ISIS takes action to stem cash shortage

ISIS is taking further steps to counter its current cash shortage, which has been created by the international coalition’s targeting of its income streams. It recently emerged that ISIS had been forced to cut the salaries of its fighters. Now it seems that the group has begun imposing fines, has cut bonuses, started rationing food, and has released prisoners in exchange for money. The coalition has been targeting ISIS’s money stores and bombing oilfields, both of which look to be having a significant impact on the group and its finances. The situation marks a significant change on six months ago, when ISIS claimed to be minting its own currency out of gold and silver.

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy notice Thanks for signing up to the

Breaking News email {{ #verifyErrors }} {{ message }} {{ /verifyErrors }} {{ ^verifyErrors }} Something went wrong. Please try again later {{ /verifyErrors }}

Isis is reportedly cutting pay, bonuses, food rations perks and previously abundant treats for its fighters as the international coalition's strategy targeting its income streams appears to pay off.

A decree from the so-called Islamic State’s treasury, the “Bayt Mal al-Muslimeen” emerged last month halving salaries for militants because of “exceptional circumstances”.

Now, as the US-led coalition continues bombing oilfields, money stores and infrastructure, the penny-pinching appears to have intensified.

A document appeared to show fighters' salaries were being halved in Raqqa (Aleppo 24/Aymenn Jawad Al-Tamimi)

The Associated Press reports that the terrorist group is trying to generate funds by offering to release prisoners for a price of $500 (£350) per head, as well as demanding that civilians living under its control in Raqqa pay their utility bills in black market American dollars.

Little over six months ago, Isis was trumpeting the supposed minting of its own currency – the gold and silver dinar – although analysts were sceptical, but now it is even said to be cutting everyday treats like free energy drinks and Snickers bars.

Propaganda encouraging potential recruits to travel to its territories in Iraq and Syria has previously focused on the quality of life, offering decent salaries, baby bonuses, homes and other benefits to new arrivals.

But under the pressure of air strikes and other operations, necessities are reportedly dwindling in several cities, sparking inflation, cuts and rationing.

Isis had so much money last year, it was trying to mint gold coins

The AP interviewed people who have fled Raqqa, Isis’ de-facto capital in Syria, and those living in its Iraqi stronghold of Mosul.

An activist who has fled over the border to the Turkish city of Gaziantep, Abu Ahmad, said not only militants had felt the squeeze.

“Any civil servant, from the courts to the schools, they cut their salary by 50 per cent,” he added. “Everything is paid in dollars.”

A man who fled al-Bab, another Isis stronghold in Aleppo province, said militants had been sending their families to Raqqa under pressure from a rebel advance.

Oussama told AP Isis officials had been heard by townspeople discussing crippling air strikes on oil infrastructure, the cut-off of supply lines and revenue sources, amid “grumbling” from low-level fighters.

"You can sense the frustration, their morale is down," Oussama said of the militants.

Isis fighters celebrating in Fallujah, which the militants took in 2014 (AP)

In the Iraqi city of Fallujah, fighters who once made $400 (£280) a month are not being paid at all and their food rations have been cut to two meals a day, according to an anonymous resident.

He said inhabitants can only leave if they pay $1,000 (£700) - a sum well beyond the means of most in the Sunni-majority city that was the first in Iraq to fall to Isis in 2014.

Fallujah is also where Isis has started charging $500 (£350) for the release of a detainee, and fining rather than flogging civilians who violate its strict dress code, in apparent money-making schemes.

In September, the Iraqi government cut off salaries to employees trapped in Isis-controlled territories, despite humanitarian concerns, in an attempt to stop the group taking public money through its “taxes”.

RAF planes launch second round of strikes on Isis oil field in Syria

The US-led coalition has been bombing the terrorist group’s oil fields, supply lines and cash stores since October as part of Operation Tidal Wave II, and the treasury document released last month appeared to show it working.

