The procedure for providing services related to Islamic financing of microfinance organisations is being determined
Economy
In order to provide services related to Islamic financing, a microfinance organisation must establish a Shariah board. This is stated in the draught decision developed by the Central Bank.
According to the project, instead of fulfilling this requirement, the microfinance organisation has the right to outsource the activities of the board to the board, which is organised in the presence of associations or associations specialised in the field and consists of members who meet the requirements established by the statute. In this case, the microfinance organisation will be responsible for managing the risks associated with outsourcing.
It is noted that services related to Islamic financing should be provided by the microfinance organisation in compliance with the requirements of the current legal documents and the instructions of the council. When providing services related to Islamic financing, the organisation is prohibited from engaging in the sale of goods and financing activities prohibited by current legislation and standards related to Islamic financing.
The microfinance organisation must explain to its clients the specific features of Islamic financing services and the risks associated with them, and before concluding an agreement on the provision of Islamic financing services, a preliminary agreement between the microfinance organisation and the client can be built.
In the initial contract, it may be stipulated that the customer will make a lump sum payment for Islamic financing services.
"In case a microfinance organisation provides, along with services related to Islamic finance, other services provided for in part one of Article 4 of the Law ‘On Non-Bank Credit Organisations and Microfinance Activities’, the accounting of the activities of this microfinance organisation related to the provision of services related to Islamic finance should be kept separately," the document says.
Other conditions of the contracts concluded by the microfinance organisation within the framework of providing services related to Islamic financing, which are not provided for in the statute, are determined in accordance with the legislation and the instructions of the council.
If a microfinance organisation collects a fee from a client for late payments, it must keep the collected fee in a separate account and direct it to charitable purposes on behalf of the client.
It is noted that services related to Islamic financing should be provided by the microfinance organisation in compliance with the requirements of the current legal documents and the instructions of the council. When providing services related to Islamic financing, the organisation is prohibited from engaging in the sale of goods and financing activities prohibited by current legislation and standards related to Islamic financing.
The microfinance organisation must explain to its clients the specific features of Islamic financing services and the risks associated with them, and before concluding an agreement on the provision of Islamic financing services, a preliminary agreement between the microfinance organisation and the client can be built.
In the initial contract, it may be stipulated that the customer will make a lump sum payment for Islamic financing services.
"In case a microfinance organisation provides, along with services related to Islamic finance, other services provided for in part one of Article 4 of the Law ‘On Non-Bank Credit Organisations and Microfinance Activities’, the accounting of the activities of this microfinance organisation related to the provision of services related to Islamic finance should be kept separately," the document says.
Other conditions of the contracts concluded by the microfinance organisation within the framework of providing services related to Islamic financing, which are not provided for in the statute, are determined in accordance with the legislation and the instructions of the council.
If a microfinance organisation collects a fee from a client for late payments, it must keep the collected fee in a separate account and direct it to charitable purposes on behalf of the client.
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