Category: Trade

  • MIL-OSI Security: Active-Duty and Former U.S. Army Soldiers Arrested for Theft of Government Property and Bribery Scheme

    Source: United States Attorneys General 7

    One Soldier Charged with Conspiring to Transmit National Defense Information to Individuals Located in China

    View the indictment for Jian Zhao.

    Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.

    “The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”

    “While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”

    “We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.

    “These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”

    The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.

    The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.

    Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.

    The FBI and the U.S. Army Counterintelligence Command investigated the case.

    Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI

  • MIL-OSI China: Trump pauses some Canada and Mexico tariffs until April 2

    Source: China State Council Information Office

    U.S. President Donald Trump said on social media Thursday that tariffs on Mexico will be paused until April 2, applying to anything covered under the United States-Mexico-Canada Agreement (USMCA).

    “After speaking with President Claudia Sheinbaum of Mexico, I have agreed that Mexico will not be required to pay Tariffs on anything that falls under the USMCA Agreement. This Agreement is until April 2nd,” Trump said in a post on “Truth Social.”

    “I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump said, noting that “our relationship has been a very good one.”

    Earlier that day, U.S. Commerce Secretary Howard Lutnick told CNBC that more one-month tariff exemptions under USMCA are “likely.”

    “It’s likely that it will cover all USMCA compliant goods and services, so that which is part of President Trump’s deal with Canada and Mexico are likely to get an exemption from these tariffs,” Lutnick said.

    Trump’s latest announcement on Mexico tariffs came one day after White House Press Secretary Karoline Leavitt said that the president is granting a one-month exemption to three major automakers from the newly imposed 25 percent tariffs on Mexico and Canada.

    The United States-Mexico-Canada Agreement (USMCA) is a trade agreement negotiated, signed, and ultimately enacted during Trump’s first term, aimed at replacing the former North American Free Trade Agreement (NAFTA).

    On Feb. 1, Trump signed an executive order imposing a 25 percent tariff on products imported from Mexico and Canada, with a 10 percent tariff increase on Canadian energy products. On Feb. 3, Trump announced a 30-day delay in implementing the tariffs on both countries and continued negotiations. According to this decision, the relevant tariff measures took effect on March 4.

    Canada has announced retaliatory measures, while Mexico has signaled its intent to implement tariffs and other economic countermeasures. Businesses are increasingly concerned about the rising costs due to these tariffs, which could drive up consumer prices and contribute to an economic slowdown.

    The stock market has shown significant volatility in response to the new tariffs, with investor uncertainty mounting as fears of potential economic repercussions grow.

    The escalating tensions and economic uncertainties might have prompted Trump to reassess his trade policies.

    Trump has yet to make announcement on an overall pause on Canada tariffs. In a post on Truth Social Thursday, he accused Canadian Prime Minister Justin Trudeau of using the tariff problem to further his reelection bid.

    Trudeau, meanwhile, said on Thursday that Canada will continue to be in a trade war with the United States for the foreseeable future.

    MIL OSI China News

  • MIL-OSI Australia: NSW leads the way in tackling rent bidding

    Source: New South Wales Premiere

    In the NSW Government’s first ever Bidding in the NSW Rental Market report, the impact of the Government’s strong rental reform agenda is showcased, revealing insights into rent bidding, underbidding, and pricing variations.

    The analysis, conducted by NSW Fair Trading and the Department of Customer Service’s Data Analytics Centre, found the rent bidding ban is working on listing platforms and shows a rising trend of renters now securing rental properties for less than the advertised price.

    Solicited rent bidding occurs when agents, landlords, or platforms invite or pressure prospective tenants to offer more than the advertised rent, increasing housing and cost of living pressure on renters in an already competitive market.

    Before December 2022 non-fixed price listings made up 17 per cent of the market.

    In a win for renters, the report found systemic law changes introduced by the Minns Labor Government in 2023, which included expanding a ban on solicited rent bidding from only real estate agents to landlords and rental platforms, have led to the widespread removal of illegal rental listing practices, including price ranges and ‘offers over’ terminology on major listing platforms.

    This means more than 99 per cent of advertisements now comply with the rules.

    The results linked rental bond data with CoreLogic rental listings and deployed advanced data-matching techniques, informing and validating the ongoing compliance work of the new $8.4 million Rental Taskforce within NSW Fair Trading.

    Underbidding – where tenants pay less than the advertised rent – surged from seven per cent to 36 per cent of tenancies between March and August 2024, reflecting a broader market cooling, as listed rents exceeded what the market would bear.

    NSW Fair Trading has come down hard on real estate agents caught doing the wrong thing – issuing 145 penalty infringement notices totalling more than $157,000 between May and December last year to those who breached their obligations under the Residential Tenancies Act 2010 (NSW) and associated laws.

    Sydney property hotspots including the Randwick, Waverley, and Canada Bay LGA’s showed the highest rates of overbidding for a property, while Byron, Woollahra, and Ku-ring-gai demonstrated the highest rates of underbidding.

    Historic reforms passed in 2024 are further transforming the rental market by banning no-grounds evictions, limiting rent increases to once per year, making it easier to have pets, as well as improving laws governing fee-free rent payment options, and prohibiting fees for background checks.

    The Bidding in the NSW Rental Market reportalongside NSW Fair Trading’s Rent Check website provide important market information to support renters and landlords in the NSW rental market.

    The Bidding in the NSW Rental Market report can be read on the Rent Bidding in NSW Insights Report webpage.

    Information on the NSW Fair Trading Rent Check can be found on this webpage

    Quotes attributable to Minister for Better Regulation and Fair Trading Anoulack Chanthivong:

    “This report shows how the Minns Labor Government’s rental reforms, coupled with targeted action by NSW Fair Trading, are working to better protect tenants and foster a more transparent and sustainable rental market.

    “The Minns Labor Government understands that more people than ever are renting and that they are renting for longer.

    “That’s why the Government is committed to supporting the rental market, so tenants see it as one that offers security, and quality, while providers view it as one they can invest in with certainty and viability.

    “The suite of rental reforms that the Minns Labor Government is implementing will give renters greater stability and security when renting a home, while providing certainty for landlords and agents.”

    Quotes attributable to NSW Rental Commissioner Trina Jones:

    “This report highlights the NSW Government’s commitment to data-driven regulation and the importance of effective enforcement when responding to wilful non-compliance in the rental market.

    “NSW Fair Trading’s regulatory measures have effectively eliminated solicited rent bidding through rental listings, with compliance rates now reaching above 99 percent.

    “Importantly, our analysis reveals that broader rent bidding practices, while present during periods of market pressure, have not been a significant driver of rental price inflation.”

    Quotes attributable to Core Logic’s Head of Research Eliza Owen:

    “Our research indicates that transparent and fair rental practices contribute significantly to market stability, benefiting both tenants and property owners.

    “As we continue to gather and analyse data, it’s clear that targeted reforms and effective enforcement are key to fostering a rental environment where all stakeholders can thrive, especially in the context of affordability barriers to home ownership.

    “There are signs of demand cooling in the rental market, which has likely helped reduce the practice of rent bidding, but NSW Fair Trading’s regulatory measures are a positive step, protecting fairness and transparency in the event of future market upswings.”

    MIL OSI News

  • MIL-OSI China: Chinese leaders join national lawmakers, political advisors in deliberation, discussions

    Source: People’s Republic of China – State Council News

    Chinese leaders join national lawmakers, political advisors in deliberation, discussions

    Li Qiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Chinese premier, takes part in a joint group meeting of political advisors from the sectors of economics and agriculture at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]

    BEIJING, March 6 — Senior Chinese leaders Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang and Li Xi on Thursday attended deliberation at the third session of the 14th National People’s Congress (NPC) and group discussions at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC).

    When joining NPC deputies from Hebei Province in a group deliberation in the afternoon, Premier Li Qiang urged the province to seize the opportunities arising from the coordinated development of the Beijing-Tianjin-Hebei region to achieve greater progress.

    He noted that it is important to advance the construction of the Xiong’an New Area with high standards and quality, improve infrastructure and public services, and create an environment that is desirable to live and work in.

    On Thursday morning, the premier took part in a joint group meeting of political advisors from the sectors of economics and agriculture. In order to deliver on the objectives and tasks set for this year, he emphasized the need for macro regulation to be more forward-looking, targeted and effective.

    Li Qiang also said that efforts must be made to promote urbanization and rural revitalization.

    Participating in a joint group meeting attended by political advisors from the China Zhi Gong Party, the All-China Federation of Returned Overseas Chinese and the sector of friendship with foreign countries, top legislator Zhao Leji urged political advisors to strengthen efforts in carrying out consultation, deliberation and democratic oversight.

    Zhao, chairman of the NPC Standing Committee, also expressed hope that they will closely integrate services for overseas Chinese with services for the country’s overall interests.

    In a discussion with political advisors from the sector of religious bodies, top political advisor Wang Huning called on them to systematically develop religions in the Chinese context, gradually forming religious doctrines that are in line with China’s national conditions.

    Wang, chairman of the CPPCC National Committee, stressed the need to strengthen the understanding of the Party’s theories and policies on religious affairs and deepen research on major issues in the religious field.

    Cai Qi, a member of the Secretariat of the Communist Party of China (CPC) Central Committee, participated in a joint group meeting of political advisors from the sectors of social sciences as well as the press and publication. He urged them to harness the advantages of their sectors and offer insights for advancing Chinese modernization.

    Cai also called for prioritizing social responsibility and contributing to the development of philosophy and social sciences, as well as media and publicity work.

    Vice Premier Ding Xuexiang, who attended a joint group meeting of political advisors from Hong Kong and Macao special administrative regions, stressed the importance of upholding “one country, two systems” and firmly maintaining the prosperity and stability of the two regions.

    He also underscored the importance of consolidating and enhancing the unique status and advantages of Hong Kong and Macao, and promoting their integration into the overall development of the country.

    Li Xi, secretary of the CPC Central Commission for Discipline Inspection, attended a joint group meeting of political advisors from the Communist Youth League of China and the All-China Youth Federation, the All-China Federation of Trade Unions, and the All-China Women’s Federation.

    He urged political advisors to actively provide suggestions on further deepening reform comprehensively, promoting high-quality development, and formulating the 15th Five-Year Plan (2026-2030), among other issues. He also stressed maintaining a high-pressure stance on both misconduct and corruption.

    Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang and Li Xi are all members of the Standing Committee of the Political Bureau of the CPC Central Committee.

    Li Qiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Chinese premier, joins National People’s Congress (NPC) deputies from Hebei Province in a group deliberation at the third session of the 14th NPC in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]
    Zhao Leji, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and chairman of the National People’s Congress Standing Committee, participates in a joint group meeting attended by political advisors from the China Zhi Gong Party, the All-China Federation of Returned Overseas Chinese and the sector of friendship with foreign countries at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]
    Wang Huning, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and chairman of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), attends a discussion with political advisors from the sector of religious bodies at the third session of the 14th CPPCC National Committee in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]
    Cai Qi, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and a member of the Secretariat of the CPC Central Committee, participates in a joint group meeting of political advisors from the sectors of social sciences as well as the press and publication at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]
    Ding Xuexiang, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and Chinese vice premier, attends a joint group meeting of political advisors from Hong Kong and Macao special administrative regions at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]
    Li Xi, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and secretary of the CPC Central Commission for Discipline Inspection, attends a joint group meeting of political advisors from the Communist Youth League of China and the All-China Youth Federation, the All-China Federation of Trade Unions, and the All-China Women’s Federation at the third session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, capital of China, March 6, 2025. [Photo/Xinhua]

    MIL OSI China News

  • MIL-OSI USA: Amendment to Duties to Address the Flow of Illicit Drugs Across Our Southern Border

    US Senate News:

    Source: The White House
    class=”has-text-align-left”>By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order:
            Section 1.  Background.  Automotive production is a major source of United States employment and innovation and is integral to United States economic and national security.  The American automotive industry as currently structured often trades substantial volumes of automotive parts and components across our borders in the interest of bringing supply chains closer to North America.  In order to minimize disruption to the United States automotive industry and automotive workers, it is appropriate to adjust the tariffs imposed on articles of Mexico in Executive Order 14194 of February 1, 2025 (Imposing Duties to Address the Situation at Our Southern Border).
            Sec. 2.  Product Coverage.  (a)  Articles that are entered free of duty as a good of Mexico under the terms of general note 11 to the Harmonized Tariff Schedule of the United States (HTSUS), including any treatment set forth in subchapter XXIII of chapter 98 and subchapter XXII of chapter 99 of the HTSUS, as related to the Agreement between the United States of America, United Mexican States, and Canada, shall not be subject to the additional ad valorem rate of duty described in section 2(a) of Executive Order 14194.        (b)  The additional rate of duty on potash that is not subject to subsection (a) of this section shall be reduced to 10 percent in lieu of 25 percent.        (c)  The modifications set out in this section shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 7, 2025.
            Sec. 3.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:             (i)   the authority granted by law to an executive department, agency, or the head thereof; or             (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative or legislative proposals.        (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.        (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.      DONALD J. TRUMP  THE WHITE HOUSE,    March 6, 2025.

    MIL OSI USA News

  • MIL-OSI USA: As Avian Flu Rages, Gillibrand Calls On Trump Administration To Take Action To Fight Spread, Bring Down Skyrocketing Cost Of Eggs

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand
    As avian flu rages across the country and drives up the cost of eggs, U.S. Senator Kirsten Gillibrand held a virtual press conference calling on the Trump administration to take action to develop and approve a vaccine for poultry and contain the outbreak.
    Bird flu has been found in 44 of New York’s 62 counties and has forced farmers to cull more than 150 million birds around the country, including 100,000 at one farm on Long Island alone. A new strain of the disease has been found in cattle; its spread would be devastating to New York’s dairy farmers and could pose a serious threat to human health if the strain continues to evolve.
    Nevertheless, the Trump administration has stopped releasing crucial data on the spread of bird flu and has fired federal workers responsible for tracking cases and managing the federal response. Gillibrand is calling on the administration to take action to address the outbreak and support the development and approval of a vaccine to bring down egg prices, reduce the need to depopulate flocks, and safeguard public health. 
    “Avian flu is decimating bird populations, and the subsequent shortage of egg-laying hens is making eggs unaffordable for working New Yorkers,” said Senator Gillibrand. “President Trump must act now to contain this outbreak. I am urging him to do everything in his power to prioritize the development of a vaccine to inoculate chickens against avian flu and fulfill his campaign promise to bring down grocery prices. I am alarmed that the administration limited the data shared with the scientific community and am urging full transparency. This deadly disease requires a whole of government response to be enacted immediately.” 
    The full text of Senator Gillibrand’s letter to leadership at the U.S. Department of Agriculture, the Department of Health and Human Services, the Department of Homeland Security, and the Office of the United States Trade Representative is available here or below:
    Dear Secretary Rollins, Secretary Kennedy, Secretary Noem, and Ambassador Greer,
    As the United States enters its third year of containing the H5N1 strain of Highly Pathogenic Avian Influenza (HPAI), it is imperative that the federal government continue to aggressively combat the spread of this deadly disease. With more than 150 million birds already culled, including 100,000 birds at one farm on Long Island alone, this outbreak does not appear to be slowing down.1 Human infections, including a fatal case in Louisiana, and a new strain of the disease discovered in a dairy herd in Nevada, demonstrate the ongoing and increasing risk this influenza is posing to animal and human health.2 Agencies must work together on comprehensive response efforts including vaccine development, publishing current scientific data, and proactive engagement with our international trading partners.  
    On January 31, 2025, the Animal and Plant Health Inspection Service confirmed a new genotype of HPAI, Genotype D1.1, identified in a dairy farm in Nevada.3 This is the first time in which there is clear, genetic confirmation that dairy cattle derived the virus from birds. As the virus evolves, it will make it more difficult to control the spread amongst wild birds, commercial poultry flocks, and dairy farms. In addition, an evolving virus could potentially lead to increased infections among humans, particularly farmworkers who interact with the animals daily. While the poultry industry has robust biosecurity measures to reduce the spread of HPAI in their operations, it seems that these measures are not adequate in combatting this highly virulent strain. The strategies used to combat the 2015 avian flu epidemic (i.e. increased biosecurity precautions) do not seem to be enough to counteract this strain.4  
    Engagement with the scientific community is the cornerstone of disease prevention and mitigation.  It is extremely alarming that the weekly Morbidity and Mortality Report from the Centers for Disease Control and Prevention, released on February 5, 2025, did not have any mention of H5N1 and did not contain any publicly available information on the risks associated with this virus. While data seemed to have been briefly included in the Morbidity and Mortality Report, it is no longer included in versions available online.5 Reports indicate that mistakenly reported data included indications there has been transmission of H5N1 between cats and humans, specifically those that share the same household.6 The midst of a potential public health crisis is not the time to hide information from the broader scientific community. The refusal to share this data will stifle critical vaccine development.  
    Unfortunately, inoculating poultry against HPAI, especially operations that are free-range, is extremely difficult. This outbreak of HPAI will require novel solutions in terms of vaccine delivery, such as additions to water or feed, as direct vaccine injection is not feasible on larger commercial operations. The income lost for poultry farmers can be immense if they must cull their flock. For example, egg-laying operations must wait at least 17 weeks before the animal is providing product, meaning farmers could be out of income for up to 5 months. Additionally, broiler chickens have a much shorter lifespan, meaning they must be vaccinated at a younger age. It is critical that the federal government use all resources available to rapidly develop and deploy these new vaccine strategies. The United States Department of Agriculture and the Department of Homeland Security must work closely together to use all possible resources at shared facilities, such as Plum Island or the National Bio and Agro-Defense Facility, to develop these new treatments for chickens, turkeys, and dairy cows.  
    While vaccines are being developed, the United States Trade Representative must proactively engage with our international trading partners regarding the usage of newly developed vaccines. Public-private engagement will be critical to inform vaccination guidance to ensure our agricultural communities have access to these critical foreign markets.  
    In summation, I request monthly written updates on the following items: 
    What coordination actions have been undertaken by the Departments of Health and Human Services, Agriculture, Homeland Security, and the U.S. Trade Representative. 
    The status of vaccine development for HPAI.  
    The interactions with international trading partners in terms of vaccine development. 
    Actions taken by executive agencies to engage with the scientific community.  
    I look forward to working on this issue together. If you have additional questions, please reach out to my staff.

    MIL OSI USA News

  • MIL-OSI Security: New Hampshire Man Sentenced for Conspiring to Sell Stolen Government Property

    Source: Office of United States Attorneys

    Christopher Hagan, formerly of North Berwick, received items from an employee of a national defense contractor and employees of the Defense Logistics Agency

    PORTLAND, Maine:  A New Hampshire man was sentenced today in U.S. District Court in Portland for conspiring to transport stolen property in interstate commerce and conspiring to sell stolen government property. 

    U.S. District Judge John A. Woodcock, Jr. sentenced Christopher Hagan, 33, to 12 months plus one day in prison to be followed by three years of supervised release. He was also fined $10,000, ordered to forfeit $150,000, and will be required to refile his tax returns for five years. Hagan pleaded guilty on May 13, 2024.

    According to court records, between October 2017 and September 2021, Hagan obtained stolen government items which he resold on online forums. One of Hagan’s coconspirators, Jonathan Chaisson, 34, of New Hampshire was employed by a national defense contractor based in New Hampshire and received used and/or broken Advance Target Pointer Illuminator Aiming Laser (ATPIAL) devices designated for military and law enforcement use. Chaisson stole or converted new and used parts and components to repair the ATPIALs and provided Hagan with the repaired devices to sell.

    Hagan also conspired with Wade Walker, 45, and Michael Humphrey, 46, both of Texas, to steal and sell military equipment from the Defense Logistics Agency (DLA), an agency of the United States Department of Defense. Both Walker and Humphrey were employed by the DLA Red River Army Depot facility in Texarkana, Texas. On multiple dates in 2019 and in 2020, Humphrey transferred stolen government property to Walker for resale, and Walker provided the stolen property to Hagan for further resale. Through the investigation, agents determined that Hagan had at least one customer in China.

    On July 24, 2023, Chaisson pleaded guilty to conspiring to transport stolen property in interstate commerce and was sentenced to probation for two years. On October 31, 2023, Humphrey pleaded guilty to conspiring to sell stolen government property and was sentenced to probation for two years. On January 8, 2024, Walker pleaded guilty to conspiring to sell stolen government property and was sentenced to probation for three years.

    The United States Department of Commerce – Office of Export Enforcement and the Defense Criminal Investigative Service investigated the case with assistance from Homeland Security Investigations (HSI).

    “That Mr. Hagan and his conspirators would exploit their connections to the defense industry to put their own financial gain ahead of the nation’s security is unconscionable,” said Acting U.S. Attorney Craig M. Wolff. “The U.S. Attorney’s Office commends the remarkable interagency cooperation that underpinned this complex and important investigation.”

    “The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense (DoD) Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “Profiting from the sale of stolen DoD property undermines the mission of the Defense Logistics Agency and negatively impacts our military members. This investigation demonstrates DCIS’ commitment to work with our law enforcement partners and the Department of Justice to hold accountable those who harm the DoD.”

    “By stealing sensitive military technology and selling it to China, Christopher Hagan along with those he conspired with, prioritized greed and personal gain over U.S. national security,” said Special Agent in Charge James Guanci, U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “This case serves as a strong reminder that those who betray the trust of the American people will be held accountable.”

    ###

    MIL Security OSI

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Adjusts Tariffs on Canada and Mexico to Minimize Disruption to the Automotive Industry

    Source: The White House

    USING LEVERAGE TO PROTECT AMERICANS: Today, President Donald J. Trump announced adjustments to tariffs imposed on imports from Canada and Mexico in recognition of the structure of the automotive supply chain that strives to bring production into America.

    • Duties imposed to address the flow of illicit drugs across our borders are now:
      • 25% tariffs on goods that do not satisfy U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
      • A lower 10% tariff on those energy products imported from Canada that fall outside the USMCA preference.
      • A lower 10% tariff on any potash imported from Canada and Mexico that falls outside the USMCA preference.
      • No tariffs on those goods from Canada and Mexico that claim and qualify for USMCA preference.
    • While the situations at our Northern and Southern borders continue to require appropriate action from the Governments of Canada and Mexico, our American automotive industry, which provides American jobs, should not suffer significant disruption just because of the structure of its supply chain.

    ENSURING BORDER SECURITY AND ECONOMIC SECURITY: President Trump will not allow our national security to be compromised by our closest trading partners, Canada and Mexico, but recognizes the unique impact that these tariffs could have on American automotive manufacturers.

    • President Trump will never stop standing up for the safety of the American people and is using tariffs as a tool to take decisive actions that put Americans’ safety and our national security first. 
    • On Tuesday, March 4, tariffs were issued on Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) to curb the flow of illegal border crossings and drugs into our country.
    • In order to minimize disruption to the U.S. automotive industry and workers, it is appropriate to adjust the tariffs on articles of Canada and Mexico so that they do not bear a disproportionate brunt of Canada and Mexico’s failure to respond to the crises at our borders.
    • America’s manufacturers, including our automakers, have strengthened our economy and expanded our workforce.
    • Today’s actions promote a level playing field for American manufacturers, bringing supply chains closer to home, especially for our auto industry, which has been hit hard by offshoring.

    DEALMAKER-IN-CHIEF: President Trump continues to leverage America’s economic power to secure our border and stop the flow of fentanyl into our country, while protecting American industry.

    • In November, President Trump promised that tariffs on Mexico and Canada would remain in effect until drugs and illegal aliens stop invading our country.
    • Following the President imposing tariffs on both countries, Mexico and Canada announced measures to combat illegal immigration and fentanyl trafficking.
    • President Trump secured the extradition of 29 Mexican drug cartel bosses to face charges for their crimes in the United States, including one accused of killing a DEA agent.
    • In President Trump’s first month in office, illegal border crossings plummeted to the lowest level ever recorded, down 96% from the all-time high under the Biden-Harris Administration.

