LCAF stands for Letter of Credit Authorization Form. It is mainly application for permission for opening LC as well as importing of goods into Bangladesh and remittance there against. So it is used for opening LC, releasing goods and remittance there against.
Bank should ensure while issuing LCAF:
Valid Import Registration Certificate (IRC)
Renewal of IRC
Item to be imported is eligible as per IPO (Import Policy Order)
Purpose of LCAF:
Allowing imports, releasing goods and remittance there against.
There are five copies in each set of LCAF., The use of each copy are:
Original-For Exchange monitoring purpose: For opening LC and for effecting remittances
Duplicate-Custom purpose: For releasing goods
Triplicate and Quardruplicate- For controlling agency (will be send to the CCI&E along with LC copy)
Quintuplicate - Office copy
BRICS: New Development Bank
BRICS
BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. It is typically rendered as "the BRIC countries" or alternatively as the "Big Four".
BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China, and South Africa. The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. It is typically rendered as "the BRIC countries" or alternatively as the "Big Four".
The General Council for Islamic Banks and Financial Institution(CIBAFI)
CIBAFI:
The General Council for Islamic Banks and Financial Institution (CIBAFI) is one of the 4 "I's"
International Islamic Infrastructure Institutions. It is a non-profit organization and it was
established and hosted in the Kingdom of Bahrain on May 16, 2001. It is an affiliated organ to
the Organization of Islamic Cooperation (OIC). The council membership includes a large
number of banks and financial institutions registered in various countries around the world
regulated by central banks. CIBAFI has been headquartered in Bahrain due to its positioning
in the Arab and global financial industry.
International Islamic Infrastructure Institutions. It is a non-profit organization and it was
established and hosted in the Kingdom of Bahrain on May 16, 2001. It is an affiliated organ to
the Organization of Islamic Cooperation (OIC). The council membership includes a large
number of banks and financial institutions registered in various countries around the world
regulated by central banks. CIBAFI has been headquartered in Bahrain due to its positioning
in the Arab and global financial industry.
The Blue Economy
The Blue Economy:
The Blue Economy is a concept designed in 1994 by Gunter Pauli. Itʹs a way of doing business in the world
of tomorrow ‐ combining profitability, sustainability and scientific knowledge.
The Blue Economy entered the UN lexicon during the 2011 ‐12 preparations for the Rio+20 Conference.
Blue Planet
The Blue Economy is a concept designed in 1994 by Gunter Pauli. Itʹs a way of doing business in the world
of tomorrow ‐ combining profitability, sustainability and scientific knowledge.
The Blue Economy entered the UN lexicon during the 2011 ‐12 preparations for the Rio+20 Conference.
Blue Planet
The Office of Foreign Assets Control (OFAC)
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the U.S. government charged with planning and execution of economic and trade sanctions in support of U.S. national security and foreign policy
objectives. Acting under Presidential national emergency powers, OFAC
carries out its activities against foreign states - such as Russia and Iran - as well as a variety of problematic organizations and individuals deemed to be a threat to U.S. national security.
Involvement of the U.S. Department of the Treasury in economic sanctions against foreign states dates to the War of 1812, when Secretary Albert Gallatin administered sanctions against Great Britain in retaliation for the harassment of American sailors.
The Division of Foreign Assets Control was established in the Office of International Finance by a Treasury Department order in 1950, following the entry of the People's Republic of China into the Korean War; President Harry S Truman declared a national emergency and blocked all Chinese and North Korean assets subject to U.S. jurisdiction. In addition to blocking Chinese and North Korean assets.
OFAC is responsible for administering the Specially Designated Nationals (SDN) List. The list is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.
ref:
http://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control
Involvement of the U.S. Department of the Treasury in economic sanctions against foreign states dates to the War of 1812, when Secretary Albert Gallatin administered sanctions against Great Britain in retaliation for the harassment of American sailors.
