Malaysia: SWIFT rulebook to enable STP in Islamic finance

Along with the Association of Islamic Banking Institutions Malaysia (AIBIM) and the Malaysian Islamic financial community, SWIFT is launching a new rulebook for the use of SWIFT MT messages for Islamic finance.

The rulebook will provide greater clarity around SWIFT MT message usage based on Islamic principles in order to enable straight-through processing (STP), improving efficiency as well as reducing risk and cost.

SWIFT MT will provide an efficient platform for exchanging Islamic finance messages and further promote the usage of message standards.

"Globally, the growing interest in Islamic finance as a viable alternative to conventional finance has heightened awareness of the need to adopt international standards to automate paper-based Islamic finance operations," says Kiyono Hasaka, standards specialist for Asia Pacific at SWIFT.

"With SWIFT's growing presence in Southeast Asia, we are well positioned to act as an enabler to bring the financial communities together, define market practice and automate Islamic finance processes using international messaging standards."

The SWIFT Asia Pacific team has been working in closely with the Malaysian Islamic financial community to develop STP-enabled financial messaging specific to the requirements of Islamic financial institutions since 2013.

Yusry Yusoff, executive director of AIBIM, said: "This initiative marks a significant development in furthering the level of efficiency for Islamic finance transactions particularly, in ensuring compliance to Shariah requirements."

The SWIFT Islamic Financial Rulebook will be available to the Message User Group by the end of 2014.

(Asset Servicing Times / 09 September 2014)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia: AIBIM Expects New Products Under Islamic Deposits, Investment Accounts

KUALA LUMPUR, March 25 (Bernama) -- Association of Islamic Banking Institutions Malaysia (AIBIM) expects to see new products under the investment accounts by end of this year or early next year.

President Datuk Mohd Redza Shah Abdul Wahid said currently the Islamic institutions were doing housekeeping on the deposits products and would transit immediately over the next few months.

It was reported that Islamic financial institutions would embark on an exercise to reclassify Islamic deposits as defined under the Islamic Financial Services Act 2013 (IFSA 2013).

The Act has introduced two major classifications of products for the acceptance of money from customers by Islamic banking institutions -- Islamic deposits and investment accounts.

Mohd Redza said the Act has given Islamic institutions the ability to offer new products to the public.

"Customers will be given sufficient information and time to make their decisions.

"During the transition period, the affected Islamic deposits or accounts will remain at status quo and will continue to be covered by the Malaysia Deposit Insurance Corporation (PIDM)," he told a media conference Tuesday.

Islamic financial institutions would ensure that the transition process was seamless and would not be inconvenient to customers, said Mohd Redza, who is also Chief Executive Officer of Bank Muamalat Malaysia Bhd.

He said Islamic financial institutions would from time to time be in communication to inform their customers of the latest developments, adding that the exercise would be completed by June 30, 2015.

Customers can call the call centre or visit branches of their respective Islamic financial institutions or Bank Negara Malaysia for queries.

(National News Agency Of Malaysia / 25 March 2014)
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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com