The former chairman of Islami Bank Bangladesh, Limited (IBBL), Shah Abdul Hannan, explained his support for collecting taxes beyond zakat for the purposes of waging jihad in an article posted online around 2003 (available here and here). Hannan based this argument on the writings of Yusuf al-Qaradawi, the notorious Muslim Brotherhood leader, Hamas charity front financier, and sharia finance proponent.
Referring to Qaradawi’s Fiqh al Zakah, Hannan wrote:
…Allah has made it obligatory to carry out Jihad (defence of Islam and Islamic territory and to put an end to oppression anywhere in this world) through employing one’s life and wealth. This is a duty beyond Zakat. To carry out a major Jihad in this age, if needed, there is no other way but to raise resources through taxes…
Hannan has also condemned peaceful Shahbag dissidents who are calling for justice against war criminals in Bangladesh. Hannan calls the student demonstrators fascists. Well, Mr. Hannan—it takes one to know one.
Money Jihad has been documenting the terrorist financing activities of IBBL, one of the biggest banks in Bangladesh and its largest sharia financial institution, ever since Bangladeshi authorities revealed in 2011 that Islami Bank has been diverting eight percent of its corporate zakat to jihadi militants. A member of IBBL’s sharia advisory board was also detained and questioned for possible involvement in an attack against police.
IBBL fell under international scrutiny in 2012 after the U.S. Senate reported that HSBC continued to maintain a business relationship with IBBL despite evidence of its role in funding terrorism.
More recently, U.S. garment importers including Wal-mart and J.C. Penny have severed ties with IBBL due to the Islamic bank’s role in supporting militants. Nonetheless, Western Union continues to do business with IBBL.