Dhaka, Sunday December 26 2010

http://www.thefinancialexpress-bd.com/more.php?news_id=121029&date=2010-12-26

Siddique Islam

Nigerian Jaiz International PLC is working to launch its banking operation by August 2011with technical support from the Islami Bank Bangladesh Limited (IBBL), a top Jaiz executive said in Dhaka Saturday.

"We'll hire four to five senior officials from the IBBL in line with the Islamic Development Bank's advice," Chief Executive Officer (CEO) and Managing Director of the proposed Jaiz Bank Mohammad Mustapha Bintube told the FE in an exclusive interview.

An agreement on technical services was signed between the IBBL and Jaiz Bank in the capital Friday in this connection.

Under the agreement, the IBBL will make available suitable, qualified and experienced personnel required for the efficient operation of the business, develop capacity building programmes for the training and development of the workforce, design and implement appropriate procedures for all processes, transactions and products to ensure smooth operations of the proposed Nigerian bank.

"We've already deposited US$35 million to the central bank of Nigeria for receiving licence of the bank," the CEO said, adding that they would submit the copies of the agreement in both the central banks for final approval to run the first interest-free bank in Nigeria.

The country has a highly developed financial services sector, with a mix of local and international banks, asset management companies, brokerage houses, insurance companies and brokers, private equity funds and investment banks.

Currently, 24 commercial banks including foreign ones like Citibank and Standard Chartered Bank are operating their businesses across the African country. But there is no Islamic bank in Nigeria.

Nigeria, which has over 70 million Muslims accounting for 50 per cent of the total population, drafted Islamic banking guidelines in 2009, including the types of Shariah-compliant products and risk recommendations for banks.

"Over 70 per cent of the total population don't use banking network. So we want to provide an alternative through lunching very ethical and transparent Islamic banking system to our people," he said while describing the activities of Islamic banking in different countries in the world.

"We don't have expertise to run Islamic banking in Nigeria. So we have come here," Bintube, a senior banker, said adding that a high-power delegation of Jaiz Bank received training from IBBL in November 2009.

"We've planned to expand the Islamic banking businesses in our neighbouring countries including Ghana, Cameroon and Togo after capturing Nigeria," he said while replying to a query.

Explaining the advantage of Islamic banking, the banker said Islamic banking is a real economic activity. "But traditional banking is a speculation like gambling," he said, adding that the Islamic banks do not finance anything that is harmful to the society.

"We're improving our rules and regulations in line with the recommendations of the Financial Action Task Force on Money Laundering (FATF) to curb money laundering in the country," he said while replying to another query about different types of financial crimes.

The FATF is an inter-governmental body whose job is to develop and promote policies, both national and international, to combat money laundering and check financing of terrorism. The FATF has already approved 49 recommendations to curb money laundering.