    As President Trump stated in the America First Trade Policy Presidential Memorandum, trade policy is an integral component of our economic and national security

    MIL OSI USA News

  • MIL-OSI: Bimini Capital Management Announces Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    VERO BEACH, Fla., March 06, 2025 (GLOBE NEWSWIRE) — Bimini Capital Management, Inc. (OTCQB: BMNM), (“Bimini Capital,” “Bimini,” or the “Company”), today announced results of operations for the three-month period ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Net loss of $1.5 million, or $0.15 per common share
    • Book value per share of $0.68
    • Company to discuss results on Friday, March 7, 2025, at 10:00 AM ET

    Management Commentary

    Commenting on the fourth quarter results, Robert E. Cauley, Chairman and Chief Executive Officer, said, “The outlook for the fixed income market pivoted early in the fourth quarter of 2024. As the third quarter came to an end, inflation was falling towards the Fed’s 2% target, the labor market was cooling as hiring levels moderated and the unemployment rate was slowly creeping higher, and the Fed had finally lowered the Fed Funds rate by 50 basis points. At the time, the market expected the Fed to lower the rate by over 200 basis points over the next 18 months. As we know, beginning early in the fourth quarter, the incoming data turned. Even as the economic outlook shifted, the Fed did lower the Fed Funds rate two more times during 2024 – by 25 basis points in each case. With the Fed Funds rate lowered by 100 basis points over the course of the quarter, the persistently strong economic outlook led to a dis-inversion of the yield curve. However, the market expectation for additional reductions in the Fed Funds rate continued to decline over the course of the fourth quarter and into 2025.

    “Orchid Island Capital (“Orchid”) reported fourth quarter 2024 net income of $5.6 million, and its shareholders equity increased slightly, from $656.0 million to $668.5 million. As a result, Bimini’s advisory service revenues also increased slightly, to $3.4 million compared to $3.3 million for the third quarter of 2024. Further, in late February, Orchid reported yet another increase in its shareholder base, which should lead to another increase in advisory service revenue for the first quarter of 2025.

    “The investment portfolio generated net interest income of $0.3 million. Dividends on Orchid stock were $0.2 million. Mark to market gains and losses on our MBS portfolio, hedge positions and shares of Orchid netted to income of $0.1 million. The MBS portfolio increased by $4.0 million during the fourth quarter of 2024 and increased by $29.5 million for the year. The Company had positive cash flows from operations for the fourth quarter and full year, which has allowed the Company to grow the MBS portfolio throughout the year.

    “The Company – inclusive of both the advisory services segment and the investment portfolio segment, recorded net income before taxes for the quarter of $0.6 million versus a net loss before taxes of $0.8 million for the third quarter of 2024. We updated our projected utilization of our deferred tax assets and increased the valuation allowance, resulting in a tax provision of $2.1 million and a net loss for the 2024 fourth quarter of $1.5 million.

    “Looking forward, while economic activity has remained resilient if not strong, the labor market is quite healthy, and inflation remains above the Fed’s 2% target, uncertainty in the economic outlook has crept into the market as the first quarter of 2025 progresses. What this means for interest rate levels, Federal Reserve monetary policy or the MBS market remains to be seen. However, quarter to date market conditions have been favorable for both Orchid Island and Royal Palm’s investment portfolios.”

    Details of Fourth Quarter 2024 Results of Operations

    The Company reported a net loss of $1.5 million for the three-month period ended December 31, 2024. Advisory service revenue for the quarter was $3.4 million, consisting of management fees of $2.5 million, overhead reimbursements of $0.7 million, and $0.2 million repurchase agreement and clearing services revenue. We recorded interest and dividend income of $1.9 million, and interest expense on repurchase agreements of $1.4 million and long-term debt of $0.6 million. Other income of $0.1 million consisted of a $0.3 million mark to market loss on our shares of Orchid common stock, unrealized losses of $2.7 million on our MBS portfolio, and $3.0 million of unrealized gains on our derivatives used for hedging purposes. The results for the quarter also included operating expenses of $2.8 million and an income tax provision of $2.1 million.

    For the twelve-month period ended December 31, 2024, the Company reported a net loss of $1.3 million net of an income tax provision of $3.1 million. Advisory service revenue for the year was $12.8 million, comprised of $9.5 million of management fees, $2.6 million of overhead reimbursements and $0.7 million of repurchase agreement and clearing service revenue. The investment portfolio segment generated $5.8 million of interest income and $0.8 million of dividends from our investment in shares of Orchid. The $6.6 million of investment portfolio income was offset by $5.1 million of repurchase agreement interest expense, and $14.3 million of net revenues from advisory services and the investment portfolio were offset by $2.4 million of interest on long-term debt. The Company reported $1.2 million of other income, comprised of $0.3 million of unrealized losses on MBS assets, $0.6 million of realized losses on sales of MBS, $0.4 million of unrealized losses on our shares of Orchid, and $2.4 million of unrealized gains on our derivative positions used for hedging purposes. Operating expenses were $11.3 million for the year, resulting in net income before taxes of $1.8 million.

    Orchid Island Capital, Inc.

    Orchid is managed and advised by Bimini’s subsidiary, Bimini Advisors, LLC (“Bimini Advisors”). As manager, Bimini Advisors is responsible for administering Orchid’s business activities and day-to-day operations. Pursuant to the terms of the management agreement with Orchid, Bimini Advisors provides Orchid with its management team, including its officers, along with appropriate support personnel.

    Bimini also maintains a common stock investment in Orchid which is accounted for under the fair value option, with changes in fair value recorded in the statement of operations for the current period. For the three months ended December 31, 2024, Bimini’s statement of operations included a $0.3 million mark to market loss and dividends of $0.2 million from its investment in Orchid’s common stock. Also during the three months ended December 31, 2024, Bimini recorded $3.4 million in advisory services revenue for managing Orchid’s portfolio, consisting of $2.5 million of management fees, $0.7 million in overhead reimbursement and $0.2 million in repurchase, clearing and administrative fees.

    Book Value Per Share

    The Company’s Book Value Per Share at December 31, 2024 was $0.68. The Company computes Book Value Per Share by dividing total stockholders’ equity by the total number of shares outstanding of the Company’s Class A Common Stock. At December 31, 2024, the Company’s stockholders’ equity was $6.8 million, with 10,005,457 Class A Common shares outstanding.

    Capital Allocation and Return on Invested Capital

    The Company allocates capital between two MBS sub-portfolios, the pass-through MBS portfolio (“PT MBS”) and the structured MBS portfolio, currently consisting of interest-only and inverse interest-only securities. The table below details the changes to the respective sub-portfolios during the quarter.

    Portfolio Activity for the Quarter  
                Structured Security Portfolio          
        Pass-Through     Interest-Only     Inverse Interest                  
        Portfolio     Securities     Only Securities     Sub-total     Total  
    Market Value – September 30, 2024   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
    Securities purchased     9,899,285                         9,899,285  
    Return of investment     n/a       (84,596 )     (618 )     (85,214 )     (85,214 )
    Pay-downs     (3,229,672 )     n/a       n/a       n/a       (3,229,672 )
    Premium amortized due to pay-downs     (66,766 )     n/a       n/a       n/a       (66,766 )
    Mark to market losses     (2,596,402 )     (733 )     (978 )     (1,711 )     (2,598,113 )
    Market Value – December 31, 2024   $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  

    The tables below present the allocation of capital between the respective portfolios at December 31, 2024 and September 30, 2024, and the return on invested capital for each sub-portfolio for the three-month period ended December 31, 2024. Capital allocation is defined as the sum of the market value of securities held, less associated repurchase agreement borrowings, plus cash and cash equivalents and restricted cash associated with repurchase agreements. Capital allocated to non-portfolio assets is not included in the calculation.

    The returns on invested capital in the PT MBS and structured MBS portfolios were approximately 6.7% and 1.4%, respectively, for the fourth quarter of 2024. The combined portfolio generated a return on invested capital of approximately 5.6%.

    Capital Allocation  
                Structured Security Portfolio          
        Pass-Through     Interest-Only     Inverse Interest                  
        Portfolio     Securities     Only Securities     Sub-total     Total  
    December 31, 2024                                        
    Market value   $ 120,055,716     $ 2,285,605     $ 6,849     $ 2,292,454     $ 122,348,170  
    Cash equivalents and restricted cash     7,422,746                         7,422,746  
    Repurchase agreement obligations     (117,180,999 )                       (117,180,999 )
    Total(1)   $ 10,297,463     $ 2,285,605     $ 6,849     $ 2,292,454     $ 12,589,917  
    % of Total     81.8 %     18.1 %     0.1 %     18.2 %     100.0 %
    September 30, 2024                                        
    Market value   $ 116,049,271     $ 2,370,934     $ 8,445     $ 2,379,379     $ 118,428,650  
    Cash equivalents and restricted cash     5,706,502                         5,706,502  
    Repurchase agreement obligations     (113,022,999 )                       (113,022,999 )
    Total(1)   $ 8,732,774     $ 2,370,934     $ 8,445     $ 2,379,379     $ 11,112,153  
    % of Total     78.6 %     21.3 %     0.1 %     21.4 %     100.0 %
    (1 ) Invested capital includes the value of the MBS portfolio and cash equivalents and restricted cash, reduced by repurchase agreement borrowings.
    Returns for the Quarter Ended December 31, 2024  
                Structured Security Portfolio          
        Pass-Through     Interest-Only     Inverse Interest                  
        Portfolio     Securities     Only Securities     Sub-total     Total  
    Interest income (expense) (net of repo cost)   $ 234,448     $ 36,465     $ (361 )   $ 36,104     $ 270,552  
    Realized and unrealized losses     (2,663,167 )     (733 )     (978 )     (1,711 )     (2,664,878 )
    Hedge gains     3,014,874       n/a       n/a       n/a       3,014,874  
    Total Return   $ 586,155     $ 35,732     $ (1,339 )   $ 34,393     $ 620,548  
    Beginning capital allocation   $ 8,732,774     $ 2,370,934     $ 8,445     $ 2,379,379     $ 11,112,153  
    Return on invested capital for the quarter(1)     6.7 %     1.5 %     (15.9 )%     1.4 %     5.6 %
    (1 ) Calculated by dividing the Total Return by the Beginning Capital Allocation, expressed as a percentage.


    Prepayments

    For the fourth quarter of 2024, the Company received approximately $3.3 million in scheduled and unscheduled principal repayments and prepayments, which equated to a 3-month constant prepayment rate (“CPR”) of approximately 11.1% for the fourth quarter of 2024. Prepayment rates on the two MBS sub-portfolios were as follows (in CPR):

        PT     Structured          
        MBS Sub-     MBS Sub-     Total  
    Three Months Ended   Portfolio     Portfolio     Portfolio  
    December 31, 2024     10.9       12.5       11.1  
    September 30, 2024     6.3       6.7       6.3  
    June 30, 2024     10.9       5.5       10.0  
    March 31, 2024     18.0       9.2       16.5  
    December 31, 2023     8.9       4.6       8.0  
    September 30, 2023     4.3       6.6       4.8  
    June 30, 2023     8.0       13.0       9.6  
    March 31, 2023     2.4       10.3       5.0  


    Portfolio

    The following tables summarize the MBS portfolio as of December 31, 2024 and 2023:

    ($ in thousands)                            
                            Weighted    
                Percentage           Average    
                of     Weighted     Maturity    
        Fair     Entire     Average     in   Longest
    Asset Category   Value     Portfolio     Coupon     Months   Maturity
    December 31, 2024                            
    Fixed Rate MBS   $ 120,056     98.1 %   5.60 %   341   1-Jan-55
    Structured MBS     2,292     1.9 %   2.85 %   281   15-May-51
    Total MBS Portfolio   $ 122,348     100.0 %   5.26 %   340   1-Jan-55
    December 31, 2023                            
    Fixed Rate MBS   $ 90,181     97.3 %   6.00 %   343   1-Nov-53
    Structured MBS     2,550     2.7 %   2.84 %   290   15-May-51
    Total MBS Portfolio   $ 92,731     100.0 %   5.44 %   341   1-Nov-53
    ($ in thousands)                            
        December 31, 2024     December 31, 2023  
                Percentage of             Percentage of  
    Agency   Fair Value     Entire Portfolio     Fair Value     Entire Portfolio  
    Fannie Mae   $ 32,692     26.7 %   $ 38,204     41.2 %
    Freddie Mac     89,656     73.3 %     54,527     58.8 %
    Total Portfolio   $ 122,348     100.0 %   $ 92,731     100.0 %
        December 31, 2024     December 31, 2023  
    Weighted Average Pass Through Purchase Price   $ 102.72     $ 104.43  
    Weighted Average Structured Purchase Price   $ 4.48     $ 4.48  
    Weighted Average Pass Through Current Price   $ 99.63     $ 101.55  
    Weighted Average Structured Current Price   $ 13.71     $ 13.46  
    Effective Duration (1)     3.622       2.508  
    (1 ) Effective duration is the approximate percentage change in price for a 100 basis point change in rates. An effective duration of 3.622 indicates that an interest rate increase of 1.0% would be expected to cause a 3.622% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2024. An effective duration of 2.508 indicates that an interest rate increase of 1.0% would be expected to cause a 2.508% decrease in the value of the MBS in the Company’s investment portfolio at December 31, 2023. These figures include the structured securities in the portfolio but not the effect of the Company’s hedges. Effective duration quotes for individual investments are obtained from The Yield Book, Inc.


    Financing and Liquidity

    As of December 31, 2024, the Company had outstanding repurchase obligations of approximately $117.2 million, with a net weighted average borrowing rate of 4.68%. These agreements were collateralized by MBS with a fair value, including accrued interest, of approximately $122.7 million. At December 31, 2024, the Company’s liquidity was approximately $5.9 million, consisting of unpledged MBS and cash and cash equivalents.

    We may pledge more of our structured MBS as part of a repurchase agreement funding, but retain cash in lieu of acquiring additional assets. In this way, we can, at a modest cost, retain higher levels of cash on hand and decrease the likelihood that we will have to sell assets in a distressed market in order to raise cash. Below is a list of outstanding borrowings under repurchase obligations at December 31, 2024.

    ($ in thousands)                                  
    Repurchase Agreement Obligations  
                      Weighted             Weighted  
        Total           Average             Average  
        Outstanding     % of     Borrowing     Amount     Maturity  
    Counterparty   Balances     Total     Rate     at Risk(1)     (in Days)  
    South Street Securities, LLC   $ 26,234     22.4 %   4.79 %     1,226     23  
    Marex Capital Markets Inc.     24,368     20.8 %   4.66 %     1,205     18  
    DV Securities, LLC.     19,254     16.4 %   4.63 %     834     28  
    Mirae Asset Securities (USA) Inc.     19,111     16.3 %   4.76 %     842     139  
    Clear Street LLC     16,855     14.4 %   4.54 %     794     79  
    Mitsubishi UFJ Securities, Inc.     11,359     9.7 %   4.68 %     858     14  
        $ 117,181     100.0 %   4.68 %   $ 5,759     49  
    (1 ) Equal to the fair value of securities sold (including accrued interest receivable) and cash posted as collateral, if any, minus the sum of repurchase agreement liabilities, accrued interest payable and securities posted by the counterparty (if any).


    Summarized Consolidated Financial Statements

    The following is a summarized presentation of the unaudited consolidated balance sheets as of December 31, 2024 and 2023, and the unaudited consolidated statements of operations for the calendar quarters and years ended December 31, 2024 and 2023. Amounts presented are subject to change.

    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited – Amounts Subject to Change)
     
        December 31, 2024     December 31, 2023  
    ASSETS                
    Mortgage-backed securities, at fair value   $ 122,348,170     $ 92,730,852  
    Cash equivalents and restricted cash     7,422,746       4,470,286  
    Orchid Island Capital, Inc. common stock, at fair value     4,427,372       4,797,269  
    Accrued interest receivable     601,640       488,660  
    Deferred tax assets, net     15,930,953       19,047,680  
    Other assets     4,122,776       4,063,267  
    Total Assets   $ 154,853,657     $ 125,598,014  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Repurchase agreements   $ 117,180,999     $ 86,906,999  
    Long-term debt     27,368,158       27,394,417  
    Other liabilities     3,483,093       3,168,857  
    Total Liabilities     148,032,250       117,470,273  
    Stockholders’ equity     6,821,407       8,127,741  
    Total Liabilities and Stockholders’ Equity   $ 154,853,657     $ 125,598,014  
    Class A Common Shares outstanding     10,005,457       10,005,457  
    Book value per share   $ 0.68     $ 0.81  
    BIMINI CAPITAL MANAGEMENT, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited – Amounts Subject to Change)
     
        Years Ended December 31,     Three Months Ended December 31,  
        2024     2023     2024     2023  
    Advisory services   $ 12,784,468     $ 13,594,907     $ 3,387,640     $ 3,076,045  
    Interest and dividend income     6,658,226       4,335,843       1,876,818       1,554,080  
    Interest expense     (7,541,267 )     (5,418,955 )     (1,982,610 )     (1,794,094 )
    Net revenues     11,901,427       12,511,795       3,281,848       2,836,031  
    Other income (expense)     1,167,019       (1,866,834 )     99,565       599,961  
    Expenses     11,258,053       10,497,603       2,818,739       3,840,310  
    Net income (loss) before income tax provision     1,810,393       147,358       562,674       (404,318 )
    Income tax provision     3,116,727       4,130,563       2,064,496       4,451,159  
    Net loss   $ (1,306,334 )   $ (3,983,205 )   $ (1,501,822 )   $ (4,855,477 )
                                     
    Basic and Diluted Net Loss Per Share of:                                
    CLASS A COMMON STOCK   $ (0.13 )   $ (0.40 )   $ (0.15 )   $ (0.48 )
    CLASS B COMMON STOCK   $ (0.13 )   $ (0.40 )   $ (0.15 )   $ (0.48 )
        Three Months Ended December 31,  
    Key Balance Sheet Metrics   2024     2023  
    Average MBS(1)   $ 120,388,407     $ 88,796,005  
    Average repurchase agreements(1)     115,101,999       84,161,999  
    Average stockholders’ equity(1)     7,572,318       10,555,480  
                     
    Key Performance Metrics                
    Average yield on MBS(2)     5.56 %     6.08 %
    Average cost of funds(2)     4.87 %     5.60 %
    Average economic cost of funds(3)     4.87 %     5.70 %
    Average interest rate spread(4)     0.69 %     0.48 %
    Average economic interest rate spread(5)     0.69 %     0.38 %
    (1 ) Average MBS, repurchase agreements and stockholders’ equity balances are calculated using two data points, the beginning and ending balances.
    (2 ) Portfolio yields and costs of funds are calculated based on the average balances of the underlying investment portfolio/repurchase agreement balances and are annualized for the quarterly periods presented.
    (3 ) Represents interest cost of our borrowings and the effect of derivative agreements attributed to the period related to hedging activities, divided by average repurchase agreements.
    (4 ) Average interest rate spread is calculated by subtracting average cost of funds from average yield on MBS.
    (5 ) Average economic interest rate spread is calculated by subtracting average economic cost of funds from average yield on MBS.


    About Bimini Capital Management, Inc.

    Bimini Capital Management, Inc. invests primarily in, but is not limited to investing in, residential mortgage-related securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae). Its objective is to earn returns on the spread between the yield on its assets and its costs, including the interest expense on the funds it borrows. In addition, Bimini generates a significant portion of its revenue serving as the manager of the MBS portfolio of, and providing certain repurchase agreement trading, clearing and administrative services to, Orchid Island Capital, Inc.

    Forward Looking Statements

    Statements herein relating to matters that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned that such forward-looking statements are based on information available at the time and on management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Important factors that could cause such differences are described in Bimini Capital Management, Inc.’s filings with the Securities and Exchange Commission, including Bimini Capital Management, Inc.’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Bimini Capital Management, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements, except as may be required by law.

    Earnings Conference Call Details

    An earnings conference call and live audio webcast will be hosted Friday, March 7, 2025, at 10:00 AM ET. Participants can register and receive dial-in information at https://register.vevent.com/register/BI5a76ee1f6a7e42b0a82786c7f6e48550. A live audio webcast of the conference call can be accessed at https://edge.media-server.com/mmc/p/98jgiw2o or via the investor relations section of the Company’s website at https://ir.biminicapital.com.

    CONTACT:
    Bimini Capital Management, Inc.
    Robert E. Cauley, 772-231-1400
    Chairman and Chief Executive Officer
    https://ir.biminicapital.com

    The MIL Network

  • MIL-OSI: IDT Corporation Reports Record Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Record levels of gross profit +16%; income from operations +77%; Adjusted EBITDA*+56%

    GAAP EPS increased to $0.80 from $0.57; Non-GAAP EPS*increased to $0.84 from $0.67

    IDT raised its quarterly dividend 20% to 6 cents

    NEWARK, NJ, March 06, 2025 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its second quarter fiscal year 2025, the three months ended January 31, 2025.

    SECOND QUARTER HIGHLIGHTS

    (Throughout this release, unless otherwise noted, results for the second quarter of fiscal year 2025 (2Q25) are compared to the second quarter of fiscal year 2024 (2Q24). All earnings per share (EPS) and other ‘per share’ results are per diluted share.

    • Key Businesses / Segments
      • NRS
        • Recurring revenue**: +32% to $31.6 million;
        • Income from operations: +71% to $9.1 million;
        • Adjusted EBITDA: +65% to $10.1 million;
        • ‘Rule of 40’ score**: 55
      • BOSS Money / Fintech segment
        • BOSS Money transactions: +36% to 5.7 million;
        • BOSS Money revenue: +34% to $33.5 million;
        • Fintech segment gross profit: +35% to $21.7 million;
        • Fintech segment income from operations: increased to $3.1 million from a loss of $(0.7) million;
        • Fintech segment Adjusted EBITDA: increased to $3.9 million from a loss of $(12) thousand;
      • net2phone
        • Subscription revenue**: +9% to $21.0 million (+14% on a constant currency basis);
        • Income from operations: increased to $1.1 million from $0.4 million;
        • Adjusted EBITDA: +55% to $2.9 million;
      • Traditional Communications
        • Gross profit: +2% to $43.1 million;
        • Income from operations: +24% to $18.1 million;
        • Adjusted EBITDA: +19% to $20.2 million;
    • IDT Consolidated
      • Revenue: +2% to $303.3 million;
      • Gross profit (GP) / margin: GP +16% to $112 million; GP margin +420 bps to 37.0%;
      • Income from operations: +77% to $28.3 million;
      • Net income attributable to IDT: +41% to $20.3 million;
      • GAAP EPS: Increased to $0.80 from $0.57;
      • Non-GAAP net income: +26% to $21.3 million;
      • Non-GAAP EPS: Increased to $0.84 from $0.67;
      • Adjusted EBITDA: +56% to $34.0 million;
      • CapEx: +6% to $4.8 million;
      • Stock buyback: Repurchased 179,338 shares of IDT Class B common stock in market transactions during 2Q25 for $8.5 million at an average share price of $47.59;
      • Common stock dividend: IDT increased its quarterly dividend from $0.05 to $0.06.

    REMARKS BY SHMUEL JONAS, CEO

    “IDT had a strong second quarter led by NRS and BOSS Money, and supported by robust results from our Traditional Communications segment, which increased its cash generation for the third consecutive quarter. On a consolidated basis, we again generated record levels of gross profit, income from operations, and Adjusted EBITDA.

    “NRS continued to deepen its penetration of the independent retailer market. We are now launching new features and functionalities that increase the value of our solution for retailers and will help us to drive additional growth.

    “BOSS Money delivered another quarter of strong year-over-year transaction and revenue growth. In the second quarter, we continued to focus on improving the margin contribution, particularly in our retail channel, and that effort helped to boost our Fintech segment’s gross profit and Adjusted EBITDA less CapEx to record levels.

    “net2phone continued its expansion led by further growth in the U.S. market. We are especially excited about last week’s launch of net2phone’s virtual AI agent. It has been very well received by our internal BOSS and NRS teams that are using it with great success to enhance the quality and consistency of customer interactions while reducing costs. We are confident that net2phone clients will find that it provides them with great value right out of the gate. Moreover, as they build with our AI agent, it will provide clients with increasingly sophisticated, tailored solutions that add value across disparate functions within their organizations.

