Naval Postgraduate School

This thesis reviews the underlying religious principles of Islamic finance, how Islamists have used Islamic banking to Islamize societies, and the way the use of Islamic banking fits into the international economic system. From this analysis, Islamic finance's susceptibility to being misused by terrorists is examined, and although there are areas in the industry that need monitoring, Islamic banking's ties to terrorism are anecdotal, and the system can be marketed as a means of enfranchisement free of an Islamist agenda.