View source for Republic Act No. 11054 or the “Bangsamoro Organic Law”

'''[[Republic Act No. 11054 or the “Bangsamoro Organic Law”]]''' established the [[Bangsamoro Autonomous Region in Muslim Mindanao]] (abbreviated as "BARMM") . The law also has provisions on the promotion and development of Islamic banking and finance. 

Article XIII has several sections specifically dedicated to the development Islamic banking and finance in the BARMM:


<blockquote>SECTION 31. ''Banks and Financial Institutions''. — The Bangsamoro Government shall encourage the establishment of:

(a) Banks and financial institutions and their branches including an Islamic window in domestic and foreign conventional banks; and

(b) Offshore banking units of foreign banks within the Bangsamoro Autonomous Region, and in accordance with the principles of the Islamic banking system.


SECTION 32. ''Islamic Banking and Finance''. — The Bangsamoro Government, the Bangko Sentral ng Pilipinas, the Department of Finance, and the National Commission on Muslim Filipinos shall jointly promote the development of an Islamic banking and finance system, to include, among others, the establishment of a Shari'ah Supervisory Board and the promotion and development of Shari'ah-compliant financial institutions. The Bangko Sentral ng Pilipinas shall determine the type of organizational structure to be created and its composition.

To facilitate the establishment of an Islamic banking and finance system, the Bangsamoro Government and the National Government shall review existing market environment policies, adopt measures to enhance the competitiveness of Islamic finance products, and ensure that Islamic financial players are not inhibited from introducing Islamic finance products. It shall further promote investor awareness and acceptance in order to build a broader customer and asset base.

The operation of Islamic banks, Shari'ah-compliant financial institutions and other institutions performing similar functions shall be subject to the power of supervision of the Bangko Sentral ng Pilipinas.

The Parliament shall enact laws that promote the growth of Islamic finance such as those that promote tax incentives and ensure tax neutrality of Islamic finance transactions in the Bangsamoro Autonomous Region.


SECTION 33. ''Islamic Banking Unit in the Bangko Sentral ng Pilipinas''. — An Islamic banking unit shall, as far as practicable, be established in the Bangko Sentral ng Pilipinas which shall be headed and staffed by qualified Islamic banking experts.


SECTION 34. ''Functions of the Shari'ah Supervisory Board and Qualification of Its Members''. — Without prejudice to the crafting of the Bangsamoro Islamic banking and finance framework by the Parliament, the following are the functions and qualifications of the Shari'ah Supervisory Board:

(a) ''Functions''. — The Shari'ah Supervisory Board shall be responsible for monitoring the compliance of Shari'ah rules in banking and finance transactions and issuance of Shari'ah products. Furthermore, as a representative of the various Ulama, it shall have the authority to issue fatwas regarding the products and practices employed by banks and other institutions.

(b) ''Qualifications''. — Subject to other qualifications that the Parliament may enact, the members of the Board shall have the necessary knowledge of both Islamic jurisprudence and conventional banking and finance. </blockquote>


Following the passage of the Bangsamoro Organic Law, [[Republic Act No. 11439 or the Islamic Banking Act]] was signed into law, paving the way for the [[establishment of Islamic banks (IBs) and separate Islamic banking units (IBUs) within conventional banks]] in the Philippines. The Bangsamoro Government, the [[Bangko Sentral ng Pilipinas]], the [[Department of Finance]], and the [[National Commission on Muslim Filipinos]] have also issued a  [[joint circular]] establishing the [[Shari’ah Supervisory Board in the BARMM]].


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==External Links==

* [https://bangsamoro.gov.ph/ Official Website of the Bangsamoro Government]
* [https://mfbm.bangsamoro.gov.ph/ Official Website of the Ministry of Finance, and Budget and Management]
* [https://www.officialgazette.gov.ph/downloads/2018/07jul/20180727-RA-11054-RRD.pdf Published Copy of Republic Act No. 11054]

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