- and we -- can always count on.

And that’s who we’ve got in Jim Comey.  I’ll tell you I interviewed a number of extraordinary candidates for this job, all with sterling credentials.  But what gave me confidence that this was the right man for the job wasn’t his degrees and it wasn’t his resume; it was in talking to him and seeing his amazing family, a sense that this somebody who knows what’s right and what’s wrong, and is willing to act on that basis every single day.  And that’s why I’m so grateful that he’s signed up to serve again.

I will spare you yet another joke about how today, no one stands taller.  (Laughter.)  I simply want to thank Jim for accepting this role.  I want to thank Patrice and the five remarkable children that they’ve got -- because jobs like this are a team effort, as you well know.

And I want to thank most all the men and women of the FBI.  I’m proud of your work.  I’m grateful for your service.  I’m absolutely confident that this agency will continue to flourish with Jim at the helm.  And if he gets lost in the building, I want you guys to help him out.  (Laughter.)  Because I guarantee you that he’s going to have your back, make sure you’ve got his back as well.

Thank you very much, everybody.  God bless you.  (Applause.)

MR. JOYCE:  And now, ladies and gentlemen, it is my honor to introduce the seventh Director of the Federal Bureau of Investigation -- James B. Comey.  (Applause.)

MR. COMEY:  Thank you, Sean.  Thank you, Mr. President.  Thank you so much for gracing us with your presence, for honoring us, and for speaking so eloquently about the mission of the FBI and its great people.

Thank you also to my friends and family who are gathered here today.  My entire life is literally represented in this crowd, and it is a pretty picture.  These are the people that I have known and loved literally my entire life and from whom I have learned so much.
I’m especially grateful that my dad and my sister and my brothers could be here today.  I wish so much that Mom could be here to enjoy this amazing day.  I can still hear ringing in my entire teenage years her voice as she snapped open the shades every single morning and said, “Rise and shine and show the world what you’re made of.”  I found it less inspiring at the time -- (laughter) -- but it made us who we are.  And I’ll never forget that.

And to my five troops and my amazing bride, who talked me into being interviewed for this job -- of course, with the caveat that she’d be okay because the President would never pick me.  (Laughter.)  I got to tell you, this is your last chance to talk to him about it.  (Laughter.)

Mr. President, I am so grateful for this honor and this opportunity to serve with the men and women of the FBI.  They are standing all around this great courtyard, and standing on duty all around this country and around this world at this moment.  I know already that this is the best job I have ever had and will ever have.

That’s because I have a front row seat to watch the work of a remarkable group of people who serve this country, folks from all walks of life who joined the FBI for the same reason -- they were teachers and soldiers, and police officers and scholars, and software engineers, and people from all walks of life who wanted to do good for a living.  They wanted jobs with moral content, and so they joined this great organization.

I thought about them as I stood in this courtyard just a week ago and showed a visiting foreign leader the statue that overlooks this ceremony.  It’s an artist’s depiction of the words from our shield that the President mentioned:  Fidelity, Bravery, and Integrity. And as I thought about that statue and those words and this ceremony, I thought I would take just a couple of minutes and tell you what those words mean and why I think they belong on our shield.

First, fidelity.  The dictionary defines fidelity as a strict and continuing faithfulness to an obligation, trust, or duty.  To my mind, that word on our shield reminds us that the FBI must abide two obligations at the same time.  First, the FBI must be independent of all political forces or interests in this country.  In a real sense, it must stand apart from other institutions in American life.  But, second, at the same time, it must be part of the United States Department of Justice, and constrained by the rule of law and the checks and balances built into our brilliant design by our nation’s founders.

There is a tension reflected in those two aspects of fidelity, those two values that I see in that word, and I think that tension is reflected in the 10-year term that I’ve just begun.  The term is 10 years to ensure independence.  But it is a fixed term of years to ensure that power does not become concentrated in one person and unconstrained.  The need for reflection and restraint of power is what led Louis Freeh to order that all new agent classes visit the Holocaust Museum here in Washington so they could see and feel and hear in a palpable way the consequences of abuse of power on a massive almost unimaginable scale.  Bob Mueller continued that practice.  And I will again, when we have agents graduating from Quantico.

The balance reflected in my term is also a product of lessons hard learned from the history of this great institution.  Our first half-century or so was a time of great progress and achievement for this country, and for the Bureau.  But it also saw abuse and overreach -- most famously with respect to Martin Luther King and others, who were viewed as internal security threats.

