ISISISIS's finances have been damaged, but U.K. can do more

Published 12 July 2016

In their report on ISIS’s finances, MPs on the Foreign Affairs Subcommittee say ISIS faces an increasingly desperate struggle to raise money. The so-called “richest terrorist group” may have generated more money than any other terrorist organizations but it also incurs unprecedented costs.

A report from the House of Commons Foreign Affairs Subcommittee considers the known methods by which ISIS raises revenue — including oil production, taxation, cash storage facilities, donations, and access to local and international financial systems. The United Kingdom has worked with the coalition to block these routes as part of an economic war, including the use of airstrikes to destroy ISIS’s bulk cash storage facilities and oil infrastructure.

The subcommittee says the United Kingdom has the capacity to lead the international effort to isolate ISIS financially. But for its contribution to match its potential, the United Kingdom must do more to ensure that experts in its public and private sectors work effectively together, and that allies abroad have access to this expertise.  

Chair’s comments
The report was prepared by a subcommittee of the Foreign Affairs Committee.  Chair of the subcommittee, John Baron MP, commented:

ISIL’s finances have been damaged by the Coalition’s efforts but more needs to be done. The U.K. contribution seems underpowered compared to our potential.
ISIL thrives in states debilitated by war. The Iraqi Government must demonstrate that this terrorist organization does not and cannot generate income from inside Iraq’s financial systems - that must be transparent to all. The U.K. Government is in a position to help Iraq develop effective abilities of its own to counter ISIL’s finances.
Much depends on blocking access to local and international money-making activities. The U.K. Government needs to speed up the recruitment, and ensure the retention, of specialists who understand local custom and practice.
This is a fluid picture. As oil and tax revenues decline, ISIL is likely to seek new sources of funding. The U.K. should take a leading role in international efforts to identify and target new funding streams for ISIL with a stronger role in the CIFG (Counter-ISIL Finance Group) currently chaired by the U.S., Italy, and Saudi Arabia.

— Read more in The U.K.’s Role in the Economic War against ISIL (U.K. Parliament, 11 July 2016)