CYIL vol. 8 (2017)

JELENA DINIC

CYIL 8 ȍ2017Ȏ

7. Microfinancing of “ISIL” through unlawful financing activities A large number of studies and research has been done on the topic of financing ISIL through the energy trade and the income of organized crime, while the topic of microfinancing has been neglected and marginalized. Recruits of ISIL represent an important link in the chain of financing of terrorist organizations because of different application techniques of money laundering and fraud in the financial sector of some countries contributing to the overall budget of the self-proclaimed caliphate. 33 Foreign fighters who, like ISIL recruits, join in a wide range of methods used by financial misappropriations as a form of contribution to the terrorist organization. 34 Significant financial contributions were made by fighters originating in Europe, which at the time of recruitment were encouraged by the recruiter in the time of joining ISIL to bring all the cash assets that they own. It is estimated that about 5,000 fighters from the European Union have joined ISIL in the last two years, and most of them had a good credit history, solvency and useful business contacts, making them a valuable element in the process of financial fraud and the concealment of cash flows intended for activities of ISIL. 35 Intelligence services on the basis of specific indicators detect foreign fighters who are preparing to join the ISIL. Sudden sales of real estate and movable property, leaving work without prior notice, or the withdrawal of large sums of money from savings accounts creates grounds for suspicion of financial-intelligence services and launches a number of new fighter investigations. A certain number of ISIL recruits, before leaving, have access to the financial system, and often abuse their position by trying to obtain large amounts of money while skillfuly hiding their traces. Recruits usually carry large amounts of cash, which, at the risk of being caught on the way to the final destination, are usually conveyed through the Turkish-Syrian border. Also, before departure they take large bank loans or buy cars which are later resold. In addition to doing what is legally impermissible, ISIL recruits serve to find legal ways to raise funds with the help of humanitarian organizations to help the Syrian people. The report of the FATF Group from 2014 highlights the fact that the humanitarian organization activities was just a cover for the financing of terrorist activities and can be identified by transfers of money to other “correspondent” organizations that are located near the territory of ISIL. 36 Another important form of individual financing is the so-called Tajheez Al-Ghazi foundation system that includes a wide network of sponsorships with no central point of the bookeepingbookkeeping. 37 Absence of a central collector creates a challenge for detection by financial-intelligence services because it is difficult to detect the purpose of sponsoring someone’s flights or other items used by jihadists in the implementation of terrorist activities. Small street robbery and pickpocketing and bank fraud committed by individuals (taking 33 BERG, S., MCCARTHY, K. J., 2016. The economics of ISIS – case of theft or money laundering? Freedom from Fear , 2016 (11), pp. 80-85. 34 RANSTORP, M., “Microfinancing the Caliphate: How the Islamic State is Unlocking the Assets of European Recruits”, Combating Terrorism Center at West Point , Volume 9, Issue 5. (2016). 35 Ibid. 36 RANSTORP, M., “Microfinancing the Caliphate: How the Islamic State is Unlocking the Assets of European Recruits”, Combating Terrorism Center at West Point , Volume 9, Issue 5. (2016). 37 Ibid.

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