As I think about the unique balance represented by fidelity to independence on the one hand, and the rule of law on the other, I think it also makes sense for me to offer those in training a reminder closer to our own history.  I’m going to direct that all new agents and analysts also visit the Martin Luther King Memorial here in Washington.  I think it will serve as a different kind of lesson -- (applause) -- one more personal to the Bureau, of the dangers in becoming untethered to oversight and accountability.

 That word fidelity belongs on our shield.

 Next, bravery.  We have perpetrated a myth in our society that being brave means not being afraid, but that’s wrong.  Mark Twain once said that bravery “is resistance to fear, mastery of fear, not absence of fear.”  If you’ve ever talked to a special agent that you know well and you ask he or she about a dangerous encounter they were involved in, they’ll almost always give you the same answer, “yeah, I did it, but I was scared to heck the whole time.”  But that’s the essence of bravery.

Only a crazy person wouldn't fear approaching a car with tinted windows during a late-night car stop, or pounding up a flight of stairs to execute a search warrant, or fast-roping from a helicopter down into hostile fire.  Real agents, like real people, feel that fear in the pit of their stomachs.  But you know the difference between them and most folks?  They do it anyway, and they volunteer to do that for a living.

What makes the bravery of the men and women of the FBI so special is that they know exactly what they're in for.  They spend weeks and weeks in an academy learning just how hard and dangerous this work is.  Then they raise their right hands and take an oath, and do that work anyway.  They have seen the Wall of Honor -- that I hope so much my friends and guests and family will get to see inside this building -- with pictures and links to the lives of those who gave the last full measure of devotion for their country as FBI employees.

Civil War General William Tecumseh Sherman said this:  "I would define true courage to be a perfect sensibility of the measure of danger and a mental willingness to endure it."

I called a special agent a few weeks ago after he had been shot during an arrest.  I knew before I called him that he had already been injured severely twice in his Bureau career, once in a terrorist bombing and once in a helicopter crash.  Yet when I got him on the phone, I got the strong sense he couldn’t wait to get me off the phone.  He was embarrassed by my call.  “Mr. Director, it was a through and through wound.  No big deal.”  He was more worried about his Bureau car, which he had left at the scene of the shooting.  (Laughter.)  He felt okay, though, because his wife -- also a special agent -- was going to go get the car, so everything was fine.  (Laughter.)

The men and women of this organization understand perfectly the danger they're in every day and choose to endure it because they believe in this mission.  That's why bravery belongs on our shield.

And, finally, integrity.  Integrity is derived from the Latin word "integer," meaning whole.  A person of integrity is complete, undivided.  Sincerity, decency, trustworthy are synonyms of integrity.  It's on our shield because it is the quality that makes possible all the good that we do.  Because everything we do requires that we be believed, whether that's promising a source that we will protect her, telling a jury what we saw or heard, or telling a congressional oversight committee or the American people what we are doing with our power and our authorities.  We must be believed.

Without integrity, all is lost.  We cannot do the good that all of these amazing people signed up to do.  The FBI's reputation for integrity is a gift given to every new employee by those who went before.  But it is a gift that must be protected and earned every single day.  We protect that gift by making mistakes and admitting them, by making promises and keeping them, and by realizing that nothing -- no case, no source, no fear of embarrassment -- is worth jeopardizing the gift of integrity.  Integrity must be on the FBI shield.

So, you see, those three words -- Fidelity, Bravery, Integrity -- capture the essence of the FBI and its people.  And they also explain why I am here.  I wanted to be here to work alongside those people, to represent them, to help them accomplish their mission, and to just be their colleague.

It is an honor and a challenge beyond description.  I will do my absolute best to be worthy of it.  Thank you very much. (Applause.)

FEMA AWARDS GRANT TO VILLAGE OF WHITEFISH BAY WI TO UPGRADE SEWER SYSTEM

FROM: FEDERAL EMERGENCY MANGEMENT AGENCY
FEMA Awards $3.1 Million Grant to the Village of Whitefish Bay: Hazard Mitigation Grant Program funds will be used for the upgrade of storm sewer system

Release date:
April 5, 2013

CHICAGO – The U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today approved $3,143,531 in Hazard Mitigation Grant Program (HMGP) funds to the village of Whitefish Bay, Wis., for the upgrading of several storm sewers, including the construction of a dry detention basin to alleviate flooding to nearby properties.

"The Hazard Mitigation Grant Program enables communities to implement critical mitigation measures to reduce the risk of loss of life and property," said FEMA Region V Administrator Andrew Velasquez III. "The improvement to the storm water system will reduce flood damage to nearby homes and other structures, thereby reducing the financial impact on individuals and the community."

