A leading financial crime expert has warned Islamic monetary institutions that they could be a target for money launderers unless they impose strict operating controls and enforce regulations.
Head of Forensic Services for Deloitte & Touche Central Europe, Michael Adlem, told delegates attending the IIR-organized International Islamic Finance Forum, in Dubai, that criminals would exploit any weaknesses in Islamic finance systems.
“We no longer see people entering banks with suitcases stuffed full of cash. But that doesn't mean money is not being laundered. It is just that the criminals are more clever at what they do,” said Adlem, a former British police officer with over 20 years experience of financial crime.
“Islamic financial institutions have a great opportunity to ensure the right controls and regulations are in place from the start. You cannot afford to be complacent. If the money launderers find a hole in your system they will exploit it.”
Adlem's warning came a day after the United Arab Emirates (UAE) Minister of State for Finance and Industry and Chairman of Dubai Islamic Bank Mohammed Khalfan Bin Khirbash, urged Islamic financiers to draw up an effective regulatory framework for the industry.
The International Islamic Finance Forum, that concludes on February 25, is being attended by over 300 delegates from 25 countries, spanning North America, Europe and the Middle and Far East.
In addition to the need for an effective regulatory framework, the conference is also addressing critical issues impacting Muslim country stock exchanges and Islamic financial centers, the pros and cons of Islamic hedge fund plans, wealth management post September 11, new Islamic indexes, funds and sukuk market and international moves in the Islamic mortgage market. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
