Where does ISIS get its money from?
From high-end customised Toyota pick-up trucks to Kalashnikov AK-47 Assault Rifle, the Islamic State of Iraq and Syria group is equipped with latest technology folds. The macabre terrorist group hasn't just recruited tech honchos and scientists for its operations across the Levant, but has also a quintessential finance department which closely works with group. The group reportedly pays its fighters $400 per month, much higher than what Iraqi officials get from the government. But, here comes the question, how does the ISIS generate so much money? Since 9/11, the US and its allies, have set up multiple norms to stop terrorist funding, but the ISIS isn't largely dependent on international funding. They rather prefer to work within the territory to build their revenue model.
Oil
Oil in Iraq and Syria region is one of the biggest source of revenue for the ISIS. Though, the US and its allies have achieved in stopping the terrorist group in exporting oil at large scale but the black-marketing across the border is still largely prevalent. The group extract oil in small refineries and then ship it by trucks to sell it to buyers with heavy discount. Smugglers reportedly use WhatsApp messaging service to coordinate with buyers across Turkey border. According to a report by the Congressional Research Service in April, the ISIS's revenue from oil has seen an alarming decline after the US and Russia launched massive airstrikes in the region. Besides, many scientists and researchers who earlier used to work for the group has rather fled the city or been killed.
Antiquities
Ever since the ISIS has taken a control over eastern Syria and Iraq, they have incessantly attacked heritage sites and museums. It allowed the group to take control over precious art and historical artifacts. According to the Paris-based Financial Action Task Force, the group has attacked more than 4,500 archaeological sites across the region since last year. The group later sells these antiquities for heavy prices to Turkey, Jordan and other first world countries.
Ransom
According to a UN report from October 2014, the ISIS has generated $35 million to $45 from ransoms alone. The group is known for taking hostages from the West in order to claim a fat ransom. But after the US and UK made it illegal to pay ransom to terrorists organisations, the group has moved local in kidnapping and collecting ransoms.
International donors
Believe it or not, but international donors aren't too far from Syria. According to estimates, wealthy donors from Saudi Arabia, Kuwait, Qatar and United Arabs Emirates have channelled close to $40 million to the ISIS since 2013. A report by the Brookings Institution in 2013 observed that Kuwait has highest number of donors, with the UAE in second position.
Looting of Iraqi banks
The group has robbed multiple state-owned banks across northern and western region of Iraq since it took control. The treasury department estimates that the ISIS has looted almost half a billion dollars from such banks.
Auctioning of government houses
According to Niqash.org, a website in partnership with German non-profit - "Property owned by individuals that the IS group considered their enemies — such as Iraqi army and police, government officials, politicians, judges and public prosecutors — has been seized by the group". The group has been generating cash by selling, renting and auctioning such real estates.
Sale of Sulphuric acid, cement and phosphate
According to Thomson Reuters, the ISIS generates $50 million per annum by selling phosphate and $300 million by selling cement and sulphuric acid from the region.
Heavy taxation and extortion
The terrorists group levies heavy taxes from locals for minimum supplies. According to a report by Thomson Reuters, the group could make up to $360 million per year from this system of extortion and taxation.
The group also generates money from human trafficking, by selling young women and girls across the borders. The women largely belong to the Yazidi and Shia-Tukoman minorities.