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The International Islamic Liquidity Management Corporation (the IILM) is an international organisation established by central banks and a multilateral organisation to create and issue Shari’ah-compliant financial instruments to facilitate effective cross-border Islamic Liquidity Management.
Established on 25 October 2010, the IILM aims to enhance cross-border investment flows, international linkages and financial stability by creating more liquid Shari’ah-compliant financial instruments for institutions offering Islamic financial services (IIFS).
Headquartered in Kuala Lumpur, Malaysia, the IILM has a diverse membership comprising central banks of Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, the United Arab Emirates as well as Islamic Corporation for the Development of Private Sector (ICD). The IILM paves the way for a unique collaborative, cross-border solution to a common, cross-border concern.
The IILM was designed to be ahead of the curve and support Islamic banks in the event of a liquidity crisis and potentially provide options to IIFS to have access to highly-rated liquidity instruments.
Host Country
Upon the establishment of the IILM, the Governing Board (GB) came to an agreement for the IILM to be hosted by Malaysia and headquartered in Kuala Lumpur. Malaysia was an optimal choice as it is one of the leading Islamic finance hubs in the world, which has a comprehensive Islamic financial system with a robust business-driven regulatory regime and legal framework.
As an international organisation, the IILM enjoys a range of privileges and immunities conferred in the IILM Act 2011 that the Parliament of Malaysia promulgated on 24 January 2011. Such privileges and immunities include, among others, the exemption from duties and taxes including capital gain tax to the IILM.
The IILM is listed in the book of the Malaysian Ministry of Foreign Affairs of Diplomatic Missions and International Organisations and is governed by its Articles of Agreement which was adopted on 25 October 2010.