Terrorism Financing Typologies: Comparison of the PKK and ISIL in Turkey

Abstract

This comparative case study investigates the financing typologies of Kurdistan Workers Party (PKK) and Islamic State of Iraq and the Levant (ISIL) in Turkey. The PKK is a Marxist-Leninist organisation that pursues ethnic separationist policies in Turkey, Iran, Iraq and Syria. ISIL is a radical Wahhabi network that aspires to re-establish the Caliphate and restore the ‘glory’ of Sharia by defeating the ‘near’ and ‘far’ enemies. Based on primary/secondary interviews, content analysis of unclassified documents and media coverage on counter PKK/ISIL investigations, this study indicates that both organisations have been highly skilful in exploiting the regional licit and illicit enterprises. Financing methods of the PKK and ISIL were similar in complex regional underground economic infrastructure. However, the PKK has been able to develop much more sophisticated financial infrastructure than ISIL due to a longer life span and existence of specialised cadres in the Middle East and Europe. ISIL has failed to develop advanced financing infrastructure mainly due to a shorter life span, loss of territorial control and the UN-US sponsored international sanctions. Both the Marxists and radical Islamists encouraged illicit trade schemes not only to generate funds but also to avoid taxation by the ‘hostile’ regimes.