Stopping American Terrorist Funding

A bill that was recently introduced to the House by Tulsi Gabbard, (D-HI-2) has received very little traction in the American mainstream media, particularly considering its importance and what it says about how the United States has handled the "Syria file".  

House Resolution 258 (formerly known as H.R. 6504 when it was introduced on December 8, 2016 in the 114th Congress) has the lengthy title "To prohibit the use of United States Government funds to provide assistance to Al Qaeda, Jabhat Fateh al-Sham, and the Islamic State of Iraq and the Levant (ISIL) and to countries supporting those organizations and for other purposes."  You may be thinking "Why is this bill even necessary?  Surely the United States is not supporting terrorist organizations, particularly given that America has spent the better part of the last decade and a half and trillions of my tax dollars fighting a global War on Terror?".  Well, you might just be wrong.

Here's what Ms. Gabbard had to say when introducing this bill back in December 2016: 

Here's part of the text of her speech:

"Under U.S. law it is illegal for any American to provide money or assistance to al-Qaeda, ISIS or other terrorist groups. If you or I gave money, weapons or support to al-Qaeda or ISIS, we would be thrown in jail. Yet the U.S. government has been violating this law for years, quietly supporting allies and partners of al-Qaeda, ISIL, Jabhat Fateh al Sham and other terrorist groups with money, weapons, and intelligence support, in their fight to overthrow the Syrian government....

“The CIA has also been funneling weapons and money through Saudi Arabia, Turkey, Qatar and others who provide direct and indirect support to groups like ISIS and al-Qaeda. This support has allowed al-Qaeda and their fellow terrorist organizations to establish strongholds throughout Syria, including in Aleppo.

The CIA has long been supporting a group called Fursan al Haqq, providing them with salaries, weapons and support, including surface to air missiles.  This group is cooperating with and fighting alongside an al-Qaeda affiliated group trying to overthrow the Syrian government. The Levant Front is another so-called moderate umbrella group of Syrian opposition fighters. Over the past year, the United States has been working with Turkey to give this group intelligence support and other forms of military assistance. This group has joined forces with al-Qaeda’s offshoot group in Syria". 

  

Here is a screen capture showing the first page of the bill:

If you are interested, you can click on this link to get the entire text of H.R. 258.  The bill was referred to the House Intelligence Committee on January 4, 2017. 

The situation in Syria and Iraq is particularly confusing to western politicians.  Things are rarely as they seem to be on the surface with various groups having alliances with other groups that are unclear.  Here are two diagrams showing the geopolitical complexity of the situation:

In their haste to remove Bashar al-Assad from power, the Obama Administration sent arms including anti-tank TOW missiles and mortars among other materiel to Jabhat Fateh al-Sham, the rebranded version of Jabhat al-Nusra, al-Qaeda's affiliate in Syria.  Apparently, the name change was enough to get the job done.  Here is a link to the page where the National Counterterrorism Center brands al-Nusra as a terrorist organization:

   

Apparently, even the name change wasn't fooling all of the people all of the time as shown in this document from the Counter Extremism Project:

Here's a quote from the document:

"The Nusra Front has pledged allegiance to al-Qaeda and previously reported to the latter group’s leader, Ayman al- Zawahri. On July 28, 2016, al-Qaeda leader Ayman al-Zawahiri released an audio statement giving the Nusra Front formal permission to break ties with al-Qaeda as needed.  Nusra Front leader Abu Muhammad al-Golani accepted the offer, thanking al-Qaeda and its leaders and announcing that the group no longer has “any affiliation to any external entity." 

And you can take that to the bank!  Apparently, it was enough for Washington.

Let's close with Ms. Gabbard's closing comments on the floor of the House:

"This madness must end. We must stop arming terrorists. The Government must end this hypocrisy and abide by the same laws that apply to its’ citizens."

We can hope that the new administration has a better understanding of the real repercussions of American foreign intervention....but I somehow doubt that things will change.  On the other hand, it is interesting to see that one Representative, a retired and decorated member of the U.S. Army,  can see outside the box, go off-script and challenge the rest of her colleagues into changing the military-industrial-political complex status quo in Washington.

