CYIL vol. 8 (2017)

JELENA DINIC CYIL 8 ȍ2017Ȏ The FATF (Financial Action Task Force) Group, which was created in Paris in 1989 as an intergovernmental body, has an assignment to establish and promote the implementation of legal and operational measures for preventing and combating money laundering and terrorist financing. An especially sensitive area that the FATF group is trying to regulate is the normative area of business confidentiality and financial institution activities. 11 From the normative point of view, a particularly important role in the prevention of money laundering and terrorist financing are Directive 2005/60 / EC and Directive 2015/849. Directive 2005/60 / EC is the cornerstone of the European system for combating money laundering, because it requires financial and non-financial institutions to report to the competent services any suspicious transactions. 12 It is important to emphasize the fact that Directive 2005/60 / EC has become an integral part of EU law. The final directive regarding combating money laundering and terrorist financing was adopted in May 2015 under (EU) No. 2015/849, pursuant to Article 114 of the Treaty on the Functioning of the European Union and represented the results of joint EU forces focused on the locating of activities funding terrorist through money laundering. 13 The destructive power of the terrorist organization ISIL lies in its economic and financial strategy based on the use of many sources of funding as part of the territory they control. The autarchic financial system of ISIL has created one of the most powerful terrorist organizations in history based on the latest estimates, it has a wealth amounting to several billion dollars. 14 That fact makes this terrorist organization rich compared to most countries in the world. Sources of ISIL income can be divided into several categories. 15 Natural resources are the primary source of income for ISIL. Control over dozens of oil fields in Syria and Iraq provides an opportunity for terrorists to trade oil on the black market with countries that want to avoid the major monopolists of the world market in oil and gas and buy energy at a favorable price. At the G20 summit at the end of 2015 in Antalya, Russian president Vladimir Putin publicly presented a video that showed a convoy of vehicles that export oil and gas to neighboring countries, emphasizing intelligence data regarding the fact that the budget of ISIL is made up of money which originated from more than 40 states, some of which are members of the G20. 16 The decline in energy production and income from the same is connected to 11 FATF Group recommendations [2016]. http://www.fatfgafi.org/media/fatf/documents/recommendations/pdfs/ FATF_Recommendations.pdf. Accessed 10 October 2017. 12 Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, Official Journal of European Union, L 309, p. 15-36. 13 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, Official Journal of European Union, L 141, p. 73-117. 14 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. 15 BRISARD, J. C. and MARTINEZ, D., Islamic State: The economy-based terrorist funding . (Thomson Reuters, 2014) p. 3. 16 Putin: ISIS financed from 40 countries, including G20 members [2016]. https://www.rt.com/news/322305- isis-financed-40-countries Accessed 28 June 2016. 4. Economic strategy and funding sources of terrorist organization “ISIL”

282