ISIS: Following the Money Trail
Who is funding ISIS and how are they getting their money?
The world has watched in stunned amazement how the Islamic terrorist group ISIS (Islamic State in Iraq and Syria) (also known as ISIL, Islamic State in Iraq and the Levant or simply as IS, the Islamic State) has spread across the countries of Syria and Iraq like a virus, conquering territories the size of Belgium.
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| ISIS controlled territory (The Economist) |
An extremist offshoot of the infamous terror group Al-Qaeda, ISIS has terrorized hundreds of thousands of people, burying them alive, crucifying them alive, capturing young girls as sex slaves, and indiscriminately killing innocent men, women, and children.
Not only does ISIS have their murderous ideology fueling them on to spread their terror, they also have amassed a formidable amount of money. This has enabled them to take on the so-called "moderate" rebels in Syria and the Iraqi army with challenging weapons and resources. The spread of ISIS across these countries can be directly linked to their money. As ISIS conquered the Iraqi city of Mosul, they stole 500 billion Iraqi dinar ($420 million). According to Iraqi officials, ISIS is estimated to have around $2 billion in its coffers. In addition to their estimates, Iraqi officials, most notably former Prime Minister Nouri al-Malaki, accuse Saudi Arabia of providing financial support to ISIS. The US, however, the Saudis most important ally, dismissed al-Maliki's accusation via the Department of State. The Washington Institute for Near East Policy agrees with the State Department, but perhaps with an asterisk. According to their website, the Washington Institute says, "At present, there is no credible evidence that the Saudi government is financially supporting ISIS. Riyadh views the group as a terrorist organization that poses a direct threat to the kingdom's security." Though, perhaps, the Saudi government may not be aiding ISIS, private individuals within Saudi Arabia may be; there is evidence to support these claims.
Other states such as Turkey and Qatar have also been drawing criticism for links to ISIS. Turkey, as it is known, has had a very ambivalent attitude about its border, which has allowed weapons and money to flow into Syria, an action backed by the Saudis and Qataris. According to BBC Middle East, believing that Syrian president Bashar al-Assad would soon fall from power, Saudi Arabia and Qatar funded Sunni Islamist groups, hoping that their political goals would be achieved through Sunni political Islam. It is at the very least arguable that Saudi Arabia and Qatar, though perhaps not through their respective governments, made a deal with the devil in the form of ISIS hoping for short-term benefits. It seems as if they have begun to regret their decision to aid ISIS in the hopes of removing Bashar al-Assad, as is apparent from their involvement, along with the US and other countries, to bomb ISIS locations.
The war economy (usually a set of contingencies undertaken by a modern state to mobilize its economy for war production; in this case, it has become an engine for growth of ISIS and its finances) has also given financial sustenance to ISIS. Apart from the expected intimidation tactics that get relatively small amounts of money, the terror group has begun to set up structures in conquered territories that are state-like, setting up courts of law and even taxing those subjugated to their tyranny. After ISIS takes control of an area, they quickly move like locusts to control the water, flour, and hydrocarbon resources of the area, making those who depend upon them to then depend upon ISIS. Not only that, ISIS also manages to export about 9,000 barrels of oil a day at prices ranging from about $25-$45, thanks to the oil fields that have fallen under their control. According to The Telegraph, a publication based in Britain, five captured oil fields provide ISIS with up to $2,879,190.00 ( £1.8 million) a day.
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| Murdered American journalist James Foley (NBC News) |
Disgustingly, ISIS also manages to profit from hostages, raking in more than $63 million (£40 million). Each hostage is thought to "cost" around $5 million (£3 million), though James Foley, the American journalist murdered by ISIS, was being ransomed at more than $120 million (£80 million).
The financial gains made by ISIS make them a much more formidable foe than anything the US and the world has faced before. In a bi-partisan letter to the US Secretary of State John Kerry, senators Marco Rubio (R-Fla.) and Bob Casey Jr. (D-Pa.) are pushing the Obama administration to do more to cut off ISIS' funding. In the letter, the senators refer to ISIS as the "best funded terror group in history." The senators continue saying, "This wealth has helped expand their operational capacity and incentivized both local and foreign fighters to join them." The appeal of ISIS as a well funded terror organization, or terror state, has brought people from around the world, even from North America and a startling number from Europe, to join their cause.
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| ISIS militants posing for a photo (MidnightWatcher) |
ISIS presents a major threat to the United States and the world in general. These demented radicals are not hiding in caves nor are they coy in their attempts to seize territories and destroy lives. Images of their evil are readily available on the Internet and their cruelty is indeed difficult to see. ISIS has no regard for human life nor for people's freedom. If the Middle East and the world has any hope for peace, ISIS must be dealt with soon and decisively. If not, more blood and treasure will be spent in the future and that means moving to cut off their revenue streams. While the group can be embargoed and sympathetic donors in other nations tracked down by security forces, without a sizeable ground force that can wrench back ISIS controlled territory, it seems unlikely that the group’s funds will dry up any time soon. Whether any of the international community are willing to go beyond airstrikes and commit soldiers to such a chaotic region remains to be seen.
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SOURCES:
Becker, Andreas (6/19/2014). Deutsche Welle. Who Finances ISIS?
Stephens, Michael (9/01/2014). BBC (Middle East). Islamic State: Where does jihadist group get its support?
Plotkin Boghardt, Lori (6/23/2014). Washington Institute for Near East Policy. Saudi Funding of ISIS.
Alexander, Harriet and Beach, Alastair (8/23/2014). The Telegraph. How Isil is funded, trained and operating in Iraq and Syria
This was a good, well written, and informative post. I knew a bit about ISIS and and what they have done so far, however I had no idea that ISIS was so financially stable. I especially found the sections about how ISIS makes "profit from hostages" to be very interesting.
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