Money laundering from Islamic perspective
| Date | 23 October 2007 |
| Pages | 406-411 |
| Published date | 23 October 2007 |
| DOI | https://doi.org/10.1108/13685200710830899 |
| Author | Samah Al Agha |
| Subject Matter | Accounting & finance |
Money laundering from Islamic
perspective
Samah Al Agha
Institute of Advanced Legal Studies, University of London, London, UK
Abstract
Purpose – The focal point of this paper is money laundering from the Islamic perspective. As money
laundering has become a world-wide phenomenon, studying it from an Islamic viewpoint is of
significance. The purpose of this paper is to examine: the conception of money laundering in Islam; the
criteria by which Islamic law distinguishes between lawfulness (al-halal ) and unlawfulness (al-haram);
what the stipulations (conditions) are for having money or owning property in Islam; and what the
attitude of Islamic law is towards the laundered money.
Design/methodology/approach – The research depended on secondary data. The data were taken
from Quran and Sunna.
Findings – In responding to the first question, it has been found that, although money laundering is a
contemporary crime, the conception of money laundering has been addressed through many
provisions in Quran and Sunna (going back 1,400 years). From many examples in Quran and Sunna,
it has been recognised that the scale of prohibition in Islam is much wider than the scale of prohibition
in any secular law. Qimar (gambling) is prohibited by Sharia law but not in secular laws.
Originality/value – The paper is of value in identifying the criteria by which Islamic law
distinguishes between lawfulness and unlawfulness. It also identifies four stipulations for having
money or owning property in Islam. Finally, the paper reviews the attitude of Islamic law towards the
laundered money.
Keywords Money laundering,Islam
Paper type General review
1. The conception of money laundering in Islam
Although money laundering is a contemporary crime, over 1,400 years, it has been
addressed through many provisions in Quran and Sunna that contain the conception
of money laundering[1]. For example, prophet Mohamed prohibits any activity
funded by money derived from Souht (unlawful trade or ill-gotten property). He said:
“Any activity built from Souht, will be casted into Fire” (Saleh and Saleh, 2006).
Furthermore, Prophet Mohamed prohibited the use of money generated from illegal
activities even if it goes to poor people or to charities. He said: “Sadakah[2] com es from
theft are not acceptable” (Saheh Muslim 1/204 in: Saleh and Saleh, 2006).
However, the scale of prohibitions in Islam is much wider than the scale of
prohibition in any other secular laws. For example, whereas gambling (which means
Qimar and Mysar in Islam) is allowed in too many countries, it is prohibited by Islamic
law as will be explained later. In addition, while Paghy (prostitution) is legal in some
jurisdictions, it is illegal in Islamic law, so Islamic law illegalizes the money that comes
from prostitution. Prophet Mohamed explicitly prohibited taking the money earned by
prostitution (as will be shown later). There are two scales of prohibitions by Islamic
law: general provisions and specific provisions of prohibitions.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
10,4
406
Journal of Money Laundering Control
Vol. 10 No. 4, 2007
pp. 406-411
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200710830899
To continue reading
Request your trial