IIFM Publishes Global Standard Documentation on Islamic Inter-Bank Unrestricted Master Investment Wakalah Agreement

Posted by on Jun 11th, 2013 and filed under ASIA, Islamic Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

At the 4th Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2013) in Singapore, Bahrain based international standard-setting body the International Islamic Financial Market (IIFM) announced the launch of IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement. This global standard document is supplemented with an Operational Guidance Memorandum. It is developed to be used in the Islamic inter-bank market between financial institutions in order to manage their liquidity requirements. It is also aimed to minimise the over reliance on the use of the Commodity Murabaha in the inter-bank market transactions. The key main features of this Agreement is that the Investor, the Muwakkil, will appoint the Wakil as its Agent to invest its funds in a Shari’ah compliant manner in exchange for a fee.

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