The Ministry of Justice has officially registered amendments and additions to the regulation on the procedure and terms for licensing banking activities.
Under the new rules, Islamic banking operations will be carried out under license pursuant to the Banks and Banking Activity Law. The amendments also establish the legal groundwork for business entities to set up Islamic banks and for conventional banks to open Islamic Windows.
According to the document, setting up an Islamic bank or an Islamic Window requires that the members of the Islamic Finance Council be approved by the Central Bank, that a responsible senior officer meeting Central Bank requirements be in place, and that a policy ensuring compliance with Islamic finance standards be developed.
The Islamic Finance Council must consist of at least three members, and clear requirements have been set for their qualifications and work experience. Council members are required to obtain certification from the international organization AAOIFI on a phased basis, while specialists in Islamic law must be proficient in Arabic.
In addition, the requirement for approved senior officers to notify the Central Bank in writing within five business days of starting work has been abolished.
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