A new report from global police force Interpol has revealed that 96% of the $31.5 billion in illicit flows generated every year in conflict areas goes to organised criminal networks.
Complied in cooperation with Norwegian UN-collaborating centre Rhipto and the Global Initiative Against Transnational Organised Crime, the study found that the illegal exploitation and taxation of natural resources is now surpassing traditional sources of funding such as kidnapping for ransom and drug smuggling for terrorist and militant groups,
Thirty-eight percent of illicit money flows to armed groups in conflict zones now comes from the exploitation of natural/environmental resources, such as gold, minerals, diamonds, timber, oil, charcoal and wildlife, according to the report.
Drugs were the second-largest source of illicit money for armed groups and terrorist organisations, accounting for 28% of their income, followed by Illegal taxation, extortion, confiscation and looting (26%), and external donations (3%).
Commenting on the publication of the report, Interpol Secretary General Jürgen Stock said: “The huge volume of illicit money being generated through the exploitation of natural resources is of great concern. Criminal networks and their activities fuel violent conflict which in turn undermines the rule of law.
“The report provides a new impetus for our continued efforts to stem these illicit flows and combat the threat transnational organised crime poses to peace, development and security.”
The report’s authors recommend that improving enforcement and the sharing of information and analysis is essential in order to prevent, disrupt and defeat violent armed groups and the organised-criminal actors that create an environment of impunity and instability.
Noting how the seven main extremist groups have combined funding of up to $1.39 billion a year, the study outlines a number of examples of how terrorist organisations obtain their money.
Last year, the Taliban brought in as much as $95 million from taxation – mainly of drugs, land and agricultural produces – as well as from donations from abroad.
Around the middle of 2017, Daesh was making an estimated $10 million a month, just 98% of the $549–1,693 million it was pulling in at the height of its power in 2014. The study noted that the jihadi group likely has considerable cash reserves of an unknown size.
Nigerian Islamist insurgent group Boko Haram made an estimated $5–10 million, predominantly from taxation, bank robberies, donations from other terrorist groups and kidnapping for ransom.
“Organised crime… has become a global phenomenon, represented in a confluence of conflicts from Africa, to the Middle East and the Americas, and showing a distinct linkage to the response to international terrorism.” said Mark Shaw, Director of the Global Initiative Against Transnational Organised Crime.
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