Recently in Sharia finance Category

UPDATE: Jihad Watch reader Christopher has just informed me that Arcapita no longer owns either Church's Chicken or Caribou Coffee. Arcapita sold off Church's back in 2009. They held an IPO for Caribou Coffee in 2011 and subsequently divested all of their shares.

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One that used to boast the genocidal Jew-hating Sheikh Yusuf al-Qaradawi among its advisers. Here is the extraordinary expose: "Jihad-Free Holiday Gifts: Check That List Twice!," by David Yeagley, December 28:

What do Caribou Coffee, Church’s Chicken, J. Jill, and PODS Moving and Storage have in common?

They are all owned by Muslim Brotherhood-linked Arcapita Bank (formerly known as First Islamic Investment Bank).

Unlike most banks, Arcapita boasts a “spiritual advisor”–none other than Hamas-linked terrorist Youssef al-Qaradawi. Qaradawi, you’ll remember, is the current spiritual leader of the Muslim Brotherhood. He was exiled from Egypt under Mubarak, but now he’s b-a-a-ack, thanks to U.S. support of the “Arab Spring”.

This is the same Qaradawi who has defended Hitler, pushed for Islamic countries to acquire nuclear weapons for use in jihad, and confirmed that chopping off hands for stealing–as taught by Muhammad (Qur’an 5.38)–can be re-introduced into the “new” Egypt at a later date, as Egyptians learn to submit to orthodox shari’a.

Arcapita, presumably short for “Arab Capital”, buys and sells businesses at a profit. The current list of their holdings is available in their 2011 annual statement (pages 12-13). (If there’s no “exit date” listed, they still own that company.)

Arcapita is based in Bahrain, but it’s U.S. HQ is in Atlanta. First Islamic Investment Bank changed its name to Arcapita in 2005, after the Qaradawi connection went public. They had tried “Crescent Capital” for their American branch, but apparently decided the Islamic link was still too obvious with that moniker. Muslims know that Islam is not selling well in the West; they are careful to conceal Islamic ties with name-changes so consumers cannot connect the dots to brand names or distinguish between products that fund terrorism and those that do not.

Arcapita’s spiritual advisor serves on the bank’s “Shari’ah Supervisory Board” (see p. 113) to ensure that all financial transactions are shari’a-compliant, or SCF. What does SCF include? That varies somewhat depending on which Islamic legal school one is consulting, but always bans anything involving “gambling, alcohol, pornography, dealing in pork products, or interest payments.”

Although Qaradawi no longer serves on that board–he resigned shortly after his involvement with Arcapita went public–it is clear that the firm’s allegiance to Islam and the Muslim Brotherhood remains the same. One of the board’s four members, Muhammad Usmani, is involved with both the Islamic Society of North America see p.62)
and the Islamic Circle of North America (see p. 40), both MB front groups. In 2010, Dow Jones dropped Usmani as an Islamic Index advisor when it discovered his terrorist connections.

Three of the four members belong to the Islamic Fiqh Academy, also MB....

There is much, much more. Read it all.

Anything for a buck, even treason. "UK bank accused of Iran money laundering scheme," by Michael Gormley for the Associated Press, August 6 (thanks to all who sent this in):

ALBANY, N.Y. (AP) — A British bank schemed with the Iranian government to launder $250 billion from 2001 to 2007, leaving the United States' financial system "vulnerable to terrorists," New York's financial regulator charged Monday.

In a statement released Monday night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks. It said it voluntarily began reviewing the transactions since 2010 with U.S. regulators and the findings don't match the accusations leveled at the bank Monday.

State Financial Services Superintendent Benjamin Lawsky signed an order that requires London-based Standard Chartered Bank to answer his questions following an investigation into "wire stripping," the practice of removing crucial identifiers in financial transactions.

The state agency called the bank a rogue institution and quoted one of its executives as saying: "You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians."

The bank conspired with its Iranian clients to route nearly 60,000 different U.S. dollar payments through Standard Chartered's New York branch "after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities," according to agency's order....

The state agency said the bank's actions "left the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes and deprived law enforcement investigators of crucial information used to track all manner of criminal activity."

The bank stripped information from the money transfers that is used to identify countries being sanctioned and replaced it with false entries or returned it to Iran for "wire stripping" and resubmission, according to the order.

The bank "developed various ploys that were all designed to generate a new payment message for the New York branch that was devoid of any reference to Iranian clients," according to the order....

Between 2004 and 2007, about half the period covered by the order, the department claims Standard Chartered hid from and lied about its Iranian transactions to the Federal Reserve Bank of New York. Before 2008, banks were allowed to transact some business with Iran, but only with full reporting and disclosure, the order states.

In 2008, the U.S. Treasury Department stopped those transactions because it suspected they helped pay for Iran to develop nuclear weapons and finance terrorist groups including Hamas and Hezbollah. The order states the bank has to provide information and answer to its questions to determine if any of its funding aided the groups or Iran's nuclear program....

Global finance completely compromised. "Report Shows How HSBC Maintained Its Ties With One Of Osama Bin Laden's Key Benefactors," by Linette Lopez for Business Insider, July 17 (thanks to Twostellas):

Yesterday, the Senate released a report on HSBC's ties to the darkest actors in global finance. Today, the details of the 335 page investigation are trickling out and shocking everyone.

The laundry list of offenses includes everything money laundering for Mexican drug cartels to ignoring U.S. regulations meant to prevent dollars from reaching our country's known enemies.

Enemies like Al Qaeda.

One of the most damning parts of the report details HSBC's relationship with Saudi based Al Rajhi Bank, a member of Osama bin Ladin's 'Golden Chain' of important Al Qaeda financiers. The relationship has spanned decades, perhaps that is why even when HSBC's own internal compliance offices asked that it be terminated in 2005, even when the US government discovered hard evidence of Al Rajhi's relationship with terrorism, HSBC continued to business with the bank until 2010.

