Islamic Finance

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.

There are some shared characteristics between the United Nations Convention on Contracts for the International Sale of Good (“CISG”) and Islamic law (shari`a). They both remain largely unknown to American lawyers and contain legal principles that are compatible in many ways.

This paper attempts to examine the securitization, negotiability and profitability aspects of three types of mudarabah instruments; namely, asset-enfaced mudarabah instruments, currency-enfaced mudarabah instruments representing monetary contributions and currency-enfaced mudarabah instruments representing real assets.

In interviews at the World Bank/IMF Annual Meetings in Prague at end of September, Islamic Banker discussed a number of issues with IDB's President. One of IDB's goals at the meetings is to engage in side meetings with the finance ministers of the 53 IDB member states to review priorities of the members, as well as review and discuss the IDB's constructive program of coordination and cooperation with the World Bank. The IDB does not impose uniform regulations or accounting standards, confining its role to offering technical assistance.

As economic interdependence and globalization are ever more expanding, understanding the interest-free system of Islamic banking by banking communities in non-Islamic countries becomes a necessity. This article is an attempt to provide such an understanding by examining the background of Islamic law and Islamic views on banking and finance.

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Although Indonesia began investing in Islamic finance fairly late compared to other nations, it is making great strides in legislation and capital investments to expand Islamic banking assets.

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The Islamic finance industry has developed a net worth of over $200 billion. Western banks and early