Islamic State's war chest is growing daily

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Islamic State's war chest is growing daily
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Syrian boys sift through the rubble of a house in the Syrian Kurdish town of Kobane, also known as Ain al-Arab, on March 25, 2015. Islamic State (IS) fighters were driven out of Kobane on January 26 by Kurdish and allied forces. AFP PHOTO/YASIN AKGUL (Photo credit should read YASIN AKGUL/AFP/Getty Images)
Destroyed building are seen around a sign that reads, ''Kobane'' in the Syrian Kurdish town of Kobane, also known as Ain al-Arab, on March 24, 2015. Islamic State (IS) fighters were driven out of Kobane on January 26, by Kurdish and allied forces. AFP PHOTO/YASIN AKGUL (Photo credit should read YASIN AKGUL/AFP/Getty Images)
Syrian schoolchildren play at recess time outside their school in the Syrian Kurdish town of Kobane, also known as Ain al-Arab, on March 25, 2015. Islamic State (IS) fighters were driven out of Kobane on January 26 by Kurdish and allied forces. AFP PHOTO/YASIN AKGUL (Photo credit should read YASIN AKGUL/AFP/Getty Images)
Children play in the Syrian town of Kobane, also known as Ain al-Arab, on March 27, 2015. Islamic State (IS) fighters were driven out of Kobane on January 26 by Kurdish and allied forces. AFP PHOTO/YASIN AKGUL (Photo credit should read YASIN AKGUL/AFP/Getty Images)
Toys and flowers are laid on gravestones in a cemetery for Kurdish fighters in the Syrian town of Kobane, also known as Ain al-Arab, on March 27, 2015. Islamic State (IS) fighters were driven out of Kobane on January 26 by Kurdish and allied forces. AFP PHOTO/YASIN AKGUL (Photo credit should read YASIN AKGUL/AFP/Getty Images)
Hezbollah fighters stand next to the coffin of Shiite militant Ali al-hadi Wahbi, killed in fighting with the Islamic State group (IS) in Syria, during his funeral ceremony on March 27, 2015 in the Lebanese capital, Beirut. AFP PHOTO / STR (Photo credit should read STR/AFP/Getty Images)
Police used tear gas and water cannon on October 8, 2014 in Ankara to disperse demonstrators protesting against the attacks launched by Islamic State insurgents targeting the Syrian town of Ain al-Arab, known as Kobane by the Kurds, and the lack of action by their government. Turkey's military on October 8 imposed a curfew in parts of the southeast after at least 19 people were killed in pro-Kurdish protests over the government's failure to act against jihadists attacking the Syrian border city of Kobane. AFP PHOTO/ADEM ALTAN (Photo credit should read ADEM ALTAN/AFP/Getty Images)
ISTANBUL, TURKEY - OCTOBER 8: Turkish police intervene protesters taking streets across Turkey to hold unauthorized demonstrations against the advance of Islamic State of Iraq and the Levant (ISIL) militants toward central Kobani, on October 8, 2014 in Istanbul, Turkey. (Photo by Bulent Doruk/Anadolu Agency/Getty Images)
ISTANBUL, TURKEY - OCTOBER 8: Protestors make barricades against Turkish police during unauthorized demonstrations against the advance of Islamic State of Iraq and the Levant (ISIL) militants toward central Kobani, on October 8, 2014 in Istanbul, Turkey. (Photo by Bulent Doruk/Anadolu Agency/Getty Images)
ISTANBUL, TURKEY - OCTOBER 8: Protestors make barricades against Turkish police during unauthorized demonstrations against the advance of Islamic State of Iraq and the Levant (ISIL) militants toward central Kobani, on October 8, 2014 in Istanbul, Turkey. (Photo by Bulent Doruk/Anadolu Agency/Getty Images)
ISTANBUL, TURKEY - OCTOBER 8: Protestors make barricades against Turkish police during unauthorized demonstrations against the advance of Islamic State of Iraq and the Levant (ISIL) militants toward central Kobani, on October 8, 2014 in Istanbul, Turkey. (Photo by Bulent Doruk/Anadolu Agency/Getty Images)
US President Barack Obama (C) stands alongside outgoing Defense Secretary Leon Panetta (L) and Chairman of the Joint Chiefs of Staff Martin Dempsey (R) during an Armed Forces Farewell Tribute in honor of Panetta at Joint Base Myer-Henderson in Arlington, Virginia, February 8, 2013. Panetta will retire once his likely successor, former Nebraska Senator Chuck Hagel, is confirmed by the US Senate. AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
UNITED STATES - SEPTEMBER 16: Defense Secretary Chuck Hagel testifies during the Senate Armed Services Committee hearing on U.S. policy towards Iraq and Syria and the threat posed by the Islamic State of Iraq and the Levant (ISIL) on Tuesday, Sept. 16, 2014. (Photo By Bill Clark/CQ Roll Call)
UNITED STATES - SEPTEMBER 16: Defense Secretary Chuck Hagel testifies during the Senate Armed Services Committee hearing on U.S. policy towards Iraq and Syria and the threat posed by the Islamic State of Iraq and the Levant (ISIL) on Tuesday, Sept. 16, 2014. (Photo By Bill Clark/CQ Roll Call)
WASHINGTON, DC - SEPTEMBER 10: U.S. President Barack Obama delivers a prime time address from the Cross Hall of the White House on September 10, 2014 in Washington, DC. Vowing to target the Islamic State with air strikes 'wherever they exist', Obama pledged to lead a broad coalition to fight IS and work with 'partner forces' on the ground in Syria and Iraq. (Photo by Saul Loeb-Pool/Getty Images)
Druze men stand in the Israeli-annexed Golan Heights as they look at smoke rising in the distance caused by fighting between forces loyal to Syrian President Bashar Assad and rebels over the control of the Quneitra border crossing, on August 27, 2014. Syrian rebels, including Al-Qaeda's affiliate Al-Nusra Front, seized control of the Syrian crossing with the Israeli-occupied Golan Heights today, the Britain-based Syrian Observatory for Human Rights said. AFP PHOTO / JACK GUEZ (Photo credit should read JACK GUEZ/AFP/Getty Images)
Members of United Nations Disengagement Observer Force Zone (UNDOF) use binoculars to watch smoke rising in the distance caused by fighting between forces loyal to Syrian President Bashar Assad and rebels over the control of the Quneitra border crossing, on August 27, 2014. Syrian rebels, including Al-Qaeda's affiliate Al-Nusra Front, seized control of the Syrian crossing with the Israeli-occupied Golan Heights today, the Britain-based Syrian Observatory for Human Rights said. AFP PHOTO / JACK GUEZ (Photo credit should read JACK GUEZ/AFP/Getty Images)
A rebel fightercarries homemade mortar rounds on September 3, 2013 in the northern Syrian city of Raqqa. UN leader Ban Ki-moon said on September 3, 2013 that a military strike on Syria over the use of chemical weapons could worsen the country's conflict. AFP PHOTO / MEZAR MATAR (Photo credit should read MEZAR MATAR/AFP/Getty Images)
Protesters in Melbourne try to raise awareness of persecution of Christians at the hands of Islamic State fighters
Protesters in Melbourne try to raise awareness of persecution of Christians at the hands of Islamic State fighters Sept-6-2014
Demonstrators hold placards as they protest against the actions of Islamic State in Iraq outside Downing Street in central London on September 7, 2014. The unity rally took place to address the genocide of the minority peoples of Iraq by the Islamic State group. AFP PHOTO / LEON NEAL (Photo credit should read LEON NEAL/AFP/Getty Images)
Iraqi volunteer soldiers march after graduating from a training camp in the central Iraqi city of Kufa on September 1, 2014. Iraqi forces broke through to the jihadist-besieged Shiite town of Amerli the previous day which was the biggest offensive success for the Iraqi government since militants led by the Sunni Islamic State (IS) jihadist group overran large areas of five provinces in June, sweeping security forces aside. AFP PHOTO / HAIDAR HAMDANI (Photo credit should read HAIDAR HAMDANI/AFP/Getty Images)
