BML Makes Islamic Banking the Default for New Personal Accounts

Bank of Maldives is processing new personal accounts and personal financing applications under Islamic banking principles, while retaining conventional services for customers who request them.

The change took effect on 13 September as part of the bank’s Islamic Finance First strategy. BML also said it had introduced arrangements for existing personal account and loan holders to move to Shariah-compliant services.

The bank’s announcement does not set a compulsory conversion date for existing customers. It explicitly says customers who prefer conventional banking can request it directly.

BML said the change followed a year-long programme to rebrand regional branches as Islamic banking service centres. Customer funds held under Islamic banking are kept separate from conventional operations, according to the bank.

Chief executive Mohamed Shareef said demand for Islamic banking had grown since the service was introduced in 2015. The bank’s range includes accounts, cards and personal financing.

BML opened a replacement Kudahuvadhoo branch on 31 January, describing it as a paperless facility serving the island and nearby communities. The branch carries the BML Islamic branding introduced across the regional network.

Current and savings accounts

BML’s current-account product page describes its structure as Wadi’ah Yad al-Dhamanah, or guaranteed safe custody. Deposits are maintained in a separate pool and used for Shariah-compliant purposes.

The account is listed in rufiyaa, US dollars, euros, Indian rupees and Chinese yuan. Published minimum balances are MVR200 for rufiyaa accounts and US$50 for dollar accounts.

The bank lists debit cards, cheque books, internet banking and mobile banking among the services available to current-account holders. Its digital application process allows existing customers to request an additional account through internet banking.

The savings account uses a different structure: Wakalah bil Isthismar, or investment agency. Under that arrangement, BML acts as the customer’s agent for Shariah-compliant investments.

Savings accounts are offered in rufiyaa and US dollars. Minimum balances are MVR200 and US$50 respectively, while the balances required to earn profit are MVR5,000 and US$1,000.

The product page describes its advertised returns as expected profit. It lists 1.5 per cent annually for rufiyaa savings and a range of 1 to 1.25 per cent for dollar savings, with the full rate details covered by the bank’s schedule of charges.

Accounts for expatriates

The bank’s expatriate-account guidance also identifies the account as Shariah-compliant and based on guaranteed safe custody.

For the rufiyaa account, it lists an initial minimum deposit of MVR200 and a monthly maintenance charge of MVR75. Customers have access to internet and mobile banking to monitor the account and transactions.

Applicants holding work visas must have at least one month remaining on their work permit when opening the account. Other expatriate applicants must hold a valid visa at the time of onboarding.

BML provides an online application route for foreigners opening their first account. Its published supporting documents include a personal account application, an account-opening checklist and a sample employment letter for expatriates.

The bank’s account pages also provide an online route for existing customers to apply for additional accounts through the Services and Applications menus in internet banking.