ASIO Report to Parliament 2014–2015

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ASIO Report to Parliament 2014–2015 ASIO Report to Parliament 2014–2015 www.asio.gov.au THE INTELLIGENCE EDGE VISION FOR A SECURE AUSTRALIA To identify and investigate threats to security and provide MISSION advice to protect Australia, its people and its interests EXCELLENCE VALUES Producing high-quality, relevant, timely advice. Displaying strong leadership and professionalism. Improving through innovation and learning. INTEGRITY Being ethical and working without bias. Maintaining the confidentiality and security of our work. Respecting others and valuing diversity. RESPECT We show respect in our dealings with others. ACCOUNTABILITY Being responsible for what we do and for our outcomes. Being accountable to the Australian community through the government and the parliament. COOPERATION Building a common sense of purpose and mutual support. Using appropriate communication in all our relationships. Fostering and maintaining productive partnerships. ASIO Report to Parliament 2014–2015 ISSN 0815-4562 (print) ISSN 2204-4213 (online) © Commonwealth of Australia (Australian Security Intelligence Organisation) 2015 All material presented in this publication is provided under a Creative Commons (CC) BY Attribution 3.0 Australia Licence (http://creativecommons.org/licenses/ by/3.0/au/deed.en). The details of the relevant licence Commonwealth Coat of Arms conditions are available on the The Commonwealth Coat of Arms is used Creative Commons website in accordance with Commonwealth Coat of (http://creativecommons.org/licenses/) Arms: information and guidelines, provided as is the full legal code for the CC BY by the Department of the Prime Minister Attribution 3.0 Australia Licence and Cabinet, dated November 2012, viewed (http://creativecommons.org/ 22 July 2014, (http://www.dpmc.gov.au/ licenses/by/3.0/legalcode). guidelines/docs/CCoA_guidelines.pdf). Image use The Report to Parliament is one of ASIO’s key accountability measures. It is the most significant external publication issued by ASIO each year. As part of the development of this year’s report, ASIO held a photography competition inviting staff to submit images evocative of Australia. The winning image was included in this year’s report. ii ASIO Report to Parliament 2014–15 Senator the Hon George Brandis QC Attorney-General Parliament House CANBERRA ACT 2600 In accordance with section 94 of the Australian Security Intelligence Organisation Act 1979 (the ASIO Act), I am pleased to present to you ASIO’s Annual Report for the year ending 30 June 2015. As required by the ASIO Act, a copy of the Report to Parliament 2014-2015 – with deletions authorised by you to protect national security – is to be laid before each House of Parliament. In addition, as required by the Commonwealth Fraud Control Guidelines, I certify that I am satisfied ASIO has in placed appropriate fraud control mechanisms that meet the organisation’s needs and comply with the guidelines. Duncan Lewis iii ASIO Report to Parliament 2014–15 iv ASIO Report to Parliament 2014–15 Table of contents Director-General’s review vii The year at a glance xiii Guide to the report xiv ASIO’s role and functions xv Organisational structure xvi Par t 1 The security environment and outlook ..............................................................................1 Terrorism 2 Espionage and clandestine foreign interference 7 Communal violence and violent protest 9 Border integrity 12 Par t 2 Program performance .......................................................................................................13 Outcome 1 14 Security intelligence analysis and advice 15 Protective security advice 26 Security intelligence investigations and capabilities 29 Foreign intelligence collection in Australia 34 Par t 3 Outcomes and highlights ..................................................................................................35 Par t 4 ASIO and accountability ....................................................................................................39 Attorney-General 40 Parliamentary oversight 41 Independent oversight 44 Legal assurance and capability protection 47 Internal audit and fraud control 52 Security in ASIO 54 v ASIO Report to Parliament 2014–15 Par t 5 Corporate management ....................................................................................................55 Corporate strategy and governance 56 People 62 Property 70 Financial services 72 Information and technology services 73 Part 6 Financial statements .........................................................................................................75 Par t 7 Appendices and indices ...................................................................................................117 Appendix A 118 Appendix B 119 