Financial Crime World

Taliban’s Leadership Faces Financial Crisis as Foreign Support Dwindles

Kabul, Afghanistan - The Taliban’s leadership is facing a financial crisis as foreign support for the group continues to dwindle. According to sources, many of the group’s key donors have stopped providing funding, leaving the leadership struggling to pay salaries.

Loss of Foreign Funding

The Haqqani Network, a key ally of the Taliban, has historically received funds from influential citizens and wealthy donors in Gulf states, as well as from foreign governments such as the US, Saudi Arabia, and Pakistan. However, it is believed that these donations have slowed down significantly.

Decline in Illegal Activities

In addition, the group’s income from illegal activities such as extortion, kidnapping for ransom, and drug trafficking has also decreased due to increased pressure from security forces.

Haqqani Network’s Illicit Activities

The Haqqani Network has been accused of engaging in a range of illicit activities including:

  • Extortion
  • Taxation
  • Smuggling

The group is believed to have received funds from Al-Qaeda and has close ties with the Pakistani Taliban.

Other Insurgent Groups’ Financial Struggles

Other insurgent groups operating in Afghanistan are also struggling financially. For example:

  • Hezb-e Islami Gulbuddin (HiG) is believed to engage in taxation and extortion activities, particularly of looted resources in eastern Afghanistan.
  • ISIL-KP, a rival group to the Taliban, has been struggling financially due to a lack of support from its parent organization in Syria and Iraq. The group generates most of its funds through:
    • Taxing and extorting the local population in its area of control and influence.

Impact on Group Operations

The financial struggles faced by these groups are likely to impact their ability to continue operating effectively, and may lead to increased competition for resources and funding.

Sources

  • Anonymous4 (2022)
  • Stanford Center for International Security and Cooperation (2017)
  • Rassler (2018)
  • Brown & Rassler (2013)
  • Peters & Rassler (2010a)
  • Davis (2021)
  • “Haqqani Network (Afghanistan/Pakistan)” (2019)
  • Bell (2013)
  • Zerden (2021)
  • Global Witness (2018)
  • Twelfth Report of the Analytical Support and Sanctions Monitoring Team (2021)
  • Jadoon & Mines (2020)