Abstract
Shari 'ah-compliant finance exposes financial institutions and other businesses to a host of disclosure, due diligence, and compliance issues, all of which elevate the civil liability and criminal exposure such companies otherwise factor into their business risk profiles. Preliminary legal analysis indicates that little of this increased civil and criminal exposure has been recognized, analyzed, or guarded against in any meaningful way. Rather than confronting issues material to a typical post-9/11 investor, lawyers and accountants have placed SCF in a secular "black box," immune from the exacting scrutiny required of professional advisors in the modem U.S. legal regime. -But failure of companies to diligently investigate their investments, and failure to disclose th~ risks caused by these investments, may ultimately result in massive liability to those who remain willfully ignorant of the realities of the SCF industry.
Recommended Citation
Terushalmi, David
(2008)
"Shari 'ah 's "Black Box": Civil Liability and Criminal'Exposure Surrounding Shari 'ah-Compliant Finance,"
Utah Law Review: Vol. 2008:
No.
3, Article 6.
Available at:
https://dc.law.utah.edu/ulr/vol2008/iss3/6