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Tags: finances | oil prices | FATF

Report: Islamic State's Financial Network 'Vulnerable'

By    |   Friday, 27 February 2015 12:57 PM EST

The Islamic State's financial foundation is currently "vulnerable" due to the fall in oil prices and the declining ability of the group to extort resources in the territories they occupy, an international agency fighting terrorist financing has said.

According to CBS News, the Financial Action Task Force (FATF) released a report Friday encouraging governments to do more to cut off funds to the group.

"A number of traditional countermeasures used to deprive terrorist organizations of its funds are not applicable with respect to the new model adopted by ISIL," said the report.

Special: Find Out Everything You Need to Know About the Rise of ISIS — Click Here

"However, like any terrorist organization, ISIL's financial, logistical and supply networks are vulnerable."

The report highlighted that most of the money the militant group amasses is from looting banks and farms, selling oil, kidnapping for ransom, remittances from abroad, and donations.

It is more diverse in its sources of funding than other terrorist organizations, the FATF said.

CBS News senior national security analyst Juan Zarate said last year that ISIS had developed a "hybrid form of funding" which was both global and local.

It is unclear how much money ISIS has but reports from last summer indicated that it was raising more than $1 million per day.

FATF said that the U.S.-led airstrikes along with falling oil prices had "significantly diminished" the group's revenue from oil as of late. It urged governments to find ways to diminish the Islamic State's online and other fundraising sources.

Special: ISIS: Everything you need to know about the rise of the militant group — Click Here

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The Islamic State's financial foundation is currently "vulnerable" due to the fall in oil prices and the declining ability of the group to extort resources in the territories they occupy, an international agency fighting terrorist financing has said.
finances, oil prices, FATF
271
2015-57-27
Friday, 27 February 2015 12:57 PM
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