"This is the largest construction projected funded through the Hazard Mitigation Grant Program in Wisconsin," said Wisconsin Emergency Management Administrator Brian Satula. "The flooding in 2010 demonstrated the need for improvements to prevent future flood damage to homes in the area."

HMGP provides grants to state and local governments to implement long-term hazard mitigation measures. Through HMGP, FEMA will pay $3,143,531, or 75 percent of the project’s total cost. Wisconsin Emergency Management and the village of Whitefish Bay will each contribute 12.5 percent of the funds, or $523,922 each.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

FLOUR HANFORD AGREES TO PAY OVER $1 MILLION TO RESOLVE ALLEGED LOBBYING PROBLEMS

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, April 3, 2013
Fluor Hanford Agrees to Pay $1.1 Million to Resolve Allegations of Improper Lobbying

The Justice Department announced today that Fluor Hanford LLC has agreed to pay $1.1 million to settle allegations that Fluor violated the False Claims Act by using federal funds for lobbying. Fluor is a Department of Energy (DOE) contractor that performs management and engineering services at the DOE’s Hanford Nuclear Site in eastern Washington. Fluor’s parent company, Fluor Corporation, is headquartered in Texas and performs engineering, construction and personnel services for commercial and government customers.

Between 2005 and 2009, Fluor contracted with the DOE to manage and operate the Hazardous Materials Management and Emergency Response (HAMMER) Center. The HAMMER Center provides homeland security and emergency response training to first responders and law enforcement personnel. Fluor allegedly used DOE funds to lobby Congress and other federal officials to increase funding for the HAMMER Center, in violation of a federal law known as the Byrd Amendment, which prohibits the use of federal funds for lobbying.

"The money allocated by Congress for this program was designed to train first responders and law enforcement personnel to respond to crisis situations, not to lobby Congress for more funding," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. "This resolution demonstrates that the Justice Department will work to ensure that public funds are not used to influence legislation."

"The cleanup efforts at Hanford are too important to have prime contractors who misuse government funds to lobby for more government funds," said Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington. "We are pleased that Fluor has settled these allegations and hope that this serves as a reminder to all prime contractors at Hanford that they must be good stewards of tax payer dollars."

The allegations resolved by today’s settlement were initially alleged in a whistleblower lawsuit filed under the False Claims Act by Loydene Rambo, a former employee of Fluor. Under the False Claims Act, private whistleblowers can sue on behalf of the United States for false claims. The United States has the right to take over the action, as it did here. The whistleblower is entitled to a share of any recovery. Rambo will receive $200,000 of the government’s settlement.

This case was handled by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative assistance provided by the Department of Energy’s Office of Inspector General.

The False Claims Act suit was filed in the U.S. District Court for the Eastern District of Washington, and is captioned United States ex rel. Rambo v. Fluor Hanford, LLC et al., No. cv-11-5037 (E.D. Wash.). The claims settled in this case are allegations only; there has been no determination of liability.

GOVERNORS, DOD, HOMELAND SECURITY SEEK IMPROVED DIALOGUE

FROM: U.S. DEPARTMENT OF DEFENSE
DOD, Homeland Security, Governors Look to Improve Dialogue
By Jim Garamone
American Forces Press Service

WASHINGTON, March 1, 2013 - Senior Pentagon and Department of Homeland Security leaders met Feb. 25 with representatives of the Council of Governors to find how the entities can work together better, officials said in a read-out of the meeting.

Deputy Defense Secretary Ash Carter and Homeland Security Secretary Janet Napolitano met with leaders of the council at the Pentagon. The meeting included discussions on cybersecurity, strategic trends affecting the defense budget and a review of the Hurricane Sandy response.

The council operates under Executive Order 13528 -- signed by President Barack Obama in 2010. It is a bipartisan council designed to strengthen the relationship between DOD, Homeland Security and the states and territories.

Napolitano briefed the governors on the president's executive order and policy directive on improving critical infrastructure cybersecurity and resiliency. Those attending agreed to improve cooperation on the issue and to make it a regular part of the meeting agenda.

They also agreed to a consultative process between DOD and the states for programming and budgetary proposals affecting the National Guard. Governors had raised concerns that the National Guard -- a precious state resource -- was not taken into account during the budgeting process.

The consultative process opens an avenue for the states to communicate their civil support needs to DOD, strengthens unity of effort and maximizes transparency on the strategic context of DOD programming and budgeting, officials said.

PROTECTING THE HOMELAND THROUGH MARITIME AWARENESS

North American Aerospace Defense Command's maritime domain awareness mission helps to provide the information and intelligence required to increase the security of U.S. and Canadian waterways and ports. Photo Credit: CIA World Factbook.



 

FROM: U.S. DEPARTMENT OF DEFENSE
NORAD Promotes Maritime Awareness to Protect Homeland
By Donna Miles
American Forces Press Service
WASHINGTON, Feb. 27, 2013 - Drive around any American city and you're likely to see tractor-trailers hauling huge containers that arrived from overseas at any of 361 major U.S. ports dotting some 95,000 miles of U.S. coastline.

The United States is the world leader in maritime trading, Navy Capt. Martin Beck, chief of North American Air Defense Command's maritime division, told American Forces Press Service. Twenty percent of all global trade passes through its extensive maritime transportation system, and 80 percent of all foreign trade entering the United States and Canada arrives by sea.

Unfortunately, these same waterways expose an unintended Achilles' heel to bad actors intent on using them for illegal, or even diabolical, activities.

"The threats are varied to the extent of your imagination," Beck explained. "They include state and nonstate actors, narco-smuggling, human traffickers, weapons traffickers, proliferators [and] foreign intelligence collectors. That is the gross macro spectrum of what we could encounter in the maritime domain."

The consequences, if left undetected, could be severe to the United States and Canada, Beck said. "We want to prevent a potential 9/11 in the maritime domain," he said.

To shore up these vulnerabilities, the United States and Canada amended the NORAD agreement in 2006 to add maritime warning to its mission. The two countries agreed to increase information and intelligence sharing to give their national leaders a clearer picture of the maritime approaches to their shores -- and, in the event of an inbound threat, vital time to act.

"The intent of the agreement was to increase the security of North America using a proven command infrastructure to increase bi-national cooperation in the maritime domain," Beck said. "We've got 55 years of experience here at NORAD in the defense of both Canada and the United States. So we are leveraging the state-of-the-art operations center and information-sharing protocols to ensure both countries have an accurate, timely and comprehensive picture of the maritime domain."

Since adopting the expanded mission almost seven years ago, NORAD processes, assesses and disseminates intelligence and information about the movements of hundreds of thousands of ships around the globe that ultimately will arrive at U.S. or Canadian shores.

This responsibility, which covers both countries' maritime areas, internal waterways and maritime approaches, requires extensive partnerships with U.S. Northern Command and its sister combatant commands. It also includes other partners in the U.S. and Canadian militaries, law enforcement, intelligence and commercial maritime communities.

Beck called these partnerships and the processes they have developed to make collaboration faster and more effective the strength of NORAD's maritime mission. Together, NORAD and its partners provide the myriad elements that, considered together, provide the most complete situational awareness, he said.

"The biggest challenge is the sheer volume of information that we have to sort through, and then collaborate on and share with our partners," Beck said. "This sharing and collaboration is essential to our success in the maritime domain and in exercising our maritime warning mission."

When the intelligence raises a red flag, NORAD issues an advisory to alert national decision-makers, or, in the event of a confirmed threat, a maritime warning.

Both are relatively rare. During the last 18 months, NORAD has issued just seven advisories and two warnings, none of which Beck can describe because the details are classified. But he said past responses have proven the effectiveness of the processes.

"To us, this shows that the process is working exactly as it was intended," he said.

The success of the mission, Beck said, can't be measured in warnings issued or interceptions made. Rather, he said he looks at the big picture, and the fact that neither the United States nor Canada has suffered a major maritime incident.

NORAD is committed to maintaining this track record to protect the U.S. and Canadian homelands, Beck said.

"We have the watch, and what we do is a no-fail mission," he said.

PRESIDENT OBAMA DECLARES OHIO DISASTER

Photo Credit:  White House. 

FROM:  FEDERAL EMERGENCY MANAGEMENT AGENCY

WASHINGTON, D.C. -- The U.S. Department of Homeland Security's Federal Emergency Management Agency announced that federal emergency aid has been made available to the state of Ohio to supplement state and local response efforts due to the emergency conditions resulting from severe storms beginning on June 29, 2012, and continuing.

The President's action authorizes the Department of Homeland Security, Federal Emergency Management Agency (FEMA), to coordinate all disaster relief efforts which have the purpose of alleviating the hardship and suffering caused by the emergency on the local population, and to provide appropriate assistance for required emergency measures, authorized under Title V of the Stafford Act, to save lives and to protect property and public health and safety, and to lessen or avert the threat of a catastrophe in all 88 counties in the State of Ohio.

Specifically, FEMA is authorized to identify, mobilize, and provide at its discretion, equipment and resources necessary to alleviate the impacts of the emergency.  Emergency protective measures limited to direct federal assistance, will be provided at 75 percent federal funding.

W. Michael Moore has been named as the Federal Coordinating Officer for federal recovery operations in the affected area.