Is usury used in the Islamic financial system despite knowledge of its prohibition?

Usury (riba) is strictly forbidden in Islam, and Allah has condemned those who engage in it, declared war against them, and informed of their dire consequence on the Day of Judgment, as in His Almighty sayings: "Those who consume interest will not stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, 'Trade is [just] like interest.' But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns [to dealing in interest] – those are the companions of the Fire; they will abide eternally therein. Allah destroys interest and gives increase for charities. And Allah does not like every sinful disbeliever." (Al-Baqarah: 275-276) And His saying: "O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged." (Al-Baqarah: 278-279). The Prophet (peace be upon him) cursed the one who consumes interest, the one who gives it, the one who writes it down, and its two witnesses, and he said: "They are all equal." He also clarified that one dirham of interest consumed by a man, knowing it to be such, is worse in the sight of Allah than thirty-six acts of fornication.

The banks that exist today are usurious, with rare exceptions, and the mere presence of a bank in a Muslim country does not mean it is an Islamic bank.

The true Islamic financial system is free from usury. The questioner's statement: "I noticed that in Islamic financial dealings," requires further clarification regarding these usurious dealings that he observed. Perhaps he assumed some transactions were usurious when they are not.