A new approach to the criminalization of terrorist financing and its compatibility with Sharia law
| Date | 05 October 2012 |
| DOI | https://doi.org/10.1108/13685201211265980 |
| Pages | 396-406 |
| Published date | 05 October 2012 |
| Author | Hamed Tofangsaz |
| Subject Matter | Accounting & finance |
A new approach to the
criminalization of terrorist
financing and its compatibility
with Sharia law
Hamed Tofangsaz
School of Law, University of Canterbury, Canterbury, New Zealand
Abstract
Purpose – The purpose of this paper is to re-discover the nature of the crime of terrorist financing in
order to challenge the assumption which requires the criminalization of terrorist financing as a
predicate crime to money laundering.
Design/methodology/approach – Illustrating the nature of the crime of terrorist financing and
money laundering, the necessity of the criminalization of terrorist financing as an inchoate crime in
accordance with the principles of Islamic criminal law will be examined.
Findings – While the criminalization of money laundering in Islam is based on the illegality of
crimes already happened, impermissibility of terrorist financing needs to be forward-looking,
concentrating on the destination of the crime of terrorist financing. This requires criminalization
of terrorist financing as an inchoate offence which is compatible with the principles of Islamic
criminal law.
Originality/value – The paper provides new insight into the criminalization of terrorist financing.
Keywords Crime, Money laundering, Terroristfinancing, Sharia, Inchoate, Islam, Law
Paper type Research paper
1. Introduction
Since the attacks of 11 September 2001, the crime of terrorist financing has come to the
attention of the world. As a result, many international organizations, governmental
and private, have taken account of the issue more seriously than before. The result has
been a regulatory tsunami of international rules and standards designed to counter the
international phenomenon of terrorist financing. The determination of the international
community to create a harmonized, comprehensive and effective regulatory regime to
hinder terrorist financing is obvious; however, from the beginning, there has been some
doubt about the appropriateness of the counter-terrorist financing regime becoming
integrated into the anti-money laundering regime.
Generally speaking, the approach existing in anti-money laundering regime is
“backward looking”, concentrating on the origin of the proceeds derived from the crime
that have already been committed (Cassella, 2003, p. 93). However, terrorist financing is
the stage at which funds are legally or illegally provided and collected for the
commission of the crime of terrorism in future; so, it is preparatory in nature. From
Sharia law perspective, as will be considered in this paper, the main concern is how
terrorist financing needs to be criminalized. In other words, considering differences
between the concept, process and techniques of money laundering and terrorist
financing, the question is whether terrorist financing is a predicate offence to money
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
15,4
396
Journal of Money Laundering Control
Vol. 15 No. 4, 2012
pp. 396-406
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685201211265980
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