“So on account of the exceptional circumstances the Islamic State is facing, it has been decided to reduce the salaries that are paid to all mujahideen by half, and it is not allowed for anyone to be exempted from this decision, whatever his position,” the order read, according to a translation by Aymenn Jawad Al-Tamimi, a research fellow at the Middle East Forum.

American officials claimed that operations were already “putting significant damage on Isil’s ability to fund itself” in November and vowed to “step up the attack”.

When British planes extended operations from Iraq into Syria in December, Isis’ Omar oilfields were the first target and Tornadoes and drones have returned to destroy attempted repairs.

A “cash distribution centre” reportedly used to pay fighters was also hit by US planes on 11 January near its Iraqi stronghold of Mosul, with footage showing clouds of money blown into the air.

Timeline: The emergence of Isis Show all 40 1 / 40 Timeline: The emergence of Isis Timeline: The emergence of Isis 2000 Abu Musab al-Zarqawi (pictured here) forms an al-Qaeda splinter group in Iraq, al-Qa’eda in Iraq. Its brutality from the beginning alienates Iraqis and many al-Qaeda leaders. Timeline: The emergence of Isis 2006 Al-Zarqawi is killed in a U.S. strike. Al-Zarqawi’s successor, Abu Ayyub al-Masri, announces the creation of the Islamic State in Iraq (ISI). Reuters Timeline: The emergence of Isis 2009 Still al-Qaeda-linked ISI claims responsibility for suicide bombings that killed 155 in Baghdad, as well as attacks in August and October killing 240, as President Obama announces troop withdrawal from Iraq in March. Getty Images Timeline: The emergence of Isis 2010 Abu Bakr al-Baghdadi becomes head of ISI, at lowest ebb of Islamist militancy in Iraq, which sees last U.S. combat brigade depart. Timeline: The emergence of Isis 2012 In Syria, protests (pictured here starting in Daree) have morphed into what president Assad labelled a “real war” with emergence of a coalition of forces opposed to Assad’s regime. Syria group Jabhat al-Nusra are among rebel groups who refuse to join, denouncing it as a “conspiracy”. Bombings targeting Shia areas, killing more than 500 people, spark fears of new sectarian conflict. Sunni Muslims stage protests across country against what they see as increasingly marginalisation by Shia-led government. AP Timeline: The emergence of Isis 2013 Al-Baghdadi renames ISI as the Islamic State in Iraq and Syria, or Isis, as the group absorbs Syrian al-Nusra, gaining a foothold in Syria. In response, al-Qaeda chief Ayman al-Zawahiri (Bin Laden’s successor) concerned about Isis’ expansion orders that Isis be dissolved and ISI operations should be confined to Iraq. This order is rejected by al-Baghdadi. AFP Timeline: The emergence of Isis 2014 - January Isis fighters capture the Iraqi cities of Fallujah and Ramadi, giving them base to launch slew of attacks further south. AP Timeline: The emergence of Isis 2014 - June Isis declares itself the Caliphate, calling itself Islamic State (IS). The group captures Mosul, Iraq’s second largest city; Tal Afar, just 93 miles from Syrian border; and the central Iraqi city of Tikrit. These advances sent shockwaves around the world. Timeline: The emergence of Isis 2014 - June Around the same time Isis releases a video calling for western Muslims to join the Caliphate and fight, prompting new evaluations of extremists groups social media understanding. Timeline: The emergence of Isis 2014 - June Isis take Baiji oil fields in Iraq - giving them access to huge amounts of possible revenue. EPA Timeline: The emergence of Isis 2014 - August James Foley is executed by the group as concerns grow for second American prisoner, fellow reporter Steven Sotloff. AP Timeline: The emergence of Isis 2014 - August Obama authorises U.S. airstrikes in Iraq, helping to stall Isis’ along with action by Kurdish forces following the deaths of hundreds of Yazidi people on Mount Sinjar. Timeline: The emergence of Isis 2014 - September Isis release video showing Steven Sotloff’s murder prompting Western speculation his executioner is same man who killed Mr Foley. EPA Timeline: The emergence of Isis 2014 - September Obama tells us that America “will hunt down terrorists who threaten our country” EPA Timeline: The emergence of Isis 2014 - September