FINANCING OF THE TERRORIST ORGANISATION ISLAMIC STATE IN IRAQ AND THE LEVANT (ISIL)
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suspend correspondent banking with Iraqi banks located in ISIL-held territory. According to
industry sources, some Iraqi banks with branches in territory where ISIL operates have also
shuttered their operations, including by removing cash assets to safer locations. An additional
consideration is that bank branches and/or other financial service providers in areas occupied by
ISIL’s could conceivably be forced by ISIL to attempt to establish some level of connectivity with
financial institutions or transaction messaging providers servicing their particular region.
Awareness of such vulnerabilities further assists members to contain ISIL’s threat to regional and
international financial systems. The recently adopted UNSCR 2199 (2015) urges Member States to
take steps to ensure that financial institutions within their territory prevent ISIL, ANF, or other
individuals, groups, undertakings or entities associated with Al-Qaida from accessing the
international financial system.
Case Study 16: Enhancing Preventative Measures
On 22 September 2014, the Government of Canada updated the Criminal Code list of terrorist
entities to include ISIL, which was previously known as Al Qaeda in Iraq. Following the FATF
statement of October 2014 FINTRAC, the Canadian FIU, advised that reporting entities consider the
listing and FATF statement when deciding whether to file a suspicious transaction report in respect
of financial transactions or attempted financial transactions emanating from, or destined to, the
jurisdictions occupied by ISIL and the surrounding jurisdictions. Reporting entities were also
encouraged to undertake enhanced customer due diligence with respect to clients and beneficiaries
involved in such transactions or proposed transactions.
Source: Canada
3.2 CULTURAL ARTEFACTS
Those who buy the artefacts or their proxies at some point intersect with the regulated financial
system in order to send or receive payments. UNSCR 2199 (2015) calls on member states to
prohibit cross-border trade in Iraqi and Syrian cultural property and other relevant items illegally
removed from Iraq and Syria. The financing for the buying and selling of tainted antiquities can be
disrupted as auction houses, financial institutions, and other legitimate businesses involved in the
antiquities trade, by urging these institutions to adopt or implement policies that require clear,
certified documentation that identifies the origin of the artefacts. Banks should refrain from
processing transactions for antiquities that originate in Iraq or Syria. Steps could be taken to ensure
that private sector actors have a better understanding of the sites in Iraq and Syria that are being
plundered and of the routes that are being used. In addition, dealers in the antiquities realm could
be urged to report suspicious behavior, fraudulent paperwork or knowledge of stolen artefact
circulation.
The European Commission (EC) notes that pursuant to Article 3 of Council Regulation (EC) No
1210/2003 of 7 July 2003 concerning certain specific restrictions on economic and financial
relations with Iraq, trade in Iraqi cultural property that has been illegally removed from locations in
Iraq is prohibited (giving effect to UNSC sanctions in relation to Iraq). EU restrictive measures in
relation to Syria include a similar prohibition which is Article 11c of Council Regulation (EU) No
36/2012 of 18 January 2012 concerning restrictive measures in view of the situation in Syria.
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2015
4. STEPS TO LIMIT HUMANITARIAN CONSEQUENCES FOR POPULATION
The Syrian crisis is the largest, most complex humanitarian emergency of our time. Humanitarian
needs in Syria have increased twelvefold since the beginning of the crisis, with 12.2 million in need
of humanitarian assistance. This is more than half of Syria’s pre-war population and includes 7.6
million internally displaced people and more than 5.6 million children in need of assistance. In Iraq,
more than 5 million people are in need of humanitarian assistance, including more than 2 million
innocent children, women, and men who have been displaced. It is critical that these vulnerable
populations receive humanitarian assistance.
Distinguishing between legitimate and illegitimate donations is a challenging task. It is important
that efforts and measures aiming at combating terrorist financing should not affect legitimate
provision of humanitarian assistance to vulnerable populations. Moreover, the potential impact as a
result of the possible restrictions on contributions may delay, reduce or prevent life-saving
assistance provided to refugees and internally displaced persons. However, the possibility of
abusing charities by ISIL or its affiliates directly or indirectly for fundraising or funding activities
needs to be recognized.
The UNSC has unequivocally supported the provision of humanitarian access to populations in need,
including in contexts in which humanitarian actors operate in close proximity to an active terrorist
threat. More specifically, in UNSCRs 2139 (2013) and 2165 (2014), the UNSC authorized the
provision of humanitarian assistance to populations in need in Syria. Resolution 2139 (2013)
demand that all parties to the conflict, and in particular the Syrian authorities, promptly allow rapid,
safe and unhindered humanitarian access for United Nations humanitarian agencies and their
implementing partners.
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The latter resolution reaffirmed the need to ensure humanitarian access
and authorized additional routes across international borders.
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Additionally, paragraph 3 also
established a monitoring mechanism, under the authority of the United Nations Secretary-General,
aimed at confirming the humanitarian nature of relief consignments crossing into Syria.
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UNSCR
2191 (2014) renewed the decision to create additional routes and to establish a monitoring
mechanism for a period of twelve months, until 10 January 2016.
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85
UNSCR 2139 (2014), OP5.
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UNSCR 2165 (2014), OP2.
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UNSCR 2165 (2014), OP3.
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UNSCR 2191 (2014), OP2.