The link below contains a strong indictment of how Shariah Finance is practiced by many of the Shariah-Compliant firms in the world.
Many, if not most, Shariah firms hire Shariah scholars to form boards to advise them on Shariah and make sure that their products and activities are Shariah-Compliant. This surprising source indicates that this obvious conflict of interest is itself not Shariah-Compliant. Of course, we won’t hold our breath waiting for “reform.”
“When a financial institution is claiming that all its activities are compliant with Islamic Sharia and that it has appointed its own Sharia body to determine whether or not its products and contracts are Sharia compliant and to observe and scrutinize the institution’s activities and its accuracy with regards to Sharia law then this very institution fails to meet its obligations towards its clients and contests in a court of law the compliance of these contracts to Sharia law, this in itself contradicts Islamic Sharia.”
