Murabaha Standards Approved by AAOIFI
The ISO 15022 message standards for the processing of treasury murabaha transactions have been certified compliant with the international Islamic finance standards issued by Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). This certification paves the way for the automated processing of murabaha treasury transactions, which reportedly represent 60% of all Islamic financing.
Murabaha includes a money transfer and a commodity trade. SWIFT has carried the money transfer for many years, while the commodity trade has been completed manually, usually by fax without any globally agreed standard. SWIFT’s solution uses the ISO 15022 message standards within the guidelines of a Murabaha Standards Rulebook.
“AAOIFI is responsible for global Islamic finance industry standards and we establish best practices for the industry”, said Dr Mohamad Nedal Alchaar, secretary general of AAOIFI. “Our collaboration with SWIFT aims to build a well-structured and well-regulated international Islamic finance infrastructure”.