However, among the ‘Special Provisions On Islamic Banking’ the Bill also stipulates that, “On the commencement of this Act, an already licensed financial institution carrying on business, may apply to the Central Bank in accordance with this Act to carry on Islamic financial business in addition to its existing licensed business.” This business will be carried out ‘through an Islamic window’.
The Bill says the Central Bank, in consultation with the Minister [of Finance] shall make special provisions for the licensing and operation of Islamic banking. It also stipulates that every financial institution which conducts Islamic finance business shall appoint and maintain a Shari’ah Advisory Board.
The Report of the Parliamentary Committee on Finance, Planning and Economic Development on the Bill recommended that the proposal to introduce Islamic banking and its products be adopted subject to the establishment of a Central Shari’ah Advisory Board in the Central Bank. The Committee’s Report also noted that currently 11 out of the 22 licensed conventional and commercial banks in Uganda have expressed interest in providing Islamic banking products to their customers.