Tech-firm Swift’s ISO 15022 message standards for treasury murabaha transactions have been certified compliant with international Islamic finance standards.
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) approved Swift’s message standards, a significant step towards bringing the full automation of processing of murabaha treasury transactions closer.
Murabaha treasury transactions represent around 60% of all Islamic financing.
“AAOIFI is responsible for global Islamic finance industry standards and we establish best practices for the industry,” comments Mohamad Nedal Alchaar, secretary general of AAOIFI.
“Our collaboration with Swift aims to build a well-structured and well-regulated international Islamic finance infrastructure,” he concludes.
Murabaha treasury transactions, which represent around 60% of all Islamic financing, include money transfers and commodities trades.
“Swift is very pleased to have AAOIFI’s endorsement. Our goals are aligned and we serve the same members. Murabaha automation is the first step on a long journey of collaboration with the Islamic financial community,” says Alain Raes, Swift’s chief executive for Europe.
Islamic finance is growing at more than 20% a year and the demand for shariah-compliant message standards are increasing.
More than 240 Islamic banks are currently Swift members.
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