A Maqasid Shariah-Based Framework for Islamic Economics, Financial Crime, and Geopolitical Risk
DOI:
https://doi.org/10.54045/jeksyah.v6i02.3798Keywords:
Islamic finance, maqasid shariah, anti-money laundering, geopolitical risk, financial governanceAbstract
This paper examines whether, and through what mechanisms, Islamic economic principles can address financial crime and the geopolitical weaponisation of finance at their structural root rather than treating their symptoms. Employing a qualitative comparative design, the study synthesised classical Islamic economic thought, recent peer-reviewed evidence (2010-2026) on Islamic-bank stability and anti-money-laundering (AML) compliance, and Financial Action Task Force (FATF) standards, applied across three purposively selected jurisdictions (Malaysia, the United Arab Emirates, and Turkiye). The contemporary evidence indicates that Islamic financial institutions exhibited comparable or superior resilience to conventional peers during systemic shocks and fully adopted FATF-recommended AML measures, while their asset-backing and risk-sharing requirements generate transparency and traceability consistent with AML/CFT objectives, though outcomes depend on governance quality rather than religious form alone. The paper develops a Maqasid-based Financial Integrity Framework linking Islamic principles to specific financial-integrity outcomes, and operationalises it through a proposed International Islamic Financial Integrity Board (IIFIB), a phased blockchain roadmap for zakat and sukuk, and risk-sharing sovereign-finance mechanisms. It is the first study to integrate Islamic economic principles, financial-crime prevention, and geopolitical-risk analysis into a single operational governance framework grounded in verifiable contemporary evidence and mapped to existing international standards.
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