UN adopts a resolution to disrupt IS funds

Published 7:53 am Friday, December 18, 2015

UNITED NATIONS — The U.N. Security Council unanimously adopted a resolution Thursday aimed at disrupting revenue that the Islamic State extremist group gets from oil and antiquities sales, ransom payments and other criminal activities — a goal that finance ministers agree will be challenging.

The Islamic State group, also known as ISIL and Daesh, is already subject to U.N. sanctions under resolutions dealing with al-Qaida. The resolution, sponsored by the United States and Russia, elevates IS to the same level as al-Qaida, reflecting its growing threat and split from the terror network behind the 9/11 attacks.

U.S. Treasury Secretary Jacob Lew, who chaired the meeting, called ISIL “a challenging financial target” because unlike other “terror groups” like al-Qaida it gets a relatively small share of its funding from donors abroad.

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The Islamic State group controls a large swath of Syria and Iraq, including oil and gas fields, though bombing campaigns by the U.S.-led coalition and ground forces have enabled Iraq to regain some territory.

Lew said it generates funds from economic activity and the resources in territory under its control and its financing “has evolved from seizing territory and looting bank vaults to leveraging more renewable revenue streams.”

So far, he said, “ISIL has reaped an estimated $500 million from black market oil and millions more from the people it brutalizes and extorts.”

At the same time, Lew said, ISIL has vulnerabilities because it needs large and sustained streams of income to pay fighters, procure weapons, and provide basic services for people living in areas it controls.

He stressed that IS needs access to the international financial system for oil equipment, weapons, communications equipment and other imported items which requires them to move funds — and that provides opportunities for attack.

To cut off oil revenue, Lew said the U.S.-led coalition has been attacking ISIL’s entire oil supply chain from oil fields and refineries to destroying nearly 400 of its tanker trucks in the past month.

He said the United States is working with its partners to target ISIL’s key “financial facilitators.”

France’s Finance Minister Michel Sapin said the international community can target IS’ internal revenue sources, “by destroying Daesh,” adding that the U.N. resolutions are part of a broader effort to fight its financing.

Sapin told the council that last month’s Paris attacks were largely financed through pre-paid cards whose buyers and recipients can’t be traced. He called for regulations that do away with anonymous transactions.

The resolution stresses that “any individual, group, undertaking, or entity supporting ISIL or al-Qaida” is subject to U.N. sanctions, including an asset freeze, travel ban and arms embargo.

It is drafted under Chapter 7 of the U.N. Charter, which can be militarily enforced.

The resolution encourages the 193 U.N. member states “to more actively submit” names for inclusion on the sanctions list and expresses “increasing concern” at the failure of countries to implement previous sanctions resolutions.

The resolution urges countries to share information about extremist groups and calls for a report within 120 days on what every country is doing to tackle the financing of IS and al-Qaida.

It also requests Secretary-General Ban Ki-moon to provide an initial “strategic-level report” in 45 days on the sources of financing of IS and associated groups, including through illicit trade in oil, antiquities and other natural resources, as well as their planning and facilitation of attacks, and to provide updates every four months.