Bahrain-based International Islamic Financial Market (IIFM) has launched the global standard documentation on its IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement.
The document is supplemented with an Operational Guidance Memorandum.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
IIFM primary focus lies in the standardization of Islamic financial products, documentation and related processes at the global level.
IIFM chief executive officer Ijlal Ahmed Alvi said: "This global standard documentation 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 minimize the over reliance on the use of the Commodity Murabaha in the inter-bank market transactions.
Central Bank of Bahrain and Chairman of the IIFM, executive director-banking supervision, Khalid Hamad Abdul-Rahman Hamad said, "This welcome achievement by IIFM will spur the use of Unrestricted Walakah in the Islamic Inter-bank market and will encourage all the jurisdictions to implement this IIFM standard as well as address any accounting or regulatory requirements in their respective jurisdictions".
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, the Wakalah pool can be managed on a segregated asset pool or comingled asset pool basis at the Wakil’s discretion.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
