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IslamicFinancialServicesAct2013(IFSA)|BankIslamMalaysiaBerhad

Friday,25March2016,16Jamadilakhir1437H

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IslamicFinancialServicesAct2013(IFSA)
IslamicFinancialServicesAct2013(IFSA)

TransitionofDepositsfromtheRepealedIslamicBankingAct,1983(IBA)
totheIslamicFinancialServicesAct2013(IFSA)

(/en/Documents/NoticeIFSA2013en.pdf)

FrequentlyAskedQuestions

1.Whyisthereaneedto
reclassifytheIslamicdeposits?

Undertherepealed
IslamicBankingAct1983(IBA),allmoniesacceptedfromcustomersare
classifiedasIslamicdeposits,whichcomprisebothdepositand
investmentproducts.
TheIFSAprovidesgreater
legalclarityonapplicationofthevarioustypesofShariahfinancial
contracts,andensureendtoendcomplianceinfullcycleofIslamic
bankingoperationse.g.investmentaccount.
Frommarketconduct
standpoint,thecustomersareabletoclearlydifferentiatebetween
productswhichareprincipalguaranteedwiththosewhicharenot.

2.Howarethedepositsbeing
classified?

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Islamicbankscanoffer
bothproductswithprincipalguaranteedornonprincipalguaranteed
feature.
However,Islamicbanks
arerequiredtoclassifysuchproductsaseitherIslamicdepositwhich
useShariahcontractswithprincipalguaranteedfeatureorinvestment
accountwhichuseShariahcontractswithnonprincipalguaranteed
feature.

IslamicDeposit(principalguaranteedShariahcontracts)

InvestmentAccount(nonprincipalguaranteedShariahcontracts)

Wadiah(custodian)

Mudarabah(profit
sharing)

Qard(loan)

Wakalah(agency)

Tawarruq(sale)

3.Whatistheimpactto
consumers?

CustomerswhoseIslamic
depositaccountarestructuredbasedonShariahcontractwith
nonprincipalguaranteedfeaturewillbedulyinformedofthe
alternativeproductsandprovidedwithsufficientinformation/
transparencytomakeaninformeddecision.
Customerswouldhavea
choicetoeithermaintaintheirfundswithIslamicdepositorchangeto
investmentaccountproductdependingonthecustomersriskappetite.
Customerswillbe
accordedsufficienttimetoinformtheIslamicbanksoftheirdecision.
DuringthisprocesstheIslamicbankswillensurethattherightsofthe
customersareprotected.

4.Whenwillthistakeeffect
andhowlongisthetransitionperiod?

Tofacilitatesmooth

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Tofacilitatesmooth
implementationofthereclassificationprocessandensurerelevant
stakeholdersinterestareprotected,BankNegaraMalaysiahasformulated
atransitionplantoallowIslamicbankstocompletetheprocessby30
June2015(twoyearperiodfromtheenactmentofIFSA).

5.Wouldmydepositbeprotected
byPerbadananInsuransAmMalaysia(PIDM)?

Duringthistransition
period,alltheIslamicdepositsundertherepealedIBAwillremain
statusquoandcontinuetobeeligibleforPIDMprotectionuntilthe
completionofthetransitionplanbytherespectiveIslamicbanks.After
thetransition,IslamicdepositsundertheIFSAwillremaineligiblefor
PIDMprotection.

6.Willthereturnsandbenefits
remainaftertheconversion?

Islamicbankswillbe
engagingtheircustomersinprovidinginformationandclarificationon
thetransitionaswellasthedepositsandinvestmentproducts
available.
Islamicbankswillalso
providealternativesoroptionstocustomertomeettheirriskappetite
andreturns.

7.Willtheprincipalbe
guaranteedaftertheconversion?

OnlyforIslamicdeposit

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OnlyforIslamicdeposit
productswhichuseShariahcontractswithprincipalguaranteedasper
undertheIFSA.

8.Willtherebeadditional
chargesorcostincurredtotheconsumers?

Nochargeswillbe
imposedtocustomersforthetransitionormigration.

9.Willconsumerbenotified
duringthetransitionperiod?

TheIslamicbanking
institutionswillengagewiththeircustomersinprovidinginformation
andclarificationonthedifferencesbetweentheIslamicdepositand
investmentaccountproductsaswellastheoptionsavailabletothemto
eitherretaintheirplacementsinIslamicdepositormigrateto
investmentaccounts.
TheIslamicbanking
institutionswillallowsufficienttimeforthecustomerstoinformthem
oftheirdecision.

10.Whatarethechannelsof
contactforqueriesandinformation?

Islamicbanking

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institutionswillbemakingavailablehotlines,callcentresandthe
frontlinestaffoftheirheadquartersandbranchestoattendtofurther
queriesbytheircustomers.
Membersofthepubliccan
alsocontacttheAssociationofIslamicBanksinMalaysia(AIBIM)at
0320268002/8003andBankNegaraMalaysiaatBNMLINKattel:
1300885465.

Source:BankNegaraMalaysia,17March
2014

(http://www.malaysia.gov.my/)(http://www.mifc.com/)(http://www.smeinfo.com.my/)
(http://www.pidm.gov.my/)(http://www.akpk.org.my/)(http://www.fmb.org.my/)
(http://www.duitsaku.com/)(http://www.bankinginfo.com/)
(http://www.bnm.gov.my/)(http://www.mepsatm.com.my)
Quicklinks

(http://www.bankislam.com.my/home/assets/uploads/NoticePIDMROIDen151215.pdf)
(http://www.bankislam.com.my/Documents/bewareofphishingscams.pdf)
English(http://www.bankislam.com.my/home/islamicfinancialservicesact2013ifsa/)

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