The Islamic State and Body Parts

While the fight against ISIS/ISIL rarely appears on the front pages or headline stories of the mainstream except in cases where there appears to be a link between ISIS/ISIL and a terrorist attack, an interesting fatwa or legal Islamic declaration has been released by the ISIL Committee of Research and Fatwas.  

Fatwa Number 68, dated January 31, 2015 and found during a December 2015 raid in eastern Syria answers the age-old question:

"Is it permissible to take the captured apostate's body organs and give them to Muslims who are in need of them?"

The Islamic scholars that answered this question did so stating that Muslim hospitals are overwhelmed with diseases that are both "incurable by doctors and harsh on patients" and stated that Allah Almighty knows best what is right and what is wrong.  The scholars go on to point out that verse 5:32 of the Quran states the following:

"Because of that, We decreed upon the Children of Israel that whoever kills a soul unless for a soul or for corruption [done] in the land – it is as if he had slain mankind entirely. And whoever saves one – it is as if he had saved mankind entirely.  And our messengers had certainly come to them with clear proofs. Then indeed many of them, [even] after that, throughout the land, were transgressors." (my bold)

From this verse, ISIS' Islamic scholars claim that "saving a Muslim from death or deterioration is an Islamic legal duty that should be performed with every legitimate way or financial means.".  As well, they claim that jurists of two Islamic schools allowed Muslim warriors to actually consume the flesh of infidels and apostate Muslims when it is necessary to save their own lives.

In addition, ISIS' scholars claim that it is even more appropriate to transplant organs from the apostate to the Muslim to save the life of the Muslim since it has been ruled that the apostate's life and organs are not protected by Islamic law.  The categories of the apostate's organs are broken down into three types:

1.) the rule allowing the taking of apostate's organs is applicable when the organs could be put to use in both pre- and post-mortem cases.

2.) the organs that can only be used pre-mortem are divided into two groups:

a.) those organs that, when removed, would not be fatal to the captive.  Removal of these organs is permitted.

b.) those organs that, when removed, would be fatal to the captive.  Removal of these organs is also permitted as it is part of the Muslim's duty to benefit from the captive's body.

ISIS scholars then close the fatwa with the following verse from the Quran (verse 2:185):

"Allah intends for you ease, and He does not want to make things difficult for you."

In case you are interested, here is a graphic showing an English interpretation of the two page fatwa:

Let's close with a brief excerpt from a February 2016 article on the website of the International Center for the Study of Violent Extremism:

"In September of 2015, former ISIS prisoner Abo Rida was reported stating that surgeons for the terror group removed kidneys and corneas from prisoners. Rida reported ISIS informing their captives that “the fate of these prisoners (was) inevitable death” and the jihadists were “more deserving” of the organs. Rida said he escaped from ISIS after a counter-terrorism raid damaged their prison, but that he was fired upon trying to escape and was only one of four who made it out alive... 

In our ISIS Defector Interview Project at the International Center for the Study of Violent Extremism we were also informed by an ISIS defector in December of 2015 who maintains ties with other Islamic State cadres, both still in and out of the group that, “There is a statement now from Daesh:  ‘From this point you do not kill the slaves.  We need to use their bodies to make money [for organ trade].’ Basically, they are saying that the slaves are already ‘dead’. We need to make money off their bodies by selling body parts.” "

With this in mind, it is interesting to note that ISIS/ISIL adheres to the strictest interpretation of Islamic law.

  

Funding the Islamic State

A study by the Congressional Research Service looks at the source of funding that keeps the Islamic State functional.  Since ISIL has taken on the task of acting like a government in the regions that it has seized, it must have access to funds to provide its leadership and followers with both the materiel needed to fight their ongoing hostilities as well as offering services to the civilians who live in the regions that it controls.

The study opens by noting that ISIL has been able to limit its exposure to the international financial system by raising funds largely within the territory that they have conquered; this also means that ISIL has been able to fly under the radar of the world's government-based intelligence network, making it almost impossible for the West to combat this new type of terrorist financing.  This has made it very difficult for the West to slow ISIL's rate of growth since their funding cannot be cut off at the source as in the past with al-Qaeda and other terrorist groups.  Within the areas that it holds, the Islamic State controls a variety of both resources and public infrastructure in its wide-ranging income-generating portfolio as you will see in this posting.

