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KUALA LUMPUR: Savings Account Shariah by the Employees Provident Fund (EPF), won an overwhelming response since the application for an account is opened on August 8 last year.
According to the Fund, so far, more than 300,000 members of the body had already decided that it will be implemented January 1, 2017.
"Registration is open until Dec 23. Avoid registration at the last moment," said the Fund.
Members who are interested in applying should visit the nearest EPF counters for verification of identity through thumbprint.
"After that members can access through i-Shariah Savings Account as usual and experts also do not have to inform the employer on account of exchange," he said.
Shariah Savings Account will be managed by Wakalah; namely through a Board which was appointed and entrusted to act on behalf of members to ensure the management and investment of their savings is in accordance with the shariah.
Although the concept of sharia, all members regardless of race, religion and citizenship status can choose the account. However, each member is allowed to have only one type of account, ie whether or Conventional Savings Deposit Shariah.
In connection with the establishment of the account, the Fund has established a Shariah Advisory Committee (the committee), consisting of experts in the field including aspects of shariah banking, finance, law and other related disciplines.
Committee that authorities in deciding and advising on matters related to shariah on the account.
At this time the committee comprises executive director of the International Shariah Research Academy for Islamic Finance (ISRA) Professor Dr. Mohamad Akram Laldin as chairman, Lecturer Institute of Islamic Banking and Finance International Islamic University (UIA) Dr. Aznan Hasan and lecturer Faculty of Economic and Management Sciences UIA Dr. Zaharuddin Abdul Rahman.
According to the Fund, the investment strategy to be carried out is based on the Strategic Asset Allocation (SAA) with the objective of adding value to the money savings, while protecting the savings.
"We also have guidelines and investment policy that meets the ethical mandate in which we will not invest in sectors that promote gambling, weapons for war, alcohol and entertainment are not Shariah-compliant," he said.
In addition, to ensure that it remains compliant Savings Account status as shariah compliant, we will also create a framework for a comprehensive Shariah governance.
This is to ensure operating and investing activities Deposits Shariah compliance with the guidelines and parameters of the Shariah-compliant investment committee and approved by the EPF.
The committee will also give statements and reports relating to compliance with shariah compliant storage for each financial year as part of the corporate governance requirements of the EPF.
The effective date for the accounts of members who have made the choice Reserve Shariah is subject to the provisions of the Shariah-compliant fund that will be obtained annually by rotation member (first-come first-served basis), as well as other conditions determined by the Board.
The effective date of the option is on Jan 1, according to the provisions of the Shariah-compliant funds approved yearly to members.
"However, if Reserve registration Shariah has met the quota of funds allocated for the year, members who have made the choice to account but not yet managed to obtain the allocation of funds, shariah compliant funds have to wait for next year," said the source.
For production purposes, in accordance with the regulations still existing and spending money can be used to finance housing loans, conventional or Islamic.
Members are also still subject to the transfer of money under the Provident Investment Member (SPA) in force.
"But for those members who prefer Shariah Savings and apply for credit transfer for investment in fund management institutions (IPD), members are only allowed to invest in Shariah-compliant unit trust funds are approved by the EPF," he said.
In addition, the responsibility of the employer is subject to the regulations and rules of the existing contributions.
"There are no additional costs will be imposed on employers if their employees would prefer Shariah Savings and employers do not have to make payment of contributions separately.
"Just fill out the form A as existing processes. No additional forms or changes need to be made by the employer," he said.