TASHKENT, Uzbekistan, September 16. At a recent gathering of the Legislative Chamber of the Oliy Majlis of Uzbekistan, the wheels were set in motion as a draft law on the implementation of Islamic banking was put under the microscope, Trend reports, citing the Parliament’s press service.
The draft legislation proposes amendments and additions to the Tax Code, the Civil Code, and eight other laws. Key provisions include the legal definition of terms such as “Islamic bank,” “financial operations and standards,” and “investment deposit.” The draft also introduces a licensing system for banks wishing to operate under Islamic banking principles, outlining specific requirements for obtaining such licenses.
The legislation seeks to enhance fiscal backing for constituents
and enterprises, provide alternative monetary solutions, and draw
in international capital via innovative financial offerings and
instruments that adhere to Islamic finance principles.
The preliminary statute received endorsement during the initial
deliberation by constituents of the Legislative Chamber.
Islamic banking constitutes a financial paradigm that operates in strict compliance with the tenets of Sharia jurisprudence. Islamic finance delineates a framework that eschews riba, engages in gharar avoidance, and mitigates undue risk exposure. It underscores the principles of equitable profit and loss distribution, integrity, transparency, and ethical conduct in fiscal transactions.
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