    “Our Traditional Communications segment increased Adjusted EBITDA for the third sequential quarter and surpassed $20 million for the first time since fiscal 2022.

    “In light of our solid financial position and positive outlook, and mindful of the feedback we’ve received from our investors, we stepped up our repurchases of stock during the second quarter and have increased our regular quarterly dividend by 20%.”

    2Q25 RESULTS BY SEGMENT

    (For all periods presented, capital expenditures (CapEx), previously provided on a consolidated basis, is now also provided for each business segment.)

    National Retail Solutions (NRS)

    National Retail Solutions (NRS)
    (Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Terminals and payment processing accounts                                
    Active POS terminals     34,800       33,100       28,700       +21 %
    Payment processing accounts     23,900       22,700       18,200       +32 %
                                     
    Recurring revenue                                
     Merchant Services & Other   $ 18.1     $ 17.2     $ 12.5       +45 %
     Advertising & Data   $ 10.0     $ 8.5     $ 8.7       +15 %
     SaaS Fees   $ 3.5     $ 3.3     $ 2.7       +30 %
    Total recurring revenue   $ 31.6     $ 28.9     $ 23.9       +32 %
     POS terminal sales   $ 1.3     $ 1.4     $ 1.3       +2 %
    Total revenue   $ 33.0     $ 30.4     $ 25.2       +31 %
                                     
    Monthly average recurring revenue per terminal**   $ 310     $ 295     $ 285       +9 %
                                     
    Gross profit   $ 30.3     $ 27.6     $ 22.5       +35 %
    Gross profit margin     91.8 %     91.0 %     89.1 %     +270 bps
    Technology & development   $ 2.2     $ 2.0     $ 1.9       +14 %
    SG&A   $ 19.0     $ 19.0     $ 15.2       +25 %
    Income from operations   $ 9.1     $ 6.6     $ 5.3       +71 %
    Adjusted EBITDA   $ 10.1     $ 7.6     $ 6.1       +65 %
    CapEx   $ 0.9     $ 1.2     $ 1.0       (4 )%
                                     

    NRS Take-Aways / Updates:

    • NRS added approximately 1,700 net active terminals and approximately 1,200 net payment processing accounts during 2Q25. Net active terminal additions included the impact of approximately 300 terminals operating in seasonal stores that suspended operations following the quarter close.
    • The 45% year-over-year increase in Merchant Services & Other revenue was driven by the growth in payment processing accounts, and higher merchant services revenue per account, driven in part by the increased percentage of retail transactions paid with a credit or debit card.
    • The 30% year-over-year increase in SaaS Fees revenue reflects the growth of net active terminals and migration of retailers to premium SaaS plans.

    Fintech

    Fintech
    (Transactions in millions. $ in millions, except for average revenue per transaction)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    BOSS Money transactions     5.7       5.6       4.2       +36 %
                                     
    Fintech Revenue                                
    BOSS Money   $ 33.5     $ 33.7     $ 25.0       +34 %
    Other   $ 3.3     $ 3.4     $ 2.9       +13 %
    Total Revenue   $ 36.8     $ 37.1     $ 28.0       +32 %
                                     
    Average revenue per BOSS Money transaction**   $ 5.87     $ 6.01     $ 5.98     $ (0.11 )
                                     
    Gross profit   $ 21.7     $ 21.6     $ 16.1       +35 %
    Gross profit margin     58.9 %     58.2 %     57.5 %     140 bps
    Technology & development   $ 2.3     $ 2.3     $ 2.5       (8 )%
    SG&A   $ 16.3     $ 16.1     $ 14.3       +14 %
    Income (loss) from operations   $ 3.1     $ 3.2     $ (0.7 )     +$3.8  
    Adjusted EBITDA   $ 3.9     $ 4.0     $ 0       +$3.9  
    CapEx   $ 0.8     $ 1.1     $ 0.8       +1 %
                                     

    Fintech Take-Aways:

    • The 36% increase in BOSS Money transactions reflected a 40% year-over-year increase in digital transactions and a 22% increase in retail transactions.
    • BOSS Money revenue increased 34% year-over-year driven by a 38% year-over-year increase in digital channel revenue. The 1% sequential decrease in revenue reflected BOSS Money’s continued focus on expanding per-transaction margins, particularly at retail, which boosted gross profit while dampening transaction volume growth and revenue.
    • The strong increases in the Fintech segment’s income from operations and Adjusted EBITDA were driven by BOSS Money revenue growth, higher margins on BOSS Money transactions and improved operating leverage as the business continues to scale.
    • BOSS Money continued to expand to new destinations during 2Q25 (Venezuela and Eritrea) with Brazil expected to come online in 3Q25. BOSS Money also launched debit card payment capabilities at BOSS Money retailers across the U.S. and continued to build out its already extensive payout network in key destination markets.

    net2phone

    net2phone
    (Seats in thousands at end of period. $ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    Seats**     410       406       375       +9 %
                                     
    Revenue                                
    Subscription revenue   $ 21.0     $ 21.0     $ 19.3       +9 %
    Other revenue   $ 0.5     $ 0.6     $ 1.0       (54 )%
    Total Revenue   $ 21.5     $ 21.6     $ 20.4       +6 %
                                     
    Gross profit   $ 17.0     $ 17.1     $ 16.1       +6 %
    Gross profit margin     79.2 %     79.0 %     78.9 %     20 bps
    Technology & development   $ 2.8     $ 3.0     $ 2.6       +5 %
    SG&A   $ 13.0     $ 13.1     $ 13.1       (1 )%
    Income from operations   $ 1.1     $ 1.0     $ 0.4       +201 %
    Adjusted EBITDA   $ 2.9     $ 2.5     $ 1.8       +55 %
    CapEx   $ 1.8     $ 1.6     $ 1.4       +28 %
     

    net2phone Take-Aways:

    • The 9% year over year increase in total seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. CCaaS seats served increased by 10% year-over year.
    • Subscription revenue increased by 9% year-over-year. The increase reflected net seat growth and increased subscription revenue per seat** in the U.S., offset by the negative FX impact of a strengthened U.S. dollar versus local currencies in net2phone’s key Latin American markets. On a constant currency basis, subscription revenue increased by 14% year over year.
    • Operating margin** increased to 5% from 2% in 2Q24, and Adjusted EBITDA margin** increased to 13% from 9% in 2Q24. Additional steady margin improvement remains a key strategic focus.
    • Following the quarter close, net2phone launched its AI agent, a scalable virtual assistant providing exceptional customer experiences across sales, support, and administrative tasks.

    Traditional Communications

    Traditional Communications
    ($ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Revenue                                
    IDT Digital Payments   $ 101.6     $ 105.1     $ 99.7       +2 %
    BOSS Revolution   $ 53.3     $ 56.8     $ 66.7       (20 )%
    IDT Global   $ 51.3     $ 52.4     $ 48.7       +5 %
    Other   $ 5.9     $ 6.2     $ 7.5       (22 )%
    Total Revenue   $ 212.0     $ 220.5     $ 222.5       (5 )%
                                     
    Gross profit   $ 43.1     $ 41.3     $ 42.3       +2 %
    Gross profit margin     20.3 %     18.8 %     19.0 %     +130 bps
    Technology & development   $ 5.4     $ 5.5     $ 5.9       (9 )%
    SG&A   $ 19.4     $ 20.0     $ 21.4       (9 )%
    Income from operations   $ 18.1     $ 15.7     $ 14.6       +24 %
    Adjusted EBITDA   $ 20.2     $ 17.8     $ 17.0       +19 %
    CapEx   $ 1.2     $ 1.4     $ 1.4       (8 )%
                                     

    Take-Aways: 

    • IDT Global continues to mitigate the impacts of the ongoing industry-wide declines in paid-minute voice through a traffic mix shift to higher margin routes, new service offerings, and operational efficiencies.
    • For the third consecutive quarter, Traditional Communications’ income from operations and Adjusted EBITDA both increased sequentially. In 2Q25, the increases were driven by increasing gross profit contributions from each of the three major lines of business, as well as by continued efforts to streamline operations and remove costs.

    OTHER FINANCIAL RESULTS

    Consolidated results for all periods presented include corporate overhead. In 2Q25, Corporate G&A expense decreased to $3.0 million from $3.2 million in 2Q24.

    As of January 31, 2025, IDT held $171.1 million in cash, cash equivalents, debt securities, and current equity investments. Also at January 31, 2025, current assets totaled $462.1 million and current liabilities totaled $278.2 million. The Company had no outstanding debt at the quarter end.

    Net cash provided by operating activities decreased to $20.2 million in 2Q25 from $28.4 million in 2Q24. Exclusive of changes in customer funds deposits at IDT’s Fintech segment, net cash provided by operating activities decreased to $7.3 million in 2Q25 from $25.4 million in 2Q24. This decrease predominantly reflects the timing of payments made by IDT to cover anticipated BOSS Money disbursement prefunding.

    Capital expenditures increased to $4.8 million in 2Q25 from $4.6 million in 2Q24.

    IDT EARNINGS ANNOUNCEMENT INFORMATION

    This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.

    IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following access code: 145736.

    A replay of the conference call will be available approximately three hours after the call concludes through March 20, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 51975. The replay will also be accessible via streaming audio at the IDT investor relations website.

    NOTES

    *Adjusted EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.

    **See ‘Explanation of Key Performance Metrics’ at the end of this release.

    ABOUT IDT CORPORATION

    IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

    All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

    CONTACT

    IDT Corporation Investor Relations
    Bill Ulrey
    william.ulrey@idt.net
    973-438-3838

    IDT CORPORATION
    CONSOLIDATED BALANCE SHEETS

        January 31,
    2025
        July 31,
    2024
     
        (Unaudited)        
        (in thousands, except per share data)  
    Assets            
    Current assets:                
    Cash and cash equivalents   $ 142,152     $ 164,557  
    Restricted cash and cash equivalents     105,554       90,899  
    Debt securities     23,852       23,438  
    Equity investments     5,091       5,009  
    Trade accounts receivable, net of allowance for credit losses of $7,295 at January 31, 2025 and $6,352 at July 31, 2024     45,127       42,215  
    Settlement assets, net of reserve of $1,804 at January 31, 2025 and $1,866 at July 31, 2024     41,779       22,186  
    Disbursement prefunding     57,676       30,736  
    Prepaid expenses     15,989       17,558  
    Other current assets     24,914       25,927  
    Total current assets     462,134       422,525  
    Property, plant, and equipment, net     38,380       38,652  
    Goodwill     26,149       26,288  
    Other intangibles, net     5,583       6,285  
    Equity investments     6,748       6,518  
    Operating lease right-of-use assets     2,498       3,273  
    Deferred income tax assets, net     22,333       35,008  
    Other assets     11,903       11,546  
    Total assets   $ 575,728     $ 550,095  
    Liabilities, redeemable noncontrolling interest, and equity                
    Current liabilities:                
    Trade accounts payable   $ 22,482     $ 24,773  
    Accrued expenses     89,472       103,176  
    Deferred revenue     28,384       30,364  
    Customer funds deposits     104,720       91,893  
    Settlement liabilities     16,975       12,764  
    Other current liabilities     16,157       16,374  
    Total current liabilities     278,190       279,344  
    Operating lease liabilities     1,349       1,533  
    Other liabilities     1,093       2,662  
                     
    Total liabilities     280,632       283,539  
    Commitments and contingencies                
    Redeemable noncontrolling interest     11,228       10,901  
    Equity:                
    IDT Corporation stockholders’ equity:                
    Preferred stock, $.01 par value; authorized shares—10,000; no shares issued            
    Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at January 31, 2025 and July 31, 2024     33       33  
    Class B common stock, $.01 par value; authorized shares—200,000; 28,233 and 28,177 shares issued and 23,491 and 23,684 shares outstanding at January 31, 2025 and July 31, 2024, respectively     282       282  
    Additional paid-in capital     306,781       303,510  
    Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,742 and 4,493 shares of Class B common stock at January 31, 2025 and July 31, 2024, respectively     (137,475 )     (126,080 )
    Accumulated other comprehensive loss     (19,599 )     (18,142 )
    Retained earnings     121,573       86,580  
    Total IDT Corporation stockholders’ equity     271,595       246,183  
    Noncontrolling interests     12,273       9,472  
    Total equity     283,868       255,655  
    Total liabilities, redeemable noncontrolling interest, and equity   $ 575,728     $ 550,095  

    IDT CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

        Three Months Ended
    January 31,
        Six Months Ended
    January 31,
     
        2025     2024     2025     2024  
        (in thousands, except per share data)  
           
    Revenues   $ 303,349     $ 296,098     $ 612,915     $ 597,302  
    Direct cost of revenues     191,239       199,171       393,178       406,382  
    Gross profit     112,110       96,927       219,737       190,920  
    Operating expenses (gain):                                
    Selling, general and administrative (i)     70,721       67,346       141,772       131,723  
    Technology and development (i)     12,612       12,925       25,372       25,335  
    Severance     233       345       410       869  
    Other operating expense (gain), net     227       294       227       (190 )
    Total operating expenses     83,793       80,910       167,781       157,737  
    Income from operations     28,317       16,017       51,956       33,183  
    Interest income, net     1,354       1,195       2,782       2,039  
    Other income (expense), net     207       2,534       (76 )     (3,053 )
    Income before income taxes     29,878       19,746       54,662       32,169  
    Provision for income taxes     (7,665 )     (3,992 )     (13,967 )     (7,939 )
    Net income     22,213       15,754       40,695       24,230  
    Net income attributable to noncontrolling interests     (1,944 )     (1,329 )     (3,178 )     (2,146 )
    Net income attributable to IDT Corporation   $ 20,269     $ 14,425     $ 37,517     $ 22,084  
    Earnings per share attributable to IDT Corporation common stockholders:                                
    Basic   $ 0.81     $ 0.57     $ 1.49     $ 0.88  
    Diluted   $ 0.80     $ 0.57     $ 1.48     $ 0.87  
    Weighted-average number of shares used in calculation of earnings per share:                                
    Basic     25,161       25,175       25,182       25,176  
    Diluted     25,324       25,317       25,343       25,297  
    (i) Stock-based compensation included in:                                
    Selling, general and administrative expense   $ 768     $ 2,357     $ 1,602     $ 2,998  
    Technology and development expense   $ 95     $ 130     $ 172     $ 260  


    IDT CORPORATION 

    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

        Six Months Ended
    January 31,
     
        2025     2024  
        (in thousands)  
    Operating activities                
    Net income   $ 40,695     $ 24,230  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     10,490       10,146  
    Deferred income taxes     12,674       5,787  
    Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets     2,472       1,696  
    Stock-based compensation     1,774       3,258  
    Other     1,077       2,829  
    Changes in assets and liabilities:                
    Trade accounts receivable     (4,978 )     (7,040 )
    Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets     (46,244 )     9,966  
    Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities     (11,844 )     (6,200 )
    Customer funds deposits     15,701       15  
    Deferred revenue     (1,500 )     (1,381 )
    Net cash provided by operating activities     20,317       43,306  
    Investing activities                
    Capital expenditures     (10,100 )     (8,885 )
    Purchase of convertible preferred stock in equity method investment     (673 )     (1,009 )
    Purchases of debt securities and equity investments     (15,997 )     (19,357 )
    Proceeds from maturities and sales of debt securities and redemption of equity investments     16,751       31,231  
    Net cash (used in) provided by investing activities     (10,019 )     1,980  
    Financing activities                
    Dividends paid     (2,524 )      
    Distributions to noncontrolling interests     (50 )     (59 )
    Proceeds from borrowings under revolving credit facility     24,534       30,588  
    Repayment of borrowings under revolving credit facility     (24,534 )     (30,588 )
    Purchase of restricted shares of net2phone common stock           (3,558 )
    Proceeds from exercise of stock options           172  
    Repurchases of Class B common stock     (11,395 )     (3,170 )
    Net cash used in financing activities     (13,969 )     (6,615 )
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents     (4,079 )     (3,182 )
    Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents     (7,750 )     35,489  
    Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period     255,456       198,823  
    Cash, cash equivalents, and restricted cash and cash equivalents at end of period   $ 247,706     $ 234,312  
    Supplemental Schedule of Non-Cash Financing Activities                
    Shares of the Company’s Class B common stock issued to an executive officer for bonus payment   $ 1,824     $  
    Value of the Company’s Class B common stock exchanged for National Retail Solutions shares   $     $ 6,254  


    *
    Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2025 and 2024

    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 2Q25, 1Q25, and 2Q24, Adjusted EBITDA, and for 2Q25 and 2Q24, non-GAAP earnings per diluted share (Non-GAAP EPS). Adjusted EBITDA and Non-GAAP EPS are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures

    Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

    IDT’s measure of Non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2025 and fiscal 2024 periods.

    Management believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

    Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

    While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

    Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

    Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating (expense) gain, net includes, among other items, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action and gain from the write-off of a contingent consideration liability. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

    Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

    Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

    Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share.

    IDT Corporation
    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2025
    (2Q25)
                                                   
    Net income attributable to IDT Corporation   $ 20.3                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.9                                          
    Net income     22.2                                          
    Provision for income taxes     7.7                                          
    Income before income taxes     29.9                                          
     Interest income, net     (1.4 )                                        
     Other income, net     (0.2 )                                        
    Income (loss) from operations     28.3     $ 18.1     $ 1.1     $ 9.1     $ 3.1     $ (3.1 )
    Depreciation and amortization     5.2       1.9       1.6       1.0       0.8        
    Other operating expense, net     0.2             0.2                    
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 34.0     $ 20.2     $ 2.9     $ 10.1     $ 3.9     $ (3.1 )


    IDT Corporation

    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended October 31, 2024
    (1Q25)
                                                   
    Net income attributable to IDT Corporation   $ 17.2                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.2                                          
    Net income     18.5                                          
    Provision for income taxes     6.3                                          
    Income before income taxes     24.8                                          
     Interest income, net     (1.4 )                                        
     Other expense, net     0.3                                          
    Income (loss) from operations     23.6     $ 15.7     $ 1.0     $ 6.6     $ 3.2     $ (2.9 )
    Depreciation and amortization     5.2       2.0       1.6       1.0       0.7        
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 29.1     $ 17.8     $ 2.5     $ 7.6     $ 4.0     $ (2.9 )
        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2024
    (2Q24)
                                                   
    Net income attributable to IDT Corporation   $ 14.4                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.3                                          
    Net income     15.8                                          
    Provision for income taxes     4.0                                          
    Income before income taxes     19.7                                          
     Interest income, net     (1.2 )                                        
     Other income, net     (2.5 )                                        
    Income (loss) from operations     16.0     $ 14.6     $ 0.4     $ 5.3     $ (0.7 )   $ (3.6 )
    Depreciation and amortization     5.1       2.0       1.6       0.8       0.7        
    Severance     0.3       0.3                          
    Other operating expense (gain), net     0.3             (0.1 )                 0.4  
    Adjusted EBITDA   $ 21.8     $ 17.0     $ 1.8     $ 6.1     $     $ (3.2 )

    IDT Corporation
    Reconciliation of Earnings per share to Non-GAAP EPS
    (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

          2Q25       2Q24  
                     
    Net income attributable to IDT Corporation   $ 20.3     $ 14.4  
    Adjustments (add) subtract:                
    Stock-based compensation     (0.9 )     (2.5 )
    Severance expense     (0.2 )     (0.3 )
    Other operating expense, net     (0.2 )     (0.3 )
    Total adjustments     (1.3 )     (3.1 )
    Income tax effect of total adjustments     (0.3 )     (0.6 )
          1.0       2.5  
    Non-GAAP net income   $ 21.3     $ 16.9  
                     
    Earnings per share:                
    Basic   $ 0.81     $ 0.57  
    Total adjustments     0.03       0.10  
    Non-GAAP – basic   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of basic earnings per share     25.2       25.2  
                     
    Diluted   $ 0.80     $ 0.57  
    Total adjustments     0.04       0.10  
    Non-GAAP – diluted   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of diluted earnings per share     25.3       25.3  


    *
    *Explanation of Key Performance Metrics

    NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its revenue in accordance with GAAP. NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

    The NRS ‘Rule of 40’ score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS company’s growth rate when added to its free cash flow rate should equal or exceed 40 percent. For NRS, the ‘Rule of 40’ result for 2Q25 is computed by adding the growth rate of NRS’ recurring revenue for 2Q25 compared to 2Q24 to NRS’ Adjusted EBITDA less CapEx as a percentage of total NRS revenue for the twelve months ended January 31, 2025. The ‘Rule of 40’ is a common SaaS industry metric to assess a company’s balance between growth and profitability. A total above 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for investors and management to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

    net2phone’s subscription revenue is calculated by subtracting net2phone’s equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

    net2phone’s subscription revenue per seat is calculated by dividing net2phone’s subscription revenue, as defined in the preceding paragraph, by the average number of seats served during the period. The average number of seats served is calculated by adding the beginning and ending number of seats served and dividing by two. Subscription revenue per seat is the amount of revenue generated by each seat sold during the period. It provides a basis for pricing seat-based services, as well as for comparing performance in past periods and projecting future revenue, and for comparing the value of each seat served to competitors.

    net2phone’s operating margin is calculated by dividing GAAP income from operations by GAAP revenue for the period indicated. Operating margin measures the percentage that each dollar of revenue contributes to profitability. Operating margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future income from operations levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    net2phone’s Adjusted EBITDA margin is calculated by dividing net2phone’s Adjusted EBITDA, a Non-GAAP measure, by net2phone’s GAAP revenue for the comparable quarter or period. Adjusted EBITDA margin measures the percentage that each dollar of revenue contributes to profitability before interest, taxes, depreciation and amortization, and other adjustments as described in the Reconciliation of Non-GAAP Financial Measures. net2phone’s Adjusted EBITDA margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future Adjusted EBITDA levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    BOSS Money’s Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.

    # # #

    The MIL Network

  • MIL-OSI Global: Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works

    Source: The Conversation – UK – By Mark Berry, Lecturer In Criminology, Bournemouth University

    R Mendoza/Shutterstock

    The global illicit drugs trade is estimated to be worth at least half a trillion US dollars each year. Drugs such as cocaine, methamphetamine and heroin generate large revenues all along their supply chains, from where the products (and precursor materials) are grown or made – principally Colombia and Bolivia, China, Afghanistan, and the “golden triangle” of Myanmar, Laos and Thailand – to wherever the finished drugs are consumed.

    Earnings in the illicit drug trade are variable. Few people will make the kind of money that once put the Mexican former cartel boss Joaquín “El Chapo” Guzmán on the Forbes list of global billionaires. But while drug “kingpins” are the industry’s biggest individual earners, they do not hold the majority of the drug money that is generated throughout the global supply chain.

    Despite their frequent glamorisation in film and TV portrayals, drug cartels are basically international logistics companies. They work with distributors in different countries who deliver the drugs to regional wholesalers, who in turn supply the local retailers (dealers) who sell drugs to individuals.

    Everyone along the supply chain takes their cut, with most people making much more modest incomes than the millionaire drug traffickers of narcocorrido lore. In our interviews with illicit drug entrepreneurs in the US and UK, we routinely spoke to sellers whose incomes ranged from pocket money to providing a moderately comfortable life.



    Illicit drug use is damaging large parts of the world socially, politically and environmentally. Patterns of supply and demand are changing rapidly. In our longform series Addicted, leading experts bring you the latest insights on drug use and production as we ask: is it time to declare a planetary emergency?


    Around 70% to 80% of the overall revenue generated by illicit drugs is shared among the many wholesale and street-level dealers in destination countries such as the UK and US, where the price per gram is at its highest. How this money moves and is used to sustain the illicit drug trade should be an important part of any worthwhile counter-narcotics strategy. But it rarely is.

    Professional money launderers

    The people and organisations responsible for laundering drug revenues – that is, transforming them into untraceable money that can easily be spent, or into assets that can be held or sold – often exist under the radar of law enforcement and the media.

