Section 17Sec./Art. 17

Nonapplicability of Selected Acts. In order to achieve the international and domestic objectives of Islamic banking, the provisions of the following laws shall not apply to Islamic banks to the extent as herein rendered inoperative:

(a) The provisions of Republic Act No. 7653, and Republic Act No. 8791, otherwise known as "The General Banking Law of 2000", with particular reference to the determination of bank interest rates, loans and discounts, and interest-bearing instruments or charge: Provided, That nothing contained herein shall be construed to impair the powers of the Bangko Sentral to supervise and regulate the activities of Islamic banks and the Islamic banking system;

(b) The provisions of Presidential Decree No. 1445, otherwise known as the "Government Auditing Code of the Philippines" and other enactments thereon inconsistent with this Act: Provided, however, That nothing contained herein shall preclude the development of an appropriate framework for the auditing of Islamic banks and the Islamic banking system; and

(c) The provisions of Republic Act No. 3591, as amended, known as the Philippine Deposit Insurance Corporation (PDIC) Charter, and all laws regulating insurance companies: Provided, however, That nothing contained herein shall preclude Islamic banks from the establishment of contemporary Islamic takaful (solidarity services) free of riba, premiums or interests.