Financial Crime World

IRAQ FACES CALL TO ACTION ON TERRORISM FINANCING REGULATIONS

======================================================

A recent report by the Financial Action Task Force (FATF) has highlighted the need for Iraq and the international community to take stronger action against terrorist organization ISIL’s funding streams.

ISIL’s Primary Source of Income

According to the FATF report, ISIL’s primary source of income comes from the territory it occupies, including:

  • Appropriation of cash held at state-owned banks
  • Exploitation of oil fields
  • Estimated gain: half a billion USD in late 2014

FATF Recommendations and International Response

The FATF has identified several sources of funding that ISIL relies on to finance its terrorist activities, including:

  • Regular investments into infrastructure and governance requirements
  • Many countries have established stronger legal, regulatory, and operational frameworks to detect and prosecute terrorist financing activity

However, more needs to be done to deprive ISIL of its assets and disrupt its financial flows. The report highlights a number of new and existing measures that countries can take to achieve this goal, including:

  • Proactively identifying individuals and entities for inclusion on the UN Al Qaida Sanctions Committee list
  • Sharing practical information and intelligence at an international level
  • Suppressing ISIL’s proceeds from the sale of oil and oil products

Need for Further Research

The report also emphasizes the need for further research into modern communication networks, such as social media, which are being used by ISIL to fundraise.

Iraq’s Response

In Iraq, where terrorism financing remains a significant threat, the government has been urged to take swift action to implement FATF recommendations and strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. This includes:

  • Increasing transparency in the financial sector
  • Improving reporting mechanisms for suspicious transactions
  • Enhancing international cooperation

Experts’ Warning

Experts warn that without urgent action, ISIL’s ability to fund its terrorist activities will continue to pose a significant threat not only to Iraq but also to global security.