Rotterdam, 04 January 2006
The principles set out in the Islamic banking code are not new. With increasing globalisation, financial institutions from Islamic countries are doing more and more business with companies with no Islamic background. Bell ID is aware that the capacity to operate in line with - and to be sensitive to - Sharia principles is both necessary and desirable to meet its customerâs requirements.
The principle of sharing risk in Islamic finance is fundamentally different from the practice of charging interest. Prohibition of payment and receipt of interest on deposits and loans are key concepts in the Islamic economic system. Islamic bankers, keeping pace with sophisticated techniques and latest development, have evolved investment instruments that are not only profitable but also ethically motivated.
Islamic law extends the requirements on contracts to ensure security and fairness in financial transactions. These restrictions have an impact on the launch of banking card products, IT infrastructures and joint initiatives such as EMV.
AndrÃ© Kievit, Sales Manager at Bell ID, states: We at Bell ID know it is essential to support companies that apply Islamic banking principles in order to enhance quality of service. Therefore, we are happy to confirm that Bell IDâs ANDiS Card, Application and Key Management Systems is inline with Islamic Sharia practices.
The primary difference between an EMV payment process and transactions performed in line with Islamic banking principles is that the latter requires extensions to the current security model and message flow. Accordingly, ANDiS Key Management System is a crucial component ensuring management, generation, exchange and storage of the cryptographic keys.