WASHINGTON — Earlier this month, the United States, Italy, and Saudi Arabia convened virtually the 21st meeting of the Counter ISIS Finance Group (CIFG), a working group of the Global Coalition to Defeat ISIS. The U.S. Departments of the Treasury and State jointly represented the United States at this event, which took place February 4 – 5 and included more than 30 member states and observers.
The following is a joint statement of the CIFG co-leads:
The work of the Global Coalition to Defeat ISIS (Daesh) remains critical to combat the persistent and diffuse ISIS threat. As recent attacks in Syria have reminded us, ISIS is still able to fund, inspire, and support terrorist acts globally, and we must all remain vigilant. Without crucial financial resources, ISIS cannot sustain its campaigns of violence.
Over the course of two days, CIFG participants exchanged insights into ISIS financing and shared updates and case studies on countering ISIS fundraising and financial facilitation networks in Africa, Asia, Europe, and the Middle East. Participants highlighted the ongoing use of informal and formal funds transfer methods, including cash couriers, hawalas, and various financial institutions, as well as mobile money transfer applications and virtual asset service providers (VASPs). While ISIS continues to rely on traditional financial transfer mechanisms, participants stressed the growing role virtual assets play in ISIS financing. Participants noted the increased concern that terrorists may use stolen or fake identification documents at VASPs to conduct virtual asset transactions.
As ISIS seeks to conduct terrorist acts globally, it increasingly relies on autonomous networks and small cells, some of which are self-funded through a variety of financial sources. This trend underscores the need for a unified and coordinated response to the terrorist financing threat. CIFG participants demonstrated the importance of international cooperation and coordination, focusing in particular on information sharing with the private sector. The group also acknowledged a number of challenges, including terrorists’ exploitation of VASPs in countries with weak or deficient anti-money laundering and countering the financing of terrorism (AML/CFT) controls and the widespread use of encrypted messaging platforms and social media for recruitment and propaganda, in addition to fundraising.
By cutting off funding streams, the Global Coalition to Defeat ISIS can do more than weaken ISIS’s operational capacity—Coalition members can dismantle its ability to inspire, recruit, and sustain its narrative of power. Achieving this goal requires vigilance and persistence in detecting and disrupting ISIS funds transfers, strengthening international cooperation, and ensuring that sanctions and regulatory measures are robust and enforceable. But disruption alone is not enough. The Global Coalition must also work to prevent new funding mechanisms from emerging. This means addressing systemic vulnerabilities, such as weak AML frameworks, VASPs without adequate AML/CFT controls, and the misuse of humanitarian aid and non-profit organizations.
The CIFG co-leads urge Global Coalition members to enhance cooperation in addressing these challenges and countering the ISIS threat through the following measures:
1. Enhancing information-sharing efforts to disrupt ISIS financing networks.
2. Monitoring and disrupting terrorist fundraising across the international financial system, including on digital platforms.
3. Strengthening security measures to prevent ISIS from controlling territory and exploiting vulnerable populations to generate revenue.
4. Bolstering respective AML/CFT regimes, in line with the Financial Action Task Force (FATF) standards.
5. Increasing public actions, including prosecutions and targeted financial sanctions, to deter parties from engaging in ISIS financing efforts.
The fight against ISIS financing is not just a fight against terrorism; it is a fight for the safety, stability, and prosperity of nations. By acting decisively and collaboratively, we can cut off ISIS’s lifeline and pave the way for a more secure and peaceful future.