The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has set out, in a new draft law on banks and banking activity, a framework that would allow conventional banks to provide Islamic banking services through an “Islamic window” without changing their core business model. Following international benchmarking and consultations with foreign central banks and regulators, the Agency opted for a “liberal” model of Islamic window regulation designed for conventional banks. The approach permits close interaction between the Islamic window and the bank’s conventional business while preserving the autonomy of internal Islamic councils, and it requires Islamic banking activities to be operationally separated with all related transactions accounted for separately. The draft also introduces minimum qualification requirements for heads and members of bank councils responsible for Islamic finance principles, and indicates that dedicated prudential standards will be developed for Islamic operations.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-04-14
Kazakhstan’s Agency for Regulation and Development of the Financial Market proposes an Islamic window regime for conventional banks to offer Islamic banking services
Kazakhstan's Financial Market Agency proposed a draft law enabling conventional banks to offer Islamic banking services through an "Islamic window" without changing their core model. This allows interaction between Islamic and conventional operations while maintaining separate accounting and operational autonomy for Islamic activities. The draft also sets minimum qualifications for Islamic finance council members and plans for dedicated prudential standards.