A dedicated group of intelligence consultants are sounding the alarm over the growth of Islamic banking and its potential nexus to radical Islamic and terrorist causes, even as many in the banking industry dismiss their concerns as overstated. Islamic banking, a relatively new concept internationally with the first Sharia compliant institutions developing in the late 1960s, has spread exponentially across the globe and includes several institutions in the U.S. Sharia-compliant assets of the top 500 Islamic banks grew 27.6 percent from November 2007 to $639.1 billion, according to a November 2008 article in U.K.-based The Banker. And, increasingly, many large...
In the financial compliance world, debt repayment doesn't usually attract much in the way of negative attention. But in the context of other red flags, sudden debt reimbursement can signal that a client is following a little-known stricture for Islamic soldiers who may soon die in battle.
Financial consultants are weighing ways to shield their auditors from undue influence by clients in the wake of a monetary settlement by New York State and congressional testimony by federal regulators.
For bank compliance staff, the news might sound alarming: U.S. officials have questioned the British government over whether Islamic banking institutions have played loose with counterterrorism financing controls.