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NEW YORK (Reuters) - The Iraq insurgency has become financially self-sustaining, raising tens of millions of dollars a year from oil smuggling, kidnapping, counterfeiting, corrupt charities and other crimes, The New York Times reported in Sunday editions.
According to a classified United States government report, a copy of which was obtained by the newspaper, groups responsible for many of the insurgent and terrorist attacks are raising an estimated $70 million to $200 million a year from illegal activities.
Some $25 million to $100 million of the total comes from oil smuggling and other criminal activity involving the state-owned oil industry aided by "corrupt and complicit" Iraqi officials, the Times said, citing the report.
As much as $36 million a year comes from ransoms paid over hundreds of kidnappings. Unnamed foreign governments -- identified in the past by senior U.S. officials as including France and Italy -- paid kidnappers $30 million in ransom last year alone, the report said.
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The possibility that Iraq-based terrorist groups could finance attacks outside Iraq appeared to echo Bush administration assertions that prevailing in the war is essential to preventing Iraq from becoming a terrorist haven as Afghanistan became under the Taliban, the Times said, adding that that suggestion was one of many aspects of the report that drew criticism from Western terrorism and counterinsurgency experts working outside the government.
According to the Times, the report also said that U.S. efforts to follow the insurgency financing trails have been hampered by a weak Iraqi government and its new intelligence agencies; a lack of communication between U.S. agencies and between the Americans and the Iraqis; and the nature of the insurgent economy itself, chiefly driven by manual money transfers rather than more easily traceable means.
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false claims/lip service