Isis release a video appearing to show David Haines, who was captured by militants in Syria in 2013, wearing an orange jumpsuit and kneeling in the desert while he reads a pre-prepared script. It later shows what appears to be the aid worker's body. Rex Timeline: The emergence of Isis 2014 - September Peshmerga fighters scrabble to hold positions in the Diyala province (a gateway to Baghdad) as Isis fighters continue to advance on Iraqi capital. AFP Timeline: The emergence of Isis 2014 - October Aid worker Alan Henning is killed. Self-imposed media blackout refuses to show images of him in final moments, instead focuses upon humanitarian care. AP Timeline: The emergence of Isis 2014 - October Isis raise their flag in Kobani, which had been strongly defended by Kurdish troops. The victory goes against hopeful western analysis Isis had overextended itself, while alienating much of the Muslim population through the murder of Henning. Victory causes fresh waves of Kurdish refugees arriving in Turkey. Timeline: The emergence of Isis 2014 - November American hostage, who embarced values of Islam, Peter Kassig and 14 Syrian soldiers are shown meeting the same fate as other captives. But intelligence agencies will be poring over the apparently significant discrepancies between this and previous films. Seramedig.org.uk Timeline: The emergence of Isis 2015 - February Isis has released a video revealing the murder by burning to death of a Jordanian pilot held by the group since the end of December 2014. Reuters Timeline: The emergence of Isis 2015 - February Isis militants have released videos which appear to show the beheading of Japanese hostages Haruna Yukawa and Kenji Goto. Timeline: The emergence of Isis 2015 - February American aid worker, Kayla Mueller was the last American hostage known to be held by Isis. She died, according to her captors, in an airstrike by the Jordanian air force on the city of Raqqa in Syria, though US authorities disputed this. AP Timeline: The emergence of Isis 2015 - February Isis militants have posted a gruesome video online in which they force 21 Egyptian Coptic Christian hostages to kneel on a beach in Libya before beheading them. Egypt vowed to avenge the beheading and launched air strikes on Isis positions. AP Timeline: The emergence of Isis 2015 - February The British Isis militant suspected of appearing in videos showing the beheading of Western hostages has been named in reports as Mohammed Emwazi from London. Rex Features Timeline: The emergence of Isis 2015 - March Isis triple suicide attack has killed more than 100 worshippers and hundreds of others were injured after the group members targeted two mosques in the Yemeni capital of Sanaa. AP Timeline: The emergence of Isis 2015 - April Iraqi forces have claimed victory over Isis in battle for Tikrit and raised the flag in the city. EPA/STR Timeline: The emergence of Isis 2015 - April Isis has claimed responsibility for a suicide bomb attack in Afghanistan that killed at least 35 people queuing to collect their wages and injured 100 more. EPA Timeline: The emergence of Isis 2015 - April Isis’ media arm released a 29-minute video purporting to show militants executing Ethiopian Christians captives. The footage bore the extremist group’s al-Furqan media logo and showed the destruction of churches and desecration of religious symbols. A masked fighter made a statement threatening Christians who did not convert to Islam or pay a special tax. Timeline: The emergence of Isis 2015 - May Abu Bakr al-Baghdadi, the leader of Isis has been "incapacitated" by a spinal injuries sustained in a US air strike in Iraq. He is being treated in a hideout by two doctors from Isis’ stronghold of Mosul who are said to be "strong ideological supporters of the group". Timeline: The emergence of Isis 2015 - May Isis has also claimed responsibility for killing 300 of Yazidi captives, including women, children and elderly people in Iraq AP Timeline: The emergence of Isis 2015 - May Isis attack on Prophet Mohamed cartoon contest in Texas was its first action on US soil. Two gunmen were shot and killed after launching the attack at the exhibition. Elton Simpson and Nadir Soofi have been named as the attackers at the Curtis Culwell Centre arena in Garland. Timeline: The emergence of Isis 2015 - May Isis’s deputy