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Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

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April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

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Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Oct. 23, 2007 / 11 Mar-Cheshvan 5768

Shari'a-friendly investments

By Caroline B. Glick


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http://www.JewishWorldReview.com | Monday the verdict in the largest terror finance case in US history was read in a Texas courtroom. The case against the Holyland Foundation for Relief and Development and five of its principal leaders — which ended in a mistrial — was predicated on the interconnection between terrorism and international finance. The five men were accused of financing Hamas by transferring millions of dollars to organizations in Judea, Samaria and Gaza that served as distributors of charitable or zakat contributions to Hamas members and entities.

Perhaps the greatest problem with the term "war on terror" is that it confuses both the public and those charged with prosecuting the war on all levels about the nature of the enemy we face. The jihadists who seek to dominate the world in the name of Islam are not merely involved in violent activities. Organizations like Hamas, Hizbullah and al-Qaida devote the majority of their efforts to spreading the message of jihad by proselytizing fellow Muslims through propaganda, educational and welfare activities. These actions are vital for building popular support both for their terror activities and for their larger political goals.

Essential to the aims of the jihadists is the Muslim sacrament of zakat. Zakat, one of the pillars of Islam, requires Muslims to donate 2.5 percent of their incomes to charity. As the indictment in the Holyland Foundation case showed, most of the money that the five defendants transferred to Hamas was transferred through zakat committees in Palestinian cities in Judea, Samaria and Gaza. These committees then transferred the monies to Hamas terrorists, their family members, political leaders and terror cells.


LABELING the Holyland Foundation a terrorist entity and freezing its funds was one of the first concrete actions that the Bush administration took in the aftermath of the September 11 attacks. The move was a turning point in the US perception of the nature of terror organizations.

If until September 11 the US related to terror groups as essentially cell-based armed groups, since the attacks on Washington and New York, curbing terror funding has been a central pillar of the US war effort. And targeting supposedly charitable organizations registered in the US, which like the Holyland Foundation served as conduits for money laundering and terror financing was one of the first courses of action that the Bush administration embarked on in its campaign against the global jihadist network.

The targeting of these organizations has been strongly criticized by self-styled Muslim civil rights organizations which protest the government's actions by claiming they are anti-Muslim. Some of the main organizations that have adopted this line were themselves identified as unindicted co-conspirators in the Holyland Foundation case. Specifically, the Council on American-Islamic Relations and the Islamic Society of North America, which both US government agencies and the US media have treated as credible groups were named in the Holyland indictment as unindicted co-conspirators with Hamas's US front group.


THE ESTABLISHMENT of charitable front organizations is merely one of many ways in which jihadist groups have raised funds. Today terror analysts fear that a new means has been found to skirt anti-terror laws and finance terror while rendering the financial systems of the West vulnerable to Islamic manipulation and control. The fear is that through the burgeoning presence of Shari'a-compliant investment houses, jihadist groups and financiers will be able to raise enormous sums of money to fund their nefarious activities aimed at global domination.

Islamic clerics tout Shari'a-finance as one of the central components of Islam. But this is untrue. Shari'a economics did not exist until the founders of the Muslim Brotherhood Maulana Abul Ala Mawdudi and Sayyd Qutb invented it them in the 1940s and 1950s. As Alex Alexiev explained in a recent paper on the subject published by the Center for Security Policy in Washington, DC, the purpose of Shari'a economics was to mobilize Muslim support for radical Islam by promoting Muslim exclusivity and separatism. That is, the purpose of Shari'a finance is religious and political, not financial.

Shari'a finance became a significant factor in the Muslim world in the aftermath of the 1973 OPEC oil embargo which raised Arab oil revenues a hundredfold in under a decade. The first Shari'a-compliant banks were established in 1975 with the opening of the Saudi-controlled Islamic Development Bank and the Islamic Bank of Dubai. Today the International Monetary Fund estimates that there are some 300 Shari'a-compliant banks operating in some 75 countries. Arab estimates place the number at 400. Close to a trillion dollars are under Shari'a-compliant management.


ASIDE FROM these Shari'a-based financial institutions in the Islamic world, the new trend in the West is for Western financial institutions to offer Shari'a-compliant investment opportunities. So excited is Britain, for instance about the financial benefit to be gained by attracting oil-rich Islamic investors that in January Britain's Treasury Minister Ed Balls announced his government's intention to turn London into the center of global Islamic finance.

