Inter - Banks' Transfers - Assignments
Bank Remittances
This is a written request issued by the client to the Bank to transfer a sum of money to another person (defined by the client) lodging in another city, on the condition that the client is a holder of a sufficient current account to cover the amount to be transferred. Remittances are Sharia compliant because the transaction is executed to deliver the sum of money to the assignee and not considered a sale transaction or augmenting the assigned debt, on the condition that the remittance be executed on the spot and that the assignee enjoys solid solvency, in addition to giving benefits to the creditor and facilitating the finances of the debtor. Repayment of the remittance debt can be postponed.
The Legal Rooting of Remittances:
The remittance is approved by Sharia: it is a contract by itself and not a sale. It was legalized as a mean to facilitate the transaction of collecting and paying. Remittances are also favorable by the assignor once he has known the solvency of the assignee and his good will to repay, with the aim to benefit the creditor and ease the burden on the debtor.
Terms and Required Documents
The consent of the three parties involved in the assignment: the assignor and the assignee and the creditor on condition that the three parties have the legal capacity to act.
For the assignment to be valid and legal the assignor must be in debt for the assignee. Therefore the assignment transferred by a person not in debt for the assignee is considered a proxy for receivables and not an assignment.
The assignee is not conditioned to be in debt for the assignor and in this case the transferred money is considered an absolute assignment.
The transferred debt and the assigned debt should be ascertainable to be transferable.
In case of the restricted assignment it is conditioned that the assigned debt or the part of it be equal to the debt of the creditor in kind and amount. But one can assign a less debt over a larger debt, only the equivalent assigned debt is entitled for the assignee.
Filling the form to make the transaction (the form prepared by the Bank).
A statement of the ID number issued by the specialized authority.