How does ISIL get money? Perhaps by taxing money sent by the iraqi government to Mosul
If ISIL is a state, shouldnt it manage its own treasury? Money is a critical factor in ISILs ability to maintain control but the Iraqi government is still paying salaries and pensions in Mosul, the largest conurbation in the self-styled Caliphate. How does the money reach Mosul? Were not talking about electronic transfers here. Theres no real way for a western journalist to independently verify current practices, but it seems likely that the Baghdad government is carrying on a form of business as usual with ISIL.
The most likely scenario is that armored trucks are loaded with Iraqi dinars and driven to the city where the money is handed over to ISIL representatives. I was told by Nineveh Reporters Network sources inside Mosul that ISIL then takes a high percentage of the cash as a tax before distributing the rest. This tax on pensions and salaries delivered to Mosul goes some way to helping fund ISILs acquisition of weapons. It also helps them exert another level of control over the citys population, beyond the omnipresent fear of being murdered at the terror groups whim.
At the same time, Baghdad is not sending the Kurdish region its share of the national budget and in turn this means salaries and pensions are being paid late if theyre paid at all. It also means the Peshmerga are not getting paid. The Peshmerga are a volunteer, professional fighting force and their salaries support families back in the safe areas of the Kurdistan Region.
Another way that ISIL makes money is by tapping the oil pipeline that runs from Kirkuk to Turkey. ISIL trucks its stolen crude into Turkey and sells it on the black market. Why is this trade not being interdicted at source? The pipelines are in wide open country. There are comparatively few roads. Aerial surveillance should be able to spot oil tankers and air strikes called in to take them out, but it is unclear whether or not this is happening.
http://www.politico.eu/article/questions-from-the-isil-frontline-kurdish-peshmerga-un-general-assembly-iraq/