Given the religious rather than financial aim of Shari'a-compliant investing, it isn't surprising that Shari'a-compliant investments are little more than a word game. Paying lip service to the Koranic prohibition on interest-based transactions and risky investments, Mawdudi and Qutb invented various means to cover the fact that Shari'a-compliant investments involve both interest payments and risk.


UNDERSTANDING that Shari'a-compliant investments are the same as regular investments, banking and other financial institutions in the West that are naturally interested in attracting Islamic investors have enthusiastically opened Shari'a-compliant portfolios. Unfortunately, the banks' enthusiasm is raft with security and perhaps even criminal implications.

In order for investments to be defined as Shari'a-compliant, they must receive the approval of Shari'a advisors. Only certain Islamic entities are entitled to issue religious rulings or fatwas that can recognize investments as Shari'a-compliant. These entities include the Fiqh Academy in Jedda, Saudi Arabia, which is associated with the Saudi-dominated Organization of the Islamic Conference (OIC); the European Council for Fatwa Research, and the Fatwa Council of North America. All of these entities are associated with the radical pro-jihadist Wahabi and Salafi schools of Islam adhered to by groups such as al-Qaida and Hamas.

Similarly, the groups that these organizations spawned for the express purpose of overseeing Shari'a-compliant investments and the people authorized and recognized as Islamic authorities capable of declaring an investment Shari'a-compliant are identified with political Islam and, in several cases with terror financing and support. For instance, radical cleric and jihad ideologue Sheikh Yusuf Qaradawi is recognized as an expert in Shari'a-compliant investments. So is Sheikh Muhammad Taqi Usmani.


AS ALEXIEV notes, Usmani is a key official at the radical Deobandi madrassa Darul Uloom in Karachi, Pakistan. The madrassa has trained thousands of Taliban and other jihadist cadres. Usmani played a central role in convincing the Pakistani government to declare Ahmadi Muslims apostates. This determination led to the murder of members of the sect. Usmani was quoted in the Times of London on September 7 saying that Muslims in the West "must live in peace" with their societies "until strong enough to wage Jihad" against their fellow citizens. At that point, he said, they must fight "to establish the supremacy of Islam."

These radicals, supported by jihad-supporting Islamic institutions constitute an effective cartel in Shari'a-finance. Each serves as a Shari'a advisor to dozens of financial institutions. The main problem here is not their personal enrichment - which is enormous. The problem is that these men determine how to spend the 2.5 percent of revenues that are contributed to charity in fulfillment of the zakat obligation. With a trillion dollars now invested in Shari'a-compliant investments, the amount of money available for zakat is staggering.

Islamic financial kingpin Sheikh Saleh Kamel, a Saudi multi-billionaire, founder of the Dallah al-Baraka Islamic banking group and alleged terror financier recently suggested - with the full support of Qaradawi - that one central institution be established that will distribute all zakat contributions from Shari'a-compliant financial institutions.

As Rachel Ehrenfeld and Alyssa Lappen recently reported in The Washington Times, their suggestion was adopted as policy when, "On April 30, the OIC…established the clerical International Commission for Zakat, replacing more than 20,000 organizations that previously collected the money. [The] Islamic clerics' "expert committee" in Malaysia now supervises and distributes those funds."

On October 24 and 25th, the New York law firm Gersten Savage will host a major conference in New York on Shari'a-compliant investments.


MANY NEW YORK investment houses, banks and hedge funds have indicated their interest in expanding their services to include Shari'a-compliant investments. These organizations should carefully consider the likely moral and criminal implications of enabling Shari'a advisors associated with radical Islamic theologians and a foreign body on record for supporting terror, anti-Americanism and anti-Semitism to determine both the composition of their investments and the utilization of 2.5 percent of the revenues stemming from those investments.

It may work out that by bringing what is essentially a cartel sympathetic to jihad into their institutions, they will inadvertently be picking up the slack caused by the shuttering of non-profits like the Holyland Foundation. Like the heads of Islamic charities, these banks also will be held accountable for their actions.


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JWR contributor Caroline B. Glick is the senior Middle East Fellow at the Center for Security Policy in Washington, DC and the deputy managing editor of The Jerusalem Post. Comment by clicking here.


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© 2007, Caroline B. Glick