Coalition to Stop Shariah warns Fed, SEC

Acting on behalf of the Coalition to Stop Shariah— a new group of public policy organizations, human rights activists and religious groups to oppose and counter the stealthy insinuation into this country of the seditious theo-political-legal program adherents to authoritative Islam called Shariah– the Center for Security Policy’s President/CEO Frank Gaffney and General Counsel David Yerushalmi, delivered urgent letters to SEC Chairman Christopher Cox and Federal Reserve Board Chairman Ben Bernanke, warning them of the inherently seditious nature of Shariah and its economic consort, Shariah-Compliant Finance (SCF).

The letters cited inquiries made to both the SEC and the Federal Reserve in August by Senator Jon Kyl of Arizona, in which Senator Kyl specifically asked Messrs. Cox and Bernanke to address key issues regarding SCF raised in an authoritative Legal Memorandum provided by Mr. Yerushalmi. Among the key issues raised:

Unfortunately, the SEC and Federal Reserve completely failed to address the concerns that Senator Kyl raised in August and instead, in their responses to Senator Kyl, repeatedly cited a report on SCF by the International Organization of Security Commissions (IOSCO) entitled, Analysis of the Application of IOSCO’s Objectives and Principles of Securities Regulation for Islamic Securities Products.

Today the Center for Security Policy issued its Critique of the International Organization of Securities Commissions’ Report on Islamic Finance.

As the Critique makes plain, the flawed IOSCO report recommends merely to apply existing regulatory structures to SCF securities. Nowhere does the IOSCO report even begin to address the fundamental antecedent issues: (a) Is Shariah-Compliant Finance intimately and inextricably tied to the theo-political-legal system of Shariah? (b) If so, is Shariah at war with our Western legal, political and financial institutions? And (c) if yes, would that constitute a material fact for a reasonable post 9/11 investor?

American investors and the public more generally need to know the truth-the whole material truth about Shariah and Shariah-Compliant Finance. In light of the current financial crisis, it would be the height of irresponsibility to ignore a malignancy that pursues the destruction of our already weakened free market systems and financial institutions.

The Coalition calls upon Chairman Cox and Chairman Bernanke to address its questions and those posed by Senator Kyl directly and comprehensively.

Key documents:

• 11/3/08 Gaffney-Yerushalmi Letter to SEC Chairman Christopher Cox,
• 11/3/08 Gaffney-Yerushalmi Letter to Fed Chairman Ben Bernanke,
• 11/3/08 Critique of the International Organization of Securities Commissions’ Report on Islamic Finance
• 9/15/08 Shari’ah’s Black Box: Civil Liability and Criminal Exposure Surrounding Shari’ah-Compliant Finance

For more information, go to www.USAStopSharia.org