ISLAMABAD, Feb 10 (ABC): Kidnapping for ransom, extortion and other illicit revenue streams are increasingly strengthening the financial base of militant organisations, enabling them to sustain operations and expand their capabilities, according to a United Nations monitoring report.
The UN Analytical Support and Sanctions Monitoring Team said several armed groups have diversified their funding sources and are generating significant income through criminal activities rather than relying solely on external donations.
Security analysts say this shift has made militant networks more self-sufficient and harder to weaken financially.
Ransom payments boost war chests
According to the assessment, kidnapping for ransom remains one of the most profitable tactics.
In parts of Africa and the Sahel, militant groups reported receiving large payments in exchange for hostages. The report cited cases where single ransom deals ran into tens of millions of dollars, sharply increasing the groups’ financial strength .
Experts say such windfalls allow militants to purchase weapons, recruit fighters and strengthen logistics.
As a result, these organisations can sustain longer campaigns despite security pressure.
Extortion becomes routine income
The report noted that many groups now depend on systematic extortion of local populations and businesses.
Militants impose “taxes,” demand protection money and seize goods in areas under their influence. In some regions, these collections have become a steady source of monthly revenue.
Officials say this model provides predictable cash flow and reduces reliance on foreign backers.
Consequently, dismantling such networks becomes more complex for authorities.
Shift toward sustainable financing
The UN observed a broader trend toward what it described as more “profitable and sustainable” financing methods.
Instead of sporadic donations, groups are embedding themselves in local economies through criminal enterprises, smuggling and illegal trade.
Analysts warn that such financial independence improves resilience. Even when leaders are targeted or camps are dismantled, funding channels often remain intact.
Implications for regional security
Although many of these practices are reported in other conflict zones, security experts say the pattern carries lessons for South Asia as well.
Stronger finances allow militant groups to maintain recruitment, propaganda and operational networks. Therefore, financial disruption is now considered as important as battlefield operations.
Counter-terrorism officials say closer monitoring of money flows, ransom payments and illicit trade routes will be essential to curb the growth of such groups.
Need for financial countermeasures
The UN report underscores the importance of coordinated financial intelligence, tighter controls on illegal transactions and regional cooperation to cut off funding sources.
Experts say without targeting militant finances, security operations alone may not produce lasting results.
As armed groups increasingly rely on criminal income streams, governments are expected to place greater emphasis on financial tracking and enforcement measures.