Appendix C 120 Appendix D 121 Appendix E 123 Appendix F 124 Appendix G 125 Additional ASIO reporting requirements under the Australian Security Intelligence Organisation Act 1979 128 Abbreviations 129 Glossary 131 Index 132 vi ASIO Report to Parliament 2014–15 Director-General’s Ray Strange. News Corp. Australia. review This Report to Parliament is my first as Espionage and foreign interference the Director-General of Security. Since my directed against Australia by foreign appointment I have been impressed by powers also present a first order challenge. the professionalism and commitment of While the impact of such activity might the officers of ASIO. I come to the position not be as obvious to our community as as Australia faces a most challenging and that of terrorism, it has the potential to complex security environment. undermine our sovereignty. It can impact our ability to further our national interests During this reporting period ASIO has and to defend ourselves against others. continued its demanding job of identifying and investigating threats to Australia Sitting under these major threats, and Australians wherever they may be. and sometimes connected to them, ASIO operates as a security intelligence are ongoing issues of communal violence, service and we continue to work in strict violent protest and other activities that accordance with the Australian Security can affect the safety or wellbeing of Intelligence Organisation Act 1979, Australians. ASIO’s role is to identify and other legislation which applies to the understand these threats and issues. organisation, and within a thorough ASIO provides intelligence and advice to and comprehensive accountability help government manage threats while and oversight framework. ensuring that, in protecting Australians’ democratic freedoms, those freedoms Terrorism is the most obvious and are not themselves infringed. immediate challenge, it poses a direct and ongoing threat to the safety and wellbeing of our people. In particular, the threat is associated with violent extremist ideologies that have aims hostile to Australia’s interests. It requires a coordinated, considered and comprehensive response. vii ASIO Report to Parliament 2014–15 Terrorism Two terrorist attacks occurred in Australia during the reporting period. The first Never before has terrorism been such a attack, which took place in Melbourne on direct and immediate threat to our nation 23 September 2014 (the Endeavour Hills and our people. ASIO’s counter-terrorist police station attack) resulted in the injury efforts are operating at a high tempo. of two police officers and the death of the The resourcing required to manage this attacker. The second, which occurred ever-increasing workload is significant. in Sydney on 15–16 December 2014 Despite our most strenuous efforts there (the Lindt Café siege in Martin Place), can be no absolute guarantee that every resulted in the deaths of two hostages threat can be identified and mitigated. and the hostage taker. In addition, The Syrian and Iraq conflict continues and in the same reporting period, to play directly into the terrorism threat six separate terrorist plots were disrupted. to Australia. An increasing number of Each of the six disrupted terrorist plots Australians offshore are participating in was initially identified and investigated the conflict, and it is unlikely we know by ASIO, prior to being handed over to the identities of all who are fighting or law enforcement. who have participated in the conflict. These Australian attacks, or planned Some foreign fighters have returned attacks, come against a backdrop of and others have expressed interest in global terrorist activity. Internationally, returning to Australia. While the question similar relatively crude lone-actor of prosecution of returning foreign fighters attacks are becoming all too common. is a matter for law enforcement, ASIO’s The United Kingdom, Canada, Denmark, interest is in assessing the threat they France, Belgium, Libya, Kenya, Tunisia might present should they return. and the United States have all been A number of Australians are actively targeted. We must not, however, leap to supporting violent extremist groups in the conclusion that this mode of terrorism Syria and Iraq from Australia—providing has replaced the threat of larger scale and funding, recruiting for them and more organised attacks. Unsophisticated facilitating the travel of others to attacks add another, more readily realised join the conflict. strand to the ongoing threat. The old and more sophisticated threats persist. In September 2014, the Terrorism Importantly threats do not originate from Public Alert Level was elevated by the a single source: terrorist threats emanate Australian Government from Medium to from Australia, from the
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