Islamic financial institutions: conduits for money laundering?

Jabbar, Siti Faridah Abdul

doi:10.1108/jmlc-09-2019-0074

Cited by 6 publications

(6 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It is acknowledged that Islamic banks are subject to extra close examination by the Shariah boards (Jabbar, 2020).…”

Section: Potential Ml/ft Risks In the Indonesian Islamic Banking Systemmentioning

confidence: 99%

Money Laundering/Financing of Terrorism Risks in the Indonesian Islamic Banking System

Makmur,

Minan

2023

Proceedings of the 3rd International Conference of Islamic Finance and Business, ICIFEB 2022, 19-20 July 2022, Jakarta, Indones

View full text Add to dashboard Cite

The Anti-money laundering/counter financing of terrorism (AML/CFT) rules of several jurisdictions with a robust Islamic finance existence, like Indonesia, are relatively weak, and international standards of AML/CFT measures make no unique arrangement for the Islamic banking system. Moreover, there are still limited parallel studies on the Islamic banking system. This paper aims to present the actual money laundering/financing of terrorism risks of the Islamic banking system's specific features, namely (i) the principle of fully care, not speculative and not manipulative; (ii) the relationship between customers and financial institutions; (iii) the complexity of Islamic banking products. Such research objective will be achieved by performing a descriptiveanalytical utilizing document and content analysis from Indonesian experience to examine whether the existing international standards are applicable and adequate for the Islamic banking system. This paper found that a more comprehensive awareness of the money laundering/financing of terrorism risks in the Islamic banking system should be developed to customize reassuring efforts to cultivate the integrity of Islamic banks and ensure the industry against money laundering/financing of terrorism. Furthermore, the Islamic banks should build additional mechanism in determining the money laundering/financing of terrorism risks and implement precautionary standards customized to the nature of their products and services.

show abstract

“…It is acknowledged that Islamic banks are subject to extra close examination by the Shariah boards (Jabbar, 2020).…”

Section: Potential Ml/ft Risks In the Indonesian Islamic Banking Systemmentioning

confidence: 99%

Money Laundering/Financing of Terrorism Risks in the Indonesian Islamic Banking System

Makmur,

Minan

2023

Proceedings of the 3rd International Conference of Islamic Finance and Business, ICIFEB 2022, 19-20 July 2022, Jakarta, Indones

View full text Add to dashboard Cite

show abstract

“…Several research studies that discussing multi-contract in shari'ah financial institutions according to (Jabbar, 2020) describe multi-contract financing practices in several different countries. Multi-financing is vulnerable to money laundering which is posing its own risk.…”

Section: Introductionmentioning

confidence: 99%

Mapping Multi Akad Research in Sharia Banks: VOSviewer Bibliometric Study and Literature Review

Rohmadi,

Bagaskara,

Wulandari

2024

JIEP

View full text Add to dashboard Cite

This study aims to determine the mapping of research around multi-contract in shari'ah banks with a mix-method approach, namely VOSviewer bibliometric studies and literature reviews. "Data analysis techniques include: (1) mapping the number of journal publications distributed around Multi Akad using Microsoft Excel and Mendeley Desktop based on the year of publication; (2) mapping the results of bibliometric network visualization and journal publication trends around Multi Akad at shari'ah banks using VOSviewer (Visualization of Similarities) algorithm software based on the number of clusters and their items; and (3) mapping research topics around Multi Akad using literature studies. The results showed that: (1) based on mapping the number of journal publications, there were 500 journal publications about moral hazard for the period 2019-2023; (2) based on the mapping of VOSviewer bibliometric studies, the results of network visualization around the optimal portfolio are divided into 9 clusters and 146 topic items; (3) Based on the mapping of the literature review study, there are 3 topics about shari'ah banks that often appear first, second shari'ah contracts, and third multi-contracts. The implication and contribution of this research is to map research topics around multi-contract in shari'ah banks that are often or rarely researched by researchers, so that they can be a reference for researchers afterwards.

show abstract

“…Banking can have a conventional concept as well as the Islamic concept. Islamic financial institutions may be more vulnerable to abuse by money launderers than their conventional counterparts (Jabbar, 2020). Some Islamic bank products or transactions involve the process of buying and selling assets, collaborating with the ML to be easier for these transactions (Jabbar, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Islamic financial institutions may be more vulnerable to abuse by money launderers than their conventional counterparts (Jabbar, 2020). Some Islamic bank products or transactions involve the process of buying and selling assets, collaborating with the ML to be easier for these transactions (Jabbar, 2020). The background in this research begins with the development of banking in Indonesia, including Islamic Sharia banking, fraud risk, money laundering in the banking sector, ML collaboration and bankers' behavioural aspects.…”

Section: Introductionmentioning

confidence: 99%

“…ML research conducted in the Indonesian banking area, which has conventional and Islamic banking, is fascinating. Jabbar (2020) argued that there is no evidence to support the contention that Islamic financial institutions facilitate ML actors. This research focuses on the bankers' behavioural aspects of conventional and Islamic banking work.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Money Laundering Intentions of the Bankers: Some Insights from Past Literature

Karima¹,

Mohamed²,

Ahmad³

et al. 2022

IJARAFMS

View full text Add to dashboard Cite

The serial theories used to answer the research issue, such as collaborative theories, ethical dilemmas, and intellectual opportunism, are presented in this paper. Furthermore, this study deals with numerous concepts that serve as the foundation of this research, namely the Money Laundering Typology, Money Laundering Intention, desire of money, and corporate culture. Money laundering has become a worldwide problem that has extended to many countries. Although this illicit procedure is not new, it has posed a threat to many governments and communities because many organised crime groups support it. Although money laundering is a global phenomenon carried out through an international collaborative process that has certain negative consequences for many parties, it nonetheless finds a way and the ingredients to expand and develop consistently. The methods and techniques used in ML practise vary greatly. For example, the perpetrator's ML in the banking sector and nonbanking by utilising professional facilitators, the establishment of fake companies, investment in real estate fields, insurance product purchases and securities companies, as well as the misuse of corporate vehicles are all used.

show abstract

Islamic financial institutions: conduits for money laundering?

Cited by 6 publications

References 16 publications

Money Laundering/Financing of Terrorism Risks in the Indonesian Islamic Banking System

Money Laundering/Financing of Terrorism Risks in the Indonesian Islamic Banking System

Mapping Multi Akad Research in Sharia Banks: VOSviewer Bibliometric Study and Literature Review

Money Laundering Intentions of the Bankers: Some Insights from Past Literature

Contact Info

Product

Resources

About