One of the major concerns surrounding Shariah-Compliant Finance is the requirement that financial institutions tithe in the system of zakat in order to be Shariah-Compliant.
Readers can check our archives for more background on this subject:
The problem arises with regard to the Islamic charities which are the approved recipients of these payments. Even if the Shariah advisors who select the charities are not Jihadists (and some of them definitely are), there is no program of due diligence in place to ensure that such funds do not end up in the hands of terrorists.
All too often they do.
The Treasury Department has designated no fewer than 27 Muslim charities as terrorist entities. And in the UK, as we saw with Interpal last month, Islamic charities are also being increasingly implicated in terror funding.
The latest example comes from Bangladesh, where the head of the London-based Green Crescent charity was arrested for evidently running a Jihadist training camp out of a school and orphanage…