CYIL vol. 8 (2017)

JELENA DINIC CYIL 8 ȍ2017Ȏ aim to conceal the origin of “dirty” money gained by illegal activities. In contrast to the above mentioned, terrorists in cooperation with members of organized crime groups or individually use a wide range of financial embezzlements to conceal the purpose of money. Money is the “motor fuel” of all terrorist organizations. Financial resources are an essential item for the preparation and execution of terrorist attacks. Numerous studies showed that a terrorist attack by itself required less money than material goods needed for the maintenance of terrorist cells, logistical support and preparation of terrorist attacks. 2 The emergence of the terrorist organization “Islamic State of Iraq and Levant” (ISIL) was motivated by jihadis fighting against the US occupation of Iraq. After more than a decade of their activities, ISIL has become the richest terrorist organization in the world, having several billion US dollars in money. 3 The budget of ISIL is filled with resources acquired from organized crime through the oil trade, human trafficking, antiques, plundering, and levying taxes in the territory that is under the direct control of this terrorist organization. Money collected in this manner was used to maintain a strict hierarchical structure of organizational units, as well as the preparation of terrorist attacks. In order to conceal the true purpose for which the money will be used, members of ISIL use different modalities of money laundering, thus avoiding financial intelligence investigation. Due to the fact that ISIL owns the territory over which it performs direct control, money laundering is conducted in countries that are outside the “borders” of ISIL. Origins and organizational structure of “ISIL” The terrorist organization Islamic State of Iraq and the Levant (ISIL or Daesh 4 ) originates from the Sunni fundamentalist fighters who fought against the US occupation of Iraq, while the form that exists today officially was founded on the 3 January 2014 as a self-proclaimed caliphate that had territorial control over parts of Syria, Iraq, Libya and Nigeria. The official leader of the terrorist organization, Abu Bakr al-Baghdadi, is the former imam of a mosque in Iraq and he earned a doctorate in pedagogy at Baghdad University. The primary objective of ISIL is to spread a fundamentalist interpretation of the Koran and the fight against the infidels and all people who are not Muslims and refuse to join ISIL. Implementation of the most brutal methods of fighting and the provisions of Sharia law in recruiting supporters and the elimination of superiors of religious and political opponents makes this terrorist organization among the cruelest and most extreme in the world. Based on the data given in a study published in May 2016, ISIL controlled territory of 70, 000 km² with about 8 million inhabitants. 5 The administrative structure of ISIL has bureaucratic characteristics, but also has a very flexible form in terms of adapting the group to deficiencies in certain resources. 6 The political and religious leader of ISIL Abu Bakr al Baghdadi is in charge of the “cabinet” and hierarchical structure of this organization. The 2 TEMPLE-RASTON, Dina, ‘ How much does a terrorist attack cost? A lot less than you’d think. [2016] ’ http://www. npr.org/sections/parallels/2014/06/25/325240653/how-much-does-a-terrorist-attack-cost-a-lot-less-than-you- think Accessed 01 July 2016. 3 How ISIS makes its money [2016] https://www.washingtonpost.com/news/wonk/wp/2015/11/18/how-isis-makes- its-money/ Accessed 28 June 2016. 4 Acronim for “al- Dawla al - Islamiya fi al- Iraq wa al- Sham ”, Islamic State of Iraq and Sham (Syria). 5 “ ISIS Financing ” (Center for the Analysis of Terrorism. 2016) p. 8. 6 Ibid. 2.

280