    Yet the ways illicit drug money is laundered are hardly a mystery. Techniques include wire transfers to offshore bank accounts, investments in shell companies or deposits in cash businesses, and buying foreign currencies or (to a small extent) cryptocurrencies. In addition, the straightforward physical transportation of cash across national borders is an often-used method known as a “bulk cash transfer”.

    The largest players in the illicit drugs industry, such as international cartels, national distributors and large-scale wholesalers, often use professional money launderers – some of whom have seemingly reputable jobs in the financial sector. In one recent case, US financial regulators fined TD Bank US$3 billion (£2.4 billion) – a record penalty for a bank – for facilitating the laundering of millions of dollars of drug cartel money.

    Over six years, more than 90% of the bank’s transactions went unmonitored, enabling “three money laundering networks to collectively transfer more than US$670 million through TD Bank accounts”. Then-US attorney general Merrick Garland commented: “By making its services convenient for criminals, [TD Bank] became one.”

    Video: CBC News.

    Some money laundering networks are as global as the drug supply chains they service. In June 2024, the US Department of Justice’s (DoJ) multi-year “Operation Fortune Runner” investigation saw LA-based associates of Mexico’s Sinaloa drug cartel charged with conspiring with money-laundering groups linked to a Chinese underground banking network. According to the IRS’s head of criminal investigation, Guy Ficco:

    Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand-in-hand with drug traffickers to try to legitimise profits generated by drug activities.

    According to the DoJ, “many wealthy Chinese nationals” barred from transferring large amounts to the US by the Chinese government’s capital flight restrictions seek informal alternatives to the conventional banking system – including via schemes to launder illicit drug money. The DoJ explained how this works:

    The China-based investor contacts an individual who has US dollars available to sell in the United States. This seller of US dollars provides identifying information for a bank account in China, with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of US dollars is released to the buyer in the United States.

    These arrangements are not unique to Chinese actors. Similar arrangements occur throughout the world, including schemes to leverage the black market peso exchange and the Hawala international money transfer system.

    Professional launderers are both creating and exploiting vulnerabilities in the global financial system. Such corruption allows suspicious transactions to occur without proper checks or oversight. This not only reduces transparency in the financial system but erodes public trust in it.

    How cartels launder their money

    International drug cartels and national wholesalers have a smaller markup on their transactions, compared with retailers. But because they are responsible for moving enormous quantities of illicit drugs, they still generate millions of dollars worth of revenue.

    The most prolific known drug distributors in US history, Margarito Flores Jr and his twin brother Pedro, delivered billions of dollars worth of cocaine, heroin and methamphetamines to their US and Canadian wholesale clients between 1998 and 2009. They were working for Guzmán and Ismeal “El Mayo” Zambada García, then leaders of the Sinaloa cartel, as well as the Mexican Beltrán Leyva brothers whose cartel bore their surname.

    Today, Margarito Flores Jr trains law enforcement across the US in the methods he and his brother used to traffic drugs and run their business. In January 2015, both men were sentenced to 14 years for drug trafficking – Margarito Flores Jr would later reach out to one of this article’s authors (R.V. Gundur) after reading his book, Trying to Make It: The Enterprises, Gangs, and People of the American Drug Trade, which includes a comprehensive account of the Flores crew’s activities.

    In a subsequent interview, he told us: “My brother and I estimate that, if we added up all of the money we sent back to Mexico over the decade we sold drugs, it was probably more than US$3.5 billion.”

    The billions they remitted to Mexico were used by Guzmán, Zambada and the Beltrán Levya brothers not only to expand their drug businesses, but to corrupt powerful figures such as Mexico’s former secretary of public security, Genaro García Luna.

    García Luna, who was Mexico’s highest-ranking law enforcement official from 2006 to 2012, was sentenced to nearly 40 years in prison in October 2024 after being found guilty of taking millions of dollars in bribes from the Sinaloa cartel, as well as enabling the trafficking of more than a million kilograms of cocaine into the US. Flores explained to us:

    It’s important to understand that corruption impacts people at all levels of government. Our payoffs included local police and other people in the community, up to higher-positioned people in government. Lots of that money ended up funding the violent conflicts between cartels.

    While there has been widespread coverage of cartel drug money being laundered through high-profile businesses and banks such as Wachovia and HSBC, Flores suggested that “the money involved in the drug trade is a lot more than anybody really can understand”. The reason for this, he said, is that it’s very hard to track the flow of hard cash via lorries, boats, planes and even drones. Flores told us:

    It’s a misconception that everyone who makes a lot of money in drugs or other illegal business makes an effort to launder their money. My brother and I held much of what we earned in cash. We knew the government could eventually take everything [else].

    The twins were right: in time, that’s exactly what the US government did.

    ‘Everyday’ money laundering

    In our study of money laundering strategies used by people involved in the illicit drug trade in the UK and US, we found that street dealers do not typically undertake sophisticated laundering processes. Rather, they spend their cash on food and other routine living expenses. One independent UK drug dealer, whose experience was typical of many, used the money earned from his cocaine sales to buy groceries and pay bills for himself and his daughter.

    Spending money, even small amounts, gained through illegal activities is a money laundering offence – albeit one that is seldom prosecuted. As a result, these everyday activities that return illicit drug money to the legal economy are not well accounted for – even though the street value of drugs drives global market value estimates.

    Business-savvy street dealers can earn gross revenues that approach the earnings of high-paid white-collar workers. But they must disguise their earnings’ origins before they can spend them, of course, and various tactics are used to do this.

    Some dealers solicit close friends or family members to act as “strawmen”. These are people willing to put assets paid for by illicit drug money – such as cars, properties or even businesses – in their names on behalf of the dealer. Idris Elba’s character Stringer Bell in HBO’s The Wire was an accurate portrayal of someone investing in legal enterprises using illicit drug money.

    A guide to Stringer Bell’s character in The Wire. Video: Just an Observation.

    These strategies occur wherever illegal enterprise exists, and have done for well over a century. In the US, we interviewed wholesalers who had used family members to own houses and other properties on their behalf. This is done to mitigate against the risk of asset forfeiture should they be convicted of a crime. If an illicit enterprise can create a plausible beneficial owner who is not involved in crime, then the asset is harder to seize. This is why the Donald Trump administration’s recent suspension of beneficial owner oversight is problematic from a drug enforcement perspective.

    In liberal democracies, governments cannot investigate someone’s finances simply because they are related to criminals. The dirty money that is put into their accounts can also be disguised as legitimate income making it difficult to identify, although thorough investigations may uncover it.

    In the UK, we also talked to successful drug retailers who had set up local businesses in their own names. The EU’s law enforcement agency, Europol, has reported similar activities throughout Europe.

    Legal businesses are a common – and often hard-to-detect – vehicle to launder drug money. Bars, clubs, gyms, and hair, nail and tanning salons can be readily set up with drug money, as large cash infusions to establish a business are often not well scrutinised. These businesses are comparatively easy to run with significant cash flows, providing suitable cover for dirty money.

    For example, a beauty salon, especially one that offers high-value boutique services, could easily incorporate drug revenue into its financial accounts by reporting sales that do not occur. Tanning salons can be set up with little expense since they require only sunbeds and the rental of a property.

    Along with bars, clubs and salons, construction companies and restaurants stand out as other cash-intensive businesses with high volumes of transactions – characteristics that make good fronts for laundering money.

    It’s hard to spot a ‘dirty’ business

    There is no surefire way to tell whether a business is a laundering front. While some may look like enterprises struggling to stay afloat, others develop into viable operations that eventually no longer need dirty money to sustain them.

    Some drug dealers incorporate laundering practices within their legitimate jobs. Tradespeople such as electricians or plumbers, for example, can launder money by generating invoices for fake jobs, then reporting the income on their tax returns.

    In both the UK and US, tax authorities are not charged with evaluating the veracity of the funds reported, and are generally satisfied once tax is paid. In other words, they generally trust declared income as proof of legal business activity. Moreover, they, along with the police, lack the resources to investigate these businesses for money laundering.

    Through their legal businesses, many drug dealers pay significant taxes on their illegal revenue, and thus contribute to the economy.

    Paying income tax effectively renders this income laundered. It can be invested and used to set up other businesses, or to purchase cars and properties without suspicion. It can also bolster credit ratings, and improve access to legal financial services such as bank loans.

    Many small-time drug dealers start legal businesses in order to exit the illicit drug trade. We interviewed one cocaine dealer who had used his drug money to set up a retail electronics store; once it was successful, he stopped dealing. Similarly, the person behind a semi-legitimate nitrous oxide enterprise used his proceeds to set up a legitimate alcohol delivery service.

    Through self-laundering, these modest drug dealers transform their proceeds of crime into spendable cash – and may eventually leave criminality behind altogether.

    The (losing) battle against laundered money

    Across the world, anti-money laundering efforts against organised criminal gangs are notoriously ineffective.

    The Financial Action Task Force (FATF) – an intergovernmental organisation formed in 1999 to combat money laundering and the financing of terrorism – assesses financial regulators’ anti-money laundering controls all over the world. Countries designated as a risk that require monitoring are placed on the task force’s “grey list”, while severe, high-risk countries go on its “black list”. Being put on these lists can result in a withdrawal of international investment and implementation of sanctions by other countries.

    Although developing countries have often scored badly in their assessments, there has been some progress. While Kenya remained on the grey list in 2024, for example, it was found to have strengthened its measures to tackle both money laundering and terrorist financing. In the same year, though, Lebanon was added to the grey list over concerns on both counts.

    The FATF’s evaluation processes are designed to provide an objective assessment of whether a country has implemented its anti-money laundering and counter-terrorist financing recommendations. However, the success of the FATF’s anti-money laundering controls remains unclear.

    Video: The Financial Action Task Force.

    Often lost in the criminal financing narrative is the role of bulk cash transfers. Even in a world that is moving to cashless transactions, cash generally remains the primary currency of both the illicit drug trade and corruption.

    The biggest and most successful drug traffickers have significant cash reserves which are used to pay workers, replace drugs that are lost or seized, accrue assets, and bribe key officials.

    Reflecting on his former illicit enterprise, Margarito Flores observed: “For every kilo of cocaine or heroin or methamphetamine we sold in the US, at least a kilo of cash went back to Mexico.” For deals in Europe, Flores said: “Given the markup the further away you trade, the amount of cash sent back could be even higher – I would estimate it to be a kilo and a half.”

    Flores described the ineptitude of law enforcement in policing cash that was leaving the US:

    No matter how careful we were, my brother and I lost a handful of loads of drugs heading north [from Mexico into the US]. Heading south was different: we just had the money put on tractor trailers and had it driven it across the border. We never lost a dollar. That’s where politicians don’t pay enough attention. That cash lets traffickers keep doing business.

    Focus on the money as well as the drugs

    So long as demand for illicit drugs exists, the industry will continue – and the revenue it generates will be laundered.

    We believe that to curb the drugs trade, enforcement strategies need to go beyond simply capturing drugs and focus much more on capturing the money. Governments should go after reserves held not only by drug cartels but high-level distributors, such as those who replaced the Flores twins, and also wholesalers. People like these – comparatively high earners in destination countries – are the backbone of the illicit drugs trade.

    Transnational law enforcement should prioritise detecting and seizing bulk cash transfers. These high-volume proceeds underwrite the wellbeing of drug trafficking organisations. Digital tools, such as machine learning and artificial intelligence, can be developed to create new techniques to track and trace suspicious transactions, although they alone won’t solve all laundering problems.

    Corruption of officials also remains a problem. Governments need to ensure their officials are well paid and sufficiently monitored in their roles – be they working in government, border control, banks, police departments or prisons. Unfortunately, the US has shirked its leadership in global anti-corruption efforts with the recent halting of the enforcement of the Foreign Corrupt Practices Act, which bans the bribing of foreign officials.




    Read more:
    Mexico’s drug corruption has more to do with US demand than crooked politicians


    Anti-money laundering efforts need to be consistently supported and required. Lamentably, the US has undermined its anti-money laundering toolkit by suspending the enforcement of beneficial ownership information reporting requirements. Establishing beneficial ownership helps financial institutions to identify parties that are hiding their financial interests, which can be an indication of money laundering or other criminal activity.

    Similarly, foreign investment in producer countries can strengthen their capacity to counter laundering by supporting intelligence infrastructure and improved training. Recent cuts to USAid and the reduction of US State Department efforts in these areas is another indication that the US will no longer lead in these domains.

    As cash businesses provide an easy mechanism for cleaning money, moving to a cashless society that uses digital transactions may help ensure that money is traceable. At the same time, cryptomarkets provide a minor, but potentially increasing, pathway to hiding dirty money digitally.

    Ultimately, we should recognise the decades-long “war on drugs” for what it is: a policy costing trillions of dollars that combined mass incarceration with insufficient public health investment, and which has harmed the very communities the illicit drug trade affects the most. It is a difficult balance, but the pathway forward needs to reorient the objectives regarding drugs: invest in people, then go after the money that keeps the cartels, distributors and wholesalers afloat.


    For you: more from our Insights series:

    To hear about new Insights articles, join the hundreds of thousands of people who value The Conversation’s evidence-based news. Subscribe to our newsletter.

    Mark Berry received funding from the Dawes Trust for a prestigious PhD scholarship to undertake work that informs the contents of this article.

    R.V. Gundur received funding from the Economic and Social Research Council to undertake work that informs the contents of this article. He is also a professional member of the International Compliance Association.

    The authors wish to thank Margarito Flores Jr (kingpintoeducator.com) for his help with this article.

    ref. Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works – https://theconversation.com/money-laundering-plays-a-key-role-in-every-part-of-the-illegal-drugs-industry-heres-how-it-works-251288

    MIL OSI – Global Reports

  • MIL-OSI: Silvercrest Asset Management Group Inc. Reports Q4 and Year-End 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) — Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter and year ended December 31, 2024.

    Business Update

    Silvercrest concluded 2024 with strong new client organic flows due to new strategic investments made over the past year that are already bearing fruit. The firm garnered $1.4 billion in Q4 and $1.5 billion during 2024 in new client assets under management (“AUM”) inflows, the best year for new organic client inflows since 2015. The fourth quarter was primarily bolstered by winning a successful seed investment in our new Global Value Equity strategy of $1.3 billion USD ($2.0 billion AUD) in partnership with CBUS, one of Australia’s largest superannuation funds. The increases during the quarter bode well for future revenue, and we remain highly optimistic about securing more significant organic net flows over the course of 2025 to increase our return on invested capital.

    Total AUM as of year-end 2024 reached $36.5 billion as of December 31, 2024, up 9.6% from $33.3 billion at year-end 2023. Discretionary AUM, which drives revenue, rose 6.4% to $23.3 billion from $21.9 billion. Overall, total asset flows and market increases were a net positive for the firm and will drive an increase in future revenue. Revenue for the year increased 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12.0% over Q4 2023, to $32.0 million from $28.5 million.

    Strategically, in addition to building the firm’s new Global Value Equity strategy, we have hired business development and market leads in Atlanta and Singapore. We have our full MAS license for doing business in Singapore. With significant European assets and growth opportunities, we will be pursuing more initiatives to better highlight Silvercrest in both the institutional and wealth markets. The firm also has invested in talent across the firm to drive new growth and successfully transition the business toward the next generation.

    Silvercrest developed new and stronger institutional consulting relationships during 2024, with new investment opportunities to develop our strategies. Our pipeline remains robust. As a result, we are optimistic about securing significant new organic flows. Importantly, the firm’s pipeline does not yet include mandates for our new Global Value Equity strategy which has a high capacity for significant new assets. We have worked hard over the past year to build the infrastructure, team, and strategy while undertaking business development. As with our third-quarter call, we envision more positive AUM flows and resulting revenue increases.

    As I have discussed throughout the past year, Silvercrest has never had more business opportunities. Those initiatives are beginning to bear results. We have made and will continue to make investments to drive future growth in the business. We expect to make more hires to complement our outstanding professional team to drive that future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation for this purpose, and, as mentioned, we will continue to adjust compensation accruals to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

    Fourth Quarter 2024 Highlights

    • Total AUM of $36.5 billion, inclusive of discretionary AUM of $23.3 billion and non-discretionary AUM of $13.2 billion at December 31, 2024.
    • Revenue of $32.0 million.
    • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $2.7 million and $1.6 million, respectively.
    • Basic and diluted net income per share of $0.17.
    • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $5.1 million.
    • Adjusted net income1 of $2.9 million.
    • Adjusted basic and diluted earnings per share1,2 of $0.21 and $0.20, respectively.

    The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

       
    For the Three Months

    Ended December 31,
        For the Twelve Months
    Ended December 31,
     
    (in thousands except as indicated)   2024     2023     2024     2023  
    Revenue   $ 31,962     $ 28,542     $ 123,651     $ 117,410  
    Income (loss) before other income (expense), net   $ 1,957     $ (969 )   $ 17,627     $ 18,819  
    Net income (loss)   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Net income (loss) margin     8.4 %     (2.2 )%     12.7 %     12.9 %
    Net income (loss) attributable to Silvercrest   $ 1,618     $ (411 )   $ 9,535     $ 9,094  
    Net income (loss) per basic share   $ 0.17     $ (0.05 )   $ 1.00     $ 0.96  
    Net income (loss) per diluted share   $ 0.17     $ (0.04 )   $ 1.00     $ 0.96  
    Adjusted EBITDA1   $ 5,070     $ 2,581     $ 26,101     $ 26,878  
    Adjusted EBITDA Margin1     15.9 %     9.0 %     21.1 %     22.9 %
    Adjusted net income1   $ 2,861     $ 1,049     $ 15,782     $ 16,104  
    Adjusted basic earnings per share1, 2   $ 0.21     $ 0.08     $ 1.15     $ 1.16  
    Adjusted diluted earnings per share1, 2   $ 0.20     $ 0.07     $ 1.10     $ 1.12  
    Assets under management at period end (billions)   $ 36.5     $ 33.3     $ 36.5     $ 33.3  
    Average assets under management (billions)3   $ 35.0     $ 32.3     $ 34.9     $ 31.1  
    Discretionary assets under management (billions)   $ 23.3     $ 21.9     $ 23.3     $ 21.9  
    ___________________
    1 Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 3 and 4.
    2 Adjusted basic and diluted earnings per share measures for the three and twelve months ended December 31, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of December 31, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units and non-qualified stock options to the extent dilutive at the end of the reporting period.
    3 We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.


    AUM at $36.5 Billion

    Silvercrest’s discretionary assets under management increased by $1.4 billion, or 6.4%, to $23.3 billion at December 31, 2024, from $21.9 billion at December 31, 2023. The increase was attributable to market appreciation of $2.1 billion partially offset by net client outflows of $0.7 billion. Silvercrest’s total AUM increased by $3.2 billion, or 9.6%, to $36.5 billion at December 31, 2024, from $33.3 billion at December 31, 2023. The increase was attributable to market appreciation of $3.8 billion partially offset by net client outflows of $0.6 billion.

    Silvercrest’s discretionary assets under management increased by $0.7 billion, or 3.1%, to $23.3 billion at December 31, 2024, from $22.6 billion at September 30, 2024. The increase was attributable to net client inflows of $0.9 billion partially offset by market depreciation of $0.2 billion. Silvercrest’s total AUM increased by $1.4 billion, or 4.0%, to $36.5 billion at December 31, 2024, from $35.1 billion at September 30, 2024. The increase was attributable to market appreciation of $0.5 billion and net client inflows of $0.9 billion.

    Fourth Quarter 2024 vs. Fourth Quarter 2023

    Revenue increased by $3.4 million, or 12.0%, to $32.0 million for the three months ended December 31, 2024, from $28.5 million for the three months ended December 31, 2023. This increase was driven by net client inflows in discretionary assets under management partially offset by market depreciation.

    Total expenses increased by $0.5 million, or 1.7%, to $30.0 million for the three months ended December 31, 2024, from $29.5 million for the three months ended December 31, 2023. Compensation and benefits expense decreased by $0.8 million, or 3.4%, to $21.9 million for the three months ended December 31, 2024, from $22.7 million for the three months ended December 31, 2023. The decrease was primarily attributable to a decrease in bonuses of $1.7 million, partially offset by increases in salaries and benefits of $0.9 million primarily as a result of merit-based increases and newly hired staff. General and administrative expenses increased by $1.3 million, or 18.5%, to $8.1 million for the three months ended December 31, 2024, from $6.8 million for the three months ended December 31, 2023. This was primarily attributable to increases in portfolio and systems expense of $0.5 million, office expense of $0.2 million, recruiting costs of $0.1 million and professional fees of $0.5 million.

    Consolidated net income was $2.7 million for the three months ended December 31, 2024, as compared to consolidated net loss of $0.6 million for the same period in the prior year. Net income attributable to Silvercrest was $1.6 million, or $0.17 per basic and diluted share, for the three months ended December 31, 2024. Our Adjusted Net Income1 was $2.9 million, or $0.21 per adjusted basic share and $0.20 per adjusted diluted share,2 for the three months ended December 31, 2024.

    Adjusted EBITDA1 was $5.1 million, or 15.9% of revenue, for the three months ended December 31, 2024, as compared to $2.6 million or 9.0% of revenue for the same period in the prior year.

    Year Ended December 31, 2024 vs. Year Ended December 31, 2023

    Revenue increased by $6.2 million, or 5.3%, to $123.7 million for the year ended December 31, 2024, from $117.4 million for the year ended December 31, 2023. This increase was driven by market appreciation in discretionary assets under management partially offset by net client outflows.

    Total expenses increased by $7.4 million, or 7.5%, to $106.0 million for the year ended December 31, 2024, from $98.6 million for the year ended December 31, 2024. Compensation and benefits expense increased by $4.0 million, or 5.6%, to $76.7 million for the year ended December 31, 2024, from $72.6 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in equity based compensation expense of $0.3 million due to an increase in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, an increase in salaries and benefits expense of $2.5 million primarily as a result of merit-based increases and newly hired staff and an increase in the accrual for bonuses of $1.2 million. General and administrative expenses increased by $3.4 million, or 13.1%, to $29.4 million for the year ended December 31, 2024, from $26.0 million for the year ended December 31, 2023. The increase was primarily attributable to increases in professional fees of $1.1 million, portfolio and systems expenses of $0.8 million, occupancy and related costs of $0.3 million, trading errors of $0.3 million, recruiting expenses of $0.3 million, travel and entertainment expenses of $0.2 million, depreciation and amortization of $0.1 million, office expense of $0.1 million, publications and subscriptions costs of $0.1 million and sub-advisory and referral fees of $0.1 million. 

    Consolidated net income was $15.7 million, or 12.7% of revenue, for the year ended December 31, 2024, as compared to consolidated net income of $15.2 million, or 12.9% of revenue, for the same period in the prior year. Net income attributable to Silvercrest was $9.5 million, or $1.00 per basic and diluted share, for the year ended December 31, 2024. Our Adjusted Net Income1 was $15.8 million, or $1.15 per adjusted basic share and $1.10 per adjusted diluted share,2 for the year ended December 31, 2024.

    Adjusted EBITDA1 was $26.1 million, or 21.1% of revenue, for the year ended December 31, 2024, as compared to $26.9 million, or 22.9% of revenue, for the same period in the prior year.

    Liquidity and Capital Resources

    Cash and cash equivalents were $68.6 million at December 31, 2024, compared to $70.3 million at December 31, 2023. As of December 31, 2024, there was nothing outstanding under our term loan with City National Bank and nothing outstanding on our revolving credit facility with City National Bank.

    Silvercrest Asset Management Group Inc.’s total equity was $80.7 million at December 31, 2024. We had 9,376,280 shares of Class A common stock outstanding and 4,373,315 shares of Class B common stock outstanding at December 31, 2024.

    Non-GAAP Financial Measures

    To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

    • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
    • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B stockholders.
    • Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B stockholders.
    • Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of 26%. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B stockholders.
    • Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.

    Conference Call

    The Company will host a conference call on March 7, 2025, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President, and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

    Forward-Looking Statements

    This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; our expectations with respect to deferred tax assets, adverse economic or market conditions; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    About Silvercrest

    Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.

    Silvercrest Asset Management Group Inc.

