Wakala

Agency deposit

Zaman Bank

Wakala is an agency agreement where the Client (Muwakkil) instructs the Bank (Wakil) to invest its funds, which makes every effort to make a profit by investing in any Sharia-compliant business project, as agreed by the parties.


Muwakkil provides his funds in money, which will is in trust governance and disposal have Wakil. Cases in Wakala must be conducted exclusively by Wakil within the framework of the obligations specified in the investment Agency Deposit agreement.


The profit from the investment project should be directed away from the Wakil to Muwakkil in the amount specified in the expected profit. In case of excess of the total profit, Wakil is entitled to receive a Wakil award in the amount of the balance after the payment of the estimated profit. At the same time Wakil, in any case, in advance at the beginning of the agreement, receives the agreed amount of Commission fee as an Agency fee.


The financial losses within the framework of Wakala are fully borne by Muwakkil, unless Wakil's guilt of fraud, negligence or wilful default is proved. Muwakkil's obligations are limited to its investments, unless otherwise specified in the Wakala agreement.


Example: Client A opened an investment agency deposit based on Wakala, placed 5,000,000 tenge for a period of 12 months with an expected return on the deposit of 10% or 500,000 tenge. At the same time, the Client paid in advance the agency commission to the Bank in the amount of 300,000 tenge.


Upon the expiration of the agreement, analyzing the results of its investments, the Bank came to the conclusion that the profit on the project amounted to 1.200.000 tenge, which exceeds the expected return. Considering the peculiarities of the Wakala agreement, in case of exceeding the expected return, the Prize is provided for: the Bank sends 500,000 tenge (expected return) to the Client.


Thus, the Client receives 5.500.000 (5.000.000+500.000) tenge. The Bank also receives an income of 1.000.000 tenge, consisting of 300.000 Agency fee and 700.000 Wakala premium. 


The Bank provides two types of agency deposit of Wakala – Standard and Amin. The main differences between deposits: deposit currency, urgency, rate of profit, the possibility of partial withdrawals.


According to the agency agreement of Wakala Standard, the client does not limit the Bank in the choice of projects and modes of investment. The Wakala Amin agreement involves investments in highly liquid transactions with established profitability.


Product Name

Wakala Standard

Wakala Amin

Product type

unlimited

limited

Deposit currency

KZT (tenge), USD (US dollars), EUR (euro)

KZT (tenge)

Minimum deposit amount

500 000 KZT / 1 500 USD / 1 500 EUR

30 000 KZT

Maximum deposit amount

not limited

not limited

Maturity

1/ 3/ 6/ 12/ 24 months

14 days

Rate of profit

depends on the term and deposit currency

5% per annum

Periodicity of profit payment

On expiry date

On expiry date

Additional contributions

allowed

allowed

Partial withdrawal

not allowed

allowed

Special conditions

in case of full early withdrawal the profit on deposit is not paid

in case of full early withdrawal the profit on deposit is not paid


Note 1: Deposit terms may be changed individually by the decision of the authorized body.


Note 2: The expected return on the deposit means the share of the profit to be paid to the depositor, received by the Bank as a result of further investment of deposit funds in financed projects, consistent with Islamic principles of financing. The expected return depends on the term and deposit currency.


Depozit Term

The expected return on the deposit (in % per annum)

Wakala Standard

Wakala Amin

in tenge

in USD/EUR

in tenge

in USD/EUR

14 days

ххх

ххх

5%

ххх

1 month

6%

0,1%

ххх

ххх

3 months

7%

0,2%

ххх

ххх

6 months

8%

0,5%

ххх

ххх

12 months

8,5%

2%

ххх

ххх

24 months

9%

2,5%

ххх

ххх