Merchants, doctors, and sheikhs in northern Iraq are being blackmailed by Al Qaeda to fund martyrdom operations there and in Syria. At about $1 to $1.5 million in payments per month, Al Qaeda may be grossing between $12 to $18 million a year—a staggering sum for an organization that was on the verge of bankruptcy following the Iraq surge.
During its pre-9/11 heyday, Al Qaeda was pulling in $30 million a year, but had arguably collapsed to $5 million following the invasion of Afghanistan. Viewed with that trend in mind, the Mosul extortion racket isn’t just a regional threat to Malaki or to Syria, but a reversal of fortunes that puts Al Qaeda back toward the upper echelons of well-funded terrorist groups worldwide.
From the AP via NPR, with some paragraphs omitted for brevity and relevance:
In Northern Iraqi City, Al-Qaida Gathers Strength
by The Associated Press
June 20, 2013
BAGHDAD (AP) — Al-Qaida’s Iraq arm is gathering strength in the restive northern city of Mosul, ramping up its fundraising through gangland-style shakedowns and feeding off anti-government anger as it increasingly carries out attacks with impunity, according to residents and officials.
It is a disturbing development for Iraq’s third-largest city, one of the country’s main gateways to Syria, as al-Qaida in Iraq makes a push to establish itself as a dominant player among the rebels fighting to topple the Syrian regime.
The show of force comes as Mosul residents cast ballots in delayed local elections Thursday that have been marred by intimidation by militants. Al-Qaida’s renewed muscle-flexing is evident in dollar terms too, with one Iraqi official estimating that militants are netting more than $1 million a month in the city through criminal business enterprises…
Other Sunni militant groups, including Ansar al-Islam and the Army of the Men of the Naqshabandi Order, are also active in Ninevah. Mosul is the capital of the Sunni-dominated province.
Al-Qaida’s growing power is particularly worrying because it is thought to be behind the bulk of the bombings across Iraq and because it is trying to assert itself as a player in neighboring Syria’s civil war. The head of al-Qaida’s Iraq arm last week defied the terror network’s central command by insisting that his unit would continue to lay claim to al-Qaida operations in Syria, too.
“We’re definitely concerned about it,” said a U.S. diplomat about the deteriorating security situation in Mosul. The diplomat, who wasn’t authorized to speak on the record, said al-Qaida’s Iraq arm sees an opportunity to try to build support in the area and is “out blowing things up to show that the government can’t protect and serve the people.”
Al-Qaida’s growing strength in Mosul is painfully clear to businessman Safwan al-Moussili. Traders like him say they are once again facing demands from militants to pay protection money or face grave consequences. Merchants say that practice had largely disappeared by the time American troops left in December 2011.
“They tell us: ‘Pay this amount.’ And if it’s higher than before, they say something like: ‘You recently went to China and you imported these materials and you made such and such profits,’” he said. “It seems they know everything about us.”
Small-scale shop owners, goldsmiths, supermarkets, gas stations and pharmacies are all being hit up for money these days.
Al-Moussili and his fellow businessmen feel they have little choice but to pay up. About two months ago, he recalls, one businessman refused to pay, and insurgents planted a bomb inside his shop that killed the man.
“That forced everybody to pay, because we don’t see the security forces doing anything to end this situation,” he said.