Islamic View on Money Laundering and Terrorist Financing

By Muhammad Fayyaz, Muhammad Subtain Raza

Abstract

Money laundering and terrorist financing are global threats for global economy, security and society. Islam is not just a religion; it is a comprehensive system that includes all aspects of human life. Islamic law cannot be separated from its moral, ethical and religious principles. This paper is an endeavor to highlight the Islamic legal framework’s contemporary perspectives to denounce the money laundering, other economic crimes and terrorist acts. Further this paper signifies the Islamic approach on financial crimes and appraises its uniformity with the international conventions in this arena. The first part of paper introduces the basic concepts, related offences and international conventions on money laundering & terrorist financing. The second part accentuates Islamic viewpoints and compliance regime on two menaces. Final part concludes that Islam encompasses all affairs of human life and provides a regulatory system to repercussions of money laundering and terrorist financing and deprecates them even today.