Multinational bank steps up due diligence on trade in oil from IS-controlled oilfields in Syria and Iraq

One of the world’s largest banks is stepping up its due diligence processes in respect of possible exposure to the so-called Islamic State (IS), now controls significant areas of Iraq and Syria, according to documents seen by Newsflow.

The US headquartered international financial institution is particularly concerned about oilfields and locations controlled by IS as well as people and entities, including charities and non-governmental organisations (NGOs), that support the self-proclaimed state.

Oil trading
According to the documents seen by Newsflow, oilfields controlled by IS in Iraq and Syria are of particular concern to the bank.

Several reports have emerged of oil from these fields reaching international markets via smuggling operations into Jordan or Turkey.

Terrorist financing
IS is widely believed to earn substantial amounts from oil produced at facilities expropriated from Syria and Iraq and uses the proceeds to fund its operations.

As well as oilfields, the bank is also concerned with associated infrastructure and operations such as storage facilities or distribution companies that may be operated by IS or on behalf of it.

Individuals and entities
The bank is also looking to compile its own watch list of operations and entities, including charities and NGOs that provide financial or non-financial support to IS.

The list would also include people, including any aliases they may be using.

Categories: Trade Based Financial crimes News

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