REVEALING: How Has ISIS Become One Of The Richest Ever Militants Groups?

                   

 

Over the last few weeks the Islamic State in Iraq and Syria (ISIS) has expanded from its stronghold in northern Syria across large swathes of western Iraq. The speed and scale of the advance has caught most observers by surprise, as have reports that put the jihadist group's wealth as high as $2 billion. But just where does ISIS get the mountains of money that make it such a potent force? These 6 manipulative means explains better

 Extortion

The Council on Foreign Relations estimates that in 2013, when Mosul was under Iraqi control, ISIS was raking in around $8 million every month by extorting cash and taxes from local businesses.

With large swathes of Iraq now under ISIS control, this figure could multiply. The group is also reported to take a cut of aid flowing in to humanitarian groups working in the territory it controls. 

Drugs, kidnapping, money-laundering

ISIS also makes money through techniques more familiar to mafia organizations than jihadist revolutionaries.

Josh Rogin, senior correspondent at The Daily Beast, told CNN that the group excels at "terrorist fundraising activities (like) kidnapping, robbing and thieving. They're (also) involved in the drug trade. They have money laundering schemes."

In the past week, scores of Turkish and Indian citizens have been abducted as ISIS has swept across large areas of northwestern Iraq. 

Electricity

The New York Times reports ISIS is selling electricity from captured power plants in northern Syria back to the Assad government.

They have been able to do this relatively unmolested as the Syrian military has proven more likely to go after other anti-government groups operating in the area.

ISIS has made similar moves to take control over power plants and electricity producing facilities in Iraq in recent weeks, including the Baiji refinery near Kirkuk. 

Oil

Northern Syria is oil rich and ISIS is cashing in on the territory it controls there by selling crude produced in this region back to the Syrian government.

With the group now moving into Iraq, where further oil fields abound, the possibility of militants taking possession of more of the black gold is very real. Last week, ISIS launched an attack on the Baiji Oil Refinery, the largest such facility in Iraq. 

Donors

The Daily Beast senior correspondent Josh Rogin reports that ISIS has been funded for years by wealthy private donors living in Kuwait, Qatar, and Saudi Arabia -- countries the U.S. considers allies.

Rogin told CNN that while officials in these nations have plausible deniability and can say they weren't funding them directly, many in senior government positions will be are aware of what has been happening but have chosen to look the other way.

ISIS also produces an annual report of its activities (highlighting its operational success and territories gained) in what experts at the Institute of War believe is an attempt to display the groups efficacy to potential donors sympathetic to its cause.

Spoils of conquest

ISIS fighters literally struck gold when they entered Mosul, Iraq's second largest city, in early June. The jihadist group ransacked the city's central bank and other financial institutions taking a large amount of bullion and an estimated $430 million.

According to some calculations, this took ISIS's overall wealth to a staggering $2 billion. That's many times more money than the likes of the Taliban or Al Qaeda have ever possessed. The Money Jihad blog, meanwhile, estimates ISIS now has more money than small nations like Tonga and Kiribati.