Lloyds opens Shariah transfer account
Thursday, 24 Jan 2008 08:40
Lloyds TSB is launching a new Shariah-compliant worldwide money transfer service.
The bank claims the Islamic Nostro account is the first of its kind to be offered by a western bank.
The account is designed for the UK's two million Muslims and 100,000 Muslim firms – allowing them to can make and receive international payments while keeping to Islamic principles.
Lloyds TSB says the account adheres to the principles of Islamic law, as it does not pay interest, provide an overdraft facility or allow any of the funds to be invested in industries such as alcohol and gambling.
Simon Ratcliff, head of operations at the Bank of London and The Middle East, said: “This account is a real milestone for banks like ours and means we can give our customers reassurance their money is being dealt with according to Islamic law, from the moment it leaves their account to the moment it reaches its destination."
Other Shariah complaint products provided by Lloyds TSB include current accounts, student accounts, home finance plans and an global equity fund.