CYIL vol. 8 (2017)

CYIL 8 ȍ2017Ȏ MONEY LAUNDERING AS A FORM OF FINANCING TERRORISM … the military intervention of the Russian air force which decimated the capacity of ISIL to produce and transport energy. When it comes to the internal market or territory that ISIL has under control, oil and gas are sold at the highest price since a monopolistic position in the market allows the terrorists to generate income. In addition to this economic dimension, trade in oil and oil products provides an opportunity for the terrorists to put pressure on the rebel structure in Syria, as was the case with the blockade of supplies to the oil region town of Aleppo in the spring of 2015. 17 Loss of control over the ancient city of Palmyra in May 2016 led to a significant drop in revenue from gas, as around and above the city are plants for the exploitation of natural gas. Phosphate mines and the sale of phosphoric acid make a significant contribution to the revenue of ISIL, as well as the sale of agricultural goods that are grown in the most fertile provinces that are under the control of ISIL. It is noteworthy that ISIL controls more than 80% of Syrian cotton production exported and sold to customers in the vicinity of the Turkish border with Syria at a very low and affordable price. Revenue from ISIL organized crime reaches astronomical numbers, made up of “dirty” money, which is the result of criminal activities such as kidnapping and ransom (businessmen, foreigners…), extortion, taxes (10-50%) of all economic activities taking place in the territory under the control of ISIL, including customs duties for vehicles which transit the occupied territory, etc. Not a small figure in the ISIL budget comes from confiscation of movable property and the plunder of people who live in the occupied territories, and the collection of penalties for misconduct which is not in accordance with the traditions of Sharia law, such as alcohol, tobacco, psychoactive substances, misconduct or inappropriate clothing in public places Trafficking, especially of women and children, regardless of the media and publicity of this, is not making a large financial contribution to the ISIL budget, because the average selling price of slaves amounts to 40-165 US dollars. 18 Antique trade on the black market is an additional and modest item in the financial income of ISIL. Despite the fact that the members of this terrorist group controlled the ancient city of Palmyra, which has valuable archaeological artifacts, revenues from the sale of antiquities from archaeological sites in Syria and Iraq are marginal sources of income with respect to all previously mentioned sources. 19 Donations or external sources of income make up only a small percent of the total budget of ISIL. The fact that the financial system of a terrorist organization does not depend on external factors is one of the most important factors that led to ISIL’s leadership position in the list of the most powerful terrorist organizations in the world. Financial expenses of “ISIL” The process of money laundering used by terrorists is similar to that process used by members of organized crime; the difference is its ultimate goal or final use - the function of the money. Money laundering as an illegal activity is focused on concealing the origin of “dirty” money gained from criminal activities. The ultimate outcome is lucrative and relates to the acquisition of material gain, and avoiding criminal responsibility. Terrorists, because of 5.

17 “ ISIS Financing ” (Center for the Analysis of Terrorism. 2016) p. 17. 18 “ ISIS Financing ” (Center for the Analysis of Terrorism. 2016) p. 17. 19 Ibid .

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