Islamic Financial Services: Singapore issues guidelines and regulations
The Monetary Authority of Singapore has today announced that it has issued a set of guidelines on the application of banking regulations to Islamic Banking, and issued two new Regulations.
MAS says "The Guidelines consolidate the various regulations and clarifications which MAS has issued, and offers specific information on the regulatory treatment of various Islamic structures. This set of Guidelines will provide greater clarity and certainty for financial institutions offering Islamic banking products in Singapore. "
The new regulations require that, with immediate effect, Singapore-based banks may enter into Diminishing Musharaka financing and Spot Murabaha transactions.
MAS has also put in place measures to ensure that Islamic Banking receives equal tax, regulatory and liquidity treatment of the Singapore Dollar Sukuk as apply to Singapore Government Securities. Again, these measures have immediate effect.
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