Let's open with a map that shows the types of infrastructure and resources in ISIL's area of operation:

Here is a listing of the main sources of funding for the Islamic State:

1.) Oil and Natural Gas Sector in both Syria and Iraq:  I have posted on this source of ISIL funding  previously here.  Prior to the civil war in Syria, the government was producing approximately 400,000 BOPD from its feels in the eastern part of the nation with about 150,000 BOPD being exported to Europe and Turkey.  Since hostilities began, Syria's oil production has fallen to about 20,000 BOPD as its infrastructure has sustained significant damage in the months between March 2011 and June 2014.  The Islamic State also controls a number of relatively small oil fields located in northern Iraq and added the Baiji refinery to its assets when it was captured in June 2014.  This refinery has the capacity produce 170,000 BOPD of petroleum products, however, during the five month period that it was under ISIL control, it produced at significantly lower volumes.  ISIL also has small mobile refineries that are capable of producing 300 to 500 BOPD of petroleum products that are used to fuel its own military movements.  ISIL's oil-related activities generated as much as $1 million daily but, after sustaining significant damage, it is estimated that ISIL's oil infrastructure now generates several million dollars weekly. 

2.) Antiquities:  Analysis suggests that ISIL's second largest source of income is from the looting and sale of antiquities looted from the regions that the group controls.  These antiquities are stolen from national museums, storage depots and private collections as well as from newly excavated archeological sits.  It is estimated that one-third of Iraq's archeological sites are under ISIL control; the Islamic State is reportedly granting excavation sites along the Euphrates River in Syria and overseas their excavations.  In the city of Manjbi, ISIL has established an office which handles antiquities and supplies metal detectors to prospective treasure hunters.  The antiquities are sold to approved dealers who sell the goods in U.S. dollars after a tax of between 20 and 50 percent is paid.  As of early 2015, nearly 100 looted Syrian artifacts have been smuggled into the United Kingdom; these include Byzantine coins, Roman pottery and glass objects.  Some estimates suggest that the total volume of illicit trade in antiquities exceeds $100 million annually, however, some of the antiquities are also being sold by the Syrian government, Free Syrian Army and other Islamic militias.

3.) Taxes, Extortion and Asset Seizure:  A report by the Financial Action Task Force found that ISIL funded itself through extortion rackets in its areas of operation.  The group "manages a sophisticated extortion racket by robbing, looting, and demanding a portion of the economic resources in areas where it operates, which is similar to how some organized crime groups generate funds."  ISIL uses relatively sophisticated and formalized internal financial management techniques  by even providing receipts for levies that are paid.  Here are some of its key activities:

a.) Bank Looting:  ISIL now derives a significant portion of its wealth by controlling the bank branches in the regions where it operates.  The cash at state-owned banks are considered to be ISIL property while the cash at private banks remains in vaults and is taxed at 5 percent by ISIL when it is withdrawn fly the bank's customers.  It is estimated that ISIL has either generated or has access to at least $500 million in cash as a result of its control of the banking sector in four provinces of Iraq (Ninevah, Al-Anbar, Salah Din and Kirkuk).  Much of this cash is denominated in the local currency (dinar) making it difficult for ISIL to use it outside of Iraq.   

b.) Human Trafficking: ISIL primarily targets women as a source of revenue; women are kidnapped and bought and sold in ISIL "slave auctions".  Prices paid are relatively low (approximately $13 US) so this is not a particularly lucrative fund-raiser for ISIL.   ISIL has even generated a "suggested retail price listing" for its slavery business as you can see here:

                A woman aged 40 to 50 years is sold for 50,000 dinars.

                 A woman aged 30 to 40 years is sold for 75,000 dinars.

                 A woman aged 20 to 30 years is sold for100,000 dinars.

                 A girl aged 10 to 20 years is sold for 150,000 dinars.

                 A child aged 1 to 9 year, is sold for 200,000 dinars.