Al Rajhi bank is owned by the billionaire Al Rajhi family and holds $59 billion in assets. It is Saudi Arabia's largest private bank.

Al Rajhi's links to terrorism were confirmed in 2002 when U.S. agents searched the offices of a Saudi non-profit and U.S. designated terrorist organization, Benevolence International Foundation (page 193). In that raid, agents uncovered a CD-ROM listing the names of financiers in Osama bin Ladin's elite 'Golden Chain.' One of those names was Sulaiman bin Abdul Aziz Al Rajhi, a founder of Al Rajhi bank....

By Jennifer Bonne

One of the reasons Islam can never integrate with Western society is because so many things that make up the basic freedoms people in the West enjoy are against the teachings of Islam. Islam has a word for things that it considers ungodly or immoral - Haraam, which means 'forbidden' in Arabic.  Islamic leaders don’t just want these things forbidden for Muslims, but think the entire world should adhere to their rules too.

The problem with Haraam is that many of the things that Islam considered forbidden and a sin are part and parcel of normal Western society and range from mortgages and credit cards to drinking alcohol and eating pork. The list of things that are Haraam is exhaustive. While some of these are perfectly sensible, such as murder and theft, many things considered Haraam are downright ridiculous, oppressive or simply archaic, and include some of the fundamental freedoms that have been enjoyed in the West for centuries.

Women, Adultery and Sexuality

Islam’s views on women are extreme. The Qur'an states that a woman's testimony is worth only half that of a man's; furthermore, a woman who doesn’t abide by her husband’s wishes is committing a sin. It is Haraam, for instance, for a wife to refuse her husband sex, and she must seek to please him at all times. Men can also punish their wives by beating them, while a woman must dress in accordance with the Qur'an. This means not only making sure they are modestly covered which in some Islamic states means from head to toe, but also basic feminine preening such as dyeing hair or plucking the eyebrows is considered Haraam.

While adultery is considered wrong by many religions, Christianity included, what makes Islam’s views on adultery so startling is that it often includes being a rape victim. While Islam does consider rape itself Haraam, it sets ridiculous, one-sided rules for proving it. For a woman to claim she has been raped, four men who have witnessed the act need to testify. Failing to provide these witnesses means that a woman is guilty of adultery - and the penalties for such a crime in several Islamic states is often stoning to death.

Islam is extremely strict when it comes to sexuality. Not only is homosexuality Haraam, whether gay, lesbian or bisexual, but also Islam forbids women or men dressing as each other. This not only forbids transvestism and harmless drag acts, but also it is Haraam for women to wear clothing such as trousers or shirts.

Capitalism

Modern capitalist society is not one that sits well with Islam. Virtually everything about modern commerce is considered Haraam. Islam is very strict when it comes to business. Any wealth creation in Islam has to be related to the value of the goods traded. It considers interest (Riba) on loans or other financial instruments as sinful. Therefore, everything from getting a mortgage to having a savings account or credit card is Haraam.

Islam also considers gambling Haraam, but this doesn’t just include playing blackjack or roulette. To an Islamic scholar, buying stocks and shares is gambling, as are many forms of insurance. Islam also prohibits the trading of Haraam goods, which includes all sorts of things such as selling alcohol. Goods are also not supposed to be sold to or purchased from a person or business that has committed a Haraam act.

Archaic Practices

Islam considers all sorts of common food items as Haraam. These range from ham, bacon and alcohol to even medicines that contain ethanol. While Islam allows for the eating of meat, all animals have to be slaughtered in accordance with the Qur'an, which involves ritual bloodletting in order for the meat to be acceptable for consumption. This involves an animal slowly bleeding to death and is far crueler than modern American methods

Islam is also chalk full of other medieval practices. It is Haraam, for instance, for a slave to run away from its master. Slavery itself, it seems, is something that is not Haraam in Islam. Islam also prohibits the practicing of magic. This not only includes cabaret acts such as David Copperfield and the use of astrology and horoscopes, but also, many modern science practices, which are deemed Haraam. To this end, Saudi Arabia, a country that has proclaimed the Qur'an as its constitution, has deemed the 'crime' of witchcraft as a capital offense, and has repeatedly executed people for it.

Islam is not conducive to Western or modern society. It is a belief system that is based on medieval source documents written in a far bloodthirstier and illiberal time. Too many of the freedoms we in the West take for granted are considered Haraam, and Islam is intent on getting rid of all of them.

Ireland, of course, has been in financial trouble, and appears willing to chase after the "next big thing" at the expense of principles to see some income. In all likelihood, Sharia finance will eventually bubble and burst like every other wave of irrational exuberance in the financial sector, and economies that pursued it will be left to deal with the mess left behind. That includes an unpredictable range of potential consequences resulting from having given Sharia a foot in the door. "Ireland may be first EU state to sell Islamic bond," for Elffie Chew for the Irish Examiner, January 20:

IRELAND plans to become the first European nation to sell sovereign sukuk — Islam-approved financial certificates — as its equal tax treatment for Islamic-finance products attracts investors. The Government has agreements with more than 60 countries to avoid double taxation on Islamic transactions, Micheál Smith, the south-east Asia director of IDA Ireland, said.

Islamic finance assets around the world may rise about 16% to €1,240 billion this year, Raj Mohamad, managing director at Five Pillars, a consulting firm based in Singapore, told Bloomberg Television yesterday.

While plans to sell sukuk by Britain, France and Luxembourg have stalled, Mr Smith said Ireland will push ahead with a sale.

"Ireland will be going back to the bond market and a sukuk is an option when conditions are right. We also hope to form more working groups with Muslim countries such as Malaysia to build up a critical mass of expertise as the objective is for Dublin to become a centre of excellence for Islamic finance."

Ireland introduced tax legislation for products that comply with Islam’s ban on interest in 2010, Mr Smith, who is based in Singapore, said.

The Central Bank has a Shariah team overseeing its Islamic funds, which total about €390m under management.

The Irish Stock Exchange listed its first sukuk in 2005 and Ireland is a popular choice for sales because the nation offers a "relatively inexpensive" and timely listing process, he said.