    Contact: Richard Hough
    212-649-0601
    rhough@silvercrestgroup.com

     
    Exhibit 1
     
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
        Year Ended December 31,  
        2024     2023  
        (Unaudited)        
    Revenue            
    Management and advisory fees   $ 119,316     $ 112,794  
    Family office services     4,335       4,616  
    Total revenue     123,651       117,410  
    Expenses            
    Compensation and benefits     76,663       72,619  
    General and administrative     29,361       25,972  
    Total expenses     106,024       98,591  
    Income before other (expense) income, net     17,627       18,819  
    Other (expense) income, net            
    Other (expense) income, net     203       76  
    Interest income     1,432       946  
    Interest expense     (144 )     (421 )
    Equity income from investments     1,154       73  
    Total other (expense) income, net     2,645       674  
    Income before provision for income taxes     20,272       19,493  
    Provision for income taxes     (4,563 )     (4,310 )
    Net income     15,709       15,183  
    Less: net income attributable to non-controlling interests     (6,174 )     (6,089 )
    Net income attributable to Silvercrest   $ 9,535     $ 9,094  
    Net income per share:            
    Basic   $ 1.00     $ 0.96  
    Diluted   $ 1.00     $ 0.96  
    Weighted average shares outstanding:            
    Basic     9,495,375       9,431,404  
    Diluted     9,532,525       9,464,339  
     
    Exhibit 2
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
        For the Three Months Ended December 31,  
        2024     2023  
        (Unaudited)        
    Revenue            
    Management and advisory fees   $ 30,871     $ 27,349  
    Family office services     1,091       1,193  
    Total revenue     31,962       28,542  
    Expenses            
    Compensation and benefits     21,903       22,674  
    General and administrative     8,102       6,837  
    Total expenses     30,005       29,511  
    Income (loss) income before other income (expense), net     1,957       (969 )
    Other income (expense), net            
    Other income (expense), net     178       45  
    Interest income     422       525  
    Interest expense     (49 )     (107 )
    Equity income from investments     1,154       73  
    Total other income (expense), net     1,705       536  
    Income (loss) before provision for income taxes     3,662       (433 )
    Provision for income taxes     (978 )     (209 )
    Net income (loss)     2,684       (642 )
    Less: net (income) loss attributable to non-controlling interests     (1,066 )     231  
    Net income (loss) attributable to Silvercrest   $ 1,618     $ (411 )
    Net income (loss) per share:            
    Basic   $ 0.17     $ (0.05 )
    Diluted   $ 0.17     $ (0.04 )
    Weighted average shares outstanding:            
    Basic     9,450,344       9,368,579  
    Diluted     9,487,453       9,368,579  
     
    Exhibit 3
    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
    Adjusted EBITDA   For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
        2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                        
    Net (loss) income   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Provision for income taxes     978       209       4,563       4,310  
    Delaware Franchise Tax     50       50       200       200  
    Interest expense     49       107       144       421  
    Interest income     (422 )     (525 )     (1,432 )     (946 )
    Depreciation and amortization     1,035       1,002       4,146       4,014  
    Equity-based compensation     542       580       1,916       1,627  
    Other adjustments (A)     154       1,800       855       2,069  
    Adjusted EBITDA   $ 5,070     $ 2,581     $ 26,101     $ 26,878  
    Adjusted EBITDA Margin     15.9 %     9.0 %     21.1 %     22.9 %

    (A) Other adjustments consist of the following:

        Three Months Ended
    December 31,
        Twelve Months Ended
    December 31,
        2024     2023     2024     2023
    Acquisition costs (a)   $       $       $       $ 5  
    Severance     140         52         393         71  
    Other (b)     14         1,748         462         1,993  
    Total other adjustments   $ 154       $ 1,800       $ 855       $ 2,069  
    (a) For the twelve months ended December 31, 2023, represents professional fees of $5 related to the acquisition of Cortina.
    (b) For the three months ended December 31, 2024, represents a Tax Receivable Agreement adjustment of ($78), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $4, professional fees related to a transfer pricing project of $27 and data conversion costs of $13. For the twelve months ended December 31, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, a Tax Receivable Agreement adjustment of ($78), sign on bonuses paid to certain employees of $188, professional fees of $53 related to a transfer pricing project, legal fees of $46, data conversion costs of $27 and software implementation costs of $22. For the three months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input, a Tax Receivable Agreement adjustment of ($38), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $7, a fair value adjustment to the Neosho contingent purchase price consideration of $24, professional fees related to a transfer pricing project of $37 and legal fees related to the startup of a fund of $2. For the twelve months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input,  a Tax Receivable Agreement adjustment of $2, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, moving costs of $35, software implementation costs of $35, professional fees related to a transfer pricing project of $37, legal fees related to the startup of a fund of $2, a fair value adjustment to the Neosho contingent purchase price consideration of $24 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2).
     
    Exhibit 4
    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”)
    Adjusted Net Income and Adjusted Earnings Per Share Measures
    (Unaudited and in thousands, except per share amounts or as noted)
     
    Adjusted Net Income and Adjusted Earnings Per Share   Three Months Ended
    December 31,
        Year Ended
    December 31,
     
        2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                        
    Net income (loss)   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Consolidated GAAP Provision for income taxes     978       209       4,563       4,310  
    Delaware Franchise Tax     50       50       200       200  
    Other adjustments (A)     154       1,800       855       2,069  
    Adjusted earnings before provision for income taxes     3,866       1,417       21,327       21,762  
    Adjusted provision for income taxes:                        
    Adjusted provision for income taxes (26% assumed tax rate)     (1,005 )     (368 )     (5,545 )     (5,658 )
                             
    Adjusted net income   $ 2,861     $ 1,049     $ 15,782     $ 16,104  
                             
    GAAP net income (loss) per share (B):                        
    Basic   $ 0.17     $ (0.05 )   $ 1.00     $ 0.96  
    Diluted   $ 0.17     $ (0.04 )   $ 1.00     $ 0.96  
                             
    Adjusted earnings per share/unit (B):                        
    Basic   $ 0.21     $ 0.08     $ 1.15     $ 1.16  
    Diluted   $ 0.20     $ 0.07     $ 1.10     $ 1.12  
                             
    Shares/units outstanding:                        
    Basic Class A shares outstanding     9,376       9,479       9,376       9,479  
    Basic Class B shares/units outstanding     4,373       4,431       4,373       4,431  
    Total basic shares/units outstanding     13,750       13,910       13,750       13,910  
                             
    Diluted Class A shares outstanding (C)     9,413       9,515       9,413       9,515  
    Diluted Class B shares/units outstanding (D)     4,945       4,820       4,945       4,820  
    Total diluted shares/units outstanding     14,358       14,335       14,358       14,335  
    (A) See A in Exhibit 3.
    (B) GAAP earnings per share is strictly attributable to Class A stockholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders.
    (C) Includes 37,109 and 35,554 unvested restricted stock units at December 31, 2024 and 2023, respectively.
    (D) Includes 205,079 and 240,998 unvested restricted stock units at December 31, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at December 31, 2024 and 2023, respectively.
     
    Exhibit 5
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Financial Condition
    (Unaudited and in thousands)
     
        December 31,
    2024
        December 31,
    2023
     
    Assets            
    Cash and cash equivalents   $ 68,611     $ 70,301  
    Investments     1,354       219  
    Receivables, net     12,225       9,526  
    Due from Silvercrest Funds     945       558  
    Furniture, equipment and leasehold improvements, net     7,387       7,422  
    Goodwill     63,675       63,675  
    Operating lease assets     16,032       19,612  
    Finance lease assets     254       330  
    Intangible assets, net     16,644       18,933  
    Deferred tax asset     4,220       5,034  
    Prepaid expenses and other assets     3,085       3,964  
    Total assets   $ 194,432     $ 199,574  
    Liabilities and Equity            
    Accounts payable and accrued expenses   $ 1,953     $ 1,990  
    Accrued compensation     39,865       37,371  
    Borrowings under credit facility           2,719  
    Operating lease liabilities     22,270       26,277  
    Finance lease liabilities     262       336  
    Deferred tax and other liabilities     10,389       9,071  
    Total liabilities     74,739       77,764  
    Commitments and Contingencies (Note 10)            
    Equity            
    Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding            
    Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,450,559
    and 9,376,280 issued and outstanding, respectively, as of December 31, 2024;
    10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023
        104       103  
    Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,373,315
    and 4,431,105 issued and outstanding as of December 31, 2024 and 2023, respectively
        42       43  
    Additional Paid-In Capital     56,369       55,809  
    Treasury stock, at cost, 1,074,279 and 808,455 shares as of December 31, 2024 and 2023, respectively     (19,728 )     (15,057 )
    Accumulated other comprehensive income (loss)     (43 )     (12 )
    Retained earnings     43,953       41,851  
    Total Silvercrest Asset Management Group Inc.’s equity     80,697       82,737  
    Non-controlling interests     38,996       39,073  
    Total equity     119,693       121,810  
    Total liabilities and equity   $ 194,432     $ 199,574  
     
    Exhibit 6
    Silvercrest Asset Management Group Inc.
    Total Assets Under Management
    (Unaudited and in billions)
     
    Total Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 35.1     $ 31.2       12.5 %
                       
    Gross client inflows     2.2       0.9       144.4 %
    Gross client outflows     (1.3 )     (1.3 )     0.0 %
    Net client flows     0.9       (0.4 )     325.0 %
                       
    Market appreciation     0.5       2.5       -80.0 %
    Ending assets under management   $ 36.5     $ 33.3       9.6 %
        Year Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 33.3     $ 28.9       15.2 %
                       
    Gross client inflows     5.1       5.4       -5.6 %
    Gross client outflows     (5.7 )     (4.8 )     18.8 %
    Net client flows     (0.6 )     0.6       -200.0 %
                       
    Market appreciation     3.8       3.8       0.0 %
    Ending assets under management   $ 36.5     $ 33.3       9.6 %
     
    Exhibit 7
    Silvercrest Asset Management Group Inc.
    Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Discretionary Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 22.6     $ 20.5       10.2 %
                       
    Gross client inflows     1.8       0.7       157.1 %
    Gross client outflows     (0.9 )     (1.1 )     -18.2 %
    Net client flows     0.9       (0.4 )     325.0 %
                       
    Market (depreciation) appreciation     (0.2 )     1.8       -111.1 %
    Ending assets under management   $ 23.3     $ 21.9       6.4 %
        Twelve Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 21.9     $ 20.9       4.8 %
                       
    Gross client inflows     3.9       3.0       30.0 %
    Gross client outflows     (4.6 )     (4.1 )     12.2 %
    Net client flows     (0.7 )     (1.1 )     36.4 %
                       
    Market appreciation     2.1       2.1       0.0 %
    Ending assets under management   $ 23.3     $ 21.9       6.4 %
    Exhibit 8
    Silvercrest Asset Management Group Inc.
    Non-Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Non-Discretionary Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 12.5     $ 10.7       16.8 %
                       
    Gross client inflows     0.4       0.2       100.0 %
    Gross client outflows     (0.4 )     (0.2 )     100.0 %
    Net client flows                 0.0 %
                       
    Market appreciation     0.7       0.7       0.0 %
    Ending assets under management   $ 13.2     $ 11.4       15.8 %
        Twelve Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 11.4     $ 8.0       42.5 %
                       
    Gross client inflows     1.2       2.4       -50.0 %
    Gross client outflows     (1.1 )     (0.7 )     57.1 %
    Net client flows     0.1       1.7       -94.1 %
                       
    Market appreciation     1.7       1.7       0.0 %
    Ending assets under management   $ 13.2     $ 11.4       15.8 %
     
    Exhibit 9
    Silvercrest Asset Management Group Inc.
    Assets Under Management
    (Unaudited and in billions)
     
        Three Months Ended
    December 31,
     
        2024     2023  
    Total AUM as of September 30,   $ 35.088     $ 31.187  
    Discretionary AUM:            
    Total Discretionary AUM as of September 30,   $ 22.639     $ 20.462  
    New client accounts/assets (1)     1.370       0.188  
    Closed accounts (2)     (0.011 )     (0.103 )
    Net cash inflow/(outflow) (3)     (0.458 )     (0.479 )
    Non-discretionary to Discretionary AUM (4)     (0.012 )     (0.002 )
    Market appreciation     (0.209 )     1.819  
    Change to Discretionary AUM     0.680       1.423  
    Total Discretionary AUM at December 31,     23.319       21.885  
    Change to Non-Discretionary AUM (5)     0.687       0.671  
    Total AUM as of December 31,   $ 36.455     $ 33.281  
       
    Twelve Months Ended

    December 31,
     
        2024     2023  
    Total AUM as of January 1,   $ 33.281     $ 28.905  
    Discretionary AUM:            
    Total Discretionary AUM as of January 1,   $ 21.885     $ 20.851  
    New client accounts/assets (1)     1.549       0.339  
    Closed accounts (2)     (0.527 )     (0.202 )
    Net cash inflow/(outflow) (3)     (1.714 )     (1.272 )
    Non-discretionary to Discretionary AUM (4)     (0.018 )     (0.032 )
    Market (depreciation)/appreciation     2.144       2.201  
    Change to Discretionary AUM     1.434       1.034  
    Total Discretionary AUM at December 31,     23.319       21.885  
    Change to Non-Discretionary AUM (5)     1.740       3.342  
    Total AUM as of December 31,   $ 36.455     $ 33.281  
    (1) Represents new account flows from both new and existing client relationships.
    (2) Represents closed accounts of existing client relationships and those that terminated.
    (3) Represents periodic cash flows related to existing accounts.
    (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
    (5) Represents the net change to Non-Discretionary AUM.
     
    Exhibit 10
    Silvercrest Asset Management Group Inc.
    Equity Investment Strategy Composite Performance1, 2
    As of December 31, 2024
    (Unaudited)
     
    PROPRIETARY EQUITY PERFORMANCE 1, 2   ANNUALIZED PERFORMANCE  
        INCEPTION   1-YEAR     3-YEAR     5-YEAR     7-YEAR     INCEPTION  
    Large Cap Value Composite   4/1/02     16.3       5.1       10.8       10.6       9.7  
    Russell 1000 Value Index         14.4       5.6       8.7       8.4       7.9  
                                       
    Small Cap Value Composite   4/1/02     10.1       4.3       8.8       7.1       10.3  
    Russell 2000 Value Index         8.1       1.9       7.3       6.1       7.9  
                                       
    Smid Cap Value Composite   10/1/05     15.7       2.6       7.6       7.0       9.5  
    Russell 2500 Value Index         11.0       3.8       8.4       7.2       7.8  
                                       
    Multi Cap Value Composite   7/1/02     16.1       2.6       9.2       8.5       9.7  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.4  
                                       
    Equity Income Composite   12/1/03     10.4       3.1       6.7       7.4       10.8  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.5  
                                       
    Focused Value Composite   9/1/04     16.7       (0.2 )     5.6       5.4       9.4  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.3  
                                       
    Small Cap Opportunity Composite   7/1/04     14.9       4.5       10.3       10.1       11.0  
    Russell 2000 Index         11.5       1.2       7.4       6.9       8.1  
                                       
    Small Cap Growth Composite   7/1/04     13.6       (2.9 )     11.1       11.8       10.6  
    Russell 2000 Growth Index         15.2       0.2       6.9       7.2       8.5  
                                       
    Smid Cap Growth Composite   1/1/06     20.9       (3.2 )     12.6       14.2       11.1  
    Russell 2500 Growth Index         13.9       0.0       8.1       8.8       9.5  
    1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®).
    2 The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
      The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

    The MIL Network

  • MIL-OSI Banking: Members share experiences on going beyond tariff codes to implement environmental measures

    Source: WTO

    Headline: Members share experiences on going beyond tariff codes to implement environmental measures

    Organized and moderated by Luis Oña-Garcés of Ecuador, the session featured experience-sharing by members implementing environmental measures which are controlled at the border based on tariff classification categories beyond the Harmonized System codes.
    A series of key questions guided delegations in addressing environmental measures implemented through tariff classification, exploring the use of specific codes and additional categories designed for this purpose. Other mechanisms used at the border, such as certifications or licences, were also analysed. Good practices identified in the implementation and monitoring of these measures were shared. The objective was to understand the challenges and results of these strategies.
    The European Union shared its process used to track trade in products covered by regulations of fluorinated greenhouse gases, ozone-depleting substances, and deforestation. This included the EU TARIC databases which identify specific products beyond 6-digit HS codes. This more exact definition helped customs operations by enhancing traceability and smoothing the cross-border process.
    The EU suggested that the World Customs Organization (WCO) put in place a project aimed at improving the classification of green technology and environmentally friendly products by refining definitions and collaborating with international organizations. The EU noted that updating the current HS system to recognize products under green initiatives and the circular economy will streamline processes, enhance policy enforcement, and improve trade efficiency and traceability.
    The United Kingdom indicated that collaboration between trade and customs is essential to understand limitations posed by the HS and to apply solutions that can be implemented at the border. The UK emphasized that differentiation of production processes or end-use, especially for environmental products, is challenging. It noted that national tariff lines and harmonized definitions/standards are alternatives to HS amendments.
    The UK presented a case study showing that HS codes have no precise categories for recycling, reuse and waste of textiles, which hamper monitoring trade. Discrepancies in customs classification and contamination cause trade barriers due to HS code definitions not conforming with industry procedures. To avoid this, the UK said greater WTO member cooperation can enhance knowledge of trade restrictions due to unclear HS nomenclature.
    The Dominican Republic reported on the successful implementation of Multilateral Environmental Agreements (MEAs) and their integration into the country’s customs tariff system. It has introduced further subdivisions in its tariff structure, beyond the HS standard codes, to monitor environmentally sensitive products and institutionalised interagency planning and coordination through the creation of a Green Customs Department.
    Addressing challenges and opportunities, the Dominican Republic noted the obstacles encountered, particularly on outdated law frameworks, and emphasized the significance of effective technology-driven customs regulation and staff training to improve understanding and implementation of environmental policies while maintaining trade efficiency.
    Jamaica also highlighted its efforts in enforcing environmental policies on plastics pollution, hazardous waste treatment and disposal, and the development of renewable energy through customs policy. However, Jamaica noted the numerous challenges that hinder effective enforcement both at the national level and regionally within the Caribbean Community (CARICOM). These include insufficient stakeholder knowledge of MEAs and lack of coordination among regulatory and customs institutions. Jamaica said that enforcement continues to be difficult despite advancement because of a shortage of resources and the need for additional interagency coordination. The country continues to modernize customs practices and simplify policies according to international environmental commitments, with the aim of striking a balance between trade facilitation and sustainability goals.
    The HS is a multipurpose international product nomenclature developed by the WCO. It comprises more than 5,000 commodity groups or categories, each of them identified by a six-digit code. See here for the current HS 2022 nomenclature.
    The system is used by 212 economies as a basis for their customs tariffs and for the collection of international trade statistics. Over 98% of the merchandise in international trade is classified in terms of the HS.
    A first thematic session on Greening the HS was held in June 2024. It provided a detailed presentation of the HS role and structure, including its potential and limitations in identifying goods of policy interest. The challenge of defining environmental goods and making them visible in the HS were discussed, as were proposed HS amendments by the Food and Agriculture Organization and the Basel, Rotterdam and Stockholm Conventions.
    The Chair of the Committee on Market Access, Nicola Waterfield of Canada, said that the presentations gave members an opportunity to learn about a very wide range of challenges and solutions beyond the HS to implement their environmental policies. They also highlighted the crossovers between greening efforts and the work of the Committee on transparency in import and export restrictions and prohibitions which would be notified as quantitative restrictions.
    As with past thematic sessions in the Committee, and to respond to a demand by members, the WTO Secretariat will prepare a factual summary report based on information shared.

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    MIL OSI Global Banks

  • MIL-OSI Submissions: Africa and Sub Continent – The International Islamic Trade Finance Corporation (ITFC) and Mutual Trust Bank Sign Murabaha Agreement to Boost Trade Finance for Small and Medium Enterprises (SMEs) and the Private Sector in Bangladesh

    SOURCE: International Islamic Trade Finance Corporation (ITFC)

    The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector

    DHAKA, Bangladesh, March 6, 2025/ — The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, and Mutual Trust Bank PLC (MTB) signed a Master Murabaha Agreement to strengthen trade finance support for Small and Medium Enterprises (SMEs) and the private sector in Bangladesh.

    The agreement will enable ITFC to provide trade financing facilities against Letters of Credit (LCs) issued by Mutual Trust Bank, enhancing the bank’s capacity to support cross-border trade and contribute to the growth of SMEs. This collaboration underscores both institutions’ commitment to fostering economic development and private sector growth in Bangladesh.

    The signing ceremony was held at Dhaka and attended by senior executives from both organizations. Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, and Mr. Nazeem Noordali, Officer-in-Charge, CEO of ITFC, led the signing on behalf of their respective institutions.

    Mr. Nazeem Noordali emphasized the strategic importance of the partnership, stating, “We are proud to partner with Mutual Trust Bank to provide trade financing facilities that will support SME growth and the import of essential commodities in Bangladesh. Private sector development is a cornerstone of the country’s economic progress, and enabling SMEs to access trade finance is central to ITFC’s strategy. This initiative will also help SMEs integrate into global value chains, fostering sustainable economic growth.”

    Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, expressed his enthusiasm for the agreement, saying, “The partnership with ITFC under this trade finance facility agreement is significant, especially given the current economic challenges faced by Bangladesh. This collaboration will enhance MTB’s reputation among correspondent banks globally, highlighting its resilience, commitment to best practices, and dedication to sustainable growth. Furthermore, it will provide our SME customers with greater access to financing and help facilitate the import of essential raw materials and soft commodities”.

    The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector. By facilitating access to trade finance, the partnership aims to empower businesses, create employment opportunities, and contribute to the sustainable development of Bangladesh.

