Sharia Finance And The US Constitution
Author: Westminster Institute
Shari’a
Finance and the U.S. Constitution
With
little fanfare, the term “Shari’a finance” has slipped into the
American lexicon as if it were just one more unremarkable feature of
America’s ever‐evolving ethnic landscape. To the extent that it
is remarked upon at all, a common argument is that Shari’a finance
is like kosher food: each is mandated by its respective religion, and
neither threatens the basic freedoms of other Americans. Both
arguments are wrong. Whereas Jewish dietary laws were laid out in the
Old Testament more than two thousand years ago and pose no threat to
the constitutional order, Shari’a‐compliant finance is a
construct of 20th‐century radical Muslim scholars. Shari’a
finance is part of a broad ideology that aims to strengthen and
impose political Islamic rule around the world, even in the United
States. It is therefore a very direct threat to American freedoms.
Shari’a
finance refers to any instrument or institution that is compliant
with Islamic Law. The principle strictures forbid interest, and any
business involving pork, gambling, alcohol or pornography. Currently,
the most common form of Shari’a finance in the United States is
Shari’a home finance, or mortgage‐alternative products.
Shari’a mortgages were introduced in the United States in the
1980s. They grew slowly through the 1990s but then received a major
boost when Freddie Mac and Fannie Mae started to back them in 2002.
As a result of this backing, the number of Shari’a mortga