Islamic financial institutions: conduits for money laundering? Available to Purchase

The purpose of this paper is to discuss various situations in the Islamic financial services industry that are asserted to facilitate money laundering and the counter-arguments to the assertions.

The approach adopted by this paper is a review of literature and of several practices of Islamic financial institutions in a number of countries.

There is no evidence to support the contentions that Islamic financial institutions facilitate money laundering. Further, Islamic financial institutions are not any more susceptible to money laundering than conventional financial institutions are.

This paper demonstrates that Islamic financial institutions are not conduits for money laundering.