1300 ISLAMIC (1300 475 264)

An important update on our progress

We have proactively revoked our banking licence to APRA on 1 March 2024 while we raise further capital.  This does not mean our journey is over.  We are working to consider options and can apply again for a licence.

How are we tracking?

An important statement

Dear valued supporter

With heavy hearts, we must share some difficult news. On Friday, March 1st, 2024, Islamic Bank Australia made the decision to surrender its restricted banking licence to the Australian Prudential Regulation Authority (APRA).  This decision comes because of challenges in raising the necessary capital to maintain our licence.

We understand the anticipation and excitement surrounding the launch of the first Islamic bank in Australia.  The journey thus far has been one of passion, dedication, and unwavering commitment to providing Islamic financial services to our community. However, the current capital market conditions have proven to be exceptionally challenging at this stage of our endeavour.

While this news may come as a disappointment, we want to assure you that our resolve remains as strong as ever. Our team is diligently exploring various options to navigate this setback and determine the best path forward.  We remain committed to our vision of delivering innovative Islamic financial solutions that meet the needs of our community.

In the interim, we will be operating under the name Islamic Money. While we may have relinquished our banking licence, our dedication to serving you, our valued community, remains steadfast.

We understand that you may have questions or concerns about this development.  We invite you to refer to the FAQs provided for more information.  We will keep you updated on any further developments in the days to come.

We want to express our deepest gratitude for your patience, support, and unwavering belief in our mission over the years. Your continued support means the world to us, and we are committed to overcoming this challenge and emerging stronger together.

Thank you for being a part of our journey. We look forward to updating you soon.

 

Best regards

Our entire team

Frequently asked questions

Why have you returned your banking licence? 

We returned our restricted ADI banking licence to APRA on Friday 1 March 2024, as a result of us being unable to raise the capital required to maintain our licence. 

  

Did you breach your licensing conditions? 

No, we did not. As soon as it became apparent that a breach of capital requirements could not be avoided, APRA was notified and we voluntarily requested revocation of our licence.  This is in line with the ethical nature in which we run our business. 

  

Why have you changed your name to Islamic Money? 

In returning our Restricted ADI licence to APRA, we are no longer a bank. Only licensed entities in Australia are allowed to use the word “bank”, so we have removed this from our name until such time as we hold an authorisation. 
  

Will customers’ funds be returned?  

As we were still building and testing our products and systems, no customer funds had been accepted by the company, and therefore there are no funds to be returned to depositors. 

  

Is this the end of Islamic banking in Australia?Will you be able to reapply for a banking license in the future? 

We are working hard to determine how we can continue this journey for the community and pursuing various options to enable us to raise the necessary capital to re-apply for our banking licence in future and become Australia’s first Islamic bank.  

We remain committed to our mission of providing Islamic financial services to the community. While we have encountered challenges that led to the surrender of our banking license, we are actively exploring avenues to address these challenges and position ourselves for future success. 

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Important regulatory notice

We have made a voluntary decision to return our banking authorisation to APRA, the prudential regulator, as the result of challenges in raising the capital required in the current market.  We are able to re-apply for an authorisation, and are currently working through our options.  We are still committed to our journey.  It is important to note that as of 1 March 2024, we are not an ADI and are not an entity conducting banking business in Australia.

Acknowledgement of Country

We acknowledge the Aboriginal and Torres Strait Islander peoples as the first Australians and Traditional Custodians of the lands where we live, work and bank.  Our corporate head office is in Darug Country. We pay our respects to Elders past, present and emerging.   

Copyright © Islamic Money Australia Pty Ltd. ABN 37 609 971 280. AFCA member 76324.

Information on this website does not take your personal circumstances, needs or objectives into account. Please consider its appropriateness for you.   We are not yet open for business.  We are not an ADI and are not currently conducting banking business in Australia.  Fees and charges may apply, as well as terms and conditions which you should review. Information on this website is subject to change. In order to open a credit product in future, you will need to meet our credit criteria and be approved.