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Swift facilitates global messaging standards for Islamic finance

Swift has launched an Islamic finance rulebook to promote Shariah-compliant MT messaging standards for Islamic banking and financial instruments. The rulebook, launched in collaboration with The Association of Islamic Banking Institutions Malaysia (AIBIM), was developed, according to Swift, in response to the growing importance of the Islamic banking and finance market.

The rulebook covers three types of Swift confirmation messages:

  • MT 300 (Islamic Foreign Exchange Confirmation)
  • MT 320 (Islamic Placement Confirmation)
  • MT 620 (Islamic Commodity Placement Confirmation)

Future developments of the rulebook will include all practices that use Islamic financial instruments, such as the previously developed Swift Murabahah solution (cost-plus-sales contract), Mudarabah (profit sharing) and Sukuk (Islamic bonds).

Kiyono Hasaka, a standards specialist at Swift's Asia Pacific division, noted: “With the growing internationalisation of Islamic finance, the rulebook marks a significant milestone in our collaborative efforts. Automation of Islamic finance confirmation flows is now possible through the adoption of international MT messaging standards. The future ambition is to automate flows end-to-end covering all major Islamic finance practices.”

From July 2015, the rulebook will be available to a group of users - the Message User Group (MUG) - which have to register to use specific messages within a controlled user community. The MUG for the Islamic finance rulebook will also be available for registration at www.swift.com.

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