United Nations to adopt resolution to disrupt Islamic State funds

The U.S. and Russian-drafted resolution – the result of a planned 18-month review of the al Qaeda sanctions regime – was adopted at the meeting of Security Council finance ministers chaired by U.S. Treasury Secretary Jack Lew.

The resolution was adopted by the 15-nation UN body at an open meeting on December 17.

The resolution chose to “freeze without delay the funds and other financial assets or economic resources of these individual groups, undertaking and entities, including funds derived from property owned or controlled directly or indirectly, by them or by persons acting on their behalf or at their direction, and ensure that neither these nor other funds, financial assets or economic resources are made available, directly or indirectly for such persons’ benefit, by their nationals or by persons within their territory”.

After the terror attacks on Paris, President Barack Obama pledged solidarity with France and promised to work with allies to intensify the U.S.-led campaign against the Islamic State, saying America would not be cowed by the scourge of terrorism.

The group gets much of its financing – estimates of $500 million so far – from black market oil sales.

The document, which was passed during the first meeting of the council at which several countries were represented by their finance ministers, renames the current al-Qaeda sanctions regime to ISIL and al-Qaeda Sanctions Committee to signal the council’s shifting focus to the specificities of the extremist group.

According to the London-based IHS analysis firm, the Islamic State group is pulling in US$80 million per month, but Russian and U.S. coalition air strikes on oil facilities are putting a strain on its finances.

While the resolution is aimed at cutting off some of IS’ outside revenue streams, a United Nations diplomat and USA official said the majority of funding for the extremist group comes from internal sources which are hard to disrupt.

He said the United States is also working with its partners to target ISIL’s key “financial facilitators”. This includes revenue from the sale of oil as well as stolen antiquities.

United Nations experts have said about 22,000 foreign fighters from some 100 countries are linked to al Qaeda and Islamic State in Syria and Iraq.

“The good news is that it’s diminishing as a combination of the kind of financial action we’re taking, and frankly military action against the oil fields are having their effect, and that’s something we should welcome”, Osborne said.

The draft encourages all countries to “more actively submit” names for inclusion on the sanctions list and to share information about extremist groups.

Ms Power said the resolution would be a new piece of global law that “will require countries to do more than they have been doing”.

It also calls on states to report within 120 days on their implementation of sanctions.

Other sources of revenue were the trafficking of drugs and antiquities; carrying out criminal activities, including bank robbery and kidnap for ransom; running small enterprises; and donations.