Posts Tagged ‘taqiyya’

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Holton to Congress: Currently no disclosure or transparency standards for zakat, sharia products

June 17, 2012

Chris Holton, vice president at the Center for Security Policy and editor of Shariah Finance Watch, recently briefed staff members from ten Congressional offices on sharia-compliant finance.  During a question and answer period, staffers showed particular interest in the lack of disclosure and transparency requirements on Islamic finance.

One questioner asked Mr. Holton whether, even after all the new financial regulations of Sarbanes-Oxley and Dodd-Frank, there are still truly no reporting requirements for banks to disclose whether they have sharia portfolios and where their zakat expenditures are directed.  You’ve got to listen to the answer during three minutes of powerful audio from the the briefing:

In an era where nearly every single aspect of the U.S. financial sector is taxed, regulated, and scrutinized, it is remarkable that banks are not required to tell investors whether the products marketed to them as “ethical” are actually sharia products, that the banks do not have to disclose what charities receive zakat from the Islamic bank divisions and sharia boards, and or even such basic information as whether the bank has a sharia division.

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CAIR lies about hawala

August 20, 2010

After it became clear that the would-be Times Square bomber Faisal Shahzad used hawala to finance his failed attack, the English-language Russian news channel RT interviewed Nihad Awad from the Council on American-Islamic Relations about hawala.

When asked about the terrorist and criminal uses of hawala, Awad made the wildly fanciful statement that “the 9/11 Commission has exonerated the hawala system…”

Actually, Mr. Awad, the staff of the 9/11 Commission found just the opposite in their monograph on terrorist financing as follows:

Al Qaeda moved much of its money by hawala before 9/11. In some ways, al Qaeda had no choice after its move to Afghanistan in 1996; the banking system there was antiquated and undependable. Hawala became particularly important after the August 1998 East Africa bombings increased worldwide scrutiny of the formal financial system. Bin Ladin turned to an established hawala network operating in Pakistan, in Dubai, and throughout the Middle East to transfer funds efficiently. Hawalas were attractive to al Qaeda because they, unlike formal financial institutions, were not subject to potential government oversight and did not keep detailed records in standard form. Although hawaladars do keep ledgers, their records are often written in idiosyncratic shorthand and maintained only briefly. Al Qaeda used about a dozen trusted hawaladars, who almost certainly knew of the source and purpose of the money. Al Qaeda also used both unwitting hawaladars and hawaladars who probably strongly suspected that they were dealing with al Qaeda but were nevertheless willing to deal with anyone.

The full interview, which includes a ridiculous comparison between Wall Street and hawala, and a series of softball questions for Awad, is available here.  It’s quite telling that Russian news producers regard Awad, the man behind CAIR’s fundraising efforts, as hawala expert, isn’t it?