The Division of Foreign Assets Control was established in the Office of International Finance by a Treasury Department order in 1950, following the entry of the People's Republic of China into the Korean War; President Harry S Truman declared a national emergency and blocked all Chinese and North Korean assets subject to U.S. jurisdiction. In addition to blocking Chinese and North Korean assets.
OFAC is responsible for administering the Specially Designated Nationals (SDN) List. The list is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.
ref:
http://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control
The Financial Action Task Force (FATF)
In response to mounting concern over money laundering, the Financial
Action Task Force on Money Laundering (FATF) was established by the G-7
Summit that was held in Paris in 1989.
Recognising the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member States, the European Commission and eight other countries.
Recognising the threat posed to the banking system and to financial institutions, the G-7 Heads of State or Government and President of the European Commission convened the Task Force from the G-7 member States, the European Commission and eight other countries.
Parallel Salam
Bai salam
Bai salam is an Islamic finance tool used to generate working capital and consists of a contractual sale in which advance payment is made by the buyer to the seller for the deferred supply of goods at a specified date pre-determined in the contract. Thus, it is a sale and purchase transaction whereby the payment is made in cash at the point of contract, but the delivery of the asset purchased will be deferred to a pre-determined date.
Parallel Salam
The financier may at the same time enter into a parallel but separate bai salam with a third party to resell the asset for an increased price or it may simply sell the asset on delivery.
Conditions of the Parallel Salam
Bai salam is an Islamic finance tool used to generate working capital and consists of a contractual sale in which advance payment is made by the buyer to the seller for the deferred supply of goods at a specified date pre-determined in the contract. Thus, it is a sale and purchase transaction whereby the payment is made in cash at the point of contract, but the delivery of the asset purchased will be deferred to a pre-determined date.
Parallel Salam
The financier may at the same time enter into a parallel but separate bai salam with a third party to resell the asset for an increased price or it may simply sell the asset on delivery.
Conditions of the Parallel Salam
- There must be two different and independent contracts, these two contracts cannot be tied together, and performance of one should not be contingent on the other.
- Parallel Salam is allowed with the third party only.
Method of charge creation
Method of creating charges on security
1. Lien
2. Assignment
3. Set-off
4. Pledge
5. Hypothecation
6. Mortgage
Lien:
The lien is a mode of creation of charge specially on assets of financial instruments like fixed deposit, TDR, deposit balance etc.
Assignment:
It is a mode of creation of charge on the financial instrument like Bills Receivables covering security against debt and be liquidated against debt when the Bills becomes matured. Here the owner of the proceeds of Bills is known as Assignor, the Bank is Assignee and the proceeds received from whom is known as Debtor of Assignor.
1. Lien
2. Assignment
3. Set-off
4. Pledge
5. Hypothecation
6. Mortgage
Lien:
The lien is a mode of creation of charge specially on assets of financial instruments like fixed deposit, TDR, deposit balance etc.
Assignment:
It is a mode of creation of charge on the financial instrument like Bills Receivables covering security against debt and be liquidated against debt when the Bills becomes matured. Here the owner of the proceeds of Bills is known as Assignor, the Bank is Assignee and the proceeds received from whom is known as Debtor of Assignor.
What is an Escrow Account?
Escrow Account:
A financial instrument held by a third party on behalf o the other two parties in a transactions. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow.
If there are conditions to the sale, such as the passing of an inspection , the buyer and seller may agree to use escrow. In this case, the buyer of the property will deposit the payment amount for the house in an escrow account held by a third party. Once all the condition of the sales are satisfied, the escrow transfer the payment amount to the sellers, and title is transferred to the buyer.
A financial instrument held by a third party on behalf o the other two parties in a transactions. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow.
If there are conditions to the sale, such as the passing of an inspection , the buyer and seller may agree to use escrow. In this case, the buyer of the property will deposit the payment amount for the house in an escrow account held by a third party. Once all the condition of the sales are satisfied, the escrow transfer the payment amount to the sellers, and title is transferred to the buyer.
