The underground banking systems and their impact on control of money laundering: with special reference to Islamic banking

Money laundering has been characterised as the most serious danger threatening not only the economies of all countries but also their tranquillity and political stability. Despite the theoretical tight regulation and control of banking activities under Islamic law which calls for clean, transparent and ethical dealing_x000D_ which is known to be positive for combating money laundering, there are many loopholes in the Islamic system that might allow underground operations of money laundering to be conducted. Such operations should not be left unchecked in view of the strenuous efforts being exerted at all levels to uproot the damaging phenomenon of money laundering, which is condemned by all legal systems, including Islamic law. International cooperation is required to combat underground banking operations, which are the most significant sources of money laundering activities across international boundaries.