The following notes are derived from an unpublished paper by David Yerushalmi.
The following website has the complete paper – The final 20 pages have not been boiled down, because they are important to read in full. The case against AIG & Paulson/Co. on the basis of the Establishment Clause due to the Shariah Compliant aspects of the business begin with the following paper by David Yerushalmi. No one is talking about the Shariah Compliant Finance activity of AIG, but David Yerushalmi has a case that we might all need to pay attention to, especially considering the fact that Marine Takaful and other Takaful divisions of AIG are literally creating the precedent for a Takaful World body and regulatory system in bed with the US Government.
http://works.bepress.com/david_yerushalmi/1
Shari’ah’s Black Box: Civil Liability and Criminal
Exposure Surrounding Shari’ah-Compliant Finance
by: David Yerushalmi, Esq.
This Article examines Shari’ah-compliant finance in light of existing U.S. law. It
highlights and examines areas of civil liability and criminal exposure unique to SCF
investments and transactions3 in the U.S. as they have been developed and utilized by
various financial institutions and facilitated and promoted by legal, accounting, and
financial professionals.4 Part I provides an introduction to SCF and explains why it
should be subject to special scrutiny by lawyers, accountants, and other professional
advisers. Part II discusses the role of the professional in SCF transactions and suggests an analytical framework for approaching the legal issues surrounding SCF in the U.S. This framework divides the world of potential liability into two groups: liability arising
out of elements endogenous to SCF, involving issues about what Shari’ah actually is and
requires; and liability arising out of elements exogenous to SCF, such as the impact of
Western-adaptions of Shari’ah principles. Part III focuses in detail on the former, while
Part IV examines legal concerns related to the latter.
