IIBC came into being in 1994 and remains a non-profit making body designed to promote the concepts of Islamic finance to banks in non-Muslim states. The IIBC has commissioned various studies since its formation through research economists, accountants and economic analysts. The studies include commissioned presentation papers and draft proposals. These studies have received recognition at various levels within the written constitutions of various central banks. The Central Bank of the Ukraine is the latest bank considering the inclusion of Islamic banking in its legal regime. A Moscow bank is already using Islamic Banking products in conjunction with the IIBC, which is also involved in the bank’s research programme.
Islamic financing has taken off. The speed at which it is moving is astounding. Its new frontiers are from Jeddah and Jakarta to most of the Western world, including Russia and some parts of China.
IIBC’s observer status at the European Monetary Institute has benefited various European Central Banks by enhancing their understanding of the cultural norms and values of Islamic Finance.
IIBC is engaged in the following programmes:-
- The advent of E-business and Information Technology in the systems and controls of an Islamic bank.
- Standards for the approximation of matters of conceptual approach in providing harmonised framework and jurisdictional evaluation of safeguards.
- Application of the principles of management of specific financial statements and accounting records and making such principles of management more understandable to the public. The sporadic usage of ‘Hiyal’ (legal stratagem) remains an impediment to the promotion of Islamic Banking contracts.
- Simplification of documents and security instruments.
- Harmonising the statements of principles and standards intended for international acceptance of Islamic Financing.
- Harmonising international education of Shariah precepts, compliances and obligations of disclosures.
- Advising on anti-money laundering and anti-terrorism laws and their impact on Islamic banking transactions
- Financing of large public sector projects – recommendations and guidelines.
Interview, Property Australia – Financier with A Difference