Morocco: Takaful regulations still under deliberation
Source: Middle East Insurance Review | Oct 2018
Morocco is preparing for the introduction of Islamic insurance, possibly by 2019, though no official timeline for the launch of takaful has been set.
While Morocco passed its first takaful law in 2015, the relevant regulations for the insurance market have not been finalised yet. Thus, no takaful licences have been granted to date, said Gulf Times.
To date, the takaful regulations still remain at the drafting stage, and Moroccan authorities are seeking input and advice from standard-setting Islamic finance authorities in Bahrain and Malaysia.
News reports in May this year stated that the draft takaful regulations had been handed to the Insurance and Social Security Supervisory Authority (ACAPS) which, in turn, has submitted them to the Supreme Council of Ulema.
In the banking sector, the central bank, Bank Al-Maghrib, officially introduced a comprehensive regulatory framework for ‘participation banking’ in July 2017, after several delays. Earlier in 2015, the central bank began to approve – on a case-by-case basis – requests of conventional banks to open Islamic windows and started the process of formulating clear Islamic banking regulations.
With fundamental Islamic banking structures now in place, Morocco is also preparing the issuance of its first sukuk. Originally planned for 2017, the Finance Ministry is now preparing to issue four dirham-denominated sovereign sukuk this year after eventually adopting the regulatory framework governing sukuk sales. M