Guidelines on International Islamic Bank

In September 2006, Bank Negara Malaysia announced the issuance of new licenses under the Islamic Banking Act 1983 (IBA) to qualified foreign and Malaysian financial institutions to conduct Islamic banking business in international currencies other than Malaysian ringgit. Financial institutions that carry out such business, referred to as “International Islamic Bank (IIB),” are allowed to conduct a wide array of international Islamic banking business with non-residents and residents. For the purpose of exchange control administration policies, the IIB is defined as a resident and is eligible for full tax exemption accorded under the Income Tax Act 1967 for ten (10) years beginning from the assessment year of 2007.

The purpose of the “Guidelines on International Islamic Bank” (the Guidelines) is to provide guidance to the applicants on the establishment procedures of an IIB and the regulatory requirements that are required to be observed.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking