---------- Forwarded message ---------- From: Ani Munirah <[email protected]> Date: Mon, Dec 14, 2009 at 12:37 AM Subject: Re: cross-border To: [email protected]
Dear Rustem and all, Waalaikumussalam. It is interesting that you approach this issue by using the words 'cross border products' for I am sure that you meant an Islamic finance product developed at one country according to that country's legal framework, brought to other countries crossing the borders of that country. I would be happy to see if it works at other countries, for I cannot say what is the situation at these countries, except for Malaysia. In Malaysia, the law governing the country is called civil law, and it applies to all aspects including Islamic finance e.g. Contracts Act 1950, Civil Law Act 1956, Central Bank Act 2009, Islamic Banking Act 1983, National Land Code 1965 etc. The challenge for Islamic finance products in Malaysia (and almost other countries, too, I suppose) is that the products need to comply with both civil law and Shariah rules, as u correctly have stated in your e-mail. I remember last time when we were assisting KFH Malaysia to develop their Musyarakah Mutanaqisah (MM) home financing product in Malaysia, they cannot simply take the MM being practiced in Kuwait or Bahrain and offer to Malaysian people. Although it is presumably acceptable by Shariah rules because the Shariah advisors in Kuwait/Bahrain have approved it, the MM product will need to get approval from Malaysian government first, before it can be introduced by KFH. There are procedures to be followed e.g. preparation of proposal paper, compliance with the Central Bank's Guideline on the Offerring of New Islamic Product, compliance with other legislations enforceable in Malaysia, meetings between the bank officers and the Central bank's officers, amendment and correction to the proposal, preparation of draft facility ddocuments, approval of facility documents by the Central Bank, and finally, KFH Malaysia got to offer the product by end of 2005. FYI, KFH Malaysia is the first Islamic bank in Malaysia to offer the MM financing product in Malaysia, Alhamdulillah. By now, other banks have also launched the MM products e.g. Bank Muamalat, RHB Islamic and etc. Bottomline, in Malaysia, the legal framework is yet to allow 'cross-border products' to be offerred by Malaysian banks @ banks operating in Malaysia. Talk about the products, even the company is not cross-border. Take KFH Malaysia for example. KFH Kuwait cannot simply come and open bank in Malaysia. There are procedures to be followed e.g. incorporation of subsidiary company KFH Malaysia, where the shares of KFH Malaysia are mostly owned by KFH Kuwait. The bank - KFH Malaysia - that we have in Malaysia today is actually the subsidiary of KFH Kuwait, and KFH Kuwait is the parent company. Likewise, it applies to the products - there are procedures to be followed. Like I said earlier, I can only say for the situation in Malaysia for I do not have knowldege about other countries. Perhaps our friends from other countries can share their information? TQ. Wassalam. -- [image: ?ui=2&view=att&th=12588e5a92256d1c&attid=0.1&disp=attd&realattid=ii_12588e5a92256d1c&zw] Ani Munirah Mohamad PhD Researcher Cyber Law and Policy Ctr Law Faculty, UiTM Shah Alam CIFP Online student @ INCEIF On Sat, Dec 12, 2009 at 10:45 AM, Rustem Nabiyev <[email protected]>wrote: > Salam aleikum, > > Could anyone tell me about cross-border products in Islamic finance? > Islamic bank that uses legislation in different countries to development a > financial product that satisties both shariah rules and legislation in > particular country. Probably they register their company or SPV outside > the country they operate in, because the country they operate in does not > have legislation that would allow shariah compliant operations. > > I would highly appreciate if you could provide specific example. > Especially example provided by Kuwait Finance House representative during > his presentation at INCEIF this semester. > > Regards, > Rustem > > -- > -- You received this message because you are subscribed to the Google Groups "Kantakji Group" group. To post to this group, send email to [email protected] To unsubscribe from this group لفك الاشتراك من المجموعة أرسل للعنوان التالي رسالة فارغة, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kantakjigroup?hl=en سياسة النشر في المجموعة: - ترك ما عارض أهل السنة والجماعة. - الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط. ويستثنى من هذا مايتعلق بالشأن العام على مستوى الأمة كحدث غزة مثلا. - عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه. باستثناء الأمر العام الذي يهم عامة المسلمين. - تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي. - ترك المديح الشخصي.
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