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Subject: Inclusion of support for genocide as a criterion in AAOIFI’s Shari’ah screening methodology
Dear Esteemed Member of the Islamic Finance community,
As salaamu ’alaikum wa rahmatullahi wa barakatuh,
In light of recent events, we write to you with grave concern regarding the current criteria for Shari’ah screening methodology utilised in Islamic finance. As financial practitioners dedicated to upholding the principles of Shari’ah in its truest sense, we find it imperative to address a critical oversight in the existing framework – the absence of explicit consideration for support of genocide as a criterion.
The recent atrocities unfolding across the world have brought to light a pressing issue that demands our immediate attention. This systematic oppression and violence constitutes not only a humanitarian crisis but also a moral imperative for action. As believers guided by the teachings of the Noble Quran and Hadith, we are reminded of the injunction in Quran 5:2, which unequivocally condemns any form of support or enablement of sin and transgression.
وَتَعَاوَنُوا۟ عَلَى ٱلْبِرِّ وَٱلتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا۟ عَلَى ٱلْإِثْمِ وَٱلْعُدْوَٰنِ ۚ وَٱتَّقُوا۟ ٱللَّهَ ۖ إِنَّ ٱللَّهَ شَدِيدُ ٱلْعِقَابِ
Cooperate with one another in goodness and righteousness, and do not cooperate in sin and transgression. And be mindful of Allah. Surely Allah is severe in punishment.
Companies implicated in facilitating genocide are understandably a cause of concern for the Islamic finance industry because some of these companies meet the current Shariah criteria of AAOIFI, the leading Islamic finance standards setting body.
Despite our adherence to the rigorous Shari’ah screening process that our funds undergo, primarily based upon AAOIFI’s guidelines on core business activities and Shari’ah screening ratios, such as impermissible income, we recognise the imperative to evolve our methodology in response to contemporary ethical challenges.
Globally the finance industry is championing ESG principles to be included in our Shari’ah frameworks, but the sanctity of life has somehow been excluded.
مَن قَتَلَ نَفْسًۢا بِغَيْرِ نَفْسٍ أَوْ فَسَادٍۢ فِى ٱلْأَرْضِ فَكَأَنَّمَا قَتَلَ ٱلنَّاسَ جَمِيعًۭا وَمَنْ أَحْيَاهَا فَكَأَنَّمَآ أَحْيَا ٱلنَّاسَ جَمِيعًۭا ۚ
“whoever takes a life…it will be as if they killed all of humanity; and whoever saves a life, it will be as if they saved all of humanity.”
We firmly believe that our responsibility transcends mere compliance with conventional standards; it extends to actively advocating for ethical and socially responsible investment practices. It is in this spirit that we propose the inclusion of support for genocide as a criterion in AAOIFI’s Shari’ah screening methodology. Such a proactive measure aligns with the ethos of our compassionate faith, which transcends mere adherence to legalistic frameworks to uphold the broader principles of social responsibility and ethical integrity.
We would like to urge AAOIFI to consider our request earnestly and to initiate a dialogue among industry stakeholders, scholars, and practitioners to delineate clear guidelines for addressing issues of complicity in grave injustices, including genocide. By fortifying the Shari’ah screening framework with this imperative, we can collectively safeguard the sanctity of Islamic economics and uphold its noble objectives of promoting justice, equity, and compassion.
We humbly request your signatory in preparation for an official submission to the esteemed Shari’ah Board Members of the AAOIFI.
Thank you for your attention to this matter of paramount importance. We eagerly anticipate the opportunity to collaborate with the AAOIFI and fellow stakeholders in fostering a financial ecosystem that reflects the highest ethical standards and upholds the values enshrined in our Noble Deen.
Yours sincerely,
Umer Suleman
Global Head of Risk, Compliance & Shariah
Wahed
