Why is this important
The law creates a legal framework for banks and “Islamic windows,” which will provide an alternative to traditional financial services. This can expand access to finances for citizens and businesses, especially those who, due to religious beliefs, do not use conventional banking services. The implementation of AAOIFI and IFSB standards is expected to attract foreign investment.
What happened
- The draft law provides for amendments to the Tax and Civil Codes, as well as additions to eight other legislative acts.
- The document establishes key concepts: “Islamic bank”, “financial operations and standards”, “investment deposit”.
- The draft law introduces a system for licensing banks wishing to operate under Islamic financial activity norms and establishes requirements for obtaining such a license.
- The types of financial operations permitted for Islamic banks are also defined.
What they say
Deputies and experts say that the draft law will create an alternative to traditional banking services, strengthen financial inclusion, and attract relevant investments.
Context
- Before the adoption of this draft law, work was already underway to create “Islamic windows” in commercial banks and adapt legislation to international standards.
- According to UNDP data, a significant number of citizens and businesspeople express a reluctance to use traditional banking services for religious reasons.
