UN Targets Flow Of Money To Islamic State

Countries are being urged to "move vigorously and decisively to cut the flow of funds" to so-called Islamic State, as UN finance ministers meet.

The meeting of ministers from the 15-member Security Council will adopt a resolution aimed at cutting off the flow of money to the terror group, which controls large areas of Iraq and Syria.

According to London-based IHS (NYSE: IHS - news) analysts, IS is receiving $80m (£53.5m) per month, although Russian and coalition airstrikes hitting oil facilities have put pressure on this.

Around half of the group's funds come from looted property and extortion, 43% from oil sales and the rest from electricity sales, donations and drug smuggling, says IHS.

The resolution is expected to gain unanimous support, including from Russia, Syria's ally, which has conducted an air campaign in support of Syrian President Bashar al-Assad over the past three months.

Western powers have claimed Russian strikes are helping IS because they the are mainly targeting moderate forces fighting the President.

Ministers will be asked to ensure they have adopted laws making the funding of IS and foreign fighters who join its ranks a serious crime.

This includes cutting the flow of resources such as oil and antiquities to the group and "more actively" submitting names for the sanctions list.

They will also be asked to share more information and involve the private sector in the fight.

Countries would have to report within 120 days on the steps they have taken and UN Secretary General Ban Ki-moon will be asked to prepare a report in 45 days on the group's funding and revenue sources.

A similar resolution was drafted by the Russians and adopted in February, but some countries have complained that others have been slow to take action.

US ambassador to the UN Samantha Power said: "If we can get at ISIL's wallet and its financial coffers in an intensified and even more aggressive way, that's going to have a material effect on their ability to prosecute war."

French Finance Minister Michel Sapin said the resolution would send a "very strong political message: the fight against the financing of terrorism is one of the priorities of the United Nations' members and every state must take the necessary measures".

It (Other OTC: ITGL - news) comes amid a major diplomatic push to end the five-year conflict in Syria, which is set to be discussed by the Security Council on Friday.