IILM appointments

I don't generally post press releases, but I think the appointments by the International Islamic Liquidity Management Center are important.  I have two brief comments.  The Shari'ah board of six scholars is not the "top 6" well known names in the industry, which I think is positive because it includes two top scholars, Sh. Elgari and Daud Bakar with other scholars whom I have not run across before.  My other comment is that it was expected that Zeti Akhtar Aziz would be the chairperson of the IILM board because the institution is headquartered in Malaysia.  However, I thought it was interesting that the deputy is the Yves Mersch, governor of the central bank of Luxembourg.  Luxembourg is the only European member of the IFSB (which was responsible for the creation of the IILM).  I don't have time to dig more into the press release, so here it is:

[Kuala Lumpur & Jeddah, 13 December 2010 / 7 Muharam 1432] - The International Islamic Liquidity Management Corporation (IILM) wishes to announce the appointment of Mr. Mahmoud AbuShamma as its first Chief Executive Officer (CEO) for a three-year tenure effective 1 February 2011.

Prior to his appointment at the IILM, Mr. Mahmoud has served as the Global Head of HSBC Amanah Coverage at HSBC Bank Middle East Limited, Dubai in charge of critical HSBC Amanah relationships globally, including Governments, high networth individuals and top corporate clients. He was instrumental in establishing the HSBC Amanah Syariah unit - the first foreign bank to open an Islamic retail banking unit in Indonesia, and served as its Head from 2003 to 2010. In London, he established and headed the HSBC's Islamic Treasury Unit and originated the first Islamic Syndication by HSBC Amanah.

Mr. Mahmoud will lead a team of Islamic finance experts and professionals to operationalise the IILM's mandates particularly to issue highly rated short-term Shariah-compliant financial instruments in major reserve currencies and to develop platform to enhance cross-border Islamic finance activities. With his relevant global working experience and networks, Mr. Mahmoud and his team will be responsible in meeting IILM's objectives to facilitate cross-border liquidity management and to foster regional and international co-operation in building robust liquidity management infrastructures.

As the CEO, Mr. Mahmoud will report to the IILM's Governing Board which will set its strategic policy direction and to the Board Executive Committee for its general conduct of operations. The members of the IILM's Governing are governors of its central bank and regulatory agencies members as well as presidents of its multi-lateral institution members. The IILM's Board Executive Committee, which comprises Governing Board members or their senior representatives, is delegated by the Governing Board to have an overview on the IILM operations and its members. This governance structure will also ensure strategic consultation with members of the IILM on a regular and collaborative basis.

The IILM also wishes to announce the appointment of Her Excellency Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, as the first Chairperson of its Governing Board and His Excellency Yves Mersch, Governor of the Central Bank of Luxembourg, as the Deputy Chairperson. The offices of the Chairperson and the Deputy Chairperson will be rotated annually amongst the IILM's shareholders in accordance to the Articles of Agreement of the IILM. Her Excellency Dr Zeti Akhtar Aziz has been appointed as the Chairperson of the IILM's Board Executive Committee.

The Governing Board of the IILM has appointed six internationally-renowned scholars to sit on its Shariah Committee. The Shariah Committee will decide on any Shariah issues relating to business, operations or activities of the IILM, its subsidiaries, special purpose entities or trusts. The appointed scholars who will serve for a three-year tenure are as follows (in alphabetical order):

1. Dr. Ahmed Ali Abdalla Hamad
2. Mr. Cecep Maskanul Hakim
3. Dr. Mohamed Ali Elgari
4. Dr. Mohd Daud Bakar
5. Dr. Umar Bashir Aliyu
6. Dr. Waleed Bin Hady Al Mullah

International Islamic Liquidity Management Corporation
13 December 2010

About the IILM

The IILM is an international entity established to issue short-term Shariah-compliant financial instruments to facilitate more efficient liquidity management for institutions offering Islamic financial services (IIFS) and to support the increasing cross-border transactions between IIFS. Its membership is opened to central banks, monetary authorities, financial regulatory authorities, government ministries or agencies that have regulatory oversight on finance or trade and commerce; and multi-lateral organisations which will hold shares of the IILM. The IILM was established on 25 October 2010 with 14 founding shareholders (consisting of twelve central banks or monetary authorities of Indonesia, Iran, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Saudi Arabia, Sudan, Turkey, and the United Arab Emirates) and two multi-lateral institutions (the Islamic Development Bank and the Islamic Corporation for the Development of the Private Sector). Its head office is located in Kuala Lumpur and a dedicated legislation is being discussed in Malaysia's Parliament to accord the IILM with special status, privileges and immunities. For further details about the IILM, please contact:

Chairperson of the Governing Board
International Islamic Liquidity Management Corporation
Level 40
Tower 2, Petronas Twin Tower
Kuala Lumpur City Centre
50088, Kuala Lumpur
Malaysia
Telephone : +603-2168 4277
Facsimile : +603-2168 4677

E-mail enquiry can be sent to the IILM's temporary administrative secretariat (e-mail address: hizzad@bnm.gov.my (for the attention of Mr. Ahmad Hizzad Baharuddin)).