In order to thrive in the world of Islamic finance, some financial firms like Citibank, HSBC and UBS, as well as hedge funds, have had to alter their practices to come into line with Islamic financial practices and become Sharia compliant. That includes offering interest-free loans and mortgages, among other products. Problems have arisen, however, with regard to a key tenet of Sharia law that asserts any and all interest must be made to charity. And, some say, that interest goes toward charities with ties to those interested in terror.

Many of us have heard the word "Sharia," and, possibly, immediately associate it with extremely oppressive laws and edicts, like honor killings and forced marriages. More literally, however, Sharia means "the way" and is the Arabic term for Islamic law as a way of life. It covers all aspects of life, including daily routines, hygiene, familial roles and responsibilities, social order and conduct, and, yes, even financial dealings.

As the world’s banking systems continue to intersect, Islamic finance — or Sharia-compliant finance — has boomed, with many U.S. banking firms cashing in on the demand for Sharia-compliant services and expanding their branches into the Middle East. And with that regional economy expected to reach $1 trillion within the next year or so, who can blame them? In a global economy, it’s not uncommon for businesses — even McDonald’s — to adapt their business practices and offerings to their environment. The economy, however, is a two-way street, and it comes as no surprise that there’s been a growing demand for Islamic banking services here at home.

While certainly all are entitled to what they define as an ethical banking system, critics here in the United States think that when the federal government — essentially, the American taxpayers — bails out big banks or companies such as AIG that participate in this form of financing, we as a people are tacitly supporting charities that condone "fundamentalist" Islamic practices, like public hangings and the subjugation of women.

One of the America-based oppositional groups, the Center for Security Studies, aims to identify all companies who conduct Sharia-compliant business. Christopher Holton, executive director of the center’s Divest Terror Project, explains his perspective: "There’s a possibility a portion of the proceeds from Sharia-compliant-financed companies go to these industries. We want to see much better disclosure. There’s virtually no disclosure now." He continues, "There have been actual instances in which money coming from Sharia-compliant financial institutions has gone to Islamic charities funding terrorism." One has to wonder whether Holton’s views are fueled by his less-than-politically correct take on Sharia law.

Eschewing the idea that Sharia is “basically benign,” Holton insists it’s “a medieval, barbaric, religious doctrine which is actually not even a religious doctrine so much as it is a theo-political doctrine. Sharia financing has a political role of legitimizing Sharia in the West.” Holton and his ilk insist many bank officials are ignorant of what Sharia even is outside of the finance sector. Either that, or they just don’t care.