The Center for Security Policy wishes to thank our readers and researchers for making this a useful public resource documenting the serious risks of Shariah Compliant Finance and Shariah Law. If you are interested in contributing to Shariah Finance Watch as a volunteer researcher, analyst or expert in Shariah Compliant Finance or Shariah Law, please contact the Center at [email protected]. Please consider helping us inform the public about the possible civil and criminal liabilities and risks of Shariah Compliant Finance, and the threats to human rights of Shariah Law.
|WHAT IS SHARIAH LAW?
Understanding Shariah law is integral to understanding the dangers of Shariah-compliant finance. Shariah law is Islamic law dating back to the 7th century and is today the law of the land in Saudi Arabia, Iran, Sudan and the law under which the Taliban operates.
Shariah law authorities, some of whom are now being paid handsomely by Barclays, Dow Jones, Standard & Poors, HSBC, Citibank, Merrill Lynch, Deutschebank, Goldman Sachs, Morgan Stanley, UBS, Credit Suisse and others have the power to dictate Shariah compliance as deemed by “scholarly consensus” on matters of finance, family, penal law, apostasy, and war. Examples of authoritarian Shariah law include: requirement of women to obtain permission from husbands for daily freedoms; beating of disobedient woman and girls; execution of homosexuals; engagement of polygamy and forced child marriages; the testimony of four male witnesses to prove rape; honor killings of those, principally women, who have dishonored the family; death to apostate Muslims who chose to leave Islam; inferior status of non-Muslims, and capital punishment for those “slander Islam.”
The shariahfinancewatch.org blog is a project of the Center for Security Policy‘s program to educate the public and policymakers about the dangers of shariah law. The Center for Security Policy is a non-profit, non-partisan national security organization that specializes in identifying policies, actions, and resource needs that are vital to American security and then ensures that such issues are the subject of both focused, principled examination and effective action by recognized policy experts, appropriate officials, opinion leaders, and the general public. Other Center for Security Policy websites on shariah include the Divest Terror project.
National Security and Financial Risks: Islamists are attempting to impose Shariah Compliant Finance (SCF) on Western institutions to use our own financial strengths against us. The most serious problem with SCF is that it legitimates and institutionalizes Shariah law (i.e., Islamic law), a theo-political- legal doctrine violently opposed to Western values. With $1 -$2 trillion petrodollars annually looking for an investment home, blind exuberance is driving financial institutions to adopt SCF, without even a minimal baseline for legal compliance. This willful blindness, and lack of both transparency and due diligence may cause SCF to be the next sub-prime crisis, but this time with deadly consequences.
Legal Risks: Western financial institutions which adopt SCF may have criminal and civil exposure to claims of aiding and abetting sedition and the material support of terrorism, securities fraud, consumer fraud, racketeering, and antitrust violations, as well as exposure to tort claims for sedition and terrorism, and for the violation of internationally recognized norms of the law of nations.
Terror Financing Mechanism: SCF as monitored by paid Shariah law advisors to U.S. banking institutions must “purify” certain return on investment (ROI) dollars that do not meet Shariah law standards. This money must be donated to Islamic charities – including some that promote Jihad and support suicide bombing. Investment disclosures state that these profits can be as high as 6% of profits of investments. With $800 billion already in SCF assets, the potential for billions of dollars to be siphoned off for terrorism is real. This would be a serious criminal violation of U.S. law.
Consider this example: Shariah Mutual Funds promote themselves as “ethical funds.” To be Shariah-compliant, they donate “tainted” revenues to Shariah-compliant “charities.” A post 9-11 U.S. investor in a Shariah-compliant “ethical investment” is not told that Shariah law also requires imposing Shariah as U.S. law, execution of gays and female apartheid. Is he a victim of consumer fraud? Is this same post 9-11 investor unwittingly funding terror? The government has shut down the three largest Shariah-compliant charities in the U.S. – the Holy Land Foundation, Benevolence International Foundation, and the Global Relief Foundation – after proving they funded terrorist organizations.The American taxpayer deserves answers to these questions. The Center for Security Policy (CSP) is meeting directly with members of Congress, U.S. regulatory agencies and Wall Street financial institutions in order to ensure the enforcement of existing U.S. laws on sedition, disclosure, material support of terrorism, and money-laundering. CSP is committed to revealing the civil liability and criminal exposure of Shariah law and Shariah-compliant finance.
*These Frequently Asked Questions about SCF are updated monthly by the research team at the Shariah Risk Due Diligence Program. FAQ sources, detailed research papers and legal briefs are available on request.
FAQs – ISLAMIC FINANCE – WHAT YOU NEED TO KNOW: