Clarity on syariah deposits, classification of various types of financial contracts next year

KUALA LUMPUR: Come June 30 next year, all Islamic banks and commercial banks with Islamic banking subsidiaries offering Islamic deposits must classify them either as principal guaranteed or investment accounts which are not principal guaranteed under syariah contracts in line with the Islamic Financial Services Act (IFSA).

This means that products with Mudarabah (profit sharing) or Wakalah (agency) features are considered investment accounts which are non-principal guaranteed.