On 26 December, the Salaam Gateway reported that the Islamic Financial Services Board (IFSB) has announced a joint paper – Joint Islamic Financial Services Board (IFSB) – Arab Monetary Fund (AMF) Working Paper on Money Laundering and Financing of Terrorism (ML/FT) Risks in Islamic Banking (WP-12). This is designed to address the question of whether there is any evidence that ML/FT risks in Islamic banking are indeed different from those that arise in conventional banking. It discusses survey responses received from banking regulatory and supervisory authorities and, overall, the paper does not find any significant difference in the ML/FT risks between conventional and Islamic banking, and that concerns often raised regarding the potential for Islamic social finance platforms such as zakah, waqf, sadaqah, etc being used to mobilise, store and disburse funds for ML/FT is unfounded. It finds that there is no merit in introducing specific regulations or preventive measures to address the ML/FT risks in Islamic banking.
https://www.ifsb.org/download.php?id=5509&lang=English&pg=/index.php
raytodd.blog 