Islamic State is making millions of dollars for its war chest by playing foreign currency markets under the noses of bank chiefs, it was revealed yesterday. The terror group is earning up to $20-million a month by funnelling dollars looted from banks during its takeover of the Iraqi city of Mosul to currency markets in the Middle East.It then makes huge returns on currency speculation, which are then wired back via unsuspecting financial authorities in Iraq and Jordan, a parliamentary committee was told yesterday.IS's extraordinary venture into white-collar crime is now a major source of income, along with oil smuggling and extortion.Details of the scam emerged during a hearing of a Whitehall foreign affairs subcommittee set up to examine Britain's role in IS financing.The hearing was told that IS finance chiefs play the international stock markets. They also use money siphoned off from pension payments still being made by the Iraqi government to civil servants living in Mosul."The cash is routed to Jordanian banks and brought back into the system via Baghdad," said subcommittee chairman John Baron."That allows the system to be exploited by IS in that they take a profit on the foreign currency actions and siphon that cash back."The profits were channelled back into IS coffers by "hawala" transfers, an unregulated system of money transfer, in which cash payments are made via agents in one country after a similar amount is presented as collateral in another.Tobias Ellwood, a junior foreign office minister, said that work was now under way to shut the system down. ..