                 

For your information, one Iraqi Dinar equals 0.00087 U.S. dollars or, conversely, one U.S. dollar is worth 1155 Iraqi Dinar.

c.) Customs and Passage Fees: ISIL controls some key border checkpoints, allowing the group to charge fees from those who seek to transport goods in or out of ISIL-held areas.  Drivers reportedly pay between $200 US and $1000 US in fees and bribes to move goods into ISIL territory.  A similar process exists for smuggling persons across the Turkey - Syria border.

d.) Business Taxes: Individuals who seek to do business in ISIL-held territory pay a percentage of their earnings to the group; for example, in the case of pharmacies in Mosul, they are taxed at between 10 percent and 35 percent of the value of drugs sold.  The Islamic State also taxes farmers and shopkeepers, describing the fees as zakat or "obligatory charity", an obligation for all Muslims who must pay annually to help the poor in their community.  Interestingly, ISIL charges a monthly tax on students who attend school in cities under its control; $22 for elementary school, $43 for secondary school and $65 for university.

e.) Utilities Tax: Since ISIL controls the infrastructure in some regions, they can demand payment for utility services that they provide.  In Raqqah, ISIL charges business owners $20 on a bimonthly basis for providing electricity, water and security.

f.) Religious Tax: ISIL has imposed jizyah, an extra tax imposed on non-Muslims (particularly Christians) who live under Muslim rule, according to the rules of the Quran.  Jizyah is imposed once a land is conquered by Islamic armies and is paid as a sign of submission, giving non-Muslims legal protection in return.  Some reports state that Christians had to pay one half ounce of gold to secure their protection and in others, jizyah amounted to a few dollars monthly.

4.) Kidnapping for Ransom:  ISIL has generated between $35 and $45 million in ransom fees in 2014 alone, according to the United Nations.  The victims are usually local residents, however, ISIL has included foreign aid workers and journalists.  In the case of American journalist James Foley, a ransom of $132.5 million US was demanded.  France has reported paid $18 million for four of its captured journalists in April 2014.  While the United States and United Kingdom governments refuse to pay ransom as a matter of policy, other European nations have paid ransoms to ISIL under the guise of "development funding".

5.) External Support:  Externally generated funding of ISIL is relatively small with estimates that the Islamic State accumulated up to $40 million in funds from donors in Saudi Arabia, Qatar and Kuwait in 2013 - 2014.  Some of the groups foreign fighters also receive funding from their home nations.

6.) Agriculture: By seizing the land along the Tigris and Euphrates Rivers, ISIL now controls significant portions of Iraq's most agriculturally productive lands.  One study estimates that the selling of ISIL-controlled wheat and barley on the black market could generate roughly $200 million annually, even if the goods are sold at half price.  By mixing their agricultural products with products from other regions of Iraq that are not under the control of the Islamic State, ISIL can "launder" the origins of any harvests that they are trying to sell.  ISIL now controls about one-third of Iraq's wheat and 40 percent of Iraq's barley.  Silos taken over by ISIL in northern and western Iraq in the summer of 2014 enabled the militants to acquire 1.1 million tons of wheat, roughly 20 percent of Iraq's annual wheat consumption.  

Let's close this posting by taking a quick look at what ISIL does with its money.  In early 2015, ISIL approved a $2 billion budget for the year with a surplus of $250 million, an enviable fiscal position indeed!

1.) Salaries:  ISIL pays its fighters between $400 US and $600 US monthly with married fighters getting an extra stipend.   Iraqi and Syrian government workers who still work for their governments in ISIL-controlled areas are still paid by their respective governments, however, when the government employees withdraw their salaries in cash, ISIL taxes the withdrawals at rates of up to 50 percent.

2.) Infrastructure:  ISIL must maintain and repair infrastructure in the regions that it controls, particularly infrastructure that provides electricity and water.  ISIL issued three tenders in late 2014 for the installation of aerial cables between power substations in eastern Syria.

3.) Social Welfare:  ISIL's leadership has emphasized that the group must provide services to the civilian population under its control.  It covers mostly subsistence expenses for poor, disabled, orphaned and widowed civilians, runs schools, Islamic courts, a Consumer Protection Authority, local police forces, food kitchens and other social projects that are unrelated to the group's military objectives.

As I noted at the beginning of this posting, unlike other terrorist groups, ISIL is able to self-fund within the territory that it controls.  Unlike other terrorist groups like al-Qaeda, it does not rely on donations from wealthy individuals or foreign Islamic charities since it functions more-or-less like a government.   This factor is what will make it difficult to choke off its sources of funding; until the regions that it holds are recaptured, the Islamic State is quite capable of funding its own operations since it works beyond the control of the Western governments that have traditionally been able to cut off the supply of funds to other terrorist groups.