The IILM Act 2011is a legal framework that established the International Islamic Liquidity Management Corporation (IILM). This act, passed by the Malaysian Parliament, facilitates the issuance of short-term, Shariah-compliant financial instruments to enhance cross-border Islamic liquidity management. The IILM Act outlines the corporation’s objectives, governance structure, and operational framework, enabling it to support financial institutions in managing liquidity more effectively, thereby contributing to the stability and development of the global Islamic financial system.

The IILM’s Articles of Agreement serve as the foundational document that governs the operations, structure, and mission of the International Islamic Liquidity Management Corporation (IILM). Established by its member central banks and monetary authorities, the Articles outline the corporation’s objectives, including the issuance of short-term, Shariah-compliant financial instruments to support Islamic liquidity management globally. They detail the governance framework, including the roles of the General Assembly and the Board of Directors, decision-making processes, and the rights and responsibilities of its members, ensuring the IILM operates effectively to promote financial stability in the Islamic finance sector.

The IILM’s By-Laws provide detailed rules and procedures that govern the day-to-day operations and internal management of the International Islamic Liquidity Management Corporation (IILM). These By-Laws complement the Articles of Agreement, specifying the roles, responsibilities, and conduct of the corporation’s officers and staff, including the CEO and Board of Directors. They outline procedures for meetings, decision-making processes, and the issuance of IILM’s Shariah-compliant financial instruments. The By-Laws ensure transparency, accountability, and efficiency in the IILM’s operations, enabling it to fulfill its mandate of supporting liquidity management in the global Islamic finance market.

The IILM’s Anti-Money Laundering (AML) Policy establishes strict guidelines and procedures to prevent and detect money laundering and terrorist financing activities within the International Islamic Liquidity Management Corporation (IILM). This policy outlines the responsibilities of the IILM and its employees to comply with relevant laws and regulations, including customer due diligence, reporting suspicious activities, and maintaining accurate records. It also includes regular training and awareness programs to ensure all staff are equipped to recognize and respond to potential AML risks. The policy underscores the IILM’s commitment to maintaining the integrity and security of the global Islamic financial system.

The IILM’s International Sanctions Policy outlines the procedures and controls the International Islamic Liquidity Management Corporation (IILM) follows to ensure compliance with global sanctions regimes. This policy mandates that the IILM, its employees, and business partners avoid engaging in transactions or activities involving sanctioned countries, entities, or individuals. It includes guidelines for conducting due diligence, screening counterparties, and reporting any potential violations. The policy is designed to safeguard the IILM from legal, financial, and reputational risks, reinforcing its commitment to operating within the boundaries of international laws and maintaining the integrity of its financial operations.

The IILM’s No Gift Policy prohibits employees and representatives of the International Islamic Liquidity Management Corporation (IILM) from accepting or offering gifts, hospitality, or favors that could influence or appear to influence business decisions. This policy aims to maintain impartiality and prevent conflicts of interest, ensuring that all actions taken by IILM personnel are in the corporation’s best interest. It outlines the exceptions, such as nominal items of minimal value, and provides guidance on how to handle situations where refusing a gift might be culturally sensitive. The policy reinforces the IILM’s commitment to ethical conduct and transparency.