SWIFT To Launch New Islamic Finance Rulebook

KUALA LUMPUR, Sept 4 (Bernama) -- The Society for Worldwide Interbank Financial Telecommunication (SWIFT) will launch a new rulebook for the usage of SWIFT Messages Types (MT) messages for Islamic finance.

The rulebook is undertaken in collaboration with The Association of Islamic Banking Institutions Malaysia (AIBIM) and the Malaysian Islamic Financial community.

"This rulebook will provide greater clarity around SWIFT MT message usage based on Islamic principles to enable straight-through processing, thereby improving efficiency as well as reducing risk and cost," SWIFT said in a statetemt Thursday.

SWIFT Asia Pacific Standards Specialist, Kiyono Hasaka, said interest in the global Islamic finance as a viable alternative to conventional finance has heightened awareness of the need to adopt international standards to automate paper-based Islamic finance operations.

"With SWIFT's growing presence in Southeast Asia, we are well positioned to act as an enabler to bring the financial communities together, define market practice and automate Islamic finance processes using international messaging standards," he said.

Meanwhile, AIBIM Executive Director Yusry Yusoff said the initiative marked a significant development in furthering the level of efficiency for Islamic finance transactions, particularly in ensuring compliance to Shariah requirements.

The SWIFT Islamic Finance Rulebook will be available to the Message User Group, users who have registered to use specific messages within a controlled user community, by end-2014.


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