11:20, 1 July 2022 Page views 1223 views

Russian State Duma Committee prepared Islamic banking draft law

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Russian State Duma may adopt a law on the regulation of Islamic banking this autumn, head of the Duma Financial Market Committee Anatoly Aksakov said at a press conference at TASS.

“The bill has been prepared, I sent it today to all coordinating bodies. I hope that we will pass the law regulating Islamic banking this autumn. We will have this tool in place at last, and citizens, those who profess Islam, will supposedly find it interesting. The issue of raising funds from Asian countries is on the agenda. Arab countries, Malaysia, Indonesia – by the way, they also show interest in this law, and I communicated with them closely,” Aksakov said at the press conference.

In May last year, the State Duma announced the formation of a working group on Islamic finance in order to introduce targeted amendments to laws aimed to stimulate the inflow of finance from Islamic countries. The possibility of using the so-called alternative finance was supposed to be incorporated into the law “On Investment Funds”.

Islamic banking has a number of prohibitions and restrictions. The prohibited activities include payment of loan interest, deals under uncertainty, financing of the economy sectors such as gambling, production of pork, alcoholic beverages, etc.