The Islamic Concept of Accountability (Hisbah) as a Mechanism to Prevent Money Laundering and Financial Crimes
Keywords:
Hisbah, Accountability, Islamic Finance, Money Laundering, Financial Ethics, Shariah Governance, Anti-CorruptionAbstract
Money laundering and financial crimes have become a great danger to economic integrity, social justice and institutional credibility abroad. This article discusses the Islamic principle of Hisbah; a moral and institutional system based on accountability, transparency and ethical practices as a viable mechanism of deterring money laundering and financial abuse. Based on the Quranic injunctions, Prophetic traditions and classical works of jurists, the study explains the doctrinal basis of Hisbah and its historical development as a system of guaranteeing fairness in the market, moral control and the benefit of the people. The paper also correlates the concepts of Hisbah with current Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), outlining that they focus on the same issues and primarily focus on prevention, transparency, and social responsibility. Based on empirical sources to the financial system of Pakistan, the analysis shows that ethics and institutional models of Hisbah can be used to enhance compliance, deter corruption, and bolster regulatory effectiveness. The paper ends by suggesting a policy framework of how to incorporate hisbah based arrangements in the modern financial regulatory framework, especially in Muslim dominated economies, to ensure both legal and ethical responsibility.
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