Islami Bank Khidmah Card
Islami Bank Bangladesh Limited has introduced a new IT based Shariah Compliant product under the name of 'Islami Bank Khidmah Card.' It operates on the 'Ujrah' concept which is based on a fixed fee structure, meaning that only fixed fee will be charged to the customer.
Types of card limit:
Silver Card up to : tk 50,000
Gold Card up to : tk 100000
Platinum Card up to : tk 200000
Features:
Non performing Asset
Non Performing Asset: Assets which do not generate any income are called Non-Performing Assets.
Components of NPI:
i. Overdue Investments
ii. Classified Investments
iii. Rescheduled Investment (without profit)
iv. Written off investment
What is Sukuk?
Sukuk is an Islamic Financial Product. It is an arabic plural word. Singular: Sakk-صك, Plural: Sukuk-صكوك The meaning of Sakk is 'legal instrument, deed, check'. It is commonly refers to the Islamic equivalent of bonds. Islam does not allow fixed income, interest bearing bonds. But sukuk is allowed in Islamic Shariah. Conventional bond is a promise to repay a loan.
According to IFSB , Sukuk is defined as certificates that represents the holder's proportionate ownership in an undivided part of the underlying assets where the holder assumes all rights and obligations to such assets.
Types of Sukuk:
Sukuk Murabaha: It is a partial ownership in a debt.
Sukuk Al Ijara: A partial ownership in asset.
Sukuk Al Istisna: A partial ownership in project.
Sukuk Al Musharaka: A partial ownership in business.
Sukuk Al Istithmar: A partial ownership in investment.
Sukuk al Mujarah, Mushakath, Mugarasa
Characterstics of Sukuk:
1. Sukuk holders are not only investors but also owner of the underlying assets.
2. It is an investment certificate that ensure ownership.
3. Sukuk has a definite time limit/maturity.
4. It is a shariah compliant , transferable and certificate which can convert into cash.
5. Sukuk obligator must have immovable properties on the balance sheet.
Parties of Sukuk:
1. Obligator
2. Special Purpose Vehicle (SPV)
3. Sukuk holder
Sukuk Operation procedure:
Step-1: SPV issues certificate, Sukuk holder pays price
Step-2:Obligator transfer title of Assets, SPV pay asset price
Step-3: Obligator and SPV have lease agreement, Obligator pays rent
Step-4: SPV pays periodic profit to Sukuk holder
Step-5: Obligator buy back assets at maturity from SPV
Step-6: SPV reimburse Sukuk holder at maturity
According to IFSB , Sukuk is defined as certificates that represents the holder's proportionate ownership in an undivided part of the underlying assets where the holder assumes all rights and obligations to such assets.
Types of Sukuk:
Sukuk Murabaha: It is a partial ownership in a debt.
Sukuk Al Ijara: A partial ownership in asset.
Sukuk Al Istisna: A partial ownership in project.
Sukuk Al Musharaka: A partial ownership in business.
Sukuk Al Istithmar: A partial ownership in investment.
Sukuk al Mujarah, Mushakath, Mugarasa
Characterstics of Sukuk:
1. Sukuk holders are not only investors but also owner of the underlying assets.
2. It is an investment certificate that ensure ownership.
3. Sukuk has a definite time limit/maturity.
4. It is a shariah compliant , transferable and certificate which can convert into cash.
5. Sukuk obligator must have immovable properties on the balance sheet.
Parties of Sukuk:
1. Obligator
2. Special Purpose Vehicle (SPV)
3. Sukuk holder
Sukuk Operation procedure:
Step-1: SPV issues certificate, Sukuk holder pays price
Step-2:Obligator transfer title of Assets, SPV pay asset price
Step-3: Obligator and SPV have lease agreement, Obligator pays rent
Step-4: SPV pays periodic profit to Sukuk holder
Step-5: Obligator buy back assets at maturity from SPV
Step-6: SPV reimburse Sukuk holder at maturity
What is 'Window Dressing'?
