Counter-Daesh Quarterly Update

John Baron Excerpts

Tuesday 24th May 2016 Commons Chamber

[Michael Fallon]

We have made progress in reducing the dependence of Daesh on illegally traded oil across its borders and also internally in Syria. We have made progress in cutting down the sale of antiques and artefacts in international markets. We have had the strike that I referred to on the cash stockpiles that Daesh has been using to finance itself. Of course, it draws other revenues from the areas it controls, but one illustration of the progress has been consecutive reports that Daesh has begun to cut the pay rates to its own troops.

[Mr John Baron (Basildon and Billericay) (Con)]

Nevertheless, Daesh remains the best funded terrorist group in history, despite the fall in the oil price. How confident, therefore, is the Secretary of State that Daesh can no longer access the financial infrastructure and resources of the Iraqi state, given that the Foreign Affairs Committee is still waiting for answers from the Iraqi banking authorities as to Daesh’s ability to make a turn on the state’s currency markets?

[Michael Fallon]

That is one of the areas that we are working on. When Daesh originally established its caliphate so rapidly, it was able to access finance from the central bank in Mosul and other areas in Iraq, and it levies taxes on the towns and cities that it controls, but I want to assure my hon. Friend that the work is in hand and we are making progress in restricting Daesh’s financial support.