2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY

Syracuse University College of Law

International Law Society Presents:
Syracuse University College of Law International Law Societys Year In Review is a
yearly publication that examines current topics and issues in International Law as
covered by students, faculty, and guest writers from the Syracuse University
Community.
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An Intro to
Takaful: Islamic
Insurance

BY SPENCER J.
COOPCHIK
UK BRIBERY ACT:
FOUR YEARS LATER
RONNY CHAN
EUROPES LAST
DICTATORSHIP
EDWARD MONKMAN
THE FRIENDLY FACE
OF TERRORISM
DAVID KAILER
Contact Editors at:
ils@law.syr.edu
http://www.law.syr.edu/student-life/
student-activities/student-
organizations/international-law-
society/index.aspx
YEAR IN REVIEW
2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY
An Introduction to Takaful:
Islamic Insurance
By: Spencer Coopchik

Over the past two decades the West has been introduced to
Islamic banking and finance. While those informed on this growing
industry are more accustomed to Islamic loans, partnership agreements,
joint ventures, and bonds, comparatively little attention has been given
to Islamic insurance or takaful. Fortunately for them the same contract
arrangements are used to create shariah compliant insurance plans or
takaful. The popularity of takaful, like other methods of Islamic finance,
is growing. It has been particularly successful in Malaysia and is now
spreading to the Gulf states and Europe.
Takaful is Shariah compliant insurance and therefore, like other
Islamic financial products, it prohibits interest, over-speculation, and
high-risk agreements. Additionally, like other modes of Islamic finance,
takaful emphasizes a policy preference for social-welfare, profit-loss
sharing, and ethical dealings. Therefore, takafuls selling point is that it
is a more cooperative form of insurance that is free of interest and
unreasonable speculation.
Takaful arrangements are formed by using one of two models or
a combination of the two. First is the mudarabah model. A mudarabah
arrangement is essentially a joint-venture. Here, the takaful operator is
the active participant. The operator manages and invests capital in the
fund which is created by the pooled contributions of the policyholders.
Such contributions are determined by the individual policyholders
needs. Profit created by the operators investment of the funds is split
between the contributors and the operator according to a pre-agreed
ratio. Any losses are borne solely by the contributors to the fund. In case
there are no profits from the investment of the pooled funds the takaful
operator receives nothing.
The second method is the wakalah model. Under this scheme,
policyholders are seen as principals of the fund. The fund operator is the
agent of policyholders and the funds. The capital is managed in
accordance with pre-established guidelines. Only policyholders share in
the profit or loss earned on investment, while the operator takes a pre-
determined guaranteed fee rather than a portion of profits earned. A
third method combines the mudarabah and wakalah models where the
operator receives both a pre-determined fee and a portion of the profits
earned. In each of these models when the assured occurrence happens
the policyholder makes a claim against the takaful fund.
Finally, a form of re-takaful used by Swiss Reinsurance Company
in the Middle East and South East Asia combines elements of waqf (an
Islamic trust) and the wakalah model. It operates just like the wakalah
model above except the re-insurer makes an initial contribution to the
waqf (the fund in this model) along with the contributions from the
policyholders. There is also an additional safety net known as qard loan
(or a gift) that is injected into the waqf when additional funds are
needed.
The success of Islamic finance and takaful has lead European
countries like France, Luxembourg and the U.K., to reform regulations
thereby allowing more room for companies to market shariah compliant
financial products. Unfortunately, the U.S. lags behind its European
counterparts in Islamic finance and takaful in particular. The federalized
insurance system and solvency requirements make it more difficult for
takaful operators. Perhaps the greatest challenge is finding enough
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Takafuls influence
is spreading to the
West and Europe.
The success of Islamic
finance and takaful has
lead European countries
like France, Luxembourg,
and the U.K., to reform
regulations thereby
allowing more room for
companies to market
shariah compliant
financial products.
2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY
competent shariah experts to form a shariah supervisory board that is
necessary at all financial institutions issuing shariah complaint
products. Nonetheless, the growth and creativity of the Islamic finance
industry indicates that it shall remain a viable alternative for years to
come.
Europes Last Dictatorship
By: Edward Monkman
Belarus is located alongside the western border of Russia and
the eastern border of Poland. The country is now home to roughly nine
