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Сhallenges of Islamic financial system in Russia
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CRIRIS – TIME FOR MORE OPPORTUNITIES AND…FRAUD
The Central Bank of Russia has recently informed citizens about a new type of Internet fraud, when the hackers activated a mailshot containing false messages about the launch of a new payment system called “Mir”. The e-mails contained a virus that penetrated computers. The Central Bank of Russia considers such mailshot as a new type of fraud and calls citizens for vigilance, says “Rossiyskaya Gazeta”.
Over the last few months hundreds of thousands of Russians lost their jobs. Many representative offices of foreign companies are reducing their staff. Two days ago car traders made redundant many employees, reports RBC. The large number of unemployed has brought about changes in fraud levels, both on a small and large scales.
The ongoing financial crisis has influenced many types of businesses, especially those closely related to import, be it goods or equipment. Either way, the crisis has directly or indirectly has had an impact on the whole economy, from food to real estate sectors. At the same time, for many companies, namely aimed at export and import phase-out, the current crisis is a good time for development.
Due to current circumstances there is a growing interest In Islamic finance in Russia. Almost every week there is news about the meetings on the issue of Islamic banking in the State Duma, top level meetings with the participation of the head of the Central Bank of Russia, important partnership contracts (e.g. between the biggest Russian bank, Sberbank, and the Tatarstan Republic). More and more preconditions are being created in order to encourage active business partnership between Russia and GCC countries.
Nevertheless, there is a growing likelihood that along with the growth of the new market in Russia there will be pseudo-companies offering Islamic financial services. Just as many companies, having noticed profound interest in halal products, started passing off their products as halal, putting false labels or making up misleading product names (such cases were very common in 90-s, but still happen nowadays), in the same way there can be pseudo-Islamic financial companies that might deceive consumers and potential inexperienced investors with flashy advertisement and empty promises. On the other hand, the company managers might act unconsciously, trying to establish a new type of Islamic financial company without knowing all special aspects of the Islamic financial market. As a result, the financial products might not conform to shariah, which will subsequently lead to rapid outflow of funds.
Therefore, one should always bear in mind the necessity for shariah control in such companies and be wary about the business records, management competence, reputation and qualifications of those responsible for Islamic financial companies’ shariah expertise.
Expert Madina Kalimullina
Mrs.Madina Kalimullina is PhD in Economics, advisor on Islamic Economics and Finance to the Russia muftis Council head of Administration, executive secretary and member of the Coordination Council of the Russian Association of Experts in Islamic Finance. Internships on Islamic Finance: JSC "Ecobank" (Kyrgyzstan), Al Baraka Banking Group (Bahrain), Bank Muamalat Indonesia (Indonesia), and others.All expert's articles