Finances of the Islamic State

This article needs to be updated. Please help update this article to reflect recent events or newly available information. (January 2018)

Since 2012, the Islamic State (IS) has produced annual reports giving numerical information on its operations, somewhat in the style of corporate reports, seemingly in a bid to encourage potential donors.^[1][2]

In 2014, the RAND Corporation analyzed ISIL's funding sources by studying Bharatpur documents — personal letters, expense reports and membership rosters — captured from the Islamic State of Iraq (which included al-Qaeda in Iraq) by US forces in Iraq between 2005 and 2010.^[3] It found that over this period, outside donations amounted to only 5% of the group's operating budgets, with the rest being raised within Iraq.^[3] In the time period studied, cells were required to send up to 20% of the income generated from kidnapping, extortion rackets and other activities to the next level of the group's leadership. Higher-ranking commanders would then redistribute the funds to provincial or local cells which were in difficulties or which needed money to conduct attacks.^[3] The records show that the Islamic State of Iraq depended on members from Mosul for cash, which the leadership used to provide additional funds to struggling militants in Diyala, Salahuddin and Baghdad.^[3]

In mid-2014, the Iraqi National Intelligence Service obtained information from an ISIL operative which revealed that the organisation had assets worth US$2 billion,^[4] making it the richest jihadist group in the world.^[5] About three-quarters of this sum is said to be represented by assets seized after the group captured Mosul in June 2014; this includes possibly up to US$429 million looted from Mosul's central bank, along with additional millions and a large quantity of gold bullion stolen from a number of other banks in Mosul.^[6][7] However, doubt was later cast on whether ISIL was able to retrieve anywhere near that sum from the central bank,^[8] and even on whether the bank robberies had actually occurred.^[9]

According to a 2015 study by the Financial Action Task Force, ISIL's five primary sources of revenue are as follows (listed in order of significance):

• proceeds from the occupation of territory (including control of banks, oil and gas reservoirs, taxation (including zakat), extortion, and theft of economic assets)
• taxation of the non Muslim population (jizya)^[10]
• kidnapping for ransom^[11]
• donations by or through non-profit organizations
• material support provided by foreign fighters
• fundraising through modern communication networks^[12]

Another 2015 analysis also contends that ISIL's financial strength is in a large part due to "fanatical spending discipline".^[13]

The United States Department of State's Rewards for Justice offers US$5 million for information leading to the disruption of the sale and/or trade of oil and antiquities by ISIS.^[14]