The Government last sold bonds in September 2010, the year it had a deficit that was the highest as a percentage of gross domestic product in the developed world. The Department of Finance estimates the ratio dropped to 10.1% of GDP in 2011 from 31% the previous year.

CIMB Group Holdings, the world’s biggest sukuk arranger, said this week that it got approval to set up the first Shariah-compliant equity funds from Malaysia in Ireland.

Ireland’s bid to become an Islamic finance hub received a boost in October when Goldman Sachs Group got approval from the nation’s central bank to list its $2bn (€1.55bn) sukuk programme. The planned sale has attracted criticism among Islamic scholars, with some saying the proceeds may not be used according to Shariah law.

CIMB-Principal Islamic Asset Management, based in Kuala Lumpur, chose Ireland for its Islamic equity funds because there’s no double taxation and no withholding tax on interest payments, Jim McCaughan, chief executive of US-based venture partner Principal Global Investors, said on Monday.

An initial investment of $20m (€15.5m) will be put into three funds that will open for subscription next month, he said.

"We expect interest from Europe, Malaysia and more importantly the Persian Gulf and other Muslim countries," Mr McCaughan said. "People are getting wealthier and want to diversify their funds."

Global sales of sukuk, which pay asset returns instead of interest, total €4.7bn this year, compared with €500m in the same period in 2011, according to data compiled by Bloomberg. Offerings reached a record $36.3bn last year, surpassing the $31bn raised in 2007.

The difference between the average yield for sukuk and the London interbank offered rate, or Libor, narrowed two basis points to 299 basis points yesterday, according to the HSBC/Nasdaq Dubai US Dollar Sukuk Index.

The average yield has climbed nine basis points, or 0.09% point, this year to 4.08%.

Shariah-compliant bonds have dropped 0.1% in 2012, according to the HSBC/Nasdaq index, while debt in developing markets declined 0.2%, JPMorgan Chase & Co’s EMBI Global Composite Index shows.

The Bloomberg Malaysian Sukuk Ex-MYR Index of foreign currency Islamic debt sold by companies in Malaysia rose 0.5% this year to 104.919 yesterday. The gauge increased 5.9% in 2011.

Britain cancelled what would have been the first sukuk sale by a Western government last February, saying the debt didn’t offer value for money. Luxembourg ruled out a plan to sell Islamic bonds in 2011 because the government saw no need to raise additional funding. France has legislation in place to facilitate a sale and has yet to proceed with an issue.

Ireland has a Muslim population of 30,000, according to a Department of Finance document covering the nation’s Islamic industry issued in March 2010. Roman Catholics make up 87% of Ireland’s population.

The Islamic Cultural Centre for Ireland and the Immigrant Council of Ireland have all called for more Shariah-compliant initiatives, the report said.

"There’s been no objection to Islamic products being sold in Ireland," said Mr Smith, who is also a director in charge of the 10-member Association of Southeast Asian Nations at the IDA.

The European debt crisis provides an opportunity for Islamic finance to grow given it is rooted in ethics and religion, according to Nik Norzrul Thani, the chairman of Malaysian law firm Zaid Ibrahim & Co.

"What Ireland is doing is a step in the right direction," Nik Norzrul said in an interview in Kuala Lumpur.

"Ireland’s ambition to be a Shariah-compliant hub is a recognition that Islamic finance isn’t only for Muslims."

Sharia-compliant Islamic bonds. The means compliant not just with Sharia's rejection of interest, but with its denial of the freedom of speech, the freedom of conscience, and the equality of rights of women and non-Muslims. So the posters above can kick off the ad campaign. "Indonesia to Sell Seven-Year Global Islamic Bonds Today," by Elffie Chew for Bloomberg, November 14:

Nov. 14 (Bloomberg) -- Indonesia plans to sell seven-year Shariah-compliant bonds today, helping the nation revive Islamic debt sales amid the slowest half in three years....

Indonesia’s sales of sukuk, which pay returns on assets to comply with Islam’s ban on interest, dropped this half to the least since 970 billion rupiah in the first six months of 2008, according data compiled by Bloomberg. Global offerings reached $19.6 billion this year, up from $14.3 billion in the same period of 2010, the data show. Average yields on the debt dropped 94 basis points in 2011 to 3.80 percent on Nov. 11, according to the HSBC/NASDAQ Dubai US Dollar Sukuk Index....

In "Father and son jihadists" in World Net Daily, August 30, Pamela Geller discusses Umar Farouk Abdulmutallab, the Christmas underwear bomber, and his rejection of American law for Islamic law -- as well as the little-noted Sharia activities of his "moderate" father in Nigeria:

Umar Farouk Abdulmutallab, the Christmas underwear bomber, is back in the news, claiming that he is being wrongfully imprisoned and should be immediately released. [...]

A devout Muslim, Abdulmutallab intended to kill hundreds, if not thousands, of people in the cause of Islam on Christmas Day in 2009, with a bomb in his crotch. In his statement to the court, he excoriates the inferior kuffar and explains the superiority of Islamic law, Shariah: "The defendant is being unjustly detained in the United States of America, and subjected to the Rule of Man," wrote Abdulmutallab, insisting that he should "only be judged and ruled by the law of the Quran." [...]

The devout Muslim bomber also claimed that during the "holy month of Ramadan," "excessive force" was used against him after he assaulted several officers "in defense of Muhammad." I wouldn't be surprised if Hamas-tied CAIR files charges against law enforcement for using "excessive force" to restrain this deeply pious man. [...]

The devout Muslim bomber was from a well-to-do banking family, so when the leftist media lapdogs try to foist that poverty meme on you, spit in their repulsive faces. In reality, Umar Farouk Abdulmutallab was from a privileged background. His father, Dr. Alhaji Umaru Abdul Mutallab, was until recently the head of the oldest and largest bank in Nigeria, the First Bank of Nigeria PLC, and had been a government minister during the 1970s.