million people after declaring its independence in 1991. Belarus has a
rich heritage and culture that has produced many world-renowned
artists. Belaruss capital Minsk will host the 2014 International Ice
Hockey Federation Ice Hockey Hockey Championship. Unfortunately,
the country is also considered to be the last European dictatorship. For
the last 19 years, over 80 percent of the countrys existence, the current
authoritarian president Alexander Lukashenko has led a brutal
campaign abolishing any reminisce of civil rights. Most notably he has
restricted the public speaking of Belarusian, the countrys native tongue,
put into place strict sanctions eliminating the practice of any religion
other than that of Orthodox Christianity or Catholicism, and, most
recently, he stated publicly that its better to be a dictator than gay.
Lukashenko continues to stay in power through a series of fabricated
elections and the swift incarceration of any so called political activists.
Given such, it is easy to understand why numerous
Belarusians are willing to accept imprisonment in order to speak out
against their president. In 2010, after Lukashenko won his fourth term
in office, over ten thousand Belarusian citizens gathered in the center of
Minsk to protest the so-called election, resulting in several hundred
people being detained and many more severely beaten. Suffice to say,
the Organization for Security and Cooperation in Europe (OSCE) called
the election "flawed" on the grounds that it fell short of democratic
standards.
Despite Lukashenko insisting that that future elections would
be up to the standards of the OSCE, not much has improved in the last
five years. In 2012, the election was again seen as less than democratic
with multiple members of Lukashenkos opposition being imprisoned
before the elections began. The two largest opposition parties United
Civic and the BPF, lead a boycott against the election claiming that the
winner had already been decided in advance. In the end, all 110
constituencies were filled with supporters of Lukashenko. Once again,
the OSCE refused to sign off on the election because [a] free election
depends on people being free to speak, organize and run for office, and
we didn't see that in this campaign.
Lukashenko has steadfastly opposed the privatization of state
enterprises and worked to structure things in a Soviet style reminiscent
of what was seen in the USSR thirty years ago. In order to do this,
Lukashenko has diminished civil rights in Belarus. In particular, the
ability and right to use the countries native language has been severely
restricted. Belarusian citizens linguistic rights related to the Belarusian
language are constantly violated although they are ensured by the
Constitution and by the Law itself. The majority of Belarusian laws are
now being issued in Russian only. These linguistic rights violations are
only a fraction of the civil rights issues being faced in Belarus. Despite
the governments stance that there is freedom of religion, constant
discriminatory actions curtail many citizens ability to join together in
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Balarus is
considered to be the
the last European
dictatorship.
Lukashenko has
steadfastly opposed the
privatization of state
enterprises and worked to
structure things in a Soviet
style reminiscent of what
was seen in the USSR
thirty years ago.
2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY
worship. Although the Protestantism in Belarus has
roots back to the 16th century, the authorities label it
as non-traditional and continually spread propaganda
and limit its practice. Belarusian schoolbooks go so
far as to label the Protestant confessions as sects,
which endanger Belarusian state and society.
The Of f i c e of t he Pl e ni pot e nt i a r y
Representative for Religious and Nationalities Affairs
of Belarus has a right to reject registration of any
church or religious organization. By refusing to issue
a permit the congregation becomes illegal and the
parishioners can be prosecuted. Over the last five
years, a Protestant church in Minsk called New Life
has been called into court over thirty times. The
trouble started when the government revoked the
churchs permit to worship in their current building.
The church then suffered numerous fines for
fabricated violations such as environmental
pollution. After a tenuous battle the church has been
allowed to continue congregating however there is no
assurance that at any moment New Life wont again
lose their permit.
Repeatedly, Belarus has been criticized by
both the West and Europe. In early 2012, new
sanctions were placed on Belarus by the European
Union. German Foreign Minister Guido Westerwelle
declared, It is intolerable for us as Europeans to see
human rights and citizens rights in Belarus thus
violated. This is the last dictatorship in Europe.
Despite such titles being placed on him and his Soviet
style controls of the government, Lukashenko
continues to be reluctant to change. It is unclear what
it will take to start much needed reform in the
Belarusian government, but it is clear that the politics of Europes last dictatorship need to change.

