Closure of interpals account
I am writing to you because we are faced by a totally unexpected crisis which has the potential to force us to cease operations early next month. We received notification the day before yesterday from our bank, the Islamic Bank of Britain (IBB), that Lloyds TSB (their clearing bank) have served notice on IBB to cease all dealings with Interpal. The notice comes into effect on 8 December 2008 (a nice Eid prsent!). After this time “all transactions into or out of Interpal accounts will be blocked and IBB will be at further risk of all its customer payments being suspended.” IBB has offered us its total support but is apparently powerless in this situation, throwing into question the autonomy of Britain’s burgeoning Islamic finance sector.