Anti-money laundering (AML) legal framework: the sharia perspectives
Abstract:Abstract
The multifaceted challenges posed by the phenomenon of money laundering and
other related predicate offenses remain a major threat to global economic
development and the havoc created by its menace to the growth, safety and
economic development globally is enormous and unquantifiable in terms of actual
estimate. It remains a phenomenon that constitutes a threat to every fabric of human
endeavor and as such, a complex global problem where launderers continue to
perfect methods of cross-border movements of their proceeds of crime with very
destructive tendencies, so much that it has grown to become a serious threat to the
workings of a normal society. Ironically it has continued to increase unabated. Of
great importance, however is the terrorist attack on the United States of America on
September 11, 2001. This event has contributed immensely to the re-awakening of
global concern on money laundering and terrorism financing. While the event has
gingered a lot of reactions that led to the development and the growth of AML
legislation regime, the great concern is that it has equally created a sort of apathy
for Islamic finance which is currently fuelling the perception of a systemic biasness,
bred hatred and prejudice against anything Islamic. Islamic charity funds, waqf and
other related endowment now labelled to be more vulnerable to laundering and
serve as veritable tool for terrorism financing. This attitude, no doubt, gives the
impression that Islamic Finance which is grounded in Sharia is sharply against
principles of AML legal framework. This paper therefore, is intended to examine the
Sharia perspectives of AML concept. A careful study and analysis of AML in the
context of sharia stunningly reveals that such opinion is unfounded. The scope of
money laundering prohibition is broader under sharia and anything contrary lacks
empirical proof.
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