The reason SCF is presented to the world as an “ethical” or “socially responsible” vehicle is not because Islamic Finance limits usury through interest-free products or provides bankers with halal ways and means to profit. The reason SCF is considered socially responsible is because it is a wealth redistribution scheme. One fortieth or 2.5% of the funds are up for grabs; that is, redistribution to the Islamic faith via Zakat. And, while this holy laundering may feed a few hungry children, the Holy Land Foundation trials showed Americans that Zakat charities are possible avenues of support to jihadi cultists. What is certain is that the inability of American and other Western governments to gain complete oversight into the full scope of Zakat redistribution provides an opportunity for unscrupulous behavior.
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