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LR-1.4.5

Past version: Effective from 01 Apr 2008 to 31 Mar 2011
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Conventional retail bank licensees may provide Shari'a compliant activities (c) to (e) listed in Rule LR-1.3.1 in any amount and in any currency to Bahrain-resident individuals subject to the following conditions:

a) Shari'a compliant financing and funding to be undertaken through a special counter or branch as deemed necessary by the bank.
b) The bank must maintain separate books for Shari'a compliant banking activities to ensure no co-mingling of conventional and Islamic funds;
c) The bank must have a dedicated treasurer or senior trader for Shari'a compliant business and must also have a Shari'a compliance reviewer; and
d) The bank must establish a Shari'a Supervisory Board with a minimum of three board members. The board may have global authority for all Shari'a compliant business or may have authority purely for Islamic business booked in Bahrain.
October 2007