Window Dressing: Window dressing is a strategy used by financial institutions near the quarter end or year end to improve the appearance of a portfolio to be presented to clients or shareholders. It is made to look the portfolio performance attractive. Generally the institution sells its stocks with large losses and purchase high flying stocks. Thus they show their better performance to the prospective investors. The practice is also known a dressing up a portfolio.
ISDF- International Solidarity Fund for Development
ISDF- International Solidarity Fund for Development
Background:
The decision to establish the Islamic Solidarity Fund for Development (ISFD)
was reached by the Third Extraordinary Session of the OIC
Summit held in Makkah Al-Mukarramah on 05-06 Dhul Qadah, 1426H (07-08
December, 2005). The Summit decided to establish a special fund within the IDB with a view to: 
(a) reduce poverty,
(b) build the productive capacities of member countries,
(c) reduce illiteracy, and
(d) eradicate diseases and epidemics, particularly Malaria, Tuberculosis (TB) and HIV/AIDS.
Official Launching:
The ISFD was officially launched during the 32nd Meeting of the IDB Board of Governors (BOG), held on 30 May, 2007 in Dakar, Senegal.What is Takaful?
Takaful:
The word Takaful is an arabic word which means 'mutual guarantee'. It is a type of Islamic insurance, where members contribute money into a pooling
system in order to guarantee each other against loss or damage. It goes against the riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles, that are prohibited in Islamic Sharia.
Reference from Quran:
Help one another in al-Birr and in al-Taqwa (virtue, righteousness and piety), but do not help one another in sin and transgression. (Surah Al-Maidah, Verse 2)
Principles of Takaful:
The word Takaful is an arabic word which means 'mutual guarantee'. It is a type of Islamic insurance, where members contribute money into a pooling
system in order to guarantee each other against loss or damage. It goes against the riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles, that are prohibited in Islamic Sharia.
Reference from Quran:
Help one another in al-Birr and in al-Taqwa (virtue, righteousness and piety), but do not help one another in sin and transgression. (Surah Al-Maidah, Verse 2)
Principles of Takaful:
Islamic Development Bank
Islamic Development Bank:
IDB is a multilateral development financing institution. It is located in Jeddah, Saudi Arabia. It was founded in 1973.
Major Shareholders:
Saudi Arabia, Libya, Iran, Egypt, Turkey, UAE, Kuwait, Pakistan, Algeria, Indonesia
President:
Ahmad Mohamed Ali Al-Madani
Major Shareholders:
Saudi Arabia, Libya, Iran, Egypt, Turkey, UAE, Kuwait, Pakistan, Algeria, Indonesia
President:
Ahmad Mohamed Ali Al-Madani
Corporate Social Responsibility and Islami Bank Bangladesh Limited
Corporate Social Responsibility and Islami Bank Bangladesh Limited
INTRODUCTION
Corporate Social Responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) refers to the concept that “an enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life of the work force and their families as well as the local community and society at large”. CSR is not about philanthropy or charitable work. It is about how companies take responsibility for their actions in the world at large.
What is Bai-Istijrar? How to investment made under Bai-Istijrar mode?
MEANING AND DEFINITION
Meaning
"Bai-Istijrar" is called such a buying and selling where a person keeps on taking delivery of required commodities part by part from time to time from a supplier and no offer(Ijaab) & acceptance (Qubul) and bargaining between them is taken place each time of making and taking delivery.
TYPES OF ISTIZRAR:
What is a 'Proxy Tax'?
Proxy Tax: A tax on lobbying or political expenses that exceed an allowlable amount is known as proxy tax. The rate of proxy tax is set as the same rate of the highest corporate tax rate for that particular year. Organizations may be required to pay a proxy tax if they spend more on lobbying efforts than they initially estimated.
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