Section 39January 26, 1990, Sec./Art. 39

Non-Applicability of Selected Acts. - In order to achieve the international and domestic objectives of Islamic banking business, the provisions of the following acts and laws shall not apply to the Islamic Bank to the extent as herein rendered inoperative:

(1) The provisions of the Central Bank Act and the General Banking Act with particular reference to the determination of bank interest rates, loans and discounts, and any interest-bearing instruments or charge: provided, that nothing contained herein shall be construed to impair the powers of the Central Bank to supervise and regulate the activities of the Islamic Bank;

(2) The General Auditing Act and any other enactments thereon inconsistent with this Act; and

(3) The provision of Republic Act Numbered Three thousand five hundred ninety-one, as amended, and all laws, regulating insurance companies: provided, however, that nothing contained herein shall preclude the Islamic Bank from the establishment of contemporary Islamic tafakul (solidarity services) free of riba premiums or interests.