Financial crimes

Abstract

PurposeThe purpose of this paper is to establish that financial crimes are unlawful (haram) in Islam and accordingly, the responsibilities of the Sharia's Supervisory Boards of Islamic financial institutions include the prevention and control of financial crimes.Design/methodology/approachThe paper presents an analogy (qiyas) of the injunctions in the Qur'an and Sunna.FindingsFinancial crimes are prohibited in Islam as much as, if not more than, their prohibition by temporal laws.Practical implicationsThe responsibilities of the Shari'a Supervisory Boards in ensuring “Shari'a‐compliance” on the part of the Islamic financial institutions include a wider ambit. It includes the prevention and control of financial crimes.Originality/valueThe paper provides additional dimension to Sharia's governance framework for the Islamic financial services industry.

Sharia corporate governance and financial reporting timeliness: Evidence of the implementation of banking regulations in Indonesia

“…Previous SCG studies were widely used in the financial literature, for example, those related to a number proxies of quality of financial reporting in Islamic financial institutions. These proxies include accountability for financial information (Aribi et al, 2019;Jabbar, 2010), financial performance (Aribi et al, 2019;Buallay, 2019), dimensions of financial reporting quality (Rini, 2014), earnings management (Mersni & Ben Othman, 2016), financial reporting effectiveness (Hamza, 2013), and the level of disclosure (Darmadi, 2013). However, there is no literature that proves SCG as a determinant of FRTL of Islamic banks.…”