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It also manifests itself in a wide range of financial activities, many of them outsourced via middlemen and driven by hordes of self-interested parties. The United States has made strides toward stitching together a coalition to tackle the extremist group, but faces reluctance from Mideast allies who are deeply frustrated with a White House that they believe has been naive, fickle and weak on Syria’s civil war.
The ISIS economy and its fighters predominantly rely on the production and sale of seized energy assets—Iraq has the fifth-largest proven crude oil reserves in the world.
Highly localized and multiple revenue streams feed the terrorist organization’s coffers—generating up to million a day, according to Masrour Barzani, head of Kurdish Intelligence and the Kurdistan Regional Security Council.
Secret smuggling routes are often passed on by families from generation to generation, and they were well-secured during the lean years of economic sanctions imposed by the West during Saddam Hussein’s dictatorship in Iraq.
Each still can process about a thousand litres of crude a day intogas and diesel.
ISIS has taken oil fields from Syrian rebels and the government in recent months.
In Kuwait, a family of parliamentarians—including Kuwaiti member of parliament Mohammed Hayef al-Mutairi—has raised funds for jihadist groups with direct ties to ISIS.
“We’re talking about the destruction of humankind back to the beginning of humankind.”Royal Donors in the Gulf Grossing as much as million or more over the past two years, ISIS has accepted funding from government or private sources in the oil-rich nations of Saudi Arabia, Qatar and Kuwait—and a large network of private donors, including Persian Gulf royalty, businessmen and wealthy families.
Until recently, all three countries had openly given hefty sums to rebels fighting Bashar Assad’s Syrian regime, among them ISIS.
“ISIS is also supporting tens of thousands of militants who have been at war for months, with new recruits coming in every day.
Yet it keeps all these people answerable to them, seems to have incredible cross-border mobility and shows no signs right now of running out of money or fuel.”On October 23, Washington’s point person in the fight against ISIS—the U. Department of the Treasury’s Undersecretary for Terrorism and Financial Intelligence David Cohen—acknowledged in a speech at the Carnegie Endowment for International Peace in Washington that “[ISIS] has amassed wealth at an unprecedented pace and its revenue sources have a different composition from those of many other terrorist organizations.” ISIS doesn’t “depend principally on moving money across international borders,” he said, but “obtains the vast majority of its revenues from local criminal and terrorist activities.”This presents a formidable obstacle for the U. Treasury, which is accustomed to pursuing its enemies by pressuring established banks to expose their criminal clients.Border guards were in on the system entrenched in the culture.