Study Reveals ISIS-K’s Global Financial Network Operates From Afghanistan

A research institute investigating ISIS’s financial operations has reported that the group, particularly its Khorasan branch (ISIS-K), receives funding from across the globe.

The study highlights that ISIS-K’s primary financial network is directed from an undisclosed location in Afghanistan.

Adam Russell, a researcher at the Global Network on Extremism and Technology, stated in a report released on Tuesday that ISIS-K is leveraging extensive global financial support to plan future attacks.

According to the study, Maktab al-Sadiq, a key financial network of ISIS, has managed to resume operations despite ongoing counterterrorism measures. The report identifies Tamim al-Kurdi as the individual overseeing this network from an unknown location in Afghanistan since 2020, though little information is available about him.

Despite international pressure, ISIS’s financial networks have expanded their reach from South Asia to North Africa and Western countries. Maktab al-Sadiq is responsible for funding major ISIS operations in Asia, with the U.S. State Department confirming that this office utilises unregistered financial service companies, hawala networks, cash couriers, and cryptocurrency transactions to finance ISIS-affiliated groups in Afghanistan, Pakistan, India, Bangladesh, the Maldives, and the Philippines.

Findings from the study indicate that ISIS-funded attacks in Iran and Russia were also facilitated through this financial network. For instance, ISIS-K reportedly transferred at least $2,000 in digital assets to a group in Moscow that later carried out an attack on a concert hall in the city’s suburbs.

Previously, ISIS-K profited from underground resources and the extraction of precious stones in Afghanistan, particularly in Nangarhar province. However, since the Taliban took control of these mines, ISIS-K’s income from this source has significantly declined. Despite this, competition between the two groups over mineral resources continues. Reports suggest that ISIS has attempted to target the Taliban’s Chinese business partners. China has signed several mining contracts with the Taliban, making mining, oil, gas, and tax collection the group’s primary sources of revenue, though they remain dependent on international aid.

The report states, “Even with the arrests and deaths of key operatives and facilitators from Afghanistan, Pakistan, Somalia, Syria, and Türkiye in 2023 and early 2024, the office has reportedly recovered.” Researchers believe that the resilience of this network is due to its global financial reach and continuous cash inflows from various sources worldwide.

According to U.S. officials cited in the report, Türkiye has been a significant hub for ISIS’s financial transactions. Operatives have used local cryptocurrency exchanges, hawala networks, and money transfer services such as PayPal and Western Union to move funds into the country and distribute them among affiliates. However, Turkish authorities have intensified their efforts to dismantle these networks and arrest those involved.

Official data reveals that since June 2023, more than 36,000 ISIS-linked suspects have been arrested in Türkiye. Additionally, Turkish authorities, in cooperation with Tajikistan—another key financial hub for ISIS—have identified and detained several of ISIS’s financiers between 2022 and 2023, seizing $2 million in cryptocurrency in the process. Binance, a major cryptocurrency exchange, has also announced its collaboration with the National Bank of Tajikistan and other government agencies to counter terrorist financing.

The report also highlights suspicious ISIS-related financial activities in the Maldives, Spain, Germany, and the United States, where investigations are ongoing.

With global crackdowns on ISIS intensifying, the organisation is expected to adapt its financial strategies, just as it has done in the past.

The study emphasises that hawala networks remain a major challenge for international authorities combating ISIS. While regulating informal money transfer systems primarily falls under local law enforcement, banks and international payment service providers such as Western Union, PayPal, and Wise must enhance their oversight of suspicious transactions, as hawala networks often rely on these systems to maintain liquidity.