    About the International Trade Finance Corporation (ITFC):
    The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

    MIL OSI – Submitted News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0150/2025

    Source: European Parliament

    B10‑0150/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas the EU is currently under attack, with hybrid incidents inside its borders, a large-scale war in its neighbourhood, and a realignment of global powers, all presenting real risks to the security of the EU and its citizens and requiring immediate, ambitious and decisive action;

    B. whereas the Commissioner for Defence and Space and the High Representative of the Union for Foreign Affairs and Security Policy are expected to present a white paper on the future of European defence on 19 March 2025, which should serve as a roadmap for such action;

    1. Urges the EU to act immediately to ensure its ability to protect its citizens, deter its enemies, support its allies and become a powerful defender of the rules-based international order and the principles of the European security architecture; urges the EU and its Member States to define a coherent, comprehensive and actionable strategy to achieve this; expects the Commission to present a proposal for such a strategy in its white paper on the future of European defence;

    2. Is firmly convinced that a united EU can overcome all the challenges it faces and become a global power for peace, security, human rights and sustainable development, but that this requires a strong EU budget or additional European financial instruments, a reliable and sovereign industrial basis, a full spectrum of European military capabilities, including strategic enablers, and an integrated command allowing all national forces to act under a unified structure at the service of the EU, alone or in complementarity with other allied forces;

    3. Believes that the strategy must include a renewed threat assessment, reflecting the recent unprecedented changes in the EU’s geopolitical context, a plan for supporting Ukraine against Russia’s war of aggression, as a key action to defend the EU’s values and protect its citizens and territory, a roadmap to close the capability gap, restore deterrence and enable autonomous EU action, and a plan to finance such vital transformations in the EU’s capacity to act;

    4. Stresses its firm commitment to continued close cooperation with NATO to reinforce deterrence, collective defence and interoperability; calls nonetheless for the development of a fully-capable European Pillar of NATO able to act autonomously whenever necessary;

    Assessing our threats and challenges

    5. Is convinced that the EU needs to define its foreign policy goals and strategic defence doctrine, identifying the most pressing challenges, systemic threats and rival actors, and to shape its defence strategy accordingly;

    6. Strongly believes that Europe is today facing the most profound military threat to its territorial integrity since the Second World War; believes that Russia and its allies are currently the most significant threat to our security and that of EU candidate countries and partners, and reiterates its condemnation in the strongest terms of Russia’s unprovoked, illegal and unjustified war of aggression against Ukraine; notes, however, that the instability in our southern neighbourhood, the rise in Chinese military power, the increased aggressiveness of some middle powers and the behaviour of the Trump administration, which appears ready to jeopardise transatlantic cooperation on common security and make a deal with the Russian aggressor at the expense of Ukrainian and European security, which are one and the same, must also be fully taken into consideration;

    7. Highlights the fact that on assessments by several European intelligence services, Russia will be ready to attack EU territory within 3 to 10 years, particularly if there is a ceasefire in its aggression against Ukraine that does not lead to a just and lasting peace; notes with deep concern that the Russian armed forces have grown in size and gained valuable battlefield experience, unlike any European forces with the exception of those of Ukraine, aims to have a 1.5 million-strong military by 2026 and has significantly ramped up its armaments production, making it an extremely worrisome threat for the EU’s security and for peace in Europe and globally;

    8. Strongly condemns Russia’s escalating hybrid warfare tactics within the EU and its neighbourhood, which encompass both non-physical and physical actions, including attacks on critical infrastructure and disruption of elections; highlights that Russia’s strategic doctrine includes significant conventional conflict in its conception and execution of hybrid war and conceives hybrid wars as the main line of future military development, rather than a temporary phenomenon; calls for the EU to immediately and significantly step up its ability to defend, attribute and punish hybrid warfare waged within its territory and that of candidate countries;

    9. Condemns all countries that are providing military equipment, financial support or any other form of assistance to Russia, thereby enabling and intensifying its ongoing aggression; warns of the very serious risks resulting from a widening of the Russian war of aggression against Ukraine; is deeply concerned that the involvement of Iran and North Korea will provide them with important lessons to modernise their military capabilities, and may accelerate their paths towards nuclearisation;

    10. Reaffirms its grave concerns about China’s increasing military investments and capabilities; expresses serious concerns about the renewed Chinese and Russian commitment to further strengthen their military ties and condemns China’s supplying of components and equipment to Moscow’s military industry;

    11. Notes with concern the increase in both intra and inter-state conflicts in the EU’s wider neighbourhood, in part driven by the hegemonic ambitions of several middle powers, the presence of aggressive non-state actors and by the fragility of several states; also notes that this leads to clear threats to the EU’s security, namely by fostering terrorism and increasing the destabilisation of populations, often forcing their displacement;

    12. Is deeply concerned by the recent actions of the Trump administration, which distance it from the values that have been at the core of its relationship with the EU, namely democracy, the rule of law, freedom of speech and support for the rules-based international order; regrets, in this regard, the votes of the US Government, aligned with the Russian Government, in the UN General Assembly and the UN Security Council on resolutions about the third anniversary of Russia’s war of aggression, as well as the unilateral decision to end Russia’s international isolation and to propose a normalisation of relations between them; strongly condemns any attempt to blame Ukraine, the victim, for the actions of the aggressor, Russia; urges the US Government to maintain maximum pressure on Russia until the latter agrees to a just and lasting peace for Ukraine; rejects any attempt by the US Government to impose a new security architecture on the EU and its Member States, and reiterates that any negotiation of such a security architecture must take place with the EU at the table; is deeply concerned by the actions of the US Government towards NATO and the doubts raised regarding the United States’ commitment to the security of the European continent; supports the peace process for Ukraine launched by European leaders, together with Ukraine, on 2 March 2025 in London, which seeks a just and lasting peace for Ukraine, and must be based on full respect for Ukraine’s independence, sovereignty and territorial integrity, the principles of international law, accountability for Russia’s war crimes and crime of aggression, Russian payments for the massive damage caused in Ukraine and credible security guarantees for Ukraine;

    13. Concurs with the assessment of the Strategic Compass that the EU is surrounded by instability and conflicts, but notes that in the meantime the situation has changed dramatically; believes that, altogether, these developments produce an encirclement of Europe that reduces its scope for the pursuit of democratically defined and autonomous interests and values, and that this requires an immediate response; recognises the evolving nature of global security threats and therefore calls for the EU to conduct more frequent threat assessments, as they are the precondition for a realistic and successful planning of capabilities and operations;

    Supporting Ukraine

    14. Urges the EU and its Member States, together with international partners and NATO allies, to immediately increase their military support to Ukraine in order to assist it in exercising its legitimate right to self-defence against the Russian war of aggression according to Article 51 of the UN Charter; calls, in this regard, for the swift adoption of the next military aid package, which should be the largest to date and reflect the level of ambition this juncture calls for; calls on the Member States, international partners and NATO allies to lift all restrictions on the use of Western weapons systems delivered to Ukraine against military targets in Russian territory; calls for a significant increase in the financing of military support to Ukraine; calls on the Member States, together with their G7 partners, to immediately seize all frozen Russian assets in order to maintain and step up the EU’s response to Ukraine’s military needs;

    15. Urges the Member States to immediately engage in joint procurement of additional capabilities, in particular ammunition for air defence and artillery, as well as any capabilities in which US assistance has played a key role thus far; further urges them to plan in advance for a possible sudden stop in US military assistance;

    16. Welcomes the continued support for the Ukrainian Armed Forces through the EU Military Assistance Mission in support of Ukraine, which has already trained more than 60 000 Ukrainian troops, and calls on the mission to continue training as many troops as possible; stresses the importance of specific training modules aimed at developing the capacities of existing and future officers of the Ukrainian Armed Forces across all levels and in accordance with their needs; emphasises that the mission should also act as a platform for the exchange of best practices that would ensure that European forces also benefit from the lessons learnt on the battlefield by the Ukrainian Armed Forces; calls on the Member States to further expand training operations for the Ukrainian Armed Forces, including training operations in Ukrainian territory;

    17. Insists on the paramount importance of cooperation with, and the integration of, the Ukrainian defence industry into the EU’s defence technological and industrial base (EDTIB), which offers clear advantages for both sides, and calls for speedier integration of the Ukrainian defence industry; recalls the importance of the European Defence Industry Programme (EDIP) to that effect, and highlights the urgency of properly financing EDIPs Ukraine Support Instrument, which is currently not budgeted; calls on the Commission to include Ukraine and its defence industry in all its defence industrial programmes;

    18. Praises the ‘Danish Model’ for support to Ukraine, which consists of procuring defence capabilities produced directly in Ukraine; urges the EU and its Member States to strongly support this model and to make full use of its potential, as there is an underutilisation of Ukraine’s defence industrial capacity, estimated at around 50 %, and it brings many advantages to both sides, such as cheaper equipment, speedier and safer logistics as well as greater ease of training and maintenance;

    19. Calls for the EU and its Member States to actively work towards maintaining and achieving the broadest possible international support for Ukraine and identifying a peaceful solution to the war that must be based on full respect for Ukraine’s independence, sovereignty and territorial integrity, the principles of international law, accountability for Russia’s war crimes and the crime of aggression, and Russian payments for the massive damage caused in Ukraine; urges the EU and its Member States to participate in establishing robust future security guarantees for Ukraine;

    Closing the capabilities gap and restoring deterrence

    20. Strongly believes that strengthening Europe’s security and defence requires not just a simple increase in ambition and action, but a complete overhaul of the way we act and invest in our security and defence, such that from now on we plan, innovate, develop, purchase, maintain and deploy capabilities together, in a coordinated and integrated fashion, while making full use of the complementary competences of all actors in Europe, including NATO;

    21. Calls on the Commission to come up with a complete programme for defence, including against hybrid attacks, ensuring that planning, research, development, procurement and management of capabilities are all done through a European lens, and that all EU funds are used as a stimulus to joint EU action, instead of perpetuating the present state of market fragmentation, divergent and incompatible capabilities, and superfluous and wasteful investments; considers EDIP to be a good step forward and as such calls for its swift adoption;

    22. Recognises that the starting point must be a realistic assessment of the current capabilities and capability gap; calls on the Commission, with the support of the European Defence Agency and in cooperation with NATO, to identify critical defence capability gaps and shortfalls in the EU, in particular for strategic enablers, where the Member States have fallen behind and become dependent on non-European allies; furthermore, calls on the Commission to transform the capability gaps into clear industrial targets that can be the object of planning and programming and benefit from an industrial policy;

    23. Declares the EDTIB to be a strategic asset of the EU, and as such considers that the Commission should be tasked with its mapping and monitoring, so as to safeguard the EU’s strengths, reduce its vulnerabilities, avoid crises, and provide it with an effective and efficient industrial policy; calls on the Commission to draw on the EU Military Committee’s expertise in the definition of defence industries’ priorities and the formulation of defence initiatives in order to ensure alignment between industrial capabilities and military needs; recalls the importance of ensuring that the EDTIB is present in all Member States, distributing the burden and the benefits equitably, and preventing its disruption by a targeted attack on a particular area;

    24. Strongly believes that EU support for the production and procurement of defence products should focus on stimulating the EDTIB, increasing production volumes and ensuring the development of native European solutions for key capabilities, in particular for domains of action where we have so far relied on support from allies, and thus be oriented towards EU-based companies; rejects a scenario in which EU funds contribute to perpetuating or deepening dependences on non-European actors, whether for production of capabilities or their deployment; notes with concern that the vast majority of EU defence investment is diverted to defence industry players outside the EU; highlights that our investments should also contribute to bringing our European allies closer together, first and foremost Ukraine, but also Norway and the UK, finding synergies between complementary industrial strengths and bolstering the interoperability of our fighting forces; states, however, that joining common projects in defence and security requires a steadfast commitment to the EU’s values and norms and demands that any industrial partnerships with non-EU allies include strong safeguards on technology transfer and design authority, ensuring that we do not face restrictions on the use of the capabilities acquired; highlights that EU funds will provide opportunities for the defence industry, but also require a commitment to give priority to orders linked to ensuring European security and defence, in particular in times of crisis;

    25. Urges the Member States to radically change the way they procure defence products, choosing common procurement by default, and to consider tasking the Commission with undertaking joint procurement on their behalf; considers that all products procured in the EU, particularly those supported by EU funds, must respect strong safeguards on technology transfer and design authority;

    26. Welcomes all measures that allow a faster and more effective ramp-up of production of defence products in Europe, in particular those that are most needed for a land war; calls for a change in paradigm from a ‘flow’ approach to a ‘stock’ approach, with stock piles of materiel ready for a sustained increase in demand; notes, in this regard, the advantages offered by mechanisms such as advance purchase agreements, the establishment of ‘ever-warm’ facilities and the creation of defence readiness pools; calls on the Commission to support the Member States in developing wartime economic cooperation contingency plans with close partners to prepare for mutual support in the case of large-scale security crises involving them directly, and to deepen wartime economic dialogues with European and global partners;

    27. Highlights that the EDTIB cannot thrive without a true single market for defence; emphasises, in this regard, the need for an effective regulatory framework aimed at encouraging innovation and cross-border cooperation in production, procurement and investment; insists on the need to remove barriers to market entry for defence products across the EU and calls on the Commission to act upon the results of the reviews of the Directives on the transfer of defence-related products[1] and defence procurement[2], considering the obstacles and costs imposed by the current fragmented framework for certification of defence products; calls on the Commission to propose a regulation for common rules on the certification of defence products and the creation of a European defence certification authority; underlines at the same time the importance of maintaining fruitful competition between different undertakings in the single market for defence; calls on the Commission to propose a regulation on the standardisation of defence products with binding industrial standards, taking advantage of the lessons learnt from the implementation of NATO defence standards;

    28. Stresses the need for greater transparency and convergence at the national and European levels on arms exports; points out the need for the Member States to respect the EU Common Position on Arms Exports, while acknowledging their competences in their defence acquisition policies;

    29. Underlines the importance of Permanent Structured Cooperation (PESCO) in improving and harmonising the EU’s defence capabilities; reiterates its regret that Member States continue to not make full use of the PESCO framework; reiterates its call on the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the Member States, and with the involvement of the Commission, to assess projects and their potential regularly and comprehensively with a view to streamlining the current set of projects to a small set of priority projects; believes that priority projects must focus on reducing our dependencies regarding strategic enablers, such as battlefield command and control (C2), aerial and satellite intelligence, surveillance and recognition, satellite communication, air defence and suppression of enemy air defences, military mobility, strategic and tactical air transport and aerial refuelling, missile and deep strike capabilities, drone and anti-drone technologies, combat engineering and wet-gap crossing, and airborne electronic attack; believes that these could be European Defence Projects of Common Interest (EDPCI); regrets that Parliament is not in a position to properly scrutinise PESCO projects and calls for a change of paradigm for the governance of EDPCIs, such that Parliament is adequately involved; reiterates its call on the Member States to provide an implementation report on PESCO projects to Parliament at least twice a year;

    30. Calls on the Commission to propose an EU drones package, focusing on drone and anti-drone systems and auxiliary capabilities, containing plans and funds to stimulate research and development, which should learn from the Ukrainian experience and be open to the participation of Ukraine’s highly innovative companies, as well as an industrial programme dedicated to the joint development, production and procurement of drones and anti-drone systems, and a regulation on the use of drones in civilian and military contexts;

    31. Calls on the Commission to step up the ambition of the European Defence Fund, both quantitatively and qualitatively, and to better align its work programme with the capability planning exercises; recalls that the EU’s investment in defence research and innovation is much lower than that of its industrial competitors; considers that part of the investment from the European Defence Fund (EDF) should be designed to foster partnerships between academia, ministries of defence and the defence industry, and to the creation of dedicated research centres for defence; highlights the importance of promoting the participation of the most innovative high-tech companies from the civilian sector in the EDF;

    32. Recalls that the EDTIB is currently facing a shortage of skilled workers, and calls on the Commission and the Member States to develop a strategy to train, upskill and reskill workers; considers that funding from defence programmes must be paired with requirements regarding benefits for workers and communities where the investments are located, making the European defence industry a source of high-quality jobs and earning the EDTIB broad support from the population;

    33. Calls for the EU and its Member States to quickly improve the state of military mobility and logistics, removing all unnecessary obstacles that slow down the speed at which the EU can react to threats and deploy its forces;

    34. Calls for the EU to develop a comprehensive set of instruments to detect, prevent and react to hybrid attacks and threats and protect the Union’s citizens and assets, including critical infrastructure, but also democratic institutions and processes; reiterates its call on the Member States, the European External Action Service and the Commission to consider the creation of a well-resourced and independent structure tasked with identifying, analysing and documenting foreign information manipulation and interference (FIMI) threats against the EU as a whole to increase situational awareness and threat intelligence sharing, and develop attribution capabilities and countermeasures in relation to FIMI;

    35. Stresses the importance of enhanced intelligence sharing and information exchange among the Member States and EU institutions, including Parliament, to improve situational awareness and to be able to better anticipate and counter threats to collective security and define common lines of action under the common security and defence policy (CSDP), particularly in the area of crisis management; calls on the Member States to use the EU Intelligence Analysis Centre (EU INTCEN) as an effective intelligence-sharing body to share intelligence securely, formulate a common strategic culture and provide strategic information to better anticipate and respond to crises within and outside the EU; reiterates its call for the deployment of intelligence-gathering capacities in all CSDP missions and operations, which would provide information to the EU INTCEN, EU military staff, the EU’s Military Planning and Conduct Capability (MPCC) and the Civilian Planning and Conduct Capability;

    36. Welcomes the Niinistö report and its recommendations for strengthening Europe’s civilian and military preparedness and resilience; supports the adoption of a whole-of-society approach to resilience, involving the active engagement of the EU institutions, the Member States, civil society and individual citizens in strengthening the Union’s security framework; urges the EU to increase the alignment of existing EU instruments and policies, as well as that between EU and national policies, pioneering a ‘preparedness in all policies’ approach to security and defence, ensuring they do not generate contradictory obligations or jeopardise overall defence objectives, especially during a security crisis; expects the upcoming EU strategy on preparedness to offer details of the implementation of the report;

    Enabling autonomous EU action

    37. Recalls that the Strategic Compass provides the EU and its Member States with a framework for strengthening the EU’s security and defence and for advancing towards a common forward-looking strategic culture; reiterates that the Strategic Compass’s ambitious aims and milestones can only be achieved with the corresponding political will, adequate financial contributions and openness to cooperation where necessary; calls for the Member States to take all the necessary steps and decisions and fully implement the Strategic Compass; reiterates its call to strengthen the EU-s MPCC, establishing it as the preferred command and control structure for EU military operations and providing it with adequate premises, staff, enhanced command and control, and effective communication and information systems for all CSDP missions and operations, including those of the Rapid Deployment Capacity; insists that the Rapid Deployment Capacity must achieve full operational capability in the first half of 2025 at the latest, with at least 5 000 troops; calls on the Member States to urgently pursue a more ambitious pace and scale of command integration and joint operational capability, with the goal of enabling the EU to conduct large-scale operations independently, without reliance on non-EU countries for any capability, including strategic enablers; stresses that the EU and its Member States cannot develop consistent foreign and defence policies without strong support for democratic and agile structures and decision-making processes; underlines that further institutional discussions on removing the unanimity requirement to enhance cooperation should be explored;

    38. Underlines that in the current geopolitical context, the need for continuing to operationalise Article 42(7) of the Treaty on European Union (TEU) on mutual assistance, ensuring solidarity among Member States, especially those whose geographical position leaves them directly exposed to imminent threats and challenges, regardless of whether or not they are NATO members, is of utmost importance; calls on the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy to present concrete steps towards developing a true EU solidarity policy, including by clarifying the practical arrangements in the event of a Member State triggering Article 42(7) TEU;

    39. Notes that EU candidate countries are frequently the target of destabilisation campaigns, and thus calls for the EU to ensure them greater support, in order to preserve stability and security and increase defence cooperation, especially in the fight against disinformation and hybrid warfare; is concerned that otherwise it will act as an invitation to Russia to invade them before they finally join the EU;

    40. Reiterates the importance of EU-NATO cooperation, as NATO remains, for those states that are members of it, an important pillar of their collective defence, such that EU-NATO cooperation should continue, in particular in areas such as information exchange, planning, military mobility and exchange of best practices; highlights that all EU-NATO cooperation must be mutually beneficial and inclusive and respect the EU’s capacity to act autonomously; remains concerned, in this respect, that Türkiye, a NATO member and EU candidate country, excludes Cyprus from cooperation with NATO, hampering an enhanced relationship between the EU and NATO;

    41. Underlines the need for a strong EU defence pillar within NATO, able to act autonomously from, and in complementarity with, NATO, turning the transatlantic alliance into a more equal partnership, and granting the necessary security guarantees to the EU, its Member States and whoever else they deem it necessary to extend them to;

    42. Considers it essential to formalise a security and defence partnership with the United Kingdom as a means of strengthening European security and the European pillar of NATO, in particular in the context of Russia’s war of aggression against Ukraine; underlines, in this regard, the importance of closer cooperation on information and intelligence sharing, military mobility, security and defence initiatives, crisis management, cyber defence, hybrid threats, FIMI and in jointly addressing shared threats;

    43. Calls on the Commission and the Member States to ensure that all instruments of external action, including development aid and cooperation, are aligned with the EU’s security objectives, fostering resilient societies by promoting inclusive economic growth, good governance and human rights; emphasises the crucial role that diplomacy and development cooperation play alongside military efforts in ensuring long-term international security; underscores that sustainable peace cannot be achieved through military measures alone, but requires comprehensive strategies that address the root causes of instability, such as poverty, inequality, governance failures and climate change;

    Financing our security and defence

    44. Considers that, in order to be able to protect its citizens, deter its enemies, support its allies and become a powerful actor in the defence of a rules-based international order, the EU requires an immediate, substantial and sustained investment in security and defence, in particular at EU level, using a mix of public and private funds and incentivising better spending and better collective action; calls for the EU and the Member States to urgently agree on concrete financial solutions to finance security and defence-related investments; welcomes the ReArmEU initiative by the Commission as an important first step towards swift action;

    45. Recalls that the Commission has estimated the funding needed at EUR 500 billion over the next 10 years (2025-2034), including EUR 400 billion to strengthen Member States’ defence capabilities and EUR 100 billion to support Ukraine; notes higher estimates, such as a Bruegel study referring to EUR 250 billion annually in the event that the United States withdraws its military presence from Europe; highlights that the cost of isolated action is much higher than the cost of joint action, and that the EU and its Member states can also increase their preparedness by making current investment more efficient and coordinated; highlights that the cost of non-preparedness and the consequent loss of autonomy and potential military defeat is much higher than the cost of acting decisively now;

    46. Strongly supports increased investments in our security and defence to ensure that the EU and its Member States are able to face all types of threats, from hybrid to conventional, and establish strong deterrence, while reducing dependences; notes that insecurity, social exclusion and poverty are persistently weaponised by our enemies, as they make large swaths of people more vulnerable to hostile propaganda and anti-democratic narratives; demands therefore that the increased investments in our security and defence come on top of the important investments in social cohesion and welfare, and not instead of them; calls instead for a comprehensive EU investment strategy, based on a permanent fiscal capacity that addresses both vulnerabilities in military capabilities and in the social fabric, empowering us to fight all threats to our values, social model, security and defence; underlines that this pressing investment requires raising public financial resources quickly and in substantial volumes and that this should be based on the principle of social solidarity and a fair redistribution of wealth within our European societies; calls therefore on the Commission to propose new own resources and taxes on the stakeholders benefiting from the current economic and security situation, notably through windfall profits, in order to ensure a fair and sustainable contribution to our collective resilience; recalls that investing in security and defence brings many additional benefits for European society besides greater security and autonomy, and contributes to the desire to make the EU’s economy more competitive;

    47. Warns that simply increasing national defence spending without addressing coordination issues, redundant efforts, and misaligned strategies could be counterproductive as it may exacerbate force integration challenges and drive up procurement costs for all Member States by intensifying competition between them; is therefore concerned by the Commission’s proposals in ReArmEU to activate the escape clause of the Stability and Growth Pact for defence investments, which would change the fiscal rules without creating more fiscal space and without accompanying it with proposals for increased coordinated or joint spending; recalls that any exemption should take into account the need to avoid moral hazard and avoid rewarding countries with long-standing inadequacies in their security and defence spending; demands that the Commission and the Member States design any exemptions for defence spending ramp-up in a way that incentivises coordinated spending and ensures the definition of such investments takes into account all threats, including hybrid, and the need to improve military mobility, resilience and security of communications and the availability of skilled workers;

    48. Calls therefore for the bulk of the effort to serve EU-level action; regrets that the Commission’s ReArmEU initiative is mostly based on national expenditure; furthermore calls for the EU and its Member States to give prominent coordination roles to the Commission and the European Defence Agency in new financing instruments, which should be coupled with a complete programme for defence, including against hybrid attacks, ensuring that planning, development, procurement and management of capabilities is done together, in groupings of significant numbers of Member States, and often with the Commission and the European Defence Agency acting on their behalf;

    49. Recognises that the present multiannual financial framework (MFF) is unable to provide sufficient resources for security and defence, and rejects any increases in security and defence spending in the present and future MFFs at the expense of cohesion policy funds, as proposed by the Commission in its ReArmEU initiative; calls on the Commission and the Member States to adapt the cohesion policy funds to a new geopolitical reality, shifting from a reactive, crisis-response stance to a more proactive policy focused on resilience; underlines that the EU budget alone cannot fill the defence spending gap, but has an important role to play; calls for additional EU-wide and European solutions to bridge the gap until the next MFF; highlights the importance of future MFFs in transforming the current immediate increases in security and defence into structural and sustainable EU-level efforts to ensure the EU’s security and defence;

    50. Notes the proposals to make use of readily available sources of capital to finance security and defence, namely the unspent funds of NextGenerationEU and potential financial lines from the European Stability Mechanism, similar to the programme put together during the response to the COVID-19 pandemic; believes that these options could be explored, but would fall short of the needs estimated by the Commission;

    51. Calls therefore on the Commission to raise common debt to provide the Union with the fiscal capacity to borrow in exceptional and crises situations, present and future, taking into account the experience and lessons learnt from NextGenerationEU, as we are now experiencing a pressing need to boost security and defence to protect the EU’s citizens, restore deterrence and support our allies, first and foremost Ukraine; notes additional ideas to create a rearmament bank or a special purpose vehicle with pooled national guarantees to ensure Member States have easier access to markets; underlines that the meaningful involvement of Parliament as one arm of the budgetary authority in the governance of future EU defence spending is a sine qua non; reiterates that the governance of whatever instrument is used should be such that it gives rise to a European defence programme that uses the funds to solve coordination problems in planning, developing, procuring, maintaining and deploying capabilities, reduces dependencies from non-European countries, supports the EDTIB and ultimately enables the EU and its close allies to act autonomously and in a coordinated manner;

    52. Recognises the importance of mobilising private capital into security and defence; recalls, however, that, as governments remain the sole procurers of military capabilities, private capital will not replace public capital in the security and defence sector; calls on the Commission and the European Investment Bank (EIB) to consider an investment guarantee programme, similar to InvestEU, to assist in this effort; calls on the EIB to re-evaluate the list of excluded activities, to adjust its lending policy to increase the volume of available funding in the field of security and defence, and to investigate earmarked debt issuance for funding security and defence projects; calls for more consistent support for companies by reducing unnecessary administrative burdens and simplifying procedures, in particular by increasing information-sharing between public authorities, upholding the once-only principle and making full use of digital technologies; calls for the EU to start preparing emergency procedures for projects established in response to major crises or wars;

     

    °

    ° °

    53. Instructs its President to forward this resolution to the European Council, the Council, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the President of the Commission and competent Commissioners, the EU security and defence agencies, and the governments and parliaments of the Member States.