Iraqi volunteer soldiers march after graduating from a training camp in the central Iraqi city of Kufa on September 1, 2014. Iraqi forces broke through to the jihadist-besieged Shiite town of Amerli the previous day which was the biggest offensive success for the Iraqi government since militants led by the Sunni Islamic State (IS) jihadist group overran large areas of five provinces in June, sweeping security forces aside. AFP PHOTO / HAIDAR HAMDANI (Photo credit should read HAIDAR HAMDANI/AFP/Getty Images)
Turkish riot police use teargas to disperse protesters on October 8, 2014 in Ankara during a demonstration against attacks launched by Islamic State (IS) group, targeting the Syrian city Ain al-Arab, known as Kobane by the Kurds, and lack of government action. While air strikes by a US-led coalition fighting IS have helped push back the jihadists, pressure is mounting for more international action to save the town. Some 200,000 mainly Kurdish refugees have fled the IS advance into the area, and Ankara in particular has come under pressure to act, although its response has been complicated by concerns over emboldening Kurdish separatists, who have waged a deadly insurgency in Turkey over the past decades. AFP PHOTO / ADEM ALTAN (Photo credit should read ADEM ALTAN/AFP/Getty Images)
SANLIURFA, TURKEY - OCTOBER 08: A photograph taken from Suruc district of Sanliurfa, Turkey, shows that local residents watch smoke rising from the Syrian border town of Kobani (Ayn al-Arab) following the US-led coalition airstrikes against the Islamic State of Iraq and the Levant (ISIL) on October 8, 2014. (Photo by Emin Menguarslan/Anadolu Agency/Getty Images)
Protesters demonstrate on October 8, 2014 in Ankara against attacks launched by Islamic State (IS) group, targeting the Syrian city Ain al-Arab, known as Kobane by the Kurds, and lack of government action. While air strikes by a US-led coalition fighting IS have helped push back the jihadists, pressure is mounting for more international action to save the town. Some 200,000 mainly Kurdish refugees have fled the IS advance into the area, and Ankara in particular has come under pressure to act, although its response has been complicated by concerns over emboldening Kurdish separatists, who have waged a deadly insurgency in Turkey over the past decades. AFP PHOTO / ADEM ALTAN (Photo credit should read ADEM ALTAN/AFP/Getty Images)
Smoke rises from the impact of an airstrike next to the hill where Islamic State (IS) militants had placed their flag in the Syrian town of Ain al-Arab, known as Kobane by the Kurds, seen from the Turkish-Syrian border in the southeastern village of Mursitpinar, Sanliurfa province, on October 8, 2014. The Pentagon warned on October 8, 2014 US air power on its own could not prevent Islamic State jihadists from capturing the Syrian border town of Kobane, even as US warplanes kept up bombing raids in the area. AFP PHOTO / ARIS MESSINIS (Photo credit should read ARIS MESSINIS/AFP/Getty Images)
Kurds living in Greece protest in central Athens during a pro-Kurd demonstration against attacks launched by Islamic State insurgents targeting the Syrian city of Kobane and lack of action by the Turkish government on October 8, 2014. Intensified air strikes helped Kurdish militia push back Islamic State jihadists fighting for Kobane as pressure mounted for more international action to save the key Syrian border town. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
SANLIURFA, TURKEY - OCTOBER 8: A photograph taken from Suruc district of Sanliurfa, southeastern province of Turkey, shows that smoke rises during the clashes between Islamic State of Iraq and Levant (ISIL) and Kurdish armed troops in Kobane (Ayn al-arab) city of Syria, on October 8, 2014. (Photo by Emin Menguarslan/Anadolu Agency/Getty Images)
IDLIB, SYRIA - MARCH 17: Members of a Syrian opposition group called Jaysh al-Islam get military training in Idlib, Syria on March 17, 2015. At least 400 people get military training at Jaysh al-Islam's Idlib camp within the combat with DAESH (Islamic State of Iraq and Levant). (Photo by Stringer/Anadolu Agency/Getty Images)
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By KEN DILANIAN

