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  • AU-1.3 AU-1.3 Shari'a Compliant Transactions Offered by Conventional Licensees

    • General Requirements for all Conventional Microfinance Institutions

      • AU-1.3.1

        Conventional licensees may not hold themselves out as an Islamic microfinance institution. Conventional licensees are allowed to enter into activities listed in Rule AU-1.2.1 under the conditions outlined in the remainder of this section.

        Amended: October 2014
        January 2014

      • AU-1.3.2

        When offering any of the Shari'a compliant activities listed in Rule AU-1.2.1, conventional licensees must have staff trained in Shari'a compliant financing business. The licensee must also disclose in the notes to its Annual Report/Financial Statements all quantitative and qualitative disclosures on its Shari'a compliant business as required by AAOIFI accounting and auditing standards.

        January 2014

    • Additional Requirements

      • AU-1.3.3

        Conventional licensees may provide Shari'a compliant activities listed in Rule AU-1.2.1, subject to the limits under Paragraph AU-1.2.3 in Bahraini dinars to Bahraini resident individuals subject to the following conditions:

        (a) Shari'a compliant financing transactions to be undertaken through a special counter or branch as deemed necessary by the licensee;
        (b) The licensee must maintain separate books for Shari'a compliant financing activities to ensure no co-mingling of conventional and Islamic funds;
        (c) The licensee must have a Shari'a Compliant Reviewer;
        (d) The licensee must appoint a minimum of one Shari'a Scholar who has authority for all Shari'a compliant business; and
        (e) The total Islamic assets of the conventional licensee must not exceed 20% of the total assets of the licensee.
        January 2014