     

     

     

    MIL OSI Europe News

  • MIL-OSI Europe: Answer to a written question – Mercosur – E-002261/2024(ASW)

    Source: European Parliament

    The EU-Mercosur agreement involves the Member States and the Mercosur countries[1]. Ukraine is not part of Mercosur and therefore the EU-Mercosur agreement will not regulate trade between the EU and Ukraine.

    Regarding sensitive EU agricultural products, such as beef, poultry, pigmeat, sugar, rice, honey and sweetcorn the EU has negotiated limited concessions in the form of tariff rate quotas that represent a small fraction of EU consumption, and using quota segmentation for some products, to avoid concentrating imports in the most sensitive part of the market.

    These partial openings will be introduced in gradual stages to allow for a smooth transition. The text of the 2019 agreement is publicly available at the Directorate General for Trade and Economic Security website[2].

    On 6 December 2024 at the Mercosur Summit in Montevideo, the EU and Mercosur reached a political agreement concluding the negotiations.

    The text of the negotiated outcome was published simultaneously in the site of the Commission[3] and the official sites of the Mercosur partners on 10 December 2024.

    • [1] Mercosur countries are Argentina, Brazil, Paraguay and Uruguay.
    • [2] https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/mercosur/eu-mercosur-agreement/text-agreement_en
    • [3] See footnote 2.
    Last updated: 6 March 2025

    MIL OSI Europe News

  • MIL-OSI Security: Defense News: Amphibious Transport Dock – LPD

    Source: United States Navy

    Description Amphibious transport dock ships are warships that embark, transport and land elements of a landing force for a variety of expeditionary warfare missions.
     
    Features LPDs are used to transport and land Marines, their equipment, and supplies by embarked Landing Craft Air Cushion (LCAC) or conventional landing craft and amphibious assault vehicles (AAV) augmented by helicopters or vertical take-off and landing aircraft (MV 22). These ships support amphibious assault, special operations, or expeditionary warfare missions and serve as secondary aviation platforms for amphibious operations.
     
    Background The LPD 17 San Antonio class is the functional replacement for over 41 ships including the LPD 4 Austin class, LSD 36 Anchorage class, LKA 113 Charleston class, and LST 1179 Newport class amphibious ships. The newly designated LPD Flight II ships (formerly LX(R)) will be the functional replacement for the LSD 41/49 Whidbey Island Class. The San Antonio class provides the Navy and Marine Corps with modern, sea-based platforms that are networked, survivable, and built to operate in the 21st century, with the MV-22 Osprey, the upgraded Amphibious Assault Vehicle, and future means by which Marines are delivered ashore. Construction on USS San Antonio (LPD 17), the first ship of the class, commenced in June 2000 and was delivered to the Navy in July 2005. USS New York (LPD 21) was the first of three LPD 17class ships built in honor of the victims of the Sept. 11, 2001 terrorist attacks. The ship’s bow stem was cast using 7.5 tons of steel salvaged from the World Trade Center. The Navy named the eighth and ninth ships of the class Arlington and Somerset, in honor of the victims of the attacks on the Pentagon and United Flight 93, respectively. Materials from those sites were also incorporated into the construction of each ship. USS Portland (LPD 27), the eleventh ship of the class, delivered in 2017. LPDs 28 and 29 are currently under construction at Huntington Ingalls Industries (HII) on the Gulf Coast. As the 12th and 13th San Antonio class ships, LPDs 28 and 29 will perform the same missions as the previous 11 ships of the class while incorporating technically feasible cost reduction initiatives and class lessons learned. In 2018, the Navy made the decision to transition the LX(R) effort to a second flight of the LPD 17 design. LPD 30 will be the first of 13 planned LPD Flight II ships, for a total complement of 26 ships in the LPD 17 class.
     
    General Characteristics, San Antonio Class LPD Flights I and II
    Builder: Huntington Ingalls Industries
    Propulsion: Four sequentially turbocharged marine Colt-Pielstick Diesels, two shafts, 41,600 shaft horsepower
    Length: 684 feet
    Beam: 105 feet
    Displacement: Approximately 24,900 long tons (25,300 metric tons) full load
    Draft: 23 feet
    Speed: In excess of 22 knots (24.2 mph, 38.7 kph)
    Crew: Ship’s Company: 383 Sailors and 3 Marines. Embarked Landing Force: Flight I: 699 with surge capacity of 800; LPD 28/29:650; Flight II: 631.
    Armament: Two Mk 46 30 mm Close in Guns, fore and aft; two Rolling Airframe Missile launchers, fore and aft: ten .50 caliber machine guns
    Aircraft: Launch or land two CH-53E Super Stallion helicopters or two MV-22 Osprey tilt rotor aircraft or up to four AH-1Z or UH-1Y or MH-60 helicopters
    Landing/Attack Craft: Two LCACs or one LCU; and 14 Amphibious Assault Vehicles
     
    Ships:
    USS San Antonio (LPD 17), Norfolk, Virginia
    USS New Orleans (LPD 18), Sasebo, Japan
    USS Mesa Verde (LPD 19), Norfolk, Virginia
    USS Green Bay (LPD 20), Sasebo, Japan
    USS New York (LPD 21), Mayport, Florida
    USS San Diego (LPD 22), San Diego, California
    USS Anchorage (LPD 23), San Diego, California
    USS Arlington (LPD 24), Norfolk, Virginia
    USS Somerset (LPD 25), San Diego, California
    USS John P. Murtha (LPD 26), San Diego, California
    USS Portland (LPD 27), San Diego, California
    Fort Lauderdale (LPD 28) – Under construction
    Richard M. McCool (LPD 29) – Under construction
    Harrisburg (LPD 30) – Under construction
    Pittsburgh (LPD 31)

    MIL Security OSI

  • MIL-OSI: Nokia Corporation: Repurchase of own shares on 06.03.2025

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation
    Stock Exchange Release
    6 March 2025 at 22:30 EET

    Nokia Corporation: Repurchase of own shares on 06.03.2025

    Espoo, Finland – On 6 March 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

    Trading venue (MIC Code) Number of shares Weighted average price / share, EUR*
    XHEL 2,755,402 4.84
    CEUX 826,754 4.84
    BATE
    AQEU 142,080 4.84
    TQEX 129,929 4.83
    Total 3,854,165 4.84

    * Rounded to two decimals

    On 22 November 2024, Nokia announced that its Board of Directors is initiating a share buyback program to offset the dilutive effect of new Nokia shares issued to the shareholders of Infinera Corporation and certain Infinera Corporation share-based incentives. The repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 25 November 2024 and end by 31 December 2025 and target to repurchase 150 million shares for a maximum aggregate purchase price of EUR 900 million.

    Total cost of transactions executed on 6 March 2025 was EUR 18,653,002. After the disclosed transactions, Nokia Corporation holds 149,315,265 treasury shares.

    Details of transactions are included as an appendix to this announcement.

    On behalf of Nokia Corporation

    BofA Securities Europe SA

    About Nokia
    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs which is celebrating 100 years of innovation.

    With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia Investor Relations
    Phone: +358 931 580 507
    Email: investor.relations@nokia.com

    Attachment

    The MIL Network

  • MIL-OSI Asia-Pac: PM chairs a high-level meeting to review the progress of Cooperative sector

    Source: Government of India

    PM chairs a high-level meeting to review the progress of Cooperative sector

    PM emphasizes the need for partnerships with global cooperative organizations to expand the Indian cooperative sector

    PM stressed on promoting organic products through cooperative organizations with special focus on export markets

    PM recommends the use of Agristack to expand agriculture and related activities in Cooperative Sector

    PM highlights the importance of integrating UPI with RuPay KCC cards to facilitate financial transactions

    PM proposes introduction of cooperative courses in schools and educational institutions

    National Cooperation Policy 2025 draft discussed in the meeting; it realises the vision of ‘Sahkar Se Samruddhi’

    National Cooperation Policy focuses on accelerating rural economic development, while prioritizing women and youth

    Posted On: 06 MAR 2025 5:30PM by PIB Delhi

    Prime Minister Shri Narendra Modi chaired a high-level meeting to review the progress of the cooperative sector earlier today at 7 LKM. Discussions were held on promoting “Sahkar Se Samruddhi” bringing transformation through technological advancements in the sector, plans to increase the participation of youth and women in cooperatives, and the various initiatives of the Ministry of Cooperation.

    Prime Minister emphasized the need for partnerships with global cooperative organizations to expand the Indian cooperative sector and stressed promoting organic products through cooperative organizations. He also suggested focusing on export markets and developing a soil testing model through cooperatives to improve agricultural practices. Prime Minister highlighted the importance of integrating UPI with RuPay KCC cards to facilitate financial transactions and emphasized the need for healthy competition among cooperative organizations.

    Prime Minister also emphasized the importance of documenting the assets of cooperative organizations to ensure transparency. He suggested promoting cooperative farming as a more sustainable agricultural model. He recommended the use of digital public infrastructure (Agristack) to expand agriculture and related activities in Cooperative Sector, providing farmers with better access to services. In the context of education, Prime Minister proposed introducing cooperative courses in schools, colleges, and IIMs, as well as promoting successful cooperative organizations to inspire future generations. He further added that young graduates should be encouraged to contribute, and Cooperative organisations should be ranked based on their performance, so as to promote competition and growth simultaneously.

    During the meeting PM was briefed about National Cooperation Policy and key achievements of the Ministry of Cooperation over the past three and a half years. Realising the vision of ‘Sahkar Se Samruddhi’, the Ministry has formulated a draft of the National Cooperation Policy 2025 through an extensive consultation process. The objective of  National Cooperation Policy 2025 policy is to facilitate the systematic and holistic development of the cooperative sector, with a focus on accelerating rural economic development, while prioritizing women and youth. It aims to promote a cooperative-based economic model and establish a robust legal and institutional framework. Furthermore, the policy endeavours to deepen the grassroots impact of cooperatives and significantly enhance the contribution of the cooperative sector to the overall development of the country.

    Since its inception, the Ministry has undertaken 60 initiatives across seven key areas to promote and strengthen the cooperative movement. These initiatives include the digitization of cooperative institutions through the National Cooperative Database and Computerization Projects, as well as the strengthening of Primary Agricultural Credit Societies (PACS). Additionally, the Ministry has focused on enhancing the efficiency and sustainability of cooperative sugar mills.

    The Government of India has implemented various schemes for cooperative societies through a “whole of government approach,” integrating over 15 schemes from more than 10 ministries at the PACS level. As a result, there has been diversification in cooperative businesses, additional income generation, increased opportunities for cooperatives, and improved accessibility of government schemes in rural areas. Annual targets have also been set for the formation of these cooperatives. To promote cooperative education, training and research and to provide skilled professionals, a Bill to convert IRMA Anand into “Tribhuvan Cooperative University” and make it an Institution of National Importance has been introduced in the Parliament.

    Prime Minister was briefed on the growth of cooperatives and their vital role across various sectors. Cooperative sector’s contribution to India’s economy, particularly in agriculture, rural development, and economic inclusion was highlighted. During the meeting it was highlighted that presently, one-fifth of the country’s population is associated with the cooperative sector, which includes over 8.2 lakh cooperative institutions spanning more than 30 sectors, with a membership exceeding 30 crore individuals. Cooperatives play a crucial role in several areas of the economy.

    The meeting was attended by Home and Cooperation Minister, Shri Amit Shah; Secretary, Ministry of Cooperation, Dr. Ashish Kumar Bhutani; the Principal Secretary to PM, Dr. P.K. Mishra, Principal Secretary-2 to PM Shri Shaktikanta Das; Advisor to PM, Shri Amit Khare and other senior officials.

     

    ***

    MJPS/VJ

    (Release ID: 2108847) Visitor Counter : 63

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: HKETO, Brussels celebrates Chinese New Year in Madrid and Barcelona (with photos)

    Source: Hong Kong Government special administrative region

    HKETO, Brussels celebrates Chinese New Year in Madrid and Barcelona (with photos)
    *********************************************************************************

    The Hong Kong Economic and Trade Office in Brussels (HKETO, Brussels) hosted Chinese New Year receptions in Madrid and Barcelona, Spain, on March 3 and 4 (Spanish time) respectively, concluding the series of celebration for the Year of the Snake.     The reception in Barcelona was officiated by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, who led a delegation of representatives from Hong Kong’s innovation and technology (I&T) sector to attend the Mobile World Congress (MWC) 2025 in Barcelona. The visit aimsto strengthen ties and co-operation between Hong Kong and Spain in the field of I&T, promote Hong Kong’s I&T advantages, and explore overseas business opportunities for Hong Kong’s I&T sector.     At the reception, the Special Representative for Hong Kong Economic and Trade Affairs to the European Union, Ms Shirley Yung, highlighted in her welcoming remarks that under “one country”, Hong Kong has convenient and often priority access to the huge Mainland market, while maintaining the qualities of an international city under “two systems”.      “These distinct advantages are recognised in the latest international ranking, in which Hong Kong is ranked among the world’s top three international financial centres,” Ms Yung added.     At the reception in Madrid, HKETO, Brussels took the opportunity to showcase Hong Kong’s unique East-meets-West culture by staging a music performance featuring two Hong Kong flutists and one German cellist, who performed both classical Chinese and Spanish music, as well as contemporary Hong Kong pop.     The two receptions in Madrid and Barcelona attracted over 200 guests from the sectors of government, business, culture, academia and media in Spain. They were co-organised with Invest Hong Kong and the Hong Kong Trade Development Council (HKTDC) and with the support of the Spain Hong Kong Business Association.     The MWC is one of the world’s leading technology fairs where tens of thousands of technology experts and companies gather. This year, the Hong Kong delegation include heads of the Hong Kong Science and Technology Parks Corporation (HKSTPC), Cyberport, the Hong Kong Applied Science and Technology Research Institute, and the Hong Kong Microelectronics Research and Development Institute, as well as representatives of 24 Hong Kong I&T enterprises and institutions. The HKSTPC and the HKTDC co-ordinate the participation of the I&T representatives in the Hong Kong Tech Pavilion at the MWC.

    Ends/Thursday, March 6, 2025Issued at HKT 20:47

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: London ETO greets Year of Snake in Norway (with photos)

    Source: Hong Kong Government special administrative region

    London ETO greets Year of Snake in Norway (with photos)
    *******************************************************

    The Hong Kong Economic and Trade Office, London (London ETO) and the Norway-Hong Kong Chamber of Commerce hosted a Year of the Snake reception in Oslo, Norway, on March 5 (Oslo time).     The Director-General of the London ETO, Mr Gilford Law, delivered a virtual welcome speech at the reception. He highlighted that Hong Kong is an unparalleled destination for businesses and investors, thanks to its free and open investment environment, as well as its simple and low tax system. Mr Law said, “The number of companies in Hong Kong with overseas or Mainland parent companies rose to 9 960 in 2024, while the number of start-ups in Hong Kong increased to 4 694, both reaching record highs. These figures demonstrate that Hong Kong is becoming increasingly attractive to businesses and remains an ideal place for Mainland and overseas enterprises to set up or expand their operations. ”      Mr Law added, “On top of attracting businesses, Hong Kong is also attracting tourists with its dynamic calendar of world-class events. In 2024, Hong Kong welcomed close to 45 million international visitors, a 31 per cent increase from 2023. Stepping into 2025, Hong Kong, as the ‘Events Capital of Asia’, is set to host an array of high-profile business, sports, arts, and cultural events.”     The reception was well attended by over 80 guests in Norway from the Ministry of Trade, Industry and Fisheries, the Ministry of Foreign Affairs, and the business, academic and cultural sectors. The London ETO will continue to celebrate the Year of the Snake among the countries under its purview.

    Ends/Thursday, March 6, 2025Issued at HKT 23:33

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: National Debate Needed To Address The Shift From Democracy To ‘Emocracy’—Emotion-Driven Policies Threaten Good Governance, Says VP

    Source: Government of India (2)

    National Debate Needed To Address The Shift From Democracy To ‘Emocracy’—Emotion-Driven Policies Threaten Good Governance, Says VP

    Excessive Spending On Electoral Promises Reduces The State’s Ability To Invest In Infrastructure, Says VP

    Election Is Important In Democracy But Not The End Of It, Cautions VP

    Good Governance Demands Fiscal Prudence, Not Short-Term Populism, Says VP

    Historically, Populism Is Bad Economics; Once A Leader Gets Attached To Populism, It Is Difficult To Get Out Of The Crisis, Warns VP

    Leadership Is Not A Pedestal But A Pilgrimage Of Service, Says VP

    True Leadership Empowers People To Empower Themselves, Not Just Momentarily, Says VP

    Vice-President Delivers Inaugural Address At The First ‘Murli Deora Memorial Dialogues’ On The Theme ‘Leadership And Governance’ In Mumbai

    Posted On: 06 MAR 2025 10:08PM by PIB Delhi

    The Vice-President of India, Shri Jagdeep Dhankhar, today called for a national debate on the shift from democracy to ‘Emocracy, saying, “National debate is required so that we take note of shift from Democracy to Emocracy. Emotion-driven policies, emotion-driven debates, discourses threaten good governance. Historically, populism is bad economics. And once a leader gets attached to populism it is difficult to get out of the crisis. The central factor must be the good of the people, the largest good of the people, the lasting good of the people. Empower people to empower themselves rather than empower them momentarily because that affects their productivity.”

    Delivering the inaugural address at the first ‘Murli Deora Memorial Dialogues’ on the theme ‘Leadership and Governance’ in Mumbai, Maharashtra today, Shri Dhankhar expressed deep concern over the emergence of appeasement politics and placatory strategies across the political spectrum, saying, ” There is emergence of a new strategy, and the strategy is of appeasement or being placatory. If there is excessive spending on electoral promises, then the state’s ability to invest in infrastructure is correspondingly reduced. This is detrimental to the growth scenario. Election is important in democracy but not the end of it. I would call upon the leadership of all political parties in the interest of democratic values to generate a consensus that engaging in such electoral promises, which can be performed only at the cost of CAPEX expenditure of the state, must be reviewed. Some governments that took recourse to this appeasement and placatory mechanisms are finding it very difficult to sustain in power.”

    He clarified that affirmative action for marginalized communities is distinct from appeasement politics, stating, “I should not be misunderstood, ladies and gentlemen, because while the Indian Constitution has given us the right of equality, it does provide in Article 14, 15, and 16 an acceptable category of affirmative governance—affirmative action, the reservation for SC, ST, for those who are in the economically weaker section. That is sanctified. There are exceptional situations for rural India, for the farmer, where affirmative steps are required to be taken. But this is very distinct from the other aspects I was talking about. This is not placatory or appeasing. It is justifiable economic policy. And therefore, it is good leadership that can take a call on where to draw the line in the fiscal sense in the matter of political foresight and leadership spine.”

    Highlighting demographic challenges and illegal migration, Shri Dhankhar said, “The Nation houses millions of illegal migrants causing a demographic upheaval. Millions of illegal migrants are in this country making a huge demand on our health services, education services. They are depriving our people of employment opportunities. Such elements have alarmingly secured electoral relevance in some areas and their securing electoral relevance is shaping the essence of our democracy. Emerging dangers can be evaluated through historical reference where nations were swept of their ethnic identity by similar demographic invasions.”
    Expressing deep concern over mass conversions through allurements, the Vice-President remarked, “This malaise, far more severe than COVID, is aggravatingly intersected with conversions through allurements, with vulnerable sections trying to be trapped. The marginalized, the tribal, the weaker become easy prey to these temptations and allurements. Faith is your own. Faith is dictated by conscience. The Indian Constitution gives freedom of faith. But if this faith is held hostage by temptations, it is, according to me, defacing freedom of faith.”

    Shri Dhankhar asserted that the sovereignty of ‘We the People’ must not be diluted, “Bharat, home to one-sixth of humanity, is the oldest, largest, most vibrant, and functional democracy. Bharat is the only nation in the world that has constitutionally structured democratic institutions from the village to the national level. Our Constitution’s Preamble indicates ‘We the People’ as the foundational source and premise of governance. Preamble of the Constitution also reveals the purpose of governance as Justice, Equality, and Fraternity for all. We must appreciate the contours of ‘We the People’—the ultimate repository of sovereignty. A sovereignty that we cannot afford to dilute or to be taken away.”

    Honoring the late Murli Deora, the Vice-President described him as one of the finest public figures in politics, “Murli Deora was one of the finest public figures in politics, who nurtured all his life friendships. He bridged the differences and was loved by all. In his life, he missed one thing—he had no adversaries. That was his stature. Murali bhai, as fondly reminisced by his peers, exemplified public spirit and dedication to worthy societal causes.”

    The Vice-President praised Murli Deora’s pioneering role in securing a ban on smoking in public places, stating, “Murli Deora will always be remembered for his proactive efforts to save the country from the hazards of smoking. He approached the highest court of the land and sought affirmative intervention to secure a ban on smoking in public places.”

    Concluding his address, Shri Dhankhar described Murli Deora’s life as a testament to leadership as a journey of service, “Life of Murli Deora Ji was a testament to the idea of leadership—that this idea is not a pedestal but a pilgrimage, a journey of service to the last, the least, and the lonely.”

    Shri C. P. Radhakrishnan, Governor of Maharashtra, Shri Eknath Shinde, Deputy Chief Minister of Maharashtra, Shri Milind Deora, MP Rajya Sabha & Senior Kotak
    Representative, Shri Raghavendra Singh, President, Kotak Mahindra Bank and other dignitaries were also present on the occasion.

    ****

    JK/RC/SM

    (Release ID: 2108956) Visitor Counter : 45

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Union Minister Hardeep S Puri inaugurates PNGRB’s new office premises at World Trade Center, Nauroji Nagar

    Source: Government of India (2)

    Posted On: 06 MAR 2025 10:05PM by PIB Delhi

    The new office of the Petroleum and Natural Gas Regulatory Board (PNGRB) at World Trade Center, Nauroji Nagar, New Delhi, was inaugurated today by Shri Hardeep Singh Puri, Hon’ble Minister of Petroleum and Natural Gas in the presence of Shri. Pankaj Jain, Secretary, Ministry of Petroleum & Natural Gas, PNGRB’s Board, Senior officials and industry stakeholders.

    The new office will house multiple meeting rooms and a large Conference Room to facilitate interaction between the Board and the stakeholders. It is notable that the older office was hired when the Board was constituted in the year 2007 and had become insufficient to meet the requirement. The new office will also house the National Hydro-carbon Infrastructure Management System (NHIMS). This Centre will receive real time information of petroleum and natural gas transport across the country as well as real time progress of the pipeline authorized by the PNGRB.

