Tashkent, Uzbekistan (UzDaily.com) – The regulations “On the Procedure for Providing Islamic Financing Services by Microfinance Organizations” have been approved in Uzbekistan,. This was announced by the press service of the Central Bank of Uzbekistan.

The regulations were approved by a resolution of the Central Bank and were developed based on the standards of Islamic finance set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), as well as taking into account the national context and international best practices. They define the procedure for providing Islamic financing services by microfinance organizations.

The regulations establish general requirements that microfinance organizations must adhere to when providing Islamic financing services.

In particular, microfinance organizations are required to establish a special council within their structure to coordinate Islamic financing issues or outsource this activity.

Additionally, separate accounting must be maintained for activities related to providing Islamic financing services if the microfinance organization also provides traditional services as defined by law.

The regulations also specify requirements for the special council and its members, and outline the procedures for providing various Islamic financing services, such as Islamic leasing, profit-sharing financing (Mudarabah), installment financing (Murabaha), profit and loss sharing partnerships (Musharakah), and advance payment financing (Salam).