leader, Abu Alaa Afri, a former physics teacher who was thought to have taken charge of the deadly terrorist group, has been killed in a US-led coalition airstrike. Timeline: The emergence of Isis 2015 - May US special forces have killed a senior Isis leader named as Abu Sayyaf in an operation aiming to capture him and his wife in Syria. Getty Images Timeline: The emergence of Isis 2015 - May Iran-backed militias are sent to Ramadi by the Iraqi government to fight Isis militants who completed their capture of the city. Government soldiers and civilians were reportedly massacred by extremists as they took control and the army fled. Charred bodies were left littering the city streets as troops clung on to trucks speeding away from the city. Ramadi is the latest government stronghold to fall to the so-called Islamic State, despite air strikes by a US-led international coalition aiming to stop its advance in Iraq and Syria. AFP Timeline: The emergence of Isis 2015 - May Isis rounded up civilians trapped in Palmyra and forced them to watch 20 people being executed in the historic city’s ancient amphitheatre. The Unesco World Heritage site was overrun by militants, threatening the future of 2,000 year-old monuments and ruins. Thousands of Palmyra’s residents fled but many are still living within the city walls, while the UN human rights office in Geneva said it had received reports of Syrian government forces preventing people from leaving until they retreated from the city. Getty Timeline: The emergence of Isis 2015 - May A group of Isis-affiliated fighters have captured a key airport in central Libya. The militants took control of the al-Qardabiya airbase in Sirte after a local militia tasked with defending the facility withdrew from their positions. Affiliates of Isis, already control large parts of Sirte, the birthplace of former Libyan leader Muammar Gaddafi and a former stronghold of his supporters. Timeline: The emergence of Isis 2015 - June The US Air Force has destroyed an Isis stronghold after an extremist let slip their location on social media. According the Air Force Times, General Herbert "Hawk" Carlisle, commander of Air Combat Command, said that Airmen at Hulburt Field, Florida, used images shared by jihadists to track the location of their headquarters before destroying it in an airstrike. Reuters Timeline: The emergence of Isis 2015 - June Kurdish forces captured a key military base in a significant victory in Raqqa as well as town of Tell Abyad. YPG fighters, backed by US-led airstrikes and other rebels, consolidated their gains, when they seized the key town on the Syria-Turkey border. They are now just 30 miles to the north of Raqqa and have cut off a major supply route deep inside Isis-held territory. Ahmet Silk/Getty Timeline: The emergence of Isis 2015 - June Isis has released gruesome footage claiming to show the murder of more than a dozen men by drowning, decapitation and using a rocket-propelled grenade as it seeks to boost morale among its fanatical supporters. Timeline: The emergence of Isis 2015 - June Isis has begun carrying out its threat to destroy structures in the ancient Syrian city of Palmyra, blowing up at least two monuments at the Unesco-protected site as Syrian government troops made advances on the Islamist’s positions. AFP

General Lloyd Austin, head of the US Central Command, told CNN it deprived the group of “millions of dollars”.

”We are seeing our efforts having some effect on their financial flows.” Lisa Monaco, President Barack Obama's counterterrorism adviser, told the AP.

“It’s difficult to get a handle on just how much because of the different illicit ways in which they are handling their finances but you've seen the efforts that our military has taken to take out cash storage sites, and I think it is our hope and expectation that that will have demonstrable effects.”

Isis maintains control of huge swathes of territory across Iraq and Syria, and has seen no major defeats since the Syrian regime upped its offensive against anti-government rebels backed by Russian air strikes earlier this year.

At the same time, Turkey has been shelling the Kurds believed to be one of the most effective fighting forces against Isis, raising fears that resistance to the terrorist group on the ground is being diminished.

Additional reporting by AP