View source for Guidelines for Reporting Islamic Banking and Finance Transactions/Arrangements

The [[Bangko Sentral ng Pilipinas]] (abbreviated as "BSP") has approved Circular No. 1139 on the Guidelines for Reporting Islamic Banking and Finance Transactions/Arrangements pursuant to '''[[Republic Act No. 11439 or the “Islamic Banking Act”]]'''. This is a major leap forward for [[Islamic Finance in the Philippines]] as [[establishment of Islamic banks (IBs) and separate Islamic banking units (IBUs) within conventional banks | Islamic Banks (IBs) and Islamic banking units (IBUs)]] that are yet to be established now have regulatory guidance on the segregation, accounting, and reporting of Islamic finance transactions. 

==Relationship to the AAOIFI==

The circular was finalized a few months after the signing of a Memorandum of Agreement with the '''[[Accounting and Auditing Organization for Islamic Financial Institutions (AOOIFI)]]''', the international standard-setting body for Shari'ah auditing, accounting, and governance, to cover the possible adoption of relevant '''[[AAOIFI standards]]''' by the local Islamic banking and finance industry, and cooperation in the areas of capacity building and technical assistance.

==Related Issuances==

Prior to these guidelines, BSP issued circulars on the ''''[[Guidelines on the Establishment of IBs and IBUs]]''' and '''[[Shari'ah Governance Framework]]'''. These reporting guidelines were then followed by guidelines on the '''[[Management of Liquidity Risk by IBs and IBUs]]'''. 

The [[Insurance Commission]] also issued [[Circular Letter No. 2022-04]] on the '''Baseline Regulatory Framework for [[Takaful]] Undertakings''' in 2022, while the Bureau of Internal Revenue issued '''[[Revenue Regulations No. 17-2020]]''' and '''[[Revenue Memorandum Circular No. 35-2022]]''' to implement the '''[[tax neutrality]]''' provision in the Islamic Banking Act.


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==External Links==

* [http://bsp.gov.ph/ Official Website of the Bangko Sentral ng Pilipinas]
* [https://www.bsp.gov.ph/Regulations/Banking%20Laws/RA11439.pdf Published Copy of Republic Act No. 11439 Published Copy of Republic Act No. 11439]
* [https://www.bsp.gov.ph/Regulations/Issuances/2022/1139.pdf Published Copy of BSP Circular No. 1139]

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