WASHINGTON (AP) -- Islamic State militants, who once relied on wealthy Persian Gulf donors for money, have become a self-sustaining financial juggernaut, earning more than $3 million a day from oil smuggling, human trafficking, theft and extortion, according to U.S. intelligence officials and private experts.

The extremist group's resources exceed that "of any other terrorist group in history," said a U.S. intelligence official who, like others interviewed, spoke on condition of anonymity to discuss classified assessments. Such riches are one reason that American officials are so concerned about the group even while acknowledging they have no evidence it is plotting attacks against the United States.

The Islamic State group has taken over large sections of Syria and Iraq, and controls as many as 11 oil fields in both countries, analysts say. It is selling oil and other goods through generations-old smuggling networks under the noses of some of the same governments it is fighting: Kurdish-controlled northern Iraq, Turkey and Jordan.

While U.S. intelligence does not assess that those governments are complicit in the smuggling, the Obama administration is pressing them do to more to crack down. The illicit oil is generally transported on tanker trucks, analysts said.

"There's a lot of money to be made," said Denise Natali, who worked in Kurdistan as an American aid official and is now a senior research fellow at National Defense University. "The Kurds say they have made an attempt to close it down, but you pay off a border guard you pay off somebody else and you get stuff through."

The price the Islamic State group fetches for its smuggled oil is discounted -$25 to $60 for a barrel of oil that normally sells for more than $100 - but its total profits from oil are exceeding $3 million a day, said Luay al-Khatteeb, a visiting fellow at the Brookings Institution's Doha Center in Qatar.

The group also has earned hundreds of millions of dollars from smuggling antiquities out of Iraq to be sold in Turkey, al-Khatteeb said, and millions more from human trafficking by selling women and children as sex slaves.

Other revenue comes from extortion payments, ransom from kidnapped hostages, and outright theft of all manner of materials from the towns the Islamic State group has seized, analysts say.

"It's cash-raising activities resemble those of a mafia-like organization," a second U.S. intelligence official said, reflecting the assessment of his agency. "They are well-organized, systematic and enforced through intimidation and violence."

Even prior to seizing Mosul in June, for example, the group began to impose "taxes" on nearly every facet of economic activity, threatening death for those unwilling to pay, U.S. intelligence officials say. An analysis by the Council on Foreign Relations estimated the group was reaping $8 million a month from extortion in Mosul alone.

Once the group took over Mosul, in northern Iraq, and other areas, it grabbed millions of dollars in cash from banks, though not the hundreds of millions initially reported, U.S. intelligence officials say.

This spring, four French and two Spanish journalists held hostage by Islamic State extremists were freed after their governments paid multimillion-dollar ransoms through intermediaries.

The Islamic State group "has managed to successfully translate territorial control in northern Syria and portions of Iraq into a means of revenue generation," said a third U.S. intelligence official.

Analysts say the group is relying on the fact that the area along the border between Iraq and Turkey has long been a smugglers haven, and was made more so by the fall of Iraqi leader Saddam Hussein in 2003. Generations of families have illicitly moved goods through the region.

The Islamic State is the successor to al-Qaida in Iraq, which was founded by Jordanian Abu Musab al-Zarqawi. For a time, the group was allied with the Nusra Front, the al-Qaida affiliate that is a key player among the rebels battling Syrian President Bashar Assad. The Islamic State group has since broken with the Nusra Front and al-Qaida.

In the early days of the Syrian civil war, the Islamic State group was funded in large part by donations from wealthy residents of Gulf States, including Kuwait and Qatar, American officials have said.

"A number of fundraisers operating in more permissive jurisdictions - particularly in Kuwait and Qatar - are soliciting donations to fund ... al-Qaida's Syrian affiliate, the Nusra Front, and the Islamic State of Iraq and the Levant (ISIL)," David Cohen, the Treasury department's top counterterrorism official, said in a speech in March. ISIL is an alternative acronym for the Islamic State group.

That stream of funding has diminished in recent months as the group's violent tactics have drawn worldwide attention, U.S. intelligence officials say.

The group's reliance on oil as its main source of revenue could easily be disrupted by American airstrikes, officials say. But so far, no decision has been made to target Iraqi or Syrian oil infrastructure, which is serviced by civilian workers who may have been conscripted.

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