There were reports throughout the mainstream media saying that Abdulmutallab's father warned U.S. authorities in Nigeria about his son. But now that his son is in court, his father needs to be properly scrutinized also, to unravel the truth about where and how Abdulmutallab was "radicalized."

In 2005, Alhaji Mutallab hired Mallam Lamido Sanusi Lamido as the head of his risk management department. Lamido served in that position for several years. Then in June 2009, Alhaji Mutallab recommended that the then-president of Nigeria, Umaru Musa Yar'Adua, appointed Lamido as governor of the Nigeria Central Bank, an institution that is similar to the Federal Reserve or the Bank of England. Lamido still holds that job. [...]

Lamido decided this year to transform the Nigerian banking system to Shariah banking, under the guise of "non-interest banking," which he claimed is a very effective system in countries such as Saudi Arabia, Pakistan, Indonesia and Iran.

This new banking system is slated to begin this year; and coincidentally, Alhaji Mutallab was the first Nigerian to obtain the required Shariah banking license. A report in Africa Today last January alleged that Alhaji Mutallab had "ties to Muslim Wahhabism extremism in Saudi Arabia, Sudan, Dubai, Yemen, Egypt."...

Read it all.

This was surely in the works anyway, but the timing is noteworthy as interest rates on student loans are set to become more expensive next year in Britain. "Separate" will indeed be unequal, and anything that doesn't err on the side of resulting in a better deal for Muslim borrowers will likely be decried as punitive, discriminatory (never mind the self-segregation inherent in the demand) and Islamophobic.

One also can't rule out hearing at some point that any delay in finding a solution could result in alienation and "radicalization" by supposedly denying education and discouraging integration. "Muslims demand Sharia student loans because paying interest goes against Islamic law," from the Daily Mail, August 22:

Muslim groups are calling for a separate student loan system because the interest due to be charged will conflict with rules of Sharia law.

The changes to tuition fees, which come into force next year, will see students charged higher rates of interest on the loans they take out to pay for university.

Until now they have paid the market rate of inflation but the reforms mean students who go on to earn more than £21,000 will have to pay interest of up to 3 per cent.

The humanity!

But in some interpretations of Sharia law, which is Islam's legal system and governs every aspect of Muslim life, loans are forbidden.

Loans with interest, or riba are forbidden.

The National Union of Students has said it could be two years before an alternative system is worked out, leaving some Muslims fearing they cannot go on to further education.

The Federation of Student Islamic Societies told The Independent that the rate increase was a 'pressing issue'.

A spokesman said: 'Because the rate of interest is above the rate of inflation, it is quite blatant usury.'

Usury means the practice of lending money and charging the borrower interest, possibly at a very high rate.

Three percent, according to this story.

Mohammed Ahmed-Sheikh, 17, says the changes will discourage him from applying to university next year.

'The fees are the reason I'm having doubts. I'm Muslim and loans are against my religion,' he told The Independent.

Ahmad Mitoubsi, 21, who graduated this year, added: 'We've just had to adapt to the British system or else I couldn't have gone to uni.'

The Department of Business, Innovation and Skills says discussions are ongoing with student groups about a solution.

But it is thought an alternative, such as already happens with mortgages in which education could be 'rented' instead, may not be agreed until the 2013/14 academic year

Sharia law is Islam's legal system. It was derived from the Koran, as the word of God, the example of the life of the prophet Muhammad and fatwas - the rulings of Islamic scholars.

Whose prophet?

It is different to [sic] the legal traditions of the Western world because it governs - or informs - everything about how a Muslim lives.

They know the stakes of the Islamization of Nigeria. For them, unlike some of their Western co-religionists, this is no experiment, and no drawing room discussion of what Sharia could/would/ought to be. They have to deal with it as the supremacist threat that it is to freedom of religion, worship, speech, and conscience. "Bishops condemn Islamic banking, FG’s approach on Boko Haram," by Gbenga Faturoti for Daily Independent, August 21 (thanks to Twostellas):

Catholic and Anglican Bishops weighed in on economic and security matters at the weekend, as both groups criticised the approach of President Goodluck Jonathan to the menace posed by Boko Haram in the North, and expressed concern over Islamic banking.

Over 20 Bishops of the Anglican Communion who congregated at St. Peter’s Anglican Church, Ogharefe Delta State at the First Synod of the Anglican Diocese of Sapele condemned the introduction of Islamic banking.

They urged Abuja to review the conditions for the approval of non-interest banking and make all possible amendments that would ensure the interest of every religious group in Nigeria is protected.

They also tasked political leaders to remember that if they do not alleviate the sufferings of the masses, then their service is not of God.

A communique signed by the host of the meeting, Blessing Erifeta, and the Synod's Clerical Secretary, T. O. Usikaro, condemned Boko Haram extremism, the murder of National Youth Service Corps (NYSC) members in the North, and ritual killing and kidnapping across the land.

Erifeta tasked Nigerian leaders to remember that they are to attend to the plight of citizens who suffer in the midst of plenty, reverse infrastructure decay, provide drinking water, electricity, good roads – amenities taken for granted in other modern nations.

To fail in this great duty and to begin to serve only personal interests is to fail both man and God, he stressed.

He added: “Every person in position of leadership in churches, politics, civil service ,and the society in general is also included in this call so as to make God’s love be fulfilled in mankind”.

The synod congratulated Jonathan and other public officials on their electoral victory, but pressed the government to strengthen and free the judiciary.

Anglican Primate of Nigeria, Nicholas Okoh, sent a goodwill message to the Bishops who attended the meeting, who included Blessing Enyindah, Dapo Asaju, F.J. Imaekhai, C. I. Ide, P. Onekpe, J.E. Oyepken, John Akao, C.O. Odutemi E. B. Emamezi, O. Obiosa, Ndukwa, Jacob Bada, J.F.E Edewor, P.O. J. Imasuen, Justus Mogekwu, N.A. Enuku, and V.O. Moughereh.

