Mechanics (Modus Operandi) Of The Product

1. Product Structure Diagram
   
    

2. Step by Step Process Flow of the Product

1. The customer applies financing product based on Tawarruq concept from the Bank. Bank obtains Tawarruq transaction documents from the customer.
2. Bank will buy the commodity at London Metal Exchange (LME) through Broker 1.
3. Under the Murabahah contract, Bank then sells the commodity to the customer at Bank’s Selling Price (Principle + Profit) on deferred payment term.
4. Under the Wakalah contract, customer requests Bank to sell the commodity in the market.
5. Acting as the appointed sale agent for the customer, Bank sells the commodity to Broker 2.
6. Bank then credits the Wariq (proceed) from the sale of commodity to the customer’s account.
7. Finally, customer pays amount due to the Bank (Principal + Profit) by way of agreed instalment method.