FCI introduces Islamic FactoringThursday 14 June 2018
At the 50th Anniversary Annual Meeting of FCI being held in Amsterdam, members today unanimously voted to make Islamic Shari’a compliant factoring a part of the FCI’s group of supported business finance solutions.
Changes to the General Rules of International Factoring will now ensure that this important and growing branch of factoring is facilitated within the FCI member network, allowing support for this type of business on a fully cross border international basis.
The initiative to adapt the rules was developed following the suggestion of an FCI member, Dar Al Tawreeq. FCI’s Legal Committee together with Noor Bank (a member of FCI) and International Islamic Trade Finance Corporation (ITFC), created a working group which prepared the amendments to the rules.
Peter Mulroy, Secretary General of FCI was delighted to announce the adoption of the service: “Islamic Factoring is an increasing important element in the finance of international trade and our ability to support Shari’a compliant business is particularly important for our global member base. This development is another real enhancement of the support we can provide for our members.”