    The Minister commended PNGRB for its initiative in developing the National Hydrocarbons Infrastructure Monitoring System (NHIMS). It is a fusion of software technologies which consume real-time data from Petroleum & Natural Gas companies and integrate roads, railways, and forest water bodies thereby enabling more strategic planning and efficient monitoring. Furthermore, the Hon’ble Minister underscored the importance of ensuring the autonomy of regulatory bodies to enhance coordination and optimize governance in the sector.

    On this occasion, the Dr. Anil Kumar Jain, Chairperson, PNGRB, reaffirmed PNGRB’s commitment to fostering a conducive environment for ensuring a fair regulatory framework and promoting sustainable growth in the Petroleum and Natural Gas sector.

    ***

    MONIKA

    (Release ID: 2108953) Visitor Counter : 62

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Consultation Meet with Industry associations for ‘Engaging Dialogue on Entity Locker’ held at MeitY

    Source: Government of India (2)

    Posted On: 06 MAR 2025 8:00PM by PIB Delhi

    A consultation meeting to invite suggestions and inputs from industry bodies and partner organisations for Entity Locker was held at Electronics Niketan on March 6, 2025. The meeting was chaired by Shri Nand Kumarum, President & CEO, Nation E-Governance Mission (NeGD); MD & CEO Digital India Corporation, and CEO, MyGov.

    Participants included senior officials from various chambers and national boards such as FICCI, CII, Indian Banks Association, The Bengal Chamber of Commerce and Industry, The Institute of Cost Accountants of India, India SME Forum, PHDCCI, Federation of Indian Export Organisations, SEBI, NASSCOM, Data Security Council of India, and government enterprises viz. Agricultural & Processed Food Products Export Development Authority (APEDA), Rail India Technical and Economic Service, and Engineering Projects India Ltd. etc.

    The meeting aimed to apprise the members about Entity Locker’s process flow and encourage them to promote its usage among associated entities. Feedback and suggestions to incorporate additional features and functions were also collected and the team at National e-Governance Division (NeGD) welcomed a stream of dialogues for continous improvements and better onboarding experience for all kinds of entities, including private players in the buinsess/financial ecosystem.

    Shri Nand Kumarum emphasised on the need for organisations to develop relevant use cases pertaining to the document interactions and exchange mechanism followed in their respective companies/organisations. He highlighted that Entity Locker provides secure data storage for important documents of business entities and the like, thus leading to ‘Ease of Doing Buisness’, and this along with the free 10 GB storage being provided by the Government is a big incentive for all organisations to onboard themselves and their allied partners on this platform.

    Several questions were raised regarding document visibility and sharing access, API integration, extendable storage facility, option to group users, and the verification protocol to be followed for Aadhaar & other licenses.

    All the current challenges, specific onboarding issues being faced, and concerns or problems and need regarding particular integration requirements were duly noted by the team and responded to. These will be formally allayed and worked upon once the participating members send back their replies addressing the same.

    About Entity Locker

    Entity Locker is a secure, cloud-based solution that simplifies the storage, sharing, and verification of documents for a wide range of entities, including large organisations, corporations, micro, small, and medium Enterprises (MSMEs), trusts, startups and societies. The platform is a critical component of India’s Digital Public Infrastructure, aligning with the vision of the Union Budget 2024-25 for enhanced digital governance and ease of doing business.

    As a part of the Digital India Programme, Entity Locker exemplifies the innovative use of technology to solve complex administrative challenges and promote economic growth. Its phased implementation will see gradual integration with more government platforms and agencies.

    Businesses, regulators and other stakeholders are encouraged to adopt this transformative digital solution to enhance operational efficiency and compliance.

    Visit Entity Locker: https://entity.digilocker.gov.in/

    For further details, contact: partners@digitallocker.gov.in

    ********

    Dharmendra Tewari/ Navin Sreejith

    (Release ID: 2108912) Visitor Counter : 62

    MIL OSI Asia Pacific News

  • MIL-OSI USA: 2 Mexican nationals, defendants in ICE cases secured in Arizona

    Source: US Immigration and Customs Enforcement

    PHOENIX, Ariz. – Two Mexican nationals who are targets of an ongoing U.S. Immigration and Customs Enforcement investigation appeared for their initial appearances Feb. 28, after they were secured from Mexico the previous day.

    Jose Bibiano Cabrera-Cabrera, 37 and Jesus Humberto Limon-Lopez, 43, were taken into U.S. custody after members of drug cartels were recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación, Cártel del Noreste, La Nueva Familia Michoacana, and Cártel de Golfo.

    These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

    Limon-Lopez is charged with Continuing Criminal Enterprise; Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; Distribution of Methamphetamine; Distribution of Fentanyl; Distribution of Heroin; Distribution of Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

    Cabrera-Cabrera is charged with Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

    An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

    The OCDETF Arizona Strike Force is comprised of agents and officers from Customs and Border Protection, the Department of Homeland Security, ICE Homeland Security Investigations, the Drug Enforcement Administration, FBI, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the United States Postal Service, United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Army National Guard, the Maricopa County Sheriff’s Office, the Pima County Sheriff’s Office, and the Scottsdale Police Department.

    The prosecution is being handled by the United States Attorney Office for the District of Arizona.

    MIL OSI USA News

  • MIL-OSI USA: LANCASTER – Shapiro-Davis Administration Highlights Importance of Proposed 2025-26 State Budget Investment for Victims Compensation and the Critical Role of the Program for Victims and Survivors of Crime

    Source: US State of Pennsylvania

    March 07, 2025Lancaster, PA

    ADVISORY – LANCASTER – Shapiro-Davis Administration Highlights Importance of Proposed 2025-26 State Budget Investment for Victims Compensation and the Critical Role of the Program for Victims and Survivors of Crime

    The Pennsylvania Commission on Crime and Delinquency (PCCD) will join Lancaster County Victim/Witness Services, Lancaster County Children Alliance, Community Action Partnership, and YWCA Lancaster to highlight the importance of supporting victims and survivors of crime and to encourage support for the Shapiro-Davis Administration’s proposed $9 million investment in the Victims Compensation Assistance Program (VCAP) in the 2025-26 state budget.

    Over the past five years, PCCD has paid more than 67,000 VCAP claims totaling $67 million to financially support victims of crime across all 67 Pennsylvania counties with medical costs, counseling, relocation, and more.

    WHO:
    Kathy Buckley, Office of Victims’ Services Director, PCCD
    Deanna Weaver, Victim/Witness Services Program Director, Lancaster County DA’s Office
    Mary Halye, Lancaster County Children’s Alliance Manager
    Christine Gilfillan, Domestic Violence Services of Lancaster County Director, Community Action Partnership
    Mandy Billman, Sexual Assault Prevention and Counseling Center Director, YWCA Lancaster

    WHEN:
    Friday, March 7, 2025 at 10:30 AM.

    WHERE:
    Lancaster County District Attorney’s Office
    50 North Duke Street, 6th Floor (Media Center)
    Lancaster, PA 17608

    RSVP:
    Press who are interested in attending must RSVP to algantz@pa.gov.

    Photos will be available on PAcast following the event.

    MIL OSI USA News

  • MIL-Evening Report: US trade wars with China – and how they play out in Africa

    Source: The Conversation (Au and NZ) – By Lauren Johnston, Associate Professor, China Studies Centre, University of Sydney

    Since taking office, US president Donald Trump has implemented policies that have been notably hostile towards China. They include trade restrictions. Most recently, a 20% tariff was added to all imports from China and new technological restrictions were imposed under the America First Investment Policy. This isn’t the first time US-China tensions have flared. Throughout history the relationship has been fraught by economic, military and ideological conflicts.

    China-Africa scholar and economist Lauren Johnston provides insights into how these dynamics may also shape relations between Africa and China.

    How has China responded to hostile US policies?

    First, China tends to have a defiant official response. It expresses disappointment, then states that the US policy position is not helpful to any country or the world economy.

    Second, China makes moves domestically to prioritise the interests of key, affected industries.

    Third, China will sometimes impose retaliatory sanctions.

    In 2018, for instance, China imposed a 25% tariff on US soybeans, a critical animal feed source. The US Department of Agriculture had to compensate US soybean farmers for their lost income.

    Another example is how, following US tech sanctions, China took a more independent technology path. It has channelled billions into tech funds. The goal is to make financing available for Chinese entrepreneurs and to push technological boundaries in areas of US sanction, such as semiconductors. These efforts are backed up by subsidies and tax reductions. In some cases, the Chinese state will invest directly in tech companies.

    More recently, China retaliated to the US trade war by
    announcing tariffs on 80 US products. China is set to place 15% tariffs on certain energy exports, including coal, natural gas and petroleum. An additional 10% tariffs will be placed on 72 manufactured products including trucks, motor homes and agricultural machinery.

    Agricultural trade has been hard hit. The day the US announced a 10% tariff on Chinese imports, China announced “an additional 15% tariff on imported chicken, wheat, corn and cotton originating from the US”. Also, “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10% tariff”.

    How have these Chinese responses affected Africa?

    We can’t say for certain that China’s response to US trade tensions has explicitly affected its Africa policy, but there are some notable coincidences.

    Less than one month after Trump’s return to the White House in 2025, and soon after the first tariffs were slapped on China’s exports to the US, China announced new measures to foster China-Africa trade efforts. The policy package aims to “strengthen economic and trade exchanges between China and Africa.”

    This is the latest in a series of Chinese actions.

    In January 2018 trade hostilities began to escalate after Trump imposed a first round of tariffs on all imported washing machines and solar panels. These had an impact on China’s exports to the US.

    Later the same year, China imposed 25% tariffs on US soy bean imports and took steps to reduce dependence on US agricultural products. China also took steps to expand trade with Africa, agricultural trade in particular.

    In September 2018, Beijing hosted the Forum on China and Africa Cooperation summit, a triennial head of state gathering. It was announced that China would set up a China-Africa trade expo and foster deeper agricultural cooperation. In the days after the summit, China’s Ministry of Agriculture and Rural Affairs was already acting on this. A gathering of African agricultural ministers took place in Changsha, Hunan province.

    Hunan province has since taken centre stage in China-Africa relations. It’s now the host of a permanent China-Africa trade exhibition hall and a larger biennial China-Africa economic and trade exhibition (known as CAETE).

    Hunan also hosts the pilot zone for In-Depth China-Africa Economic and Trade Cooperation. The zone has numerous initiatives designed to overcome obstacles to China-Africa trade and investment, like support in areas of law, technology and currency, and vocational training.

    Finally, the zone is located in a bigger free-trade zone that is better connected to Africa by air, water and land corridors. African agricultural exports to China pass through Hunan, where local industry either uses these imports or distributes them across the country to retailers.

    Companies in Hunan are well placed to play a key role in supporting China-Africa trade, capitalising on the opportunities left by China-US hostilities.

    Hunan’s agritech giant Longping High-Tech, for instance, is investing in Tanzanian soybean farmers.

    Hunan is also home to China’s construction manufacturing and electronic transportation frontier. This includes global construction giant Sany, which produces heavy industry machinery for the construction, mining and energy sectors. China’s global electronic vehicle manufacturing BYD and its electronic railway industry are also in Hunan. They have deep and increasing interests in Africa and can also support China’s key minerals and tech race with the US.

    As US-China hostility enters a new era, what are the implications for China-Africa relations?

    As my new working paper sets out, African countries are, for example, responding to the new opportunities from China.

    At the end of 2024, while the world waited for Trump’s second coming, various African countries made moves to strengthen economic ties with China, Hunan province especially.

    In December 2024, Tanzania became the first African country to open an official investment promotion office in the China-Africa Cooperation Pilot Zone in Changaha.

    In November 2024, both the China-Africa Economic and Trade Expo in Africa and the China Engineering Technology Exhibition were held in Abuja, Nigeria. Equivalent events were hosted in Kenya.

    Early in 2025 in Niamey, Niger, a joint pilot cooperation zone was inaugurated , and which is direct partner of the China-Africa Pilot zone in Hunan.

    As China moves away from US agricultural produce, for instance, African agricultural producers can benefit. Substitute African products and potential exports will enjoy a price boost, and elevated Chinese support.

    China’s newly elevated interest in African development and market potential will bring major prospects. The question will be whether African countries are ready to grasp them, and to use that potential to foster an independent development path of their own.

    Lauren Johnston does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. US trade wars with China – and how they play out in Africa – https://theconversation.com/us-trade-wars-with-china-and-how-they-play-out-in-africa-249609

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: What the f#$%? The surprising legal rules about brand trademarks of sweary phrases

    Source: The Conversation (Au and NZ) – By Alexandra Allen-Franks, Senior Lecturer; Co-director of the New Zealand Centre for Human Rights Law, Policy and Practice and Co-director of the New Zealand Centre for Intellectual Property Law, University of Auckland, Waipapa Taumata Rau

    drante/Getty Images

    Journalist Paddy Gower’s attempts to trademark his brand have highlighted what is still considered offensive in New Zealand when it comes to trademarks. But should a government agency be the arbiter of what might offend?

    In March 2024, Gower applied to trademark the name of his news entity “This Is The Fucking News”.

    The application stalled at the Intellectual Property Office of New Zealand (IPONZ), likely because the Trade Marks Act 2002 doesn’t allow people to register trademarks which are “likely to offend a significant section of the community”.

    “THIS IS THE F#$%ING NEWS” however, was apparently okay. Gower applied for that mark in June last year and it was registered in December. He now has exclusive rights to use this phrase for specified goods and services.

    A changing definition

    New Zealand law first prohibited the registration of “scandalous” marks in 1889. The language used in the trademark statute has been “likely to offend” since 2002.

    The current rules cover swear words, as in Gower’s case, but also hate speech and material which is culturally offensive.

    IPONZ’s current guidance says a “distinction should be drawn between marks that are offensive and marks that would be considered by some to be in poor taste”. Offensive trademarks are said to be those that would create “justifiable censure or outrage”.

    But the standards of offensiveness can and do change.

    In 1999, Red Bull applied to register “BULLSHIT”. Registration was rejected on the basis that it contained scandalous matter and was contrary to morality (under the wording in the older law).

    Perhaps Red Bull wouldn’t face the same difficulty if it tried again today. There is now a registration for “Shit You Should Care About”. It appears that the word shit is not considered one that’s “likely to offend a significant section of the community” anymore.

    From a review of the register, it seems reasonable to conclude that IPONZ thinks that certain swear words do remain likely to offend, though. Several applications have been abandoned, including for “THE FUCKING GOOD BOOK” and “no fucks given”.

    Whether a mark is offensive is supposed to be determined objectively from the perspective of the “right-thinking” member of the public. But outcomes can appear inconsistent and perhaps arbitrary — why is “F#$%ING” ok, but the proper spelling not?

    Energy company Red Bull tried, and failed, to trademark a swear word in 1999.
    Icon Sportswire/Getty Images

    Limits on freedom of expression?

    Some applicants may also decry that their freedom of expression is being curtailed by a refusal to register.

    The common justification for protecting freedom of expression is that we should have an open marketplace of ideas, where both good and bad ideas are shared with the public.

    New Zealand is not alone in considering these issues.

    In the United States, for example, Simon Tam was refused registration for “THE SLANTS” (the name of his rock band) because the law at the time prohibited registration of marks which may be disparaging. Slant is considered a racist term by some and Tam had wanted to reclaim the slur as an anti-racist statement.

    In another case, designer Erik Brunetti was refused registration of “FUCT” for clothing, because the law said that immoral or scandalous marks couldn’t be registered.

    Both marks have since been registered for reasons related to the fact that the US Constitution’s First Amendment allows for the right to freedom of speech.

    The US trademarks register now contains a pending application for “NAZI KAZI” and a pending application for a symbol described as “roughly resembling a swastika”, as well as two pending applications for marks containing the word “N*GGER”.

    These marks may not ever be registered, but the barriers against their registration aren’t what they once were.

    Limiting offence or limiting rights?

    New Zealand obviously has a different constitutional context than the US, but there are similarities in the underlying question about what is, and isn’t offensive – and the role of the government in determining the rules.

    One big difference between the US cases and those in New Zealand, however, is that New Zealand’s Bill of Rights allows for limits on rights, if those limits are reasonable, set out in law (like the Trade Marks Act) and justifiable in a free and democratic society.

    So, is there a compelling justification for the prohibition on registering offensive marks?

    One argument for the prohibition is to protect the public from exposure to these kinds of marks. However, the denial of registration doesn’t prevent the marks from being used in the marketplace.

    Refusal means that an applicant misses out on the benefits of a formal trademark registration (such as being able to sue others for trademark infringement). But there’s nothing stopping a person using an unregistered mark. And, refusing registration may actually free up the mark for more people to use it as it doesn’t belong to just one person or business.

    Perhaps a more compelling argument for prohibition is that registration should be refused to avoid giving an official (governmental) seal of approval to offensive marks. This may be a very high bar, but it seems important that a registrar consider the likelihood of deep offence, even if the standard is not often reached.

    Putting justifications for any bar aside, it remains hard to draw a line as to what is and isn’t okay. It seems in relation to “THIS IS THE F#$%ING NEWS”, that line is razor thin.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. What the f#$%? The surprising legal rules about brand trademarks of sweary phrases – https://theconversation.com/what-the-f-the-surprising-legal-rules-about-brand-trademarks-of-sweary-phrases-251474

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Proceed with Caution, California: Attorney General Bonta Alerts Consumers to Ongoing Scam Activity

    Source: US State of California Department of Justice

    OAKLAND — California Attorney General Rob Bonta today issued a consumer alert warning Californians of three popular text-based scams. These scam texts claim Californians owe past-due charges and provide fraudulent links for consumers to “resolve” the charge — the links are often a vehicle by which scammers can steal consumers’ sensitive payment data. Scammers often use the threat of a “late fee” or use words like “urgent action required” to pressure consumers into clicking the links. The California Department of Justice asks Californians to slow down and proceed with caution when faced with these types of messages. 

    “California, these scammers are relentless. While text-based toll charge scams remain widespread, consumers across our state are also receiving texts claiming they owe a parking ticket charge,” said Attorney General Bonta. “Bad actors are getting more sophisticated and show little signs of slowing. I urge Californians to not click on links in texts appearing to alert consumers to overdue charges, visit only official websites, and talk to friends and family who may be unaware of these dangers.” 

    If You Receive a Possible Scam Text:

    • DO NOT CLICK ON THE LINK. 
    • File a complaint. File a complaint with the FBI, the Federal Trade Commission, and our office. Be sure to include the phone number from where the text originated and the website listed within the text.
    • Delete any scam texts received. 
    • Check your account using a legitimate website. 
    • Secure your personal information and financial accounts. Regularly check your bank and credit card statements for unauthorized transactions, especially after suspecting a scam. Dispute any unfamiliar charges. 

    TOLL CHARGE SCAMS

    These texts claim consumers owe FasTrak express lane or toll charges, link to a website, and ask for online payment. This scam is designed to trick drivers into entering banking or credit card information into a website fraudulently claiming to represent tolling agencies.

    FasTrak is the electronic toll collection system used on tolled bridges, lanes, and roads in California. It allows drivers to pay tolls electronically without having to stop at toll booths. FasTrak does not request payment by text with a link to a website. The Transportation Corridor Agencies (TCA), operator of The Toll Roads in Orange County, advises account holders to verify a valid text notification by logging into their account at thetollroads.com or through The Toll Roads app. 

    For all other toll agencies, please use official webpages only — you can find a list of California toll webpages below:

    PARKING CHARGE SCAMS

    These messages aim to scare consumers into thinking something they’ve dreaded has happened: that they’ve earned a parking ticket and have forgotten to pay it. The San Francisco Municipal Transportation Agency (SFMTA), an agency that scammers have imitated, does not request payment by text with a link to a website. For more information on paying a SFMTA parking citation, please visit SFMTA.com/PayCitation.

    If you live or visit another city, please use the official website of that city or transportation agency.  

    PACKAGE DELIVERY SCAMS 

    These text messages often state that there’s an issue with your delivery and include a link to “resolve” the problem. Package delivery scams are more common over the gift giving season but can occur at any time. Delivery companies do not ask for payment to release a package or correct a delivery error — any such request is a scam. 

    Consider signing up for alerts from trusted carriers like UPS, FedEx, or USPS. These alerts will notify you of package updates directly from the source. 

    Attorney General Bonta is committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide — this includes working to put a stop to illegal and annoying robocalls, which are often a vehicle for scams. Last year, Attorney General Bonta, as part of the nationwide Anti-Robocall Multistate Litigation Task Force, joined the Federal Communications Commission (FCC) in sending a warning letter to a telecom company responsible for transmitting suspected illegal robocall traffic and issued a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. 

    MIL OSI USA News

  • MIL-OSI USA: President Trump’s Deregulation Effort Has Already Saved Families Thousands of Dollars

    US Senate News:

    Source: The White House
    TO: WHITE HOUSE COMMS STAFFFROM: CEA STAFFSUBJECT: PRESIDENT TRUMP SAVES AMERICAN FAMILIES $2,100 EACH BY HALTING COSTLY BIDEN REGULATIONS
    SummaryPresident Biden piled on nearly $2 trillion in new regulations over his four years in office, dramatically increasing costs for everyday working people and businesses — and left billions of dollars more in proposed rules still in the pipeline. Upon taking office, President Trump immediately blocked these proposed rules and has initiated an aggressive deregulatory agenda that requires substantial cuts in existing regulations for each new agency rule. President Trump is committed to cutting senseless red tape that will lower costs, lead to higher growth, and usher America into its Golden Age.
    Since returning to office, President Trump has saved Americans over $180 billion, or $2,100 per family of four, by halting proposed Biden-era regulations.
    The Biden Administration added more than $1.8 trillion, or $21,090 per family of four, in new regulatory costs, far surpassing any other administration on record.
    72% of these new regulatory burdens ($1.3 trillion or $15,457 per family of four) were the result of new EPA rules.
    Rolling back just automobile-related rules will save consumers over $1.134 trillion.
    In 2024, the Biden Administration set an all-time record by publishing 107,262 pages of final rules, proposed rules, and other public notices in the Federal Register.
    This stands in stark contrast to President Trump, who recently announced a bold deregulation initiative that requires the elimination of ten existing rules or guidance documents for every new regulation.
    Details
    Notable regulatory actions by President Trump via executive order include:
    Among finalized Biden EPA rules, the following edicts were the most expensive:
    $870 billion: Mandated reductions in greenhouse gas emissions and a 50% reduction in other pollutant emissions from light-duty and medium-duty vehicles for model years 2027 and beyond.
    $180 billion: Mandated reductions in greenhouse gas emissions in passenger cars and light trucks for model years 2023 and beyond.
    $106.19 billion: Unnecessary water regulations.
    $39 billion: Mandated the reduction of nitrogen oxides (NOx) and particulate matter emissions in heavy-duty engines.

    Other notable costly Biden Administration regulations include:
    Department of the Treasury
    $84.1 billion: New mandates that certain entities disclose their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

    Department of Transportation
    $45.2 billion: New mandates for increased fuel efficiency in passenger cars and light trucks for model years 2027 and beyond, and increased fuel efficiency for vans and heavy-duty pickups for model years 2030 and beyond.

    Department of Health and Human Services
    $43.15 billion: New mandates for Medicare and Medicaid Programs, increased nursing staffing levels in nursing homes, and additional reporting requirements for certain institutional services.
    $27.77 billion: New Medicaid and CHIP Program mandates

    Department of Defense
    $42.26 billion: New mandates to protect Controlled Unclassified Information (CUI) and Federal Contract Information (FCI).

    In addition to the expensive regulations highlighted above, the Biden Administration also excelled at producing ridiculous regulations:
    A U.S. Postal Service regulation “requiring mailers to solely use the Cremated Remains shipping supplies provided by the Postal Service when mailing human or animal cremated remains, also referred to as cremains or ashes, domestically or internationally.”
    A Federal Trade Commission regulation “requiring manufacturers of home audio amplifiers making power-related claims to calculate power output using uniform testing methods to allow consumers to easily compare amplifier sound quality.

    MIL OSI USA News