BusinessWorld
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Measure on I aml
By Chbmaine A.Iadalan
Repofter
THE MEASURE proposing to es-
tablish a regulatory framework for
Islamic banks may be among the
bills that wi.ll secure final approval
in t}le Senate this vreek,
. The chamber approved on
second reading last Tuesday,
May 28, House Bill No. 8281 or
'An Act Providing for the Regu-
lation and Organization of Is-
lamic Banks."
.T
'Aslted
if the bill may still hurdle
the chamber with two session days
left in t}le legislative calendar, Sen-
ate President Vicente C, Sotto III
said over mobile phone message,
Sunday, "yes possible."
If passed, a bicameral confer-
ence committee will no longer be in
order, after the Senate adopted the
said House measue v/itlput amend-
ments, as sponsoredby Senator FYan-
cis c. Escudero. The bill was princi-
pally authored by formei,AMlN Rep.
Sitti Djalia Turabin-Hatamarl
The bill, if enacted, will mandate
the Bangko Sentral4Pilipinas (BSP)
nks up forSenate approval
to supervise, licelse and regulate Is-
lamic bant<s like driversalbanks.
Aside from aythorizing the es-
tablishment o{Islamic banks, it
also allows conventional banks to
engage in Islamic banking, provid-
ed that a system that will segregate
their Islamic banking units from
their regular business is in place.
In particular, Islamic banks may
perform such banking services
as creating current, savings, and
investment accounts, accepting
foreign currency deposits, and act-
ing as correspondent banks and
institutions, amo-ng others.
\ n49e 't a /$t
The banls shall also constitute
a Shari'ah Advisory Council to ren-
der advice and review applications
of the Shari'ah principle.
The Al-Amanal Islamic Invest-
ment Bank ofthe Philippines (AAI-
IBP), provided under RA 6848, or
the "Charter of the Al-Amanah
Islamic Bank of the Philippines of
I99o," is the only banl in the Phil-
ippines authorized to offer Islamic
- banking services.
It has branches in Zamboanga,
Jolo, Cagayan de Oro, Iligan,
Mararvi, Davao, General Santos,
and Cotabato.
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