ETHICAL ACCOUNTABILITY AND PUBLIC TRUST IN RELIGIOUS FINANCIAL GOVERNANCE: A NARRATIVE REVIEW OF STRUCTURAL, BEHAVIORAL, AND FORENSIC DIMENSIONS

Abstract

This narrative review examines ethical accountability and public trust in religious financial governance, aiming to develop a conceptual framework that embeds financial integrity within faith-based institutions, particularly Islamic finance. Despite wielding moral authority, many religious organisations operate within governance vacuums, exposing them to financial misconduct, opacity, and reputational risk. Existing regulatory frameworks, such as FATF, flag religious charities as high-risk, yet academic inquiry remains siloed within theological or compliance-centric discourses. A systematic review of peer-reviewed articles (2020–2025) was conducted via Scopus, Web of Science, Dimensions AI, and Google Scholar. Inclusion focused on institutional oversight, fiduciary ethics, stakeholder trust, and Shariah-aligned governance. Backward snowballing ensured theoretical saturation. Five governance challenges were identified: (1) ethical leadership and administrative dissonance; (2) internal control and structural deficiencies; (3) regulatory pluralism; (4) digital ethics; and (5) behavioural underpinnings of trust. Concepts such as “sacred immunity” and “ethical laundering” underscore how religious symbolism may obscure financial misconduct.The review proposes an integrated model aligning Maqasid al-Shariah with global governance standards. It shifts discourse from normative ideals to enforceable structures, offering a reform agenda for policymakers, regulators, and religious leaders to enhance legitimacy, resilience, and public trust in religious finance.