By: David Kailer Originally Printed In SLACE

It was recently the fiftieth anniversary of the assassination of American
President John F. Kennedy. Putting aside the persistent conspiracy theories as to
who ought to be blamed for the assassination, it is generally accepted that Lee
Harvey Oswald shot the President as the Presidents motorcade drove through
Dallas.
While the assassination is of course a noteworthy event and deserving of
coverage in its own right, I wanted to use it as a spring board to discuss a new
type of terrorism which threatens our national security interests. Director James
Comey of the Federal Bureau of Investigation recently testified before the Senate
Committee on Homeland Security and Governmental Affairs. Among his
remarks, Director Comey discussed the threats associated with a new type of
terrorist, the Homegrown Violent Extremist, or HVE.
The recent Boston Marathon Bombings in April are indicative of just how dangerous and
deadly HVEs can be. Unfortunately, Director Comey indicated they are much more difficult to identify
than more traditional terrorists. Al Qaeda and its many branches consistently advocate acts of
violence against America, its western allies, and the American way of life. HVEs might have little or
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But HVEs
might have
little or no
interaction
with formal
terrorist
organizations
The Friendly Face of Terrorism
2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY
no interaction with formal terrorist organizations. The Boston Bombers are believed to have learned
how to make the pressure-cooker bombs they used from an online magazine sponsored by Al Qaeda.
Tracking visits to sites run by Al Qaeda or advocating
terrorist views is not an efficient way to track potential
threats.
With such dangerous threats coming from such
low-profile individuals, how should the national security
community go about using its limited resources to secure
American interests at home and abroad? When terrorism
and improvised explosive devices are available to people of
all social and financial levels, what level of law enforcement
scrutiny are we okay with as a nation in the effort to keep
our towns and cities safe? These questions are certainly not
new questions, and we have wrestled with the answers
since before 9/11 or the U.S.S. Cole. With homegrown
terrorists playing a larger role in contributing to the threats
our nation has faced, we can no longer be content with
protecting the borders. It appears some of the most
dangerous wolves are growing up in the hen house.
By: Ronny Chan

In April of 2010, the UK Bribery Act was given
Royal Assent. The Act makes it an offense for a United
Kingdom citizen or resident to pay or receive a bribe either
directly or indirectly. It has been almost three years since
the implementation of the 2010 Bribery Act, this article
examines the impact of the Act on international business
markets and the public.
Arguably the most impactful aspect of the 2010 Bribery Act is the increased time and money
spent by commercial organizations on adequate procedures to prevent bribery. Under the 2010 Act,
commercial organizations will not incur for liabilities, if there are proper procedures in place to prevent
bribery. Many compliance programs have adopted procedures that address the 2010 Act.
Furthermore, it has become common practice for law firms to publish guides and manuals advising
their clients on what procedures their organization should adopt in accordance with the new Act.
Furthermore, increased awareness of bribery and the influence of bribery in commercial
organizations was an indirect effect of the 2010 Act. During the passage of the Act, the press in the
United Kingdom and abroad devoted columns and articles to the subject. Many columnists wrote
articles about the presence of bribery in business dealings and others wrote about the impact that the
act will have on businesses and consumers. While some of the coverage sensationalized the subject, the
indirect effect was the general public became more aware on the issue of bribery in the commercial
world.
The Serious Fraud Office or SFO is the agency that prosecutes 2010 Act offenses. Many have
argued that the lack of prosecutions in the first two years shows that the Act was a mere symbolic
gesture by the UK government. However, on August 14, 2012, the SFO brought the first prosecution of
four men connected to Sustainable AgroEnergy PLC for offenses of making and accepting a financial
advantage in violation of the 2010 Act. David Green, the head of the SFO office has warned that more
prosecutions are on the way. He further commented that it took laws such as the Foreign Corrupt
Practices Act 20 years for prosecution to really hit their stride and that it is too soon to judge the
legacy of the 2010 Act.
The world will be watching in the next few years to see if the UK Bribery Act will have a
meaningful impact on the way that bribes influence business transactions in the commercial sector. In
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UK Bribery Act: Four
Years Later
2013-2014 EDITION SYRACUSE UNIVERSITY COLLEGE OF LAW INTERNATIONAL LAW SOCIETY
the meantime, companies and their legal and compliance departments are gearing up their anti-bribery
programs in anticipation of increased prosecutions by the SFO.

SOURCES

An Introduction to Takaful: Islamic Insurance
Hania Masud, Takaful: An Innovative Approach to Insurance and Islamic Finance, 32 U. Pa. J. Int'l L.
1133 (2011).

Institute for Islamic Banking and Insurance. Takaful
http://www.islamic-banking.com/takaful_insurance.aspx

Swiss Re, Re-Takaful-Operating Model
http://www.swissre.com/reinsurance/insurers/retakaful/retakaful_operating_model.html

Europes Last Dictatorship
Ambassadors recalled from Belarus, (Febuary 29, 2012) http://iuwest.wordpress.com/2012/02/29/
ambassadors-recalled-from-belarus/.

Belarus elections labeled corrupt as Lukashenko backers win all seats, (November 29
th
, 2008), http://
www.theguardian.com/world/2008/sep/29/belarus.

Stefanovich petitions court language discrimination,(November 27, 2013),
http://freeales.fidh.net/tag/language-discrimination.

Limits Of Religious Tolerance: Protestantism In Belarus,(January 24, 2012),
http://belarusdigest.com/story/limits-religious-tolerance-protestantism-belarus-12768.

A review of language policy in Belarus, (April 3, 2012),
http://tbm-mova.by/monitoring15.html?lang=en.

Hundreds of protesters arrested' in Belarus, (December 20, 2010),
http://www.bbc.co.uk/news/world-europe-12037486.

Id rather be a dictator than gay: Lukashenko to German FM, (March 4, 2012)
http://rt.com/news/lukashenko-gay-german-minister-807/

The Friendly Face of Terrorism
James B. Comey, Statement Before The Senate Committee on Homeland Security and Governmental
Affairs
http://www.fbi.gov/news/testimony/homeland-threats-and-the-fbis-response

2010 U.K. Bribery Act: Four Years Later
Breslin, Brigid; Doron Ezickson; John Kocoras (2010). "The Bribery Act 2010: raising the bar above the
US Foreign Corrupt Practices Act".Company Lawyer(Sweet & Maxwell

First SFO Bribery Prosecution
http://www.newlawjournal.co.uk/nlj/content/first-sfo-bribery-prosecution

SFO Warns Bribery Act Prosecutions on Their Way
http://www.telegraph.co.uk/finance/financial-crime/10401878/SFO-warns-Bribery-Act-prosecutions-
on-their-way.html

UKs Bribery Act 2010: Immediate Action Needed By US Companies With Operations In the UK
http://www.osborneclarke.com/media/filer_public/91/6e/916eb6a5-1d49-42ab-a49e-3f4ed106e4ef/
uk-bribery-act-2010-immediate-action-needed-by-companies-operating-in-the-uk.pdf
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