Catholic Bishops of Ibadan, Oyo, Ekiti, Ondo, Osogbo, and Ilorin derided the diplomatic approach Abuja has adopted to tackle Boko Haram, a fundamentalist Islamic sect which has chosen violence to impose Sharia law in the land.

They demanded extensive debate on the proposed Islamic banking, describing the pronouncement by Central Bank of Nigeria (CBN) Governor, Lamido Sanusi, on it as “governance by ambush.”

A communiqué issued at the end of their meeting in Ede, Osun State – signed by Felix Job (President) and Felix Ajakaye (Secretary) – mainatianed that Nigerians should have been allowed to discuss such an important and sensitive issue before Sanusi’s pronouncement.

“We ask the government to facilitate vigorous disinterested and nationwide discussion on the issue for better understanding and resolution of the ‘explosive’ matter,” the communiqué said.

It condemned the handling of Boko Haram, and argued that, “Nigerians will benefit more from strengthening the rule of law, whereby the security agencies will promptly bring criminals to book than negotiate with murderers and criminals.

A sternly worded letter? No, they say they "would rather go to war" than give up their campaign for Sharia finance. "Muslim group says no going back on Islamic Banking," by Tony Akowe for The Nation, July 24:

A Muslim group in the North yesterday threatened to defend the implementation of the Islamic Banking system with the last drop of their blood. It warned the Christian community opposed to it to back off or face the full wrath of their anger. The Supreme Council for Sharia in Nigeria told reporters at the end of its meeting in Kaduna last night that it would rather go to war than give up their agitation for Islamic banking. It said since Islamic banking has been implemented in Britain and other Christian-dominated countries, there is no reason why it cannot be implemented in Nigeria.

President of the group, Dr. Ibrahim Datti Ahmed, who read the communiqué, warned Christians to drop their opposition to the interest-free Islamic banks in Nigeria.

Datti said: “We are very happy that with a lot of efforts Jaiz Bank has now become a reality. The company owning Jaiz has assured us that the bank is coming in September and they have assured us that they will be starting with three branches, namely Abuja, Kaduna and Kano. And they will continue to open the branches rapidly thereafter.

“I want to assure them that nothing can stop the Jaiz bank from coming into been because it’s being brought in according to the laws of Nigeria. There is nothing illegal about it. If they have a Christian bank that they want to establish, they have the freedom to bring it to the Central bank and if they can prove their case, a Christian bank will be opened.

Disingenuous. They know there is no comparable system to Sharia in Christianity in scope or political supremacist motive, let alone the imperative to implement such a system through violence if necessary.

This is a concern only in Britain? And does anyone care now, or did they only care in 2006? "US terrorist concern on UK sharia banks -WikiLeaks," from Reuters, March 15:

LONDON, March 15 (Reuters) - U.S. authorities expressed concerns that Britain's growing sharia banking sector may be exploited to channel funds to terrorists, the Daily Telegraph reported, citing diplomatic cables released by WikiLeaks.

According to WikiLeaks, the U.S. State Department's concerns were such that it ordered diplomats in London to compile a report on the activities of sharia banks in Britain.

The report cited a cable sent from the office of Condoleezza Rice, former President George Bush's then Secretary of State, in June 2006.

This cable requested information on "Islamic financial institutions' vulnerability to exploitation for illicit or terrorist purposes, such as structuring accounts to mask illicit activity or money laundering", the report said.

District Judge Lawrence Zatkoff said that "the plaintiff did not prove that AIG's sharia-compliant businesses engaged in religious indoctrination" and drew a "distinction between sharia-compliant business as a financial model and overall Islamic law."

But in actual Islamic law, no such distinction exists. And that's what's wrong with Zatkoff's ruling, and the reason why, if it stands, it will be something Americans come to regret.

"US legal win to boost Islamic finance -lawyers," by Shaheen Pasha for Reuters, January 18:

DUBAI, Jan 18 (Reuters) - Lawyers said a U.S. court decision to dismiss a case alleging AIG's (AIG.N) sharia-compliant businesses promoted religious doctrine, will boost confidence in the industry and lift sales of Islamic products in the longer term.

A Michigan district court rejected on Friday a claim filed by Marine veteran Kevin Murray in 2009 that the U.S. government violated the constitution by allowing funds from insurer American International Group's $40 billion bailout to be used to fund its Islamic insurance businesses.

Lawyers say the case is significant for the industry in the United States, which has struggled with a backlash against Islam, and is looking for support from the courts and government to promote Islamic finance as a legitimate business.

"The decision ... debunks the myth that Islamic finance is unacceptable and unlikely to withstand legal challenges to its validity in court," said Megat Hizaini Hassan, head of Islamic finance at Malaysian law firm Lee Hishammuddin Allen & Gledhill.

"Once the financial services industry in the US realises that there should be no major legal issues, then hopefully this may help to make Islamic finance more acceptable in the mainstream."

Islamic finance has been plagued by criticism in the U.S. that it is a means of funneling funds to terrorists or a plot by Muslims to spread a system of Islamic principles known as sharia has plagued the industry in the U.S.

In his opinion, District Judge Lawrence Zatkoff, said the plaintiff did not prove that AIG's sharia-compliant businesses engaged in religious indoctrination.

The distinction between sharia-compliant business as a financial model and overall Islamic law, is a positive step for Islamic finance growth in the U.S., lawyers said, but is just one battle won as the industry seeks to grow.

"The case helps the industry by putting the fringe element that is fearful of sharia in its place," said Isam Salah, partner at King & Spalding in New York. "But I expect we'll see more of these kinds of cases as we see a multi-pronged effort to combat all things Islamic in the U.S."

An appeal of the ruling has already been filed to the Sixth Circuit Court of Appeals, said David Yerushalmi, Murray's attorney and general counsel for the Center for Security Policy.

"Sharia compliant finance is a religious endeavour, there is no way you can separate it from political Islam," Yerushalmi said. "Sharia can't be cut up and diced, it's an integral whole."

Indeed.

If the Norks don't get them, this will. "South Korea to Learn From Malaysia on Islamic Finance," by Manirajan Ramasamy and Frances Yoon for Bloomberg, December 10:

Dec. 10 (Bloomberg) -- South Korea wants to learn about Islamic finance from Malaysia, President Lee Myung Bak said today following a local newspaper report that parliament had rejected a bill that would pave the way for a sale of sukuk....

The bill, which was first proposed to parliament by the Ministry of Strategy and Finance in September 2009 to help diversify funding sources, was scuttled earlier this year amid opposition from church leaders. A sale of sukuk would be South Korea's first.

Lee Man Sub, head pastor at the Korean Association of Church Communication, was among leaders seeking to stop the plan on concern Islamic charities would funnel contributions to terrorist activities from zakat, a tax paid by Muslims with wealth to be distributed to the poor and needy.

Shariah-compliant bond sales in South Korea could potentially reach $1 billion a year, Lee Yul Hee, head of the Islamic finance team at the Seoul-based Korea Investment & Securities Co., said in August. Malaysia is the world's biggest market for sukuk and a global hub for financing that complies with religious tenets.

Once again, non-Muslims must change their practices to accommodate Muslims. "Muslim challenge to tuition fee interest charges," by Sean Coughlan for BBC News, November 4 (thanks to all who sent this in):

Muslim student leaders say changes to tuition fees in England could breach Islamic rules on finance, which do not permit interest charges.

The coalition government's plans to raise tuition fees to up to £9,000 also include higher interest rates for repayments of loans.

The Federation of Student Islamic Societies says this will make loans unusable for many Muslim students.

A government spokesman said these were "not commercial loans".

As well as raising tuition fees, the proposals for university funding include changes to loan repayments - with some students set to pay more than at present.

Interest charges

Repayments will be structured so that higher-earning graduates are paying higher levels of interest rates, up to 3% above inflation.

Only those who earn below £21,000 will remain paying an effective zero rate of interest.

There are concerns that such interest charges are against Muslim teaching on finance and will prevent young Muslims from getting the finance needed to go to university....

The hub, that is, for Sharia finance -- and with Sharia finance comes Sharia, which bodes ill for the country's non-Muslims. "Nigeria Plans Sukuk Debut Targeting Role as Shariah Hub: Islamic Finance," by Dana El Baltaji for Bloomberg, September 28:

Nigeria, Africa's second-largest economy and home to 75 million Muslims, plans to sell its first Islamic debt within 12 months as part of a bid to become the continent's center for Shariah-compliant financing.

"Nigeria will be the Islamic hub by 2020," central bank Governor Lamido Sanusi said in a Sept. 24 telephone interview from the capital, Abuja. The government has yet to decide on a size for the sukuk sale, he said....

International sales of Islamic debt, which comply with the religion's ban on interest by paying asset-based returns, declined 24 percent to $10.7 billion so far this year, according to data compiled by Bloomberg. Issuance is rebounding after Dubai World, one of the emirates' three main state-controlled holding companies, reached an agreement this month with creditors to change terms on $24.9 billion of debt....

Nigeria's population, which is 50 percent Muslim, "remains largely unbanked," Razia Khan, head of Africa research at Standard Chartered Bank Plc in London, wrote in an e-mailed response to questions yesterday. "So yes, Nigeria has the right demographics to emerge as a hub for Islamic banking in Sub- Saharan Africa."...

The country in a "few weeks" will issue guidelines to allow conventional banks to open so-called Islamic windows and subsidiaries, Sanusi said. "There is a very strong desire among the population for Islamic financial products."...

And the stealth jihad advances apace. "White House welcomes Shariah finance specialist: Obama selects Muslim expert in Islamic transactions as fellow," by Chelsea Schilling for WorldNetDaily, June 25 (thanks to all who sent this in):

The Obama administration has announced its appointment of 13 White House fellows - and the first person featured on its short list is a Muslim attorney who specializes in Shariah-compliant transactions....

White House fellows spend a year as full-time, paid assistants to senior White House staff, the vice president, Cabinet secretaries and senior administration officials.

Samar Ali of Waverly, Tenn., is the first name appearing on the White House list. She is an associate with the law firm Hogan Lovells - a firm that claims to have advised on more than 200 Islamic finance transactions with an aggregate deal value in excess of $40 billion.

According to Ali's biography posted on the White House website, "She is responsible for counseling clients on mergers & acquisitions, cross-border transactions, Shariah-compliant transactions, project finance and international business matters. During her time with Hogan Lovells, she has been a founding member of the firm's Abu Dhabi office."

Hogan Lovells lists Ali's experience "advising a Middle Eastern university in the potential establishment of a Foreign Aid Conventional and Shariah Compliant Student Loan Program and advising a Middle Eastern client in relation to a U.S. government subcontract matter."

"Our team members are at the forefront of developments in the Islamic finance industry," Hogan Lovells boasts. "We help set standards for the sector. We have also advised on numerous first-of-their-kind transactions, such as the first convertible Sukuk, the first equity-linked Sukuk, the first Shariah-compliant securitization, the first international Sukuk al-mudaraba and Sukuk al-musharaka, the first Sukuk buyback and the first Multilateral Investment Guarantee Agency guaranteed Islamic project financing."

Ali also clerked for Judge Gilbert S. Merritt of the U.S. Court of Appeals for the Sixth Circuit and Judge Edwin Cameron, now of the Constitutional Court of South Africa.

Promoting Islam and Shariah

The White House notes that Ali also led the YMCA Israeli-Palestinian Modern Voices for Progress Program and is a founding member of the first U.S. Delegation to the World Islamic Economic Forum. Ali was listed as a member of the British delegation to the World Islamic Economic Forum in 2009 and as a U.S. delegate in 2010.

Shariah Finance Watch blog noted, "[I]t was at the World Islamic Economic Forum where key leaders declared Shariah finance to be "dawa" (missionary) activity to promote Islam and Shariah."

In fact, the president of Indonesia, H. Susilo Bambang Yudhoyono, delivered a March 2, 2009, keynote address to Islamic leaders at the World Islamic Economic Forum in Jakarta during which he called for Islamic banks to do "missionary work in the Western world."

"Islamic banking should now be able to take a leadership position in the banking world," he said. "Islamic banks have been much less affected by the financial meltdown than the conventional banks - for the obvious reason that Shariah banks do not indulge in investing in toxic assets and in leveraged funds. They are geared to supporting the real economy."

He added, "Islamic bankers should therefore do some missionary work in the Western world to promote the concept of Shariah banking, for which many in the West are more than ready now." [...]

In his July 2008 essay, "Financial Jihad: What Americans Need to Know," Vice President Christopher Holton of the Center for Security Policy wrote, "America is losing the financial war on terror because Wall Street is embracing a subversive enemy ideology on one hand and providing corporate life support to state sponsors of terrorism on the other hand."

Holton referred to Islamic finance, or "Shariah-Compliant Finance", as a "modern-day Trojan horse" infiltrating the U.S. He said it poses a threat to the U.S. because it seeks to legitimize Shariah - a man-made medieval doctrine that regulates every aspect of life for Muslims - and could ultimately change American life and laws....

There is much more. Read it all.

"Murray argues that he is being forced as a taxpayer to contribute to the propagation of Islamic beliefs and practices predicated upon Shariah law." "U.S. Marine fires back over Shariah loans," by Chelsea Schilling for WorldNetDaily, June 8:

A U.S. Marine who served in Iraq is suing the federal government for distributing billions of dollars in taxpayer funds to the Shariah-supporting American International Group.

The lawsuit, Murray v. Geithner et al., was brought against the Fed and the Treasury by the Thomas More Law Center on behalf of Kevin Murray, a former Marine who served honorably in Iraq to defend the United States from Islamic terrorists.

Murray argues that he is being forced as a taxpayer to contribute to the propagation of Islamic beliefs and practices predicated upon Shariah law, which he says is hostile to his Christian religion.

He is represented by Thomas More attorney Robert Muise and David Yerushalmi, an associated attorney who is an expert in Shariah law and Shariah-compliant financing, as well as general counsel to the Center for Security Policy. They filed the initial complaint in December 2008.

On June 7, Murray's attorneys filed a motion for summary judgment asking federal District Court Judge Lawrence Zatkoff to rule against Treasury Secretary Timothy Geithner and the Federal Reserve Board.

The Thomas More Law Center explained the motion for summary judgment is based on depositions of Treasury officials, court-sealed affidavits of AIG officials and sworn declarations of two notable experts on Islamic law and terrorism: Stephen C. Coughlin and Robert Spencer.

Coughlin, a lawyer and decorated Army Reserve officer, is a leading Pentagon expert on the link between Islamic law and jihad. He explained that by engaging in Shariah-compliant financing, AIG and the federal government - which owns 79.9 percent of AIG - are engaging in the religious practice of Islam.

Islam teaches hostility and discrimination against Jews, Christians and anyone who doesn't accept the Quran as the "word of Allah," he said, explaining that the indoctrination stems from the same law that motivated the Sept. 11, 2001, attacks that killed nearly 3,000 Americans.

As WND reported, Spencer, director of Jihad Watch, a program of the David Horowitz Freedom Center, has studied Islamic theology and history for 30 years. He is author of "Stealth Jihad: How Radical Islam is Subverting America without Guns or Bombs,""The Politically Incorrect Guide to Islam and the Crusades" and eight other books dealing with Islam. He has led seminars on Islam and jihad for the U.S. Central Command, the U.S. Command and General Staff College, the Joint Terrorism Task Force and the U.S. intelligence community.

Spencer explained that by offering Shariah-compliant financing, AIG is promoting religious behavior that teaches hatred and discrimination against Jews, Christians and other non-Muslims....

Indeed I did. Read it all.

We have previously thought that Islamic banking -- that is, the accommodation of Western banking practices to Islamic legal requirements -- was being pursued by non-Muslim financial institutions out of a desire for economic gain. But in this story, DBS Group is still determined to make a go of Islamic banking, despite losses. Of course, they're confident that this venture will eventually be profitable, but perhaps there is also an ideological slant to this endeavor. Certainly the West is tied ideologically to the idea of making common cause with a benign and peaceful Islam; why not Singapore?

"UPDATE 1-DBS makes partial retreat from Islamic banking," by Kevin Lim and Liau Y-Sing for Reuters, May 24:

SINGAPORE/KUALA LUMPUR, May 24 (Reuters) - DBS Group (DBSM.SI), Southeast Asia's largest lender, is shrinking its Singapore-based Islamic unit in yet another sign that the city-state's efforts to promote sharia banking is struggling.

Islamic Bank of Asia (IB Asia), in which DBS has a just over 50 pecent stake, has transferred 10 of its 65 staff to DBS and redeployed others to new roles within the Islamic bank, a spokeswoman said.

"IB Asia will continue to focus on wholesale banking but prioritise its business focus on fee-based investment banking business activities and in private equity," she added in response to queries from Reuters.

"We remain committed to growing our Islamic banking franchise in this region."

IBA, Singapore's only wholly-owned full licensed Islamic bank, suffered a loss of $77.1 million in 2009 after making specific allowances on debt owned by customers in the Gulf region. The bank had $725 million in assets as at end-2009, including $453 million in payments due from non-bank customers.

A source had earlier told Reuters the Islamic unit of DBS planned to get out of the lending business entirely. The bank has also not replaced departing staff, including former CEO Vince Cook who left in December. [ID:nSGE5BG044]

Islamic finance has been slow to take off in Singapore despite the central bank's support and the city state's reputation as an Asian banking hub.

Sukuk sales have been sporadic and there has been little interest from retail investors and sharia-compliant funds.

A thriving Islamic finance industry would complement Singapore's position as a regional banking centre and enable it to tap cash-rich Gulf investors who can only invest in sharia-compliant assets.

But practitioners see little growth in Singapore's Islamic finance industry in the coming years.

"Islamic finance will take off in Singapore but it's going to be quite slow," said Haszeri Hussin, Islamic treasury head at the Malaysian unit of Singapore's No. 2 lender Oversea-Chinese Banking Corp (OCBC.SI).

"Singapore must encourage more issuance of sukuk. The MAS (Monetary Authority of Singapore) must be able to issue more, then they can create a lot of liabilities to match assets. Retail doesn't have the critical mass to make it a big presence in Singapore."...

To encourage the growth of Islamic finance, Singapore has removed double stamp duties and given similar tax treatment for sukuk investors....

What could go wrong? Well, for one thing, Sharia is a program for every aspect of life. So once one sets the precedent that it is good to accommodate Sharia, there is always more Sharia to accommodate -- including provisions institutionalizing discrimination against women and non-Muslims.

"Loan caters to Minneapolis Muslim business owners: The Alternative Finance Program respects Islamic law by offering fixed-rate loans," by Katherine Lymn for the Minnesota Daily, March 24 (thanks to Arafat):

An Islamic law enacted centuries ago was an obstacle for modern Minneapolis businesses until Minneapolis partnered with an African business resource group to allow Muslim business owners a way to both comply with their beliefs and invest in their businesses.

Since April 2007, the city of Minneapolis, in partnership with the African Development Center, has given out 38 loans in a way that is compliant to Islamic law by using a fixed rate in place of a variable interest rate.

Through the system, called the Alternative Finance Program, businesses pay a set rate of return, which corresponds with Islamic practices. The program is a slightly altered version of the common "Two-Percent" loans also offered by the city's Department of Community Planning and Economic Development.

"It really amounts to the same thing," Bob Lind, CPED director of business finance, said. "But it's ... just a different way of looking at it."

Recipients of the loan operate businesses that lie mainly in the Cedar-Riverside neighborhood and along Lake Street, "typical strongholds for the Somali community," Lind said.

That is, the Somali community that has seen so many of its members return to Somalia to wage jihad in recent years.

Five of the loans went to businesses that are part of a Somali marketplace in the Cedar-Riverside area.

Said Karie, who works at Hijaz Clothing in the marketplace, explained that "everything that has [an] interest rate is actually a sin" for Muslims.

"It's been that way for years and years," Karie said.

The rule extends beyond just loans, as Muslims who follow the religion strictly will go as far as returning interest gained on savings to the bank or a charity, said Abdirahman Omar, general manager of Mustaqbal Computer Center.

"Personally, I wouldn't take it [interest] even if I needed it," Omar said....

The loan program is a response to the wave of Middle Eastern and East African immigrants in recent years, Lind said.

"We're just trying to work with those new immigrant populations to try to provide assistance and financing just like we would for anybody with the last name 'Smith' or 'Johnson,' " he said.

Partnering with the Minneapolis-based African Development Center, CPED has distributed almost $1.5 million to the businesses, with loans ranging from $10,000 to $150,000. Most fall between $10,000 and $20,000, Lind said.

He added that loan recipients have been good clients of the city; "[they] tend to borrow as short a term as possible [and] pay it back as quick as possible," Lind said.

Before the program, businesses were unable to get loans because of these religious beliefs, and they would turn to raising money internally, Lind said.

The program is a pathway for business owners to "achieve the American dream of creating wealth," Lind said.

He added that Minneapolis is the first city, to his knowledge, to adopt a Shariah-friendly loan program. He sees the city's version as becoming a model for others in the future.

I am sure it will be.

Why quietly? Best not to call too much attention to your dhimmitude. Then some folks who still have an attachment to the human rights that are trampled by Sharia might object. "U.N. Drops Muslim Brotherhood Figure From 'Terrorist Finance' List," by Mark "Must Be Loving This" Hosenball for Newsweek, March 17 (thanks to all who sent this in):

The U.N. Security Council has quietly dropped Youssef Nada, a prominent financial and diplomatic representative of the Muslim Brotherhood, from an international sanctions list directed at curbing the activities of alleged terrorist financiers. The delisting of Nada, by the Al-Qaida and Taliban Sanctions Committee, was announced by this official notice posted on the Security Council's Web site. In addition to Nada himself, the notice declares that two businesses associated with him, Waldenberg AG of Liechtenstein and Youssef M. Nada & Co. GMBH of Vienna, also have been removed from the U.N. sanctions list.

The Security Council's announcement does not explain why the council decided to drop financial sanctions against Nada and his companies--sanctions intended to curb their ability to conduct financial activities anywhere in the world. But Victor Comras, a former adviser on financial sanctions to the U.S. State Department and, later, an adviser to the committee that produced the sanctions lists, says he find the U.N. action troubling. "To my mind this is a great mistake. I'm kind of mystified by it," Comras told Declassified. When Nada was put on the U.N. sanctions list, it was done with great public fanfare, Comras said. But when the U.N. decided to take his name off, it was done with a minimum of public discussion.

In an e-mail, Comras added: "Even though Nada may no longer be involved in funding Al Qaeda, he has made it clear a number of times that he will continue as a major financial supporter of Hamas . . . As you know, Nada never really suffered from the [U.N. listing]. He continued to live well, travel, and, most likely, to access and manipulate his assets through his family and others." Nada has previously denied any involvement with Al Qaeda.

Comras also noted that given the fact that all listing and delisting decisions by the U.N. sanctions committee have to be unanimous, at some point, in his view, the Obama administration would have had to signal that it was willing to go along with Nada's delisting. Nada and his companies were placed on a terrorist-finance sanctions list maintained by the U.S. Treasury before they were added to U.N.'s list; according to the list currently available on the Treasury Department's Web site, Nada and his companies are still on it.

In a statement, a Treasury spokesperson said that the U.S. has supported "the removal of those individuals who are no longer appropriate for listing pursuant to that specific regime." But the spokesperson added that